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[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 567 Introduced in Senate (IS)]

110th CONGRESS
  1st Session
                                 S. 567

     To authorize appropriations for fiscal year 2008 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2008, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 13, 2007

  Mr. Levin (for himself and Mr. McCain) (by request) introduced the 
 following bill; which was read twice and referred to the Committee on 
                             Armed Services

_______________________________________________________________________

                                 A BILL

 
     To authorize appropriations for fiscal year 2008 for military 
    activities of the Department of Defense, to prescribe military 
   personnel strengths for fiscal year 2008, 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.

    This Act may be cited as the ``National Defense Authorization Act 
for Fiscal Year 2008''.

SEC. 2. TABLE OF CONTENTS.

    (a) Divisions.--This Act is organized into two divisions as 
follows:
            (1) Division a.--Department of Defense Authorizations.
            (2) Division b.--Military Construction Authorizations.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
            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.
Sec. 105. Rapid Acquisition Fund.
Sec. 106. Joint Improvised Explosive Device Defeat Fund.
                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for Army programs.
                       Subtitle C--Navy Programs

Sec. 121. Multiyear procurement authority for Virginia Class submarine 
                            program.
         TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

              Subtitle A--Authorization of Appropriations

Sec. 201. Authorization of appropriations.
                  Subtitle B--Missile Defense Programs

Sec. 211. Fielding of ballistic missile defense capabilities.
                  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. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with the Arctic Surplus 
                            Superfund Site, Fairbanks, Alaska.
Sec. 312. Payment to EPA of stipulated penalties in connection with 
                            Jackson Park Housing Complex, Washington.
Sec. 313. Promoting privately conducted responsible, compliant, and 
                            economically beneficial environmental 
                            restoration at closed installations.
Sec. 314. Range management.
Sec. 315. Air quality plans.
Sec. 316. Enhanced encroachment protection.
Sec. 317. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
                 Subtitle C--Workplace and Depot Issues

Sec. 321. Modification of prohibition on contracts for performance of 
                            firefighting or security-guard functions.
Sec. 322. Flexibility in use of low density/high demand military 
                            personnel.
                       Subtitle D--Other Matters

Sec. 331. Reimbursement for National Guard military support to civilian 
                            law enforcement.
Sec. 332. Extend period to transfer funds into the foreign currency 
                            fluctuations account.
Sec. 333. Availability of Appropriations for unusual cost overruns and 
                            for changes in scope of work for ship 
                            overhaul, maintenance, and repair.
Sec. 334. Reauthorization of aviation insurance program.
Sec. 335. Reasonable restrictions on the payment of full replacement 
                            value for personal property claims.
              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
                       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 2008 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

Sec. 501. Increase in authorized strengths for Army officers on active 
                            duty in the grade of major to meet new 
                            force structure requirements.
Sec. 502. Increase in authorized strengths for Navy officers on active 
                            duty in the grades of lieutenant commander, 
                            commander, and captain to meet new force 
                            structure requirements.
Sec. 503. Enhanced authority for reserve general and flag officers to 
                            serve on active duty.
Sec. 504. Reenlistment of officers in their former enlisted grade.
Sec. 505. Discharge of probationary officers and force shaping 
                            authority.
Sec. 506. Addition of all Navy permanent military professors to the 
                            list of exemptions to DOPMA authorized 
                            grade limitations.
Sec. 507. Mandatory separation of reserve officers in the grade of 
                            lieutenant general or vice admiral.
Sec. 508. Adjustments in payment of continuation of pay in disability 
                            claims.
Sec. 509. Temporary suspension of eligibility for education benefit.
Sec. 510. Increased tenure for general and flag officers.
Sec. 511. Amendment of years of service provision to conform with 
                            extended mandatory retirement age for 
                            active-duty general and flag officers.
                 Subtitle B--Reserve Component Matters

Sec. 521. Duty of regular members of the Army and Air Force with the 
                            National Guard.
Sec. 522. Enforcement of voluntary service agreements.
Sec. 523. Benefits for certain National Guard duty.
Sec. 524. Continued service within two years of retirement eligibility.
Sec. 525. Increase in the period of temporary Federal recognition from 
                            six to twelve months.
Sec. 526. Nuclear officer incentive pay: continuation pay eligibility.
                   Subtitle C--Education and Training

Sec. 531. Issue of serviceable material other than to Armed Forces.
Sec. 532. Authority for permanent professors at the service military 
                            academies or military graduate schools to 
                            sit as members of promotion boards.
Sec. 533. Career military professors of the Navy: promotions.
                Subtitle D--General Service Authorities

Sec. 541. Shorten eight year mandatory service obligation for qualified 
                            health professionals in critical 
                            specialties.
Sec. 542. Reinstatement of enhanced authority for selective early 
                            retirement.
                  Subtitle E--Military Justice Matters

Sec. 551. Permit secretary to designate persons eligible for legal 
                            assistance.
            Subtitle F--Defense Dependents Education System

Sec. 561. Private tuition for military dependents in remote overseas 
                            areas.
                       Subtitle G--Other Matters

Sec. 571. Elimination of annual limit on number of ROTC scholarships 
                            under Army Reserve and National Guard 
                            program.
Sec. 572. Creation of uniform military band performance authority; 
                            clarification of circumstances that create 
                            competition with local civilian musicians.
Sec. 573. Recovery of missing military property by the Navy and Marine 
                            Corps.
Sec. 574. Flexible management of deployments of members.
          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Allowance for reserve screening.
Sec. 602. JROTC instructor stipends for hard-to-fill areas.
Sec. 603. Income replacement payments for Reserves experiencing 
                            extended and frequent mobilization for 
                            active duty service.
Sec. 604. Revisions to tuition assistance authority.
Sec. 605. Montgomery GI Bill for the Selected Reserve benefits for 
                            certain members affected by force shaping 
                            initiatives.
Sec. 606. Extended servicemembers' group life insurance.
Sec. 607. Modification of Montgomery GI Bill participation election and 
                            educational loan repayment.
           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. One-year extension of certain bonus and special pays for 
                            reserve forces.
Sec. 612. One-year extension of certain bonus and special pay 
                            authorities for certain health care 
                            professionals.
Sec. 613. One-year extension of special pay and bonus authorities for 
                            nuclear officers.
Sec. 614. Exception to 25 years of active duty limit for receipt of 
                            critical skills retention bonus.
Sec. 615. Enhancement of Referral Bonus to Encourage Service in the 
                            Army.
Sec. 616. Enhancement of Selected Reserve accession bonus authority.
Sec. 617. Special pay: reenlistment bonus for members of the Selected 
                            Reserve.
Sec. 618. Increase in incentive special pay and multiyear retention 
                            bonus for medical officers of the Armed 
                            Forces.
Sec. 619. Increase in dental officer additional special pay.
Sec. 620. Accession bonus for participants in the Armed Forces health 
                            professional scholarship and financial 
                            assistance program.
             Subtitle C--Retired Pay and Survivor Benefits

Sec. 621. Waiver of recoupment of overpayments of retired pay to spouse 
                            or former spouse as a result of retroactive 
                            disability determination.
Sec. 622. Survivor benefit plan; extension of period for election 
                            deemed to have been made.
Sec. 623. Allowing member to submit application for direct payment.
Sec. 624. Division of retired pay to be based on member's length of 
                            service and pay grade at time of divorce.
Sec. 625. Increases for divisions of retired pay expressed as a dollar 
                            amount.
Sec. 626. Lump sum payments to former spouses of members of the 
                            uniformed services.
Sec. 627. Prohibit court-ordered payments before retirement based on 
                            imputation of retired pay.
Sec. 628. Revocation of ten-year rule for direct payment of retired 
                            pay.
Sec. 629. Survivor benefit plan; multiple beneficiaries.
Sec. 630. Survivor benefit plan; financial responsibility for survivor 
                            benefit plan participation.
Sec. 631. Survivor benefit plan; presumptive proportionate share.
    Subtitle D--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 641. Continuation of commissary and exchange privileges.
                       Subtitle E--Other Matters

Sec. 651. Change in the definition of sea duty for career sea pay to 
                            include multi-crew ships.
Sec. 652. Establishment of Army incentive fund.
Sec. 653. Expansion of Selected Reserve education loan repayment 
                            program.
Sec. 654. Reemployment rights following certain National Guard duty.
Sec. 655. Allow member To waive notice and provide court order upon 
                            request.
Sec. 656. Disregard periods of confinement for dependent victims of 
                            abuse.
Sec. 657. Clarifying amendment regarding jurisdiction for purposes of 
                            allocation of retired pay under the 
                            Uniformed Services Former Spouse Protection 
                            Act.
Sec. 658. Overseas naturalization of military family members.
                   TITLE VII--HEALTH CARE PROVISIONS

                      TRICARE Program Improvements

Sec. 701. Revising TRICARE program cost sharing amounts.
Sec. 702. Exclusion of surrogacy maternity and infant care.
Sec. 703. Suspension of health care eligibility for fraud.
  TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED 
                                MATTERS

             Subtitle A--Acquisition Policy and Management

Sec. 801. Unified combatant command for joint warfighting 
                            experimentation: acquisition authority.
Sec. 802. Limited authorization to acquire items produced in Iraq or 
                            Afghanistan for use by Iraqi or Afghani 
                            forces.
Sec. 803. Authority to use simplified acquisition procedures for 
                            certain commercial items.
Sec. 804. Minimum annual purchase for Civil Reserve Air Fleet 
                            contracts.
Sec. 805. Streamline jurisdiction over government contract claims, 
                            disputes and appeals arising out of 
                            maritime contracts.
Sec. 806. Revisions to required receipt objectives for previously 
                            authorized disposals from the national 
                            defense stockpile.
Subtitle B--Amendments to General Contracting Authorities, Procedures, 
                            and Limitations

Sec. 811. Repealing the sunset provision of the Acquisition Workforce 
                            Training Fund.
Sec. 812. Revitalization of Department of Defense laboratories.
Sec. 813. Extension of the authority to carry out certain prototype 
                            projects.
Sec. 814. Qualifications for public aircraft status of aircraft under 
                            contract with the Armed Forces.
Sec. 815. Extending the determination of shortage category positions 
                            for certain Federal acquisition positions.
Sec. 816. Multiyear procurement authority for electricity from 
                            renewable energy sources.
Sec. 817. Exemption for Special Operations Command.
                       Subtitle C--Other Matters

Sec. 821. Applicability of statutory executive compensation cap made 
                            prospective.
Sec. 822. Authority to appoint an acting chair for the Cost Accounting 
                            Standards Board.
Sec. 823. Small business innovation research awards; use of program 
                            funds for administrative costs.
Sec. 824. Small business innovation research program; discretionary 
                            technical assistance.
      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Department of Defense Board of Actuaries.
Sec. 902. Limitation on major Department of Defense headquarters 
                            activities personnel.
Sec. 903. Flexibility to adjust the number of Army deputy chiefs of 
                            staff and assistant chiefs of staff.
Sec. 904. Receipts for employees and military members of the Department 
                            of Defense.
Sec. 905. Centers for Excellence in Human Rights.
             Subtitle B--Chemical Demilitarization Program

Sec. 911. Change in termination requirement for Chemical 
                            Demilitarization Citizens' Advisory 
                            Commissions.
                Subtitle C--Intelligence-Related Matters

Sec. 921. Repeal of standards of mandatory disqualification from 
                            eligibility for Department of Defense 
                            security clearance.
Sec. 922. Technical amendments to title 10, United States Code, arising 
                            from enactment of the Intelligence Reform 
                            and Terrorism Prevention Act of 2004.
Sec. 923. Protection of information regarding weapons of mass 
                            destruction.
Sec. 924. Prohibition on disclosure of certain geodetic products.
                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. Repeal of requirement for two-year budget cycle for the 
                            Department of Defense.
Sec. 1002. Short-term investment of burden sharing contributions from 
                            Republic of Korea.
Sec. 1003. Increase limitation on advance billing of Working Capital 
                            Fund customers.
          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Temporary waiver of the minimum aircraft carrier 
                            requirement.
Sec. 1012. Disposals to foreign nations.
                  Subtitle C--Counter-Drug Activities

Sec. 1021. Use of funds for counter-drug and counter-terrorism.
            Subtitle D--Matters Related to Homeland Security

Sec. 1031. Support to national special security events and other 
                            critical national security activities.
                       Subtitle E--Other Matters

Sec. 1041. Protection of Department of Defense persons designated by 
                            the Secretary of Defense.
Sec. 1042. Clarification of jurisdiction of the United States District 
                            Courts to hear bid protest disputes 
                            involving maritime contracts.
Sec. 1043. Cancellation of use of aircraft for proficiency flying: 
                            limitation.
Sec. 1044. Prompt conversion of Army forces in Hawaii.
Sec. 1045. Expand cooperative agreement authority for management of 
                            cultural resources to include off-
                            installation mitigation.
                  TITLE XI--CIVILIAN PERSONNEL MATTERS

Sec. 1101. Compensation for Federal wage system employees for certain 
                            travel hours.
Sec. 1102. Special benefits for civilian employees assigned on 
                            deployment temporary change of station.
Sec. 1103. Authority to waive limitation on premium pay for Federal 
                            civilian employees.
Sec. 1104. Increase in authorized number of defense intelligence senior 
                            executive service employees.
Sec. 1105. Accumulation of annual leave by senior level employees.
Sec. 1106. Travel compensation for prevailing rate employees.
Sec. 1107. Annuity commencing dates.
Sec. 1108. Life insurance coverage for employees called to active duty.
Sec. 1109. Flexibility in setting pay for employees who move from a 
                            Department of Defense or Coast Guard 
                            nonappropriated fund instrumentality 
                            position to a DoD or Coast Guard position 
                            in the general schedule pay system.
Sec. 1110. Informing government contractor employees of their 
                            whistleblower rights.
             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Authority to train and equip foreign personnel to assist in 
                            accounting for missing personnel.
Sec. 1202. Provision of support and services to foreign military and 
                            state aircraft.
     Subtitle B--Nonproliferation Matters and Countries of Concern

Sec. 1211. Repeal of certain laws pertaining to the Joint Committee for 
                            the Review of Counterproliferation 
                            Programs.
                       Subtitle C--Other Matters

Sec. 1221. Cooperative research and development agreements: NATO 
                            organizations; allied and friendly foreign 
                            countries.
Sec. 1222. Amendment to the composition of the Board of Visitors of the 
                            Western Hemisphere Institute for Security 
                            Cooperation.
Sec. 1223. Accept funds from the Government of Palau.
Sec. 1224. Sharing risks in international operations.
 TITLE XIII--MATTERS RELATED TO DEFENSE AGAINST TERRORISM AND RELATED 
                            SECURITY MATTERS

Sec. 1301. Rationalizing rewards for assistance in combating terrorism.
  TITLE XIV--ADDITIONAL AUTHORIZATIONS FOR INCREASED COSTS DUE TO THE 
GLOBAL WAR ON TERROR FOR MILITARY ACTIVITIES AND MILITARY CONSTRUCTION 
                          FOR FISCAL YEAR 2008

Sec. 1401. Army procurement.
Sec. 1402. Navy and Marine Corps procurement.
Sec. 1403. Air Force procurement.
Sec. 1404. Defense-wide activities procurement.
Sec. 1405. Joint Improvised Explosive Device Defeat Fund.
Sec. 1406. Research, development, test, and evaluation.
Sec. 1407. Operation and maintenance funding.
Sec. 1408. Working capital funds.
Sec. 1409. Other Department of Defense programs.
Sec. 1410. Iraq Freedom Fund.
Sec. 1411. Afghanistan Security Forces Fund.
Sec. 1412. Iraq Security Forces Fund.
Sec. 1413. Additional end strengths for active forces.
Sec. 1414. Military personnel.
Sec. 1415. Authorized Army construction and land acquisition projects.
Sec. 1416. Military construction authorization of appropriations, Army.
Sec. 1417. Authorized Navy construction and land acquisition projects.
Sec. 1418. Military construction authorization of appropriations, Navy.
            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.
                            TITLE XXI--ARMY

(TO BE SUBMITTED AT A LATER DATE)
                            TITLE XXII--NAVY

(TO BE SUBMITTED AT A LATER DATE)
                         TITLE XXIII--AIR FORCE

(TO BE SUBMITTED AT A LATER DATE)
                      TITLE XXIV--DEFENSE AGENCIES

(TO BE SUBMITTED AT A LATER DATE)
   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

(TO BE SUBMITTED AT A LATER DATE)
       TITLE XXVI--CHEMICAL DEMILITARIZATION CONSTRUCTION PROGRAM

(TO BE SUBMITTED AT A LATER DATE)
            TITLE XXVII--GUARD AND RESERVE FORCES FACILITIES

(TO BE SUBMITTED AT A LATER DATE)
        TITLE XXVIII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

(TO BE SUBMITTED AT A LATER DATE)
          TITLE XXIX--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2901. Alternative authority for acquisition and improvement of 
                            military housing.
Sec. 2902. Increased threshold for congressional notification of leases 
                            for military family housing facilities in a 
                            foreign country.
Sec. 2903. Updating foreign currency fluctuation adjustment for certain 
                            military family housing leases in Korea.
Sec. 2904. Flexibility in determining domestic family housing lease 
                            maximums.
Sec. 2905. Extension of authority to accept equalization payments for 
                            facility exchanges.
        Subtitle B--Real Property and Facilities Administration

Sec. 2911. Consolidation of real property provisions without 
                            substantive change.
Sec. 2912. Transfer of the Air Force Memorial to the Department of the 
                            Air Force.
                      Subtitle C--Land Conveyances

Sec. 2921. Land transfer of Arlington Naval Annex to Arlington National 
                            Cemetery.
                       Subtitle D--Other Matters

Sec. 2931. Authority to use operation and maintenance funds for 
                            construction projects outside the United 
                            States.
Sec. 2932. Streamlining military construction to reduce facility 
                            acquisition and construction cycle time.
Sec. 2933. Amendment of the Federal Land Policy and Management Act of 
                            1976 to include Nevada as a State where the 
                            military can access public land via a 
                            permit granted by the Secretary of the 
                            Interior.

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Army as follows:
            (1) For aircraft, $4,179,848,000.
            (2) For missiles, $1,645,485,000.
            (3) For weapons and tracked combat vehicles, 
        $3,089,998,000.
            (4) For ammunition, $2,190,576,000.
            (5) For other procurement, $12,647,099,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for procurement for the Navy as follows:
            (1) For aircraft, $12,747,767,000.
            (2) For weapons, including missiles and torpedoes, 
        $3,084,387,000.
            (3) For shipbuilding and conversion, $13,656,120,000.
            (4) For other procurement, $5,470,412,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for procurement for the Marine Corps in the amount 
of $2,999,057,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for procurement of ammunition 
for the Navy and Marine Corps in the amount of $760,484,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Air Force as follows:
            (1) For aircraft, $12,393,270,000.
            (2) For ammunition, $868,917,000.
            (3) For missiles, $5,131,002,000.
            (4) For other procurement, $15,421,162,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Defense-wide procurement in the amount of $3,318,834,000.

SEC. 105. RAPID ACQUISITION FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Rapid Acquisition Fund in the amount of $100,000,000.

SEC. 106. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Joint Improvised Explosive Device Defeat Fund in the amount of 
$500,000,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR ARMY PROGRAMS.

    Beginning with the fiscal year 2008 program year, the Secretary of 
the Army may, in accordance with section 2306b of title 10, United 
States Code, enter into multi-year contracts for procurement of the 
following:
            (1) Army Ch-Chinook Helicopter;
            (2) M1A2 Abrams System Enhancement Package upgrades, and
            (3) M2A3/M3A3 Bradley upgrades.

                       Subtitle C--Navy Programs

SEC. 121. MULTIYEAR PROCUREMENT AUTHORITY FOR VIRGINIA CLASS SUBMARINE 
              PROGRAM.

    (a) Authority.--The Secretary of the Navy may, in accordance with 
section 2306b of title 10, United States Code, enter into multiyear 
contracts, beginning with the fiscal year 2009 program year, for the 
procurement of Virginia-class submarines and government-furnished 
equipment.
    (b) Limitations.--The Secretary of the Navy may not enter into a 
contract authorized by subsection (a) until--
            (1) the Secretary submits to the congressional defense 
        committees a certification that the Secretary has made each of 
        the findings with respect to such contract specified in 
        subsection (a) of section 2306b of title 10, United States 
        Code; and
            (2) a period of 30 days has elapsed after the date of the 
        transmission of such certification.

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

              Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Department of Defense for research, development, 
test, and evaluation, as follows:
            (1) For the Army, $10,589,604,000.
            (2) For the Navy, $17,075,536,000.
            (3) For the Air Force, $26,711,940,000.
            (4) For Defense-wide activities, $20,740,114,000, of which 
        $180,264,000 is authorized for the Director of Operational Test 
        and Evaluation.

                  Subtitle B--Missile Defense Programs

SEC. 211. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized to be 
appropriated for fiscal year 2009 for research, development, test, and 
evaluation for the Missile Defense Agency may be used for the 
development and fielding of ballistic missile defense capabilities.

                  TITLE III--OPERATION AND MAINTENANCE

              Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
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, $28,924,973,000.
            (2) For the Navy, $33,334,690,000.
            (3) For the Marine Corps, $4,961,393,000.
            (4) For the Air Force, $33,655,633,000.
            (5) For the Defense-wide activities, $22,574,278,000.
            (6) For the Army Reserve, $2,508,062,000.
            (7) For the Navy Reserve, $1,186,883,000.
            (8) For the Marine Corps Reserve, $208,637,000.
            (9) For the Air Force Reserve, $2,692,077,000.
            (10) For the Army National Guard, $5,840,209,000.
            (11) For the Air National Guard, $5,041,965,000.
            (12) For the United States Court of Appeals for the Armed 
        Forces, $11,971,000.
            (13) For Environmental Restoration, Army, $434,879,000.
            (14) For Environmental Restoration, Navy, $300,591,000.
            (15) For Environmental Restoration, Air Force, 
        $458,428,000.
            (16) For Environmental Restoration, Defense-wide, 
        $12,751,000.
            (17) For Environmental Restoration, Formerly Used Defense 
        Sites, $250,249,000.
            (18) For Overseas Humanitarian, Disaster, and Civic Aid 
        programs, $103,300,000.
            (19) For Former Soviet Union Threat Reduction programs, 
        $348,048,000.
            (20) For the Overseas Contingency Operations Transfer Fund, 
        $5,000,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,352,746,000.
            (2) For the National Defense Sealift Fund, $1,079,094,000.

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 2008 for 
expenses, not otherwise provided for, for the Defense Health Program, 
in the amount of $20,679,124,000, of which--
            (1) $20,182,381,000 is for Operation and Maintenance;
            (2) $134,482,000 is for Research, Development, Test, and 
        Evaluation; and
            (3) $362,261,000 is for Procurement.
    (b) Chemical Agents and Munitions Destruction, Army.--
            (1) Authorization of appropriations.--Funds are hereby 
        authorized to be appropriated for the Department of Defense for 
        fiscal year 2008 for expenses, not otherwise provided for, for 
        Chemical Agents and Munitions Destruction, in the amount of 
        $1,455,724,000, of which--
                    (A) $1,198,086,000 is for Operation and 
                Maintenance;
                    (B) $221,212,000 is for Research, Development, 
                Test, and Evaluation; and
                    (C) $36,426,000 is for Procurement.
            (2) Use.--Amounts authorized to be appropriated under 
        paragraph (1) are authorized for--
                    (A) the destruction of lethal chemical agents and 
                munitions in accordance with section 1412 of the 
                Department of Defense Authorization Act, 1986 (50 
                U.S.C. 1521); and
                    (B) the destruction of chemical warfare materiel of 
                the United States that is not covered by section 1412 
                of such Act.
    (c) Drug Interdiction and Counter-Drug Activities, Defense-Wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2008 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, in the 
amount of $936,822,000.
    (d) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2008 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, in the amount of $215,995,000, of 
which--
            (1) $214,995,000 is for Operation and Maintenance; and
            (2) $1,000,000 is for Procurement.

                  Subtitle B--Environmental Provisions

SEC. 311. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH THE ARCTIC SURPLUS SUPERFUND 
              SITE, FAIRBANKS, ALASKA.

    From funds authorized to be appropriated by section 301(16) for 
Environmental Restoration, Defense-wide, the Secretary of Defense may, 
notwithstanding section 2215 of title 10, United States Code, transfer 
not more than $186,625.38 to the Hazardous Substance Superfund to 
reimburse the Environmental Protection Agency for costs incurred 
pursuant to the agreement known as ``In the Matter of Arctic Surplus 
Superfund Site, U.S. EPA Docket Number CERCLA-10-2003-0114: 
Administrative Order on Consent for Remedial Design and Remedial 
Action,'' entered into by the Department of Defense and the 
Environmental Protection Agency on December 11, 2003.

SEC. 312. PAYMENT TO EPA OF STIPULATED PENALTIES IN CONNECTION WITH 
              JACKSON PARK HOUSING COMPLEX, WASHINGTON.

    From funds authorized to be appropriated by section 301(14) for 
operation and maintenance for Environmental Restoration, Navy, the 
Secretary of the Navy may, notwithstanding section 2215 of title 10, 
United States Code, transfer not more than $40,000.00 to the Hazardous 
Substance Superfund to pay a stipulated penalty assessed by the 
Environmental Protection Agency on October 25, 2005, against the 
Jackson Park Housing Complex, Washington, for the Navy's failure to 
timely submit a draft final Phase II Remedial Investigation Work Plan 
for the Jackson Park Housing Complex Operable Unit (OU-3T-JPHC) 
pursuant to a schedule included in an Interagency Agreement 
(Administrative Docket No. CERCLA-10-2005-0023).

SEC. 313. PROMOTING PRIVATELY CONDUCTED RESPONSIBLE, COMPLIANT, AND 
              ECONOMICALLY BENEFICIAL ENVIRONMENTAL RESTORATION AT 
              CLOSED INSTALLATIONS.

    Section 2905(e) 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) 
is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``, waste 
                management, and environmental compliance'';
                    (B) in subparagraph (B), by striking ``exclusively 
                for the use'' and all that follows through the period 
                at the end of the subparagraph and inserting ``for 
                purposes other than to assist the homeless.''; and
                    (C) in subparagraph (C), by inserting before the 
                period at the end the following: ``, and shall require 
                appropriate financial assurance (as determined by the 
                Secretary) by the property recipient for environmental 
                restoration activities not otherwise addressed by 
                paragraph (5)'';
            (2) in paragraph (2), by striking ``Congress that'' and all 
        that follows through the end and inserting ``Congress that the 
        resulting transaction will--
                    ``(A) ensure that all response actions necessary to 
                protect human health and the environment will be 
                completed;
                    ``(B) provide an economically sound transaction for 
                the United States; and
                    ``(C) promote rapid reuse of the property.''.
            (3) by striking paragraph (3);
            (4) by redesignating paragraphs (4), (5), and (6) as 
        paragraphs (3), (4), and (5), respectively;
            (5) in paragraph (5), as so redesignated, by striking 
        ``paragraph (4)'' and inserting ``paragraph (3)''; and
            (6) by adding at the end the following new paragraph (6):
            ``(6) Any payments received pursuant to an agreement under 
        paragraph (1) at an installation approved for closure or 
        realignment on or before January 1, 2005, shall be deposited 
        into the account established pursuant to section 2906. Any 
        payments received under paragraph (1) at an installation 
        approved for closure or realignment after January 1, 2005, 
        shall be deposited into the account established pursuant to 
        section 2906A.''.

SEC. 314. RANGE MANAGEMENT.

    (a) Definition of Solid Waste.--(1) The term ``solid waste'' as 
used in the Solid Waste Disposal Act, as amended (42 U.S.C. 6901 et 
seq.), does not include--
            (A) military munitions, including unexploded ordnance; or
            (B) the constituents thereof, that are or have come to be 
        located, incident to their normal and expected use, on an 
        operational range, and remain thereon.
    (2) Paragraph (1) shall not apply to--
            (A) military munitions, including unexploded ordnance; or
            (B) the constituents thereof, that--
                    (i) are recovered, collected, and then disposed of 
                by burial or landfilling;
                    (ii) have migrated off an operational range;
                    (iii) come to be located off of an operational 
                range; or
                    (iv) remain on the range once the range ceases to 
                be an operational range.
    (3) Nothing in this section affects the authority of federal, 
state, interstate, or local regulatory authorities to determine when--
            (A) military munitions, including unexploded ordnance; or
            (B) the constituents thereof,
become hazardous waste for purposes of the Solid Waste Disposal Act, as 
amended, including, but not limited to, sections 7002 and 7003 (42 
U.S.C. 6972 and 6973), except for military munitions, including 
unexploded ordnance, or the constituents thereof, that are excluded 
from the definition of solid waste by this subsection.
    (b) Definition of Release.--(1) The term ``release'' as used in the 
Comprehensive Environmental Response, Compensation, and Liability Act 
of 1980, as amended (42 U.S.C. 9601 et seq.), does not include the 
deposit or presence of any--
            (A) military munitions, including unexploded ordnance; or
            (B) the constituents thereof,
that are or have come to be located, incident to their normal and 
expected use, on an operational range, and remain thereon.
    (2) Paragraph (1) shall not apply to--
            (A) military munitions, including unexploded ordnance; or
            (B) the constituents thereof, that--
                    (i) migrate off an operational range;
                    (ii) come to be located off of an operational 
                range; or
                    (iii) remain on the range once the range ceases to 
                be an operational range.
    (3) Notwithstanding the provisions of paragraph (1), the authority 
of the President under section 106(a) of the Comprehensive 
Environmental Response, Compensation, and Liability Act of 1980, as 
amended (42 U.S.C. 9606(a)), to take action because there may be an 
imminent and substantial endangerment to the public health or welfare 
or the environment because of an actual or threatened release of a 
hazardous substance includes the authority to take action because of 
the deposit or presence of any--
            (A) military munitions, including unexploded ordnance; or
            (B) the constituents thereof,
that are or have come to be located, incident to their normal and 
expected use, on an operational range, and remain thereon.
    (c) Definitions.--(1) For purposes of this section, the term 
``constituents'' means any materials originating from military 
munitions, including--
            (A) unexploded ordnance;
            (B) explosive and non-explosive materials; and
            (C) emission, degradation, or breakdown products of such 
        munitions.
    (2) For purposes of this section, the terms ``military munitions'', 
``operational range'', and ``unexploded ordnance'' have the meanings 
given such terms in section 101(e) of title 10, United States Code.
    (d) Change in Range Status.--Nothing in this section affects the 
legal requirements applicable to--
            (1) military munitions, including unexploded ordnance; or
            (2) the constituents thereof,
that have come to be located on an operational range, once the range 
ceases to be an operational range.
    (e) Continuation of Authority.--Nothing in this section affects the 
authority of the Department of Defense to protect the environment, 
safety, and health on operational ranges.

SEC. 315. AIR QUALITY PLANS.

    (a) Conformity With Clean Air Act.--In any case in which the 
requirements of section 176(c) of the Clean Air Act would have applied 
to proposed military readiness activities, the Department of Defense 
shall not be prohibited from engaging in such activities and it shall 
have up to three years, from the date such activities begin, to satisfy 
the requirements of that section, provided:
            (1) the Department of Defense has provided the State in 
        which the proposed military readiness activities would occur an 
        estimate of the annual emissions caused by the proposed 
        military readiness activities for all criteria pollutants for 
        which the area is designated ``non-attainment'' or 
        ``maintenance''; and
            (2) the State provides written concurrence with the 
        extension of up to three years.
    (b) Environmental Protection Agency Approval.--Notwithstanding any 
other provisions of law, an implementation plan or plan revision 
required under the Clean Air Act shall be approved by the Administrator 
of the Environmental Protection Agency if:
            (1) such plan or revision meets all the requirements 
        applicable to it under the Clean Air Act other than a 
        requirement that such plan or revision demonstrate attainment 
        and maintenance of the relevant national ambient air quality 
        standards by the attainment date specified under the applicable 
        provision of the Act, or in a regulation promulgated under such 
        provision; and
            (2) the submitting State established to the satisfaction of 
        the Administrator that the implementation plan of such State 
        would be adequate to attain and maintain the relevant national 
        ambient air quality standards by the attainment date specified 
        under the applicable provision of the Act, or in a regulation 
        promulgated under such provision, but for emissions emanating 
        from military readiness activities not otherwise meeting 
        section 176(c) of the Act pursuant to subsection (a) of this 
        section.
    (c) Effect on State Compliance With Ozone Standards.--
Notwithstanding any other provisions of law, any State that establishes 
to the satisfaction of the Administrator that, with respect to an ozone 
non-attainment area in such State, such State would have attained the 
national ambient air quality standard for ozone by the applicable 
attainment date, but for emissions emanating from military readiness 
activities not otherwise meeting section 176(c) of the Clean Air Act 
pursuant to subsection (a) of this section, shall not be subject to the 
provisions of section 181(b)(2) and (4) or section 185 of the Act.
    (d) Effect on State Compliance With Carbon Monoxide Standards.--
Notwithstanding any other provision of law, any State that establishes 
to the satisfaction of the Administrator, with respect to a carbon 
monoxide non-attainment area in such State, that such State has 
attained the national ambient air quality standard for carbon monoxide 
by the applicable attainment date, but for emissions emanating from 
military readiness activities not otherwise meeting section 176(c) of 
the Clean Air Act pursuant to subsection (a) of this section, shall not 
be subject to the provisions of section 186(b)(2) or 187(g) of the Act.
    (e) Effect on State Compliance With PM-10 Standards.--
Notwithstanding any other provisions of law, any State that establishes 
to the satisfaction of the Administrator that, with respect to a PM-10 
non-attainment area in such State, such State would have attained the 
national ambient air quality standard for PM-10 by the applicable 
attainment date, but for emission emanating from military readiness 
activities not otherwise meeting section 176(c) of the Clean Air Act 
pursuant to subsection (a) of this section, shall not be subject to the 
provisions of section 188(b)(2) of the Act.
    (f) Military Readiness Activities.--The term ``military readiness 
activities'' (1) includes--
            (A) all training and operations of the Armed Forces that 
        relate to combat; and
            (B) the adequate and realistic testing of military 
        equipment, vehicles, weapons, and sensors for proper operation 
        and suitability for combat use; but
    (2) does not include--
            (A) the routine operation of installation operating support 
        functions, including but not limited to heat and electric 
        production, administrative offices, military exchanges, 
        commissaries, water treatment facilities, storage facilities, 
        schools, housing, motor pools, laundries, morale, welfare, and 
        recreation activities, shops, and mess halls;
            (B) the operation of industrial activities; or
            (C) the construction or demolition of facilities used for a 
        purpose described in paragraph (1).

SEC. 316. ENHANCED ENCROACHMENT PROTECTION.

    Section 2684a(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (3), (4), (5), and (6) as 
        paragraphs (4), (5), (6), and (7), respectively;
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
            ``(3) An agreement with an eligible entity under subsection 
        (a)(2) of this section may provide for the management of 
        natural resources and the contribution by the United States 
        towards natural resource management costs on any real property 
        in which a military department has acquired any right title or 
        interest in accordance with paragraph (1)(A) where there is a 
        demonstrated need to preserve or restore habitat for purposes 
        of subsection (a)(2).''; and
            (3) in paragraph (4)(C), as redesignated by paragraph (1), 
        by striking ``equal to the fair market value'' and all that 
        follows through the period at the end and inserting ``equal 
        to--
                            ``(i) the fair market value of any property 
                        or interest in property to be transferred to 
                        the United States upon the request of the 
                        Secretary concerned under paragraph (5); or
                            ``(ii) at the discretion of the Secretary 
                        concerned, the cumulative fair market value of 
                        all properties or interests to be transferred 
                        to the United States under paragraph (5) 
                        pursuant to an agreement under subsection 
                        (a).''.

SEC. 317. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    From funds authorized to be appropriated by section 301(16) for 
Environmental Restoration, Defense-wide, the Secretary of Defense may, 
notwithstanding section 2215 of title 10, United States Code, transfer 
not more than $91,588.51 to the Moses Lake Wellfield Superfund Site 10-
6J Special Account to reimburse the Environmental Protection Agency for 
costs incurred pursuant to 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, 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.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. MODIFICATION OF PROHIBITION ON CONTRACTS FOR PERFORMANCE OF 
              FIREFIGHTING OR SECURITY-GUARD FUNCTIONS.

    Section 2465(b)(4) of title 10, United States Code, is amended by 
inserting ``or security-guard'' after ``firefighting'' both places it 
appears.

SEC. 322. FLEXIBILITY IN USE OF LOW DENSITY/HIGH DEMAND MILITARY 
              PERSONNEL.

    Paragraph (4) of section 2465(b) of title 10, United States Code, 
is amended to read as follows:
            ``(4) A contract for the performance of security-guard or 
        firefighting functions that the Secretary of Defense determines 
        are, or otherwise would be, performed by members of the armed 
        forces.''.

                       Subtitle D--Other Matters

SEC. 331. REIMBURSEMENT FOR NATIONAL GUARD MILITARY SUPPORT TO CIVILIAN 
              LAW ENFORCEMENT.

    Section 377 of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``To'' and inserting 
        ``Subject to subsection (c), to'';
            (2) by redesignating subsection (b) as subsection (c);
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b)(1) Subject to subsection (c), the Secretary of Defense shall 
require a federal civilian law enforcement agency to which support is 
provided by National Guard personnel authorized to perform other duty 
under section 502(f) of title 32, to reimburse the Department of 
Defense for the costs of that support, notwithstanding any other 
provision of law. No other provision of this chapter shall apply to 
such support.
    ``(2) Any funds received by the Department of Defense as 
reimbursement for support provided by units or members of the National 
Guard under this subsection shall be credited, at the option of the 
Secretary of Defense, to:
            ``(A) the appropriation, fund, or account used to fund the 
        support; or
            ``(B) the appropriate appropriation, fund, or account 
        currently available for such purpose.''; and
            (4) in subsection (c), as redesignated by paragraph (2)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``or under section 502(f) of title 32'' after 
                ``under this chapter''; and
                    (B) in paragraph (2), by inserting ``or units or 
                members of the National Guard'' after ``Department of 
                Defense''.

SEC. 332. EXTEND PERIOD TO TRANSFER FUNDS INTO THE FOREIGN CURRENCY 
              FLUCTUATIONS ACCOUNT.

    Section 2779 of title 10, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``second'' and 
        inserting ``fifth''; and
            (2) in subsection (d)(2), by striking ``second'' and 
        inserting ``fifth''.

SEC. 333. AVAILABILITY OF APPROPRIATIONS FOR UNUSUAL COST OVERRUNS AND 
              FOR CHANGES IN SCOPE OF WORK FOR SHIP OVERHAUL, 
              MAINTENANCE, AND REPAIR.

    (a) In General.--Section 7313 of title 10, United States Code, is 
amended--
            (1) in subsection (a), by striking ``an industrial-fund 
        activity'' and inserting ``a Center of Industrial and Technical 
        Excellence''; and
            (2) in subsection (b)(1)--
                    (A) by striking ``for payments to an industrial-
                fund activity'' and inserting ``for costs incurred by a 
                Center of Industrial and Technical Excellence''; and
                    (B) by striking ``the industrial-fund activity'' 
                and inserting ``the Center of Industrial and Technical 
                Excellence''.
    (b) Clerical Amendment.--(1) Such section is further amended by 
amending the section heading to read as follows:
``Sec. 7313. Availability of appropriations for unusual cost overruns 
              and for changes in scope of work for ship overhaul, 
              maintenance, and repair'';
and
    (2) The table of contents at the beginning of chapter 633 of such 
title is amended by striking the item relating to section 7313 and 
inserting the following new item:

``7313. Availability of appropriations for unusual cost overruns and 
                            for changes in scope of work for ship 
                            overhaul, maintenance, and repair.''.

SEC. 334. REAUTHORIZATION OF AVIATION INSURANCE PROGRAM.

    Section 44310 of title 49, United States Code, is amended by 
striking ``March 30, 2008'' and inserting ``December 31, 2013''.

SEC. 335. REASONABLE RESTRICTIONS ON THE PAYMENT OF FULL REPLACEMENT 
              VALUE FOR PERSONAL PROPERTY CLAIMS.

    Section 2636a(d) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``The regulations may 
require members of the armed forces or civilian employees of the 
Department of Defense to comply with reasonable restrictions in order 
to receive benefits under this section.''.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel 
as of September 30, 2008, as follows:
            (1) The Army, 489,400.
            (2) The Navy, 328,400.
            (3) The Marine Corps, 180,000.
            (4) The Air Force, 328,600.

                       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, 2008, as follows:
            (1) The Army National Guard of the United States, 351,300.
            (2) The Army Reserve, 205,000.
            (3) The Navy Reserve, 67,800.
            (4) The Marine Corps Reserve, 39,600.
            (5) The Air National Guard of the United States, 106,700.
            (6) The Air Force Reserve, 67,500.
            (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, 
2008, 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, 29,204.
            (2) The Army Reserve, 15,870.
            (3) The Navy Reserve, 11,579.
            (4) The Marine Corps Reserve, 2,261.
            (5) The Air National Guard of the United States, 13,936.
            (6) The Air Force Reserve, 2,721.

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 2008 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, 8,249.
            (2) For the Army National Guard of the United States, 
        26,502.
            (3) For the Air Force Reserve, 9,909.
            (4) For the Air National Guard of the United States, 
        22,553.

SEC. 414. FISCAL YEAR 2008 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, 2008, 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, 
        2008, 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, 2008, 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 2008, 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.

    This section would authorize $105,403,698,000 to be appropriated 
for military personnel.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2008 
for the Armed Forces Retirement Home the sum of $61,624,000 for the 
operation of the Armed Forces Retirement Home, including the United 
States Soldiers' and Airmens' Home and the Naval Home.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

SEC. 501. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE 
              DUTY IN THE GRADE OF MAJOR TO MEET NEW FORCE STRUCTURE 
              REQUIREMENTS.

    The table in section 523(a)(l) of title 10, United States Code, is 
amended by striking the figures under the heading ``Major'' in the 
portion of the table relating to the Army and inserting the following:

``7,768
8,689
9,611
10,532
11,454
12,375
13,297
14,218
15,140
16,061
16,983
17,903
18,825
19,746
20,668
21,589
22,511
24,354
26,197
28,040
35,412''.

SEC. 502. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE 
              DUTY IN THE GRADES OF LIEUTENANT COMMANDER, COMMANDER, 
              AND CAPTAIN TO MEET NEW FORCE STRUCTURE REQUIREMENTS.

    The table in section 523(a)(2) of title 10, United States Code, is 
amended by striking the figures under the headings ``Lieutenant 
Commander,'' ``Commander'', and ``Captain'' and inserting the 
following:

             ``7,698                5,269                2,222
               8,189                5,501                2,334
               8,680                5,733                2,447
               9,172                5,965                2,559
               9,663                6,197                2,671
              10,155                6,429                2,784
              10,646                6,660                2,896
              11,136                6,889                3,007
              11,628                7,121                3,120
              12,118                7,352                3,232
              12,609                7,583                3,344
              13,100                7,813                3,457
              13,591                8,044                3,568
              14,245                8,352                3,718
              17,517                9,890             4,467''.

SEC. 503. ENHANCED AUTHORITY FOR RESERVE GENERAL AND FLAG OFFICERS TO 
              SERVE ON ACTIVE DUTY.

    Section 526(d) of title 10, United States Code, is amended to read 
as follows:
    ``(d) Exclusion of Certain Officers.--(1) The limitations of this 
section do not apply to a reserve component general or flag officer who 
is--
            ``(A) on active duty for training; or
            ``(B) on active duty under a call or order specifying a 
        period of less than 180 days.
    ``(2) Notwithstanding the limitation in paragraph (1)(B), the 
Secretary concerned may authorize not more than ten percent of the 
number of officers authorized under section 12004 of this title to 
serve for a period not to exceed 365 days. In determining the maximum 
number of officers that may serve on active duty at any one time under 
this paragraph, any fraction shall be rounded down to the next whole 
number, and at least one officer per service will be authorized under 
this section.''.

SEC. 504. REENLISTMENT OF OFFICERS IN THEIR FORMER ENLISTED GRADE.

    (a) Regular Army.--Section 3258 of title 10, United States Code, is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``a Reserve'' and inserting ``an''; 
                and
                    (B) by striking ``a temporary'' and inserting 
                ``an''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a Reserve'' and 
                inserting ``an''; and
                    (B) in paragraph (2), by striking ``Reserve''.
    (b) Regular Air Force.--Section 8258 of such title is amended--
            (1) in subsection (a)--
                    (A) by striking ``a reserve'' and inserting ``an''; 
                and
                    (B) by striking ``a temporary'' and inserting 
                ``an''; and
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``a Reserve'' and 
                inserting ``an''; and
                    (B) in paragraph (2), by striking ``Reserve''.

SEC. 505. DISCHARGE OF PROBATIONARY OFFICERS AND FORCE SHAPING 
              AUTHORITY.

    (a) Active-Duty List Officers: Years of Active Commissioned 
Service.--Section 630(1)(A) of title 10, United States Code, is amended 
by striking ``five'' and inserting ``six''.
    (b) Officer Force Shaping Authority.--Section 647(b)(1) of such 
title is amended by striking ``5'' both places it appears and inserting 
``6''.
    (c) Reserve Officers: Years of Active Commissioned Service.--
Section 14503(a)(1) of such title is amended by striking ``five'' and 
inserting ``six''.

SEC. 506. ADDITION OF ALL NAVY PERMANENT MILITARY PROFESSORS TO THE 
              LIST OF EXEMPTIONS TO DOPMA AUTHORIZED GRADE LIMITATIONS.

    Section 523(b)(8) of title 10, United States Code, is amended by 
inserting before the period at the end the following: ``, and career 
military professors (as defined in regulations prescribed by the 
Secretary of the Navy) of the Naval War College, the Naval Postgraduate 
School, and any other graduate-level institution established to provide 
advanced education to members of the Navy and Marine Corps, but not to 
exceed 35 in addition to those serving at the Naval Academy''.

SEC. 507. MANDATORY SEPARATION OF RESERVE OFFICERS IN THE GRADE OF 
              LIEUTENANT GENERAL OR VICE ADMIRAL.

    Section 14508 of title 10, United States Code, is amended--
            (1) by redesignating subsections (c), (d) and (e) as 
        subsections (d), (e) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection (c):
    ``(c) Thirty-Eight Years of Service for Lieutenant Generals and 
Vice Admirals.--Unless retired, transferred to the Retired Reserve, or 
discharged at an earlier date, each reserve officer of the Army, Air 
Force, or Marine Corps in the grade of lieutenant general and each 
reserve officer of the Navy in the grade of vice admiral shall, 30 days 
after completion of 38 years of commissioned service, be separated in 
accordance with section 14514 of this title.''.

SEC. 508. ADJUSTMENTS IN PAYMENT OF CONTINUATION OF PAY IN DISABILITY 
              CLAIMS.

    (a) Time of Accrual of Right.--The text of section 8117 of title 5, 
United States Code, is amended to read as follows:
    ``(a) An employee is not entitled to compensation or continuation 
of pay within the meaning of section 8118 of this title for the first 3 
days of temporary disability, except--
            ``(1) when the disability exceeds 14 days; or
            ``(2) as provided by sections 8103 and 8104 of this title.
    ``(b) An employee may use annual leave, sick leave, or leave 
without pay during the three-day waiting period provided under 
subsection (a). If the disability exceeds 14 days, the employee may 
have their sick leave or annual leave reinstated or receive pay for the 
time spent on leave without pay under this section.''.
    (b) Continuation of Pay.--Section 8118 of such title is amended--
            (1) in subsection (b)(1), by inserting ``, except as 
        provided under section 8117,'' after ``time''; and
            (2) by striking subsection (c) and redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively.
    (c) Subrogation of the United States.--Section 8131 of such title 
is amended--
            (1) in subsection (a), by inserting ``continuation of pay 
        or'' after ``which'' in the matter preceding paragraph (1); and
            (2) in subsection (c), by inserting ``continuation of pay 
        or'' after ``the amount of''.
    (d) Adjustment After Recovery From a Third Person.--Section 8132 of 
such title is amended--
            (1) in the first sentence--
                    (A) by inserting ``continuation of pay or'' after 
                ``for which'';
                    (B) by inserting ``continuation of pay or'' after 
                ``entitled to''; and
                    (C) by inserting ``continuation of pay and'' after 
                ``amount of''; and
            (2) by amending the fourth sentence to read as follows: 
        ``If continuation of pay or compensation has not been paid to 
        the beneficiary, the money or property shall be credited 
        against continuation of pay or compensation payable to him by 
        the United States for the same injury.''.

SEC. 509. TEMPORARY SUSPENSION OF ELIGIBILITY FOR EDUCATION BENEFIT.

    Section 16165(b) of title 10, United States Code, is amended to 
read as follows:
    ``(b) Exception.--Under regulations prescribed by the Secretary of 
Defense, a member of the Selected Reserve of the Ready Reserve who 
incurs a break in Selected Reserve service, but remains in the 
Individual Ready Reserve or Inactive National Guard during such break, 
may continue to receive educational assistance under this chapter for 
up to 90 days during such break. However, eligibility for educational 
assistance shall be suspended after the 90th day of such break until 
the member returns to service in the Selected Reserve.''.

SEC. 510. INCREASED TENURE FOR GENERAL AND FLAG OFFICERS.

    (a) In General.--Sections 636 of title 10, United States Code, is 
amended--
            (1) by striking subsections (b) and (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Exception.--Officers serving above the grade of major general 
or rear admiral may continue to serve without regard to years of 
service.''.
    (b) Conforming Amendments.--
            (1) Subsection (a) of such section is amended by striking 
        ``or (c)''.
            (2) Section 637(b) of such title is amended by striking the 
        last sentence in paragraph (2).
            (3) Section 14508 of such title is amended--
                    (A) by redesignating subsections (c), (d), and (e) 
                as subsections (d), (e), and (f), respectively; and
                    (B) by inserting after subsection (b) the following 
                new subsection (c):
    ``(c) Officers Serving Above the Grade of Major General or Rear 
Admiral.--Officers serving above the grade of major general or rear 
admiral may continue to serve without regard to years of service.''.

SEC. 511. AMENDMENT OF YEARS OF SERVICE PROVISION TO CONFORM WITH 
              EXTENDED MANDATORY RETIREMENT AGE FOR ACTIVE-DUTY GENERAL 
              AND FLAG OFFICERS.

    Section 637(b)(3) of title 10, United States Code, is amended by 
striking ``but such period may not (except as provided under section 
1251(b) of this title) extend beyond the date of the officer's sixty-
second birthday'' and inserting ``except as provided under section 1253 
of this title''.

                 Subtitle B--Reserve Component Matters

SEC. 521. DUTY OF REGULAR MEMBERS OF THE ARMY AND AIR FORCE WITH THE 
              NATIONAL GUARD.

    Section 315 of title 32, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) A commissioned officer or enlisted member of the Regular Army 
or Regular Air Force detailed, without vacating his or her regular 
appointment, to duty with the Army National Guard or the Air National 
Guard of a State, the Commonwealth of Puerto Rico, Guam, the Virgin 
Islands, or the District of Columbia, may perform any duty authorized 
to be performed by the laws of the applicable State, the Commonwealth 
of Puerto Rico, Guam, the Virgin Islands, or the District of Columbia, 
as appropriate, without regard to the limitations imposed by section 
1385 of title 18.''.

SEC. 522. ENFORCEMENT OF VOLUNTARY SERVICE AGREEMENTS.

    Section 12301(d) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``When a member has 
entered into a written service agreement (other than an agreement under 
section 12311 of this title) with the Secretary concerned specifying a 
period or periods of active duty to be performed for a particular 
mission or requirement, and in the case of a member of the Army 
National Guard of the United States or the Air National Guard of the 
United States with the consent of the Governor or other appropriate 
authority of the State concerned, the member may not withdraw his 
consent, unless agreed to by the Secretary, and the Secretary may order 
the member to active duty in accordance with the terms of the service 
agreement.''.

SEC. 523. BENEFITS FOR CERTAIN NATIONAL GUARD DUTY.

    Section 12602 of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) duty performed by a member of the Army National Guard 
        of the United States in his status as a member of the Army 
        National Guard under section 502(f) of title 32 at the request 
        of the President or the Secretary of Defense shall be 
        considered active duty in Federal service as a Reserve of the 
        Army for the purposes of providing benefits that are provided 
        to Reserve component members performing duty pursuant to an 
        order to active duty under a provision of law referred to in 
        section 101(a)(13)(B) of this title.''; and
            (2) in subsection (b)--
                    (A) by striking ``and'' at the end of paragraph 
                (2);
                    (B) by striking the period at the end of paragraph 
                (3) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(4) duty performed by a member of the Air National Guard 
        of the United States in his status as a member of the Air 
        National Guard under section 502(f) of title 32 at the request 
        of the President or the Secretary of Defense shall be 
        considered active duty in Federal service as a Reserve of the 
        Air Force for the purposes of providing benefits that are 
        provided to Reserve component members performing duty pursuant 
        to an order to active duty under a provision of law referred to 
        in section 101(a)(13)(B) of this title.''.

SEC. 524. CONTINUED SERVICE WITHIN TWO YEARS OF RETIREMENT ELIGIBILITY.

    Section 12686(b) of title 10, United States Code, is amended to 
read as follows:
    ``(b) Waiver.--With respect to a member of a reserve component who 
is to be ordered to active duty (other than for training) under section 
12301 of this title pursuant to an order to active duty for a single 
period or multiple periods and who (but for this subsection) would be 
covered by subsection (a), the Secretary concerned may require, as a 
condition of such order or multiple orders to active duty, that the 
member waive the applicability of subsection (a) to the member for the 
period or periods of active duty covered by that order and may include 
subsequent orders. In carrying out this subsection, the Secretary 
concerned may require that a waiver under the preceding sentence be 
executed before the period of active duty begins. At anytime before 
commencing a period of active duty covered by such a waiver, the member 
may withdraw consent to waive the applicability of subsection (a).''.

SEC. 525. INCREASE IN THE PERIOD OF TEMPORARY FEDERAL RECOGNITION FROM 
              SIX TO TWELVE MONTHS.

    Section 308(a) of title 32, United States Code, is amended by 
striking ``six months'' and inserting ``twelve months''.

SEC. 526. NUCLEAR OFFICER INCENTIVE PAY: CONTINUATION PAY ELIGIBILITY.

    Section 312 of title 37, United States Code, is amended--
            (1) in subsection (a)(3), by striking ``26'' and inserting 
        ``30''; and
            (2) in subsection (e)(1), by striking ``26'' and inserting 
        ``30''.

                   Subtitle C--Education and Training

SEC. 531. ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES.

    (a) In General.--Part IV of subtitle C of title 10, United States 
Code, is amended by adding at the end the following new chapter:

``CHAPTER 667--ISSUE OF SERVICEABLE MATERIAL OTHER THAN TO ARMED FORCES

``Sec.
``7911. Arms, tentage, and equipment: educational institutions not 
                            maintaining units of ROTC.
``7912. Rifles and ammunition for target practice: educational 
                            institutions having corps of cadets.
``7913. Supplies; military instruction camps.
``Sec. 7911. Arms, tentage, and equipment: educational institutions not 
              maintaining units of ROTC
    ``Under such conditions as he may prescribe, the Secretary of the 
Navy may issue arms, tentage, and equipment that he considers necessary 
for proper military training, to any educational institution at which 
no unit of the Reserve Officers' Training Corps is maintained, but 
which has a course in military training prescribed by the Secretary and 
which has at least 50 physically fit students over 14 years of age.
``Sec. 7912. Rifles and ammunition for target practice: educational 
              institutions having corps of cadets
    ``(a) Authority To Lend.--The Secretary of the Navy may lend, 
without expense to the United States, magazine rifles and appendages, 
that are not of the existing service models in use at the time and that 
are not necessary for a proper reserve supply, to any educational 
institution having a uniformed corps of cadets of sufficient number for 
target practice. He also may issue 40 rounds of ball cartridges for 
each cadet for each range at which target practice is held, but not 
more than 120 rounds each year for each cadet participating in target 
practice.
    ``(b) Responsibilities of Institutions.--The institutions to which 
property is lent under subsection (a) shall--
            ``(1) use the property for target practice;
            ``(2) take proper care of the property; and
            ``(3) return the property when required.
    ``(c) Regulations.--The Secretary shall prescribe regulations to 
carry out this section, containing such other requirements as he 
considers necessary to safeguard the interests of the United States.
``Sec. 7913. Supplies: military instruction camps
    ``Under such conditions as he may prescribe, the Secretary of the 
Navy may issue, to any educational institution at which an officer of 
the naval service is detailed as professor of naval science, such 
supplies as are necessary to establish and maintain a camp for the 
military instruction of its students. The Secretary shall require a 
bond in the value of the property issued under this section, for the 
care and safekeeping of that property and, except for property properly 
expended, for its return when required.''
    (b) Clerical Amendment.--The table of chapters for part IV of such 
title is amended by adding at the end the following new item:

 
 
 
``667. Issue of Serviceable Material Other than to Armed Forces  7910.''
                                                                       .

SEC. 532. AUTHORITY FOR PERMANENT PROFESSORS AT THE SERVICE MILITARY 
              ACADEMIES OR MILITARY GRADUATE SCHOOLS TO SIT AS MEMBERS 
              OF PROMOTION BOARDS.

    Section 612(a)(1) of title 10, United States Code is amended by 
inserting after ``active-duty list'' the following: ``or a permanent 
professor at the United States Military Academy or the United States 
Air Force Academy or the United States Naval Academy (as defined in 
regulations prescribed by the Secretary of the Navy), or career 
military professors from any graduate-level institution established to 
provide advanced education to members of the Army, Navy , Marine Corps 
or Air Force''.

SEC. 533. CAREER MILITARY PROFESSORS OF THE NAVY: PROMOTIONS.

    (a) Permanent Professors: United States Navy.--Section 641(2) of 
title 10, United States Code, is amended to read as follows:
            ``(2) The director of admissions, dean, and permanent 
        professors at the United States Military Academy, the 
        registrar, dean, and permanent professors at the United States 
        Air Force Academy, permanent professors (as defined in 
        regulations prescribed by the Secretary of the Navy) at the 
        United States Naval Academy, and career military professors (as 
        defined in regulations prescribed by the Secretary of the Navy) 
        of the Naval War College, the Naval Postgraduate School, and 
        any other graduate-level institution established to provide 
        advanced education to members of the Navy and Marine Corps.''.
    (b) Promotions.--(1) Chapter 603 of such title is amended by 
inserting after section 6970 the following new section:
``Sec. 6970a. Permanent professors: promotion
    ``An officer serving as a permanent professor at the Naval Academy 
(as defined in regulations prescribed by the Secretary of the Navy) or 
career military professors (as defined in regulations prescribed by the 
Secretary of the Navy) of the Naval War College, the Naval Postgraduate 
School, and any other graduate-level institution established to provide 
advanced education to members of the Navy and Marine Corps in the grade 
of commander or lieutenant colonel may be recommended for promotion to 
the grade of captain or colonel under regulations prescribed by the 
Secretary of the Navy, such promotion to be effective no earlier than 
six years after selection as a permanent professor or career military 
professor. An officer so recommended shall be promoted by appointment 
to the higher grade by the President, by and with the advice and 
consent of the Senate.''.
            (2) The table of sections at the beginning of such chapter 
        is amended by inserting after the item relating to section 6970 
        the following new item:

``6970a. Permanent professors: promotion.''.

                Subtitle D--General Service Authorities

SEC. 541. SHORTEN EIGHT YEAR MANDATORY SERVICE OBLIGATION FOR QUALIFIED 
              HEALTH PROFESSIONALS IN CRITICAL SPECIALTIES.

    Section 651 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) The Secretary of Defense may waive the required service 
provisions of subsection (a) for initial appointments of commissioned 
officers in critically short health professional specialties, as 
determined by the Secretary of Defense. However, no such waiver shall 
reduce the period of obligated service to a period of less than two 
years, and no waiver can reduce the period of obligated service below 
the period for which an individual accepted an accession bonus or 
Multiyear Special Pay contract.''.

SEC. 542. REINSTATEMENT OF ENHANCED AUTHORITY FOR SELECTIVE EARLY 
              RETIREMENT.

    (a) Enhanced Authority for Selective Early Retirement.--Section 
638a of title 10, United States Code, is amended--
            (1) in subsection (a)--
                    (A) by striking ``October 1, 1990'' and inserting 
                ``October 1, 2007''; and
                    (B) by striking ``December 31, 2001'' and inserting 
                ``December 31, 2012''; and
            (2) in subsection (c)(1), by inserting before the period at 
        the end of the second sentence the following: ``; provided, 
        however, that from October 1, 2007 through December 31, 2012, 
        such number may be more than 30 percent of the number of 
        officers considered in each competitive category, but may not 
        be more than 30 percent of the number of officers considered in 
        each grade''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to agreements entered into under section 1175a of 
title 10, United States Code, on or after the date of the enactment of 
this Act.

                  Subtitle E--Military Justice Matters

SEC. 551. PERMIT SECRETARY TO DESIGNATE PERSONS ELIGIBLE FOR LEGAL 
              ASSISTANCE.

    Section 1044(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(6) Other persons designated in regulations prescribed by 
        the Secretary concerned.''.

            Subtitle F--Defense Dependents Education System

SEC. 561. PRIVATE TUITION FOR MILITARY DEPENDENTS IN REMOTE OVERSEAS 
              AREAS.

    Section 1407(b)(1) of the Defense Dependents' Education Act of 1978 
(20 U.S.C. 926(b)(1)) is amended by inserting ``, including private 
boarding school schools in the U.S.,'' in the first sentence after 
``subsection (a)''.

                       Subtitle G--Other Matters

SEC. 571. ELIMINATION OF ANNUAL LIMIT ON NUMBER OF ROTC SCHOLARSHIPS 
              UNDER ARMY RESERVE AND NATIONAL GUARD PROGRAM.

    Subsection (h) of section 2107a of title 10, United States Code, is 
amended by striking ``not more than 416 cadets each year under this 
section, to include'' and inserting ``each year under this section''.

SEC. 572. CREATION OF UNIFORM MILITARY BAND PERFORMANCE AUTHORITY; 
              CLARIFICATION OF CIRCUMSTANCES THAT CREATE COMPETITION 
              WITH LOCAL CIVILIAN MUSICIANS.

    (a) In General.--Chapter 49 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 988. Uniform military band performance authority
    ``(a) Department of Defense Bands.--Department of Defense bands, 
ensembles, choruses, or similar musical units, including individual 
members thereof performing in an official capacity, shall not perform 
music in competition with local civilian musicians or receive 
remuneration for official performances.
    ``(b) Definition.--As used in this section, the term `perform music 
in competition with local civilian musicians'--
            ``(1) includes, but is not limited to, performances--
                    ``(A) that are more than incidental to events that 
                are not supported solely by appropriated funds and are 
                not free to the public; and
                    ``(B) of background, dinner, dance, or other social 
                music at events, regardless of location, that are not 
                supported solely by appropriated funds; but
            ``(2) does not include performances--
                    ``(A) at official Federal Government events that 
                are supported solely by appropriated funds;
                    ``(B) at concerts, parades, and other events that 
                are patriotic events or celebrations of national 
                holidays and are free to the public; or
                    ``(C) that are incidental, including short 
                performances of military or patriotic music to open or 
                close events, to events that are not supported solely 
                by appropriated funds, in compliance with applicable 
                rules and regulations.
    ``(c) Members of Department of Defense Bands.--Members of 
Department of Defense bands, ensembles, choruses, or similar musical 
units may perform music in their personal capacity, as individuals or 
part of a group, for remuneration or otherwise, when not wearing a 
military uniform, not identifying themselves as members of the 
Department of Defense, and in compliance with all applicable 
regulations and standards of conduct.
    ``(d) Recordings.--Department of Defense bands, ensembles, 
choruses, or similar musical units, when authorized pursuant to 
Department of Defense regulation, may produce recordings for 
distribution to the public at a cost not to exceed production and 
distribution expenses, and payments from such recordings shall be 
credited back to the appropriation enabling such expenses.''.
    (b) Clerical and Conforming Amendments.--(1) The table of sections 
at the beginning of such chapter is amended by adding at the end the 
following new item:

``988. Uniform military band performance authority.''.
    (2) Sections 3634, 6223, and 8634 of such title are repealed.

SEC. 573. RECOVERY OF MISSING MILITARY PROPERTY BY THE NAVY AND MARINE 
              CORPS.

    (a) In General.--Chapter 661 of title 10, United States Code, is 
amended by adding at the end the following new sections:
``Sec. 7864. Property accountability: regulations
    ``The Secretary of the Navy may prescribe regulations for the 
accounting for Navy and Marine Corps property and the fixing of 
responsibility for that property.
``Sec. 7865. Individual equipment: unauthorized disposition
    ``(a) Prohibition.--No member of the Navy or the Marine Corps may 
sell, lend, pledge, barter, or give any clothing, arms, or equipment 
furnished him by the United States to any person other than a member of 
the Navy or the Marine Corps, or an officer of the United States, 
authorized to receive it.
    ``(b) Seizure of Property.--If a member of the Navy or the Marine 
Corps has disposed of property in violation of subsection (a) and it is 
in the possession of a person who is neither a member of the Navy or 
the Marine Corps, nor an officer of the United States, authorized to 
receive it, that person has no right to or interest in the property, 
and any civil or military officer of the United States may seize it, 
wherever found. Possession of such property furnished by the United 
States to a member of the Navy or the Marine Corps, by a person who is 
neither a member of the Navy or the Marine Corps, nor an officer of the 
United States, is prima facie evidence that it has been disposed of in 
violation of subsection (a).
    ``(c) Retention of Seized Property.--If an officer who seizes 
property under subsection (b) is not authorized to retain it for the 
United States, he shall deliver it to a person who is authorized to 
retain it.''.
    (b) Clerical Amendments.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new items:

``7864. Property accountability; regulations.
``7865. Individual equipment; unauthorized disposition.''.

SEC. 574. FLEXIBLE MANAGEMENT OF DEPLOYMENTS OF MEMBERS.

    (a) In General.--Section 991 of title 10, United States Code, is 
amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Management Responsibilities.--(1) The Secretary concerned 
shall prescribe regulations to manage the deployment of a member of the 
armed forces in his military department to ensure that the member is 
not deployed, or continued in a deployment, beyond prescribed high-
deployment thresholds for the consecutive days for which the member may 
be deployed and the total number of days on which the member has been 
deployed out of the preceding 730 days. The regulations shall--
            ``(A) specify the high-deployment thresholds;
            ``(B) establish procedures to ensure that members are aware 
        of their deployment days; and
            ``(C) specify the approval process which must take place 
        before a member may be deployed, or continued in a deployment, 
        beyond the high-deployment thresholds.
    ``(2) The Secretary of Defense shall approve--
            ``(A) the high-deployment thresholds for the military 
        departments; and
            ``(B) the procedures for the payment of hardship duty pay 
        under section 305 of title 37 for those members of the armed 
        forces who experience hardship duty by being deployed in excess 
        of approved high-deployment thresholds.'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) by striking ``a training exercise or'' 
                        and inserting ``an''; and
                            (ii) by inserting ``as designated by the 
                        Secretary concerned'' after ``circumstances'';
                    (B) in paragraph (3)--
                            (i) by striking ``or'' at the end of 
                        subparagraph (B);
                            (ii) by striking the period at the end of 
                        subparagraph (C) and inserting a semicolon; and
                            (iii) by adding at the end the following 
                        new subparagraphs:
                    ``(D) performing non-operational temporary duty 
                including conferences and seminars; or
                    ``(E) participating in training or exercises as 
                designated by the Secretary concerned.''; and
                    (C) in paragraph (4)--
                            (i) in the first sentence--
                                    (I) by striking ``The Secretary of 
                                Defense'' and inserting ``The Secretary 
                                concerned''; and
                                    (II) by inserting ``with the 
                                approval of the Secretary of Defense'' 
                                after ``(2)''; and
                            (ii) by striking the second sentence;
            (3) by striking subsection (d); and
            (4) by redesignating subsection (e) as subsection (d).
    (b) Repeal of High Deployment Allowance and Strengthening of 
Hardship Duty Pay.--
            (1) Section 436 of title 37, United States Code, is 
        repealed.
            (2) The text of section 305 of such title is amended to 
        read as follows:
    ``(a) Authority.--A member of a uniformed service who is entitled 
to basic pay may be paid special pay under this section while the 
member is performing duty in the United States or outside the United 
States that is designated by the Secretary of Defense as hardship duty. 
Special pay payable under this section may be paid on a monthly basis 
or in a lump sum.
    ``(b) Written Agreement.--The Secretary concerned shall require a 
member performing service in an assignment designated under subsection 
(a) to enter into a written agreement with the Secretary in order to 
qualify for the payment of special pay on a lump sum basis under this 
section. The written agreement shall specify the period for which the 
special pay will be paid to the member and, subject to subsection (c), 
the amount of the lump sum of the special pay.
    ``(c) Maximum Rate or Amount.--(1) The maximum monthly rate of 
special pay payable to a member on a monthly basis under this section 
is $1,500.
    ``(2) The amount of the lump sum payment of special pay payable to 
a member on a lump sum basis under this section may not exceed an 
amount equal to the product of--
            ``(A) the maximum monthly rate authorized under paragraph 
        (1) at the time of the written agreement of the member under 
        subsection (b); and
            ``(B) the number of months in the period for which hardship 
        duty pay will be paid pursuant to the agreement.
    ``(3) If a member extends an assignment specified in an agreement 
with the Secretary under subsection (b), special pay for the period of 
the extension may be paid under this section on a monthly basis or in a 
lump sum in accordance with this section.
    ``(d) Repayment.--A member who enters into an agreement under this 
section and receives special pay under the agreement in a lump sum, but 
who fails to complete the period of service covered by the payment, 
shall be subject to the repayment provisions of section 303a(e) of this 
title.
    ``(e) Relationship to Other Pay and Allowances.--Special pay paid 
to a member under this section is in addition to any other pay and 
allowances to which the member is entitled.
    ``(f) Regulations.--The Secretary of Defense shall prescribe 
regulations for the provision of hardship duty pay under subsection 
(a), including the specific rates at which the special pay will be 
available.''.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

SEC. 601. ALLOWANCE FOR RESERVE SCREENING.

    (a) Allowance for Electronic Screening.--Chapter 7 of title 37, 
United States Code, is amended by inserting after section 433 the 
following new section:
``Sec. 433a. Allowance for participation in Ready Reserve screening
    ``(a) Screening Allowance.--Under uniform regulations prescribed by 
the Secretaries concerned, a member of the Individual Ready Reserve may 
be paid a stipend for participation in the screening performed pursuant 
to section 10149 of title 10, in lieu of muster duty performed under 
section 12319 of title 10, when such participation is conducted through 
electronic means.
    ``(b) Maximum Payment.--The amount of the stipend under this 
section shall not exceed $50 in any calendar year.
    ``(c) Bar to Retirement Credit.--Participation in the screening 
under this section shall not be credited in determining entitlement to, 
or in computing, retired pay under chapter 1223 of title 10.
    ``(d) Payment Requirements.--(1) The stipend authorized by this 
section may not be disbursed in kind.
    ``(2) The stipend may be paid to the member on or after the date 
the screening is performed, but not later than 30 days after that date.
    ``(3) The stipend shall constitute the single, flat-rate monetary 
allowance authorized for the performance of the screening and shall 
constitute payment in full to the member, regardless of the grade or 
rank in which the member is serving.
    ``(e) Bar to Inactive Duty Compensation.--A member who participates 
in screening conducted through electronic means pursuant to this 
section is not entitled to compensation for inactive-duty training 
under section 206(a) of this title for the same period.''.
    (b) Conforming and Clerical Amendments.--
            (1) Conforming amendments.--
                    (A) Bar to dual compensation.--Section 206 of such 
                title is amended by adding at the end the following new 
                subsection:
    ``(f) A member of the National Guard or a member of a reserve 
component of a uniformed service is not entitled to compensation under 
this section when the member received compensation under section 433a 
of this title.''.
                    (B) Bar to retirement credi.--Section 12732(b) of 
                title 10, United States Code, is amended by adding at 
                the end the following new paragraph:
            ``(8) Service performed through electronic screening, 
        regardless of compensation received under section 433a of title 
        37.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 7 of title 37, United States Code, is 
        amended by inserting after the item relating to section 433 the 
        following new item:

``433a. Allowance for participation in Ready Reserve screning.''.

SEC. 602. JROTC INSTRUCTOR STIPENDS FOR HARD-TO-FILL AREAS.

    Section 2031(d) of title 10, United States Code, is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by inserting after paragraph (1) the following new 
        paragraph (2):
            ``(2)(A) When determined by the Secretary concerned to be 
        in the national interest, and agreed upon by the institution 
        concerned, an institution may reimburse the moving expenses of 
        a Junior Reserve Officer's Training Corps instructor who signs 
        a written agreement to serve a minimum commitment of two years 
        of employment at that institution in a hard-to-fill position, 
        due to geographic or economic factors and as determined by the 
        Secretary concerned. This payment is separate from the minimum 
        instructor pay.
            ``(B) In the case of payment of such additional amounts by 
        the institution concerned to cover the moving expenses, the 
        Secretary concerned shall reimburse the institution in an 
        amount equal to the amount paid by the institution. Such 
        payments by the Secretary shall be made from funds appropriated 
        for that purpose.
            ``(C) Amounts paid under this paragraph shall be subject to 
        regulations promulgated by the Secretary of Defense.''.

SEC. 603. INCOME REPLACEMENT PAYMENTS FOR RESERVES EXPERIENCING 
              EXTENDED AND FREQUENT MOBILIZATION FOR ACTIVE DUTY 
              SERVICE.

    Section 910 of title 37, United States Code, is amended--
            (1) in subsection (a), by inserting ``, when the total 
        monthly military compensation of the member is less than the 
        average monthly civilian income'' after ``by the Secretary'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Eligibility.--Subject to subsection (c), a reserve component 
member is entitled to a payment under this section for any full month 
of active duty of the member--
            ``(1) while on active duty under an involuntary 
        mobilization order, following the date on which the member--
                    ``(A) completes 18 continuous months of service on 
                active duty under such an order;
                    ``(B) completes 730 cumulative days on active duty 
                under an involuntary mobilization order during the 
                previous 1,826 days; or
                    ``(C) is involuntarily mobilized for service on 
                active duty for a period of 180 days or more within 180 
                days following the member's separation from a previous 
                period of active duty for period of 180 days or more; 
                or
            ``(2) when the member who qualified for income replacement 
        payments under paragraph (1) is retained on active duty under 
        section 12301(h)(1)(A) or (B) of title 10 because of an injury 
        or illness incurred or aggravated while deployed to an area 
        designated for special pay under section 310 of this title. 
        Once the member is released from active duty, entitlement to 
        pay under this section terminates.''; and
            (3) by amending subsection (g) to read as follows:
    ``(g) Termination of Authority.--Payment under this section shall 
only be made for service performed on or before December 31, 2008.''.

SEC. 604. REVISIONS TO TUITION ASSISTANCE AUTHORITY.

    (a) Revision to Authority To Reduce or Waive Active Duty Service 
Obligation.--Section 2007(b) of title 10, United States Code, is 
amended--
            (1) in paragraph (1)--
                    (A) by inserting ``(other than a member of the 
                Ready Reserve)'' after ``active duty'' the first place 
                it appears; and
                    (B) by striking ``or full-time National Guard 
                duty'' both places it appears; and
            (2) in paragraph (2)(B), by inserting ``for which ordered 
        to active duty'' after ``active duty service''.
    (b) Authority To Pay Tuition Assistance to Members of the Ready 
Reserve.--Subsection (c) of such section is amended to read as follows:
    ``(c)(1) As provided in subsection (a) and subject to paragraphs 
(2) and (3), the Secretary of a military department may pay the charges 
of an educational institution for the tuition or expenses of a member 
of the Ready Reserve. For members of the Individual Ready Reserve, the 
Secretary of a military department will selectively determine if any 
military operational specialties qualify for this benefit.
    ``(2) The Secretary may not pay charges under paragraph (1) for 
tuition or expenses of an officer of the Selected Reserve of the Ready 
Reserve unless the officer agrees to remain a member of the Selected 
Reserve for at least four years after completion of the education or 
training for which the charges are paid.
    ``(3) The Secretary may not pay charges under paragraph (1) for 
tuition or expenses of an officer of the Ready Reserve who is not an 
officer of the Selected Reserve unless the officer agrees to remain in 
the Ready Reserve for at least four years after completion of the 
education or training for which the charges are paid. For the 
Individual Ready Reserve, the Secretary of a military department will 
selectively determine if any military operational specialties qualify 
for this benefit.
    ``(4) The Secretary may require a service obligation for enlisted 
members of the Selected Reserve or Ready Reserve for up to four years 
in the Selected Reserve or Ready Reserve after completion of education 
or training for which tuition or expenses are paid under paragraph 
(1).''.
    (c) Elimination of Unnecessary Provision.--Such section is further 
amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
    (d) Repayment of Unearned Benefit.--Subsection (e) of such section, 
as redesignated by subsection (c), is amended--
            (1) by inserting ``(1)'' after ``(f)''; and
            (2) by adding at the end the following new paragraph:
            ``(2) If a member of the Ready Reserve who enters into an 
        agreement under subsection (c) does not complete the period of 
        service specified in the agreement, the member shall be subject 
        to the repayment provisions of section 303a(e) of title 37.''.
    (e) Regulations.--Such section is further amended by adding at the 
end the following new subsection (f):
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense for the armed forces under his 
jurisdiction and by the Secretary of Homeland Security for the Coast 
Guard when it is not operating as a service in the Navy.''.

SEC. 605. MONTGOMERY GI BILL FOR THE SELECTED RESERVE BENEFITS FOR 
              CERTAIN MEMBERS AFFECTED BY FORCE SHAPING INITIATIVES.

    Section 16133(b)(1)(B) of title 10, United States Code, is 
amended--
            (1) by striking ``October 1, 1991'' and inserting ``October 
        1, 2007''; and
            (2) by striking ``December 31, 2001'' and inserting 
        ``December 31, 2011''.

SEC. 606. EXTENDED SERVICEMEMBERS' GROUP LIFE INSURANCE.

    (a) Extended Insurance Coverage During the Force Shaping Period.--
Section 1968(a) of title 38, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by redesignating subparagraph (B) as 
                subparagraph (C); and
                    (B) by inserting after subparagraph (A) the 
                following new subparagraph (B):
                    ``(B) 180 days after release or separation from 
                active duty or active duty for training, if such 
                person's separation or release is the result of force 
                reduction that begins October 1, 2007, and ends 
                December 31, 2011, and such person requests the 
                additional 60 days of coverage.''; and
            (2) in paragraph (4)--
                    (A) by inserting ``--(A)'' after ``shall cease'';
                    (B) by redesignating subparagraphs (A) and (B) as 
                clauses (i) and (ii), respectively;
                    (C) in clause (ii), as so redesignated--
                            (i) by redesignating clauses (i) and (ii) 
                        as subclauses (I) and (II), respectively; and
                            (ii) by striking the period at the end and 
                        inserting ``; or''; and
                    (D) by adding at the end the following new 
                subparagraph:
                    ``(B) 180 days after separation or release from 
                such assignment by reason of the inactivation of the 
                person's unit of assignment beginning October 1, 2007, 
                and ending December 31, 2011, and such person requests 
                the additional 60 days of coverage.''.
    (b) Payment of Premiums.--Such section is further amended--
            (1) by redesignating subsection (b) as subsection (c); and
            (2) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b)(1) The total amount of the cost attributable to insuring a 
person under subsection (a)(1)(B) shall be paid by the member prior to 
separation or release from active duty or active duty for training.
    ``(2) The total amount of the cost attributable to insuring a 
person under subsection (a)(4)(B) shall be paid by the member prior to 
the separation or release from assignment.''.

SEC. 607. MODIFICATION OF MONTGOMERY GI BILL PARTICIPATION ELECTION AND 
              EDUCATIONAL LOAN REPAYMENT.

    Section 3011(c)(1) of title 38, United States Code, is amended by 
inserting ``unless that individual enlists with an incentive under 
section 2171 of title 10. Such an individual shall make the election 
either at the time the individual enters active duty or at the time of 
reenlistment. Notwithstanding section 3011(b) of this title, the pay of 
an individual who elects to participate at the time of reenlistment 
shall be reduced by $100.00 for each of the first 12 months of their 
second term of enlistment.'' after ``on active duty as a member of the 
Armed Forces''.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAYS FOR 
              RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(e) of title 37, United States Code, 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2008''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(g) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (c) Selected Reserve Affiliation or Enlistment Bonus.--Section 
308c(i) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2008''.
    (e) Ready Reserve Non-Prior Service Enlistment Bonus.--Section 
308g(f)(2) of such title is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(e) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2008''.
    (g) Prior Service Reenlistment Bonus.--Section 308i(f) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking ``January 1, 2008'' and 
inserting ``January 1, 2009''.

SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL PAY 
              AUTHORITIES FOR CERTAIN HEALTH CARE PROFESSIONALS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2008''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2008''.
    (d) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (e) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.
    (f) Accession Bonus for Medical Officers in Critically Short 
Wartime Specialties.--Section 302k(f) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.
    (g) Accession Bonus for Dental Specialist Officers in Critically 
Short Wartime Specialties.--Section 302l(g) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2008''.

SEC. 613. ONE-YEAR 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, 2007'' and inserting ``December 31, 
2008''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2008''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2008''.

SEC. 614. EXCEPTION TO 25 YEARS OF ACTIVE DUTY LIMIT FOR RECEIPT OF 
              CRITICAL SKILLS RETENTION BONUS.

    (a) Section 323(e) of title 37, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) The limitations in paragraph (1) may be waived by the 
        Secretary of Defense, or by the Secretary of Homeland Security 
        with respect to the Coast Guard when it is not operating as a 
        service in the Navy, with respect to a member who is assigned 
        duties in a designated critical skill during the period of 
        active duty for which the bonus is being offered. This 
        authority may not be delegated below the Undersecretary of 
        Defense for Personnel and Readiness or the Deputy Secretary of 
        the Department of Homeland Security with respect to the Coast 
        Guard when it is not operating as a service in the Navy.''.

SEC. 615. ENHANCEMENT OF REFERRAL BONUS TO ENCOURAGE SERVICE IN THE 
              ARMY.

    (a) Individuals Eligible for Bonus.--Subsection (a)(1) of section 
645 of the National Defense Authorization Act for Fiscal Year 2006 
(Public Law 109-163; 119 Stat. 3310) is amended by striking ``enlists'' 
and inserting ``enlists, or is appointed as an officer to serve in a 
health profession designated by the Secretary,''.
    (b) Extension of Authority.--Subsection (h) of such section is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2010''.
    (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 bonuses payable under section 645 of the National Defense 
Authorization Act for Fiscal Year 2006, as amended by this or any other 
section, on or after that date.

SEC. 616. ENHANCEMENT OF SELECTED RESERVE ACCESSION BONUS AUTHORITY.

    Section 308c(c)(1) of title 37, United States Code, is amended--
            (1) by inserting ``(A)'' after ``(1)'';
            (2) by striking ``and'' at the end of subparagraph (A), as 
        redesignated, and inserting ``or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(B) has previously served in the armed forces but 
                was released from such service prior to completion of 
                the training required by section 671 of title 10, 
                provided such service was characterized as either 
                honorable or uncharacterized; and''.

SEC. 617. SPECIAL PAY: REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED 
              RESERVE.

    Section 308b of title 37, United States Code, is amended--
            (1) in subsection (a)(2), by striking ``for a period of 
        three years or for a period of six years'' and inserting ``for 
        a period of not less than three years''; and
            (2) in subsection (b)(1), by striking ``may not exceed'' 
        and all that follows through the end and inserting ``may not 
        exceed $15,000.''.

SEC. 618. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION 
              BONUS FOR MEDICAL OFFICERS OF THE ARMED FORCES.

    (a) Incentive Special Pay.--Section 302(b)(1) of title 37, United 
States Code, is amended by striking ``$50,000'' and inserting 
``$75,000''.
    (b) Multiyear Retention Bonus.--Section 301d(a)(2) of such title is 
amended by striking ``$50,000'' and inserting ``$75,000''.

SEC. 619. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

    Section 302b(a)(4) of title 37, United States Code, is amended--
            (1) by striking ``at the following rates'' in the matter 
        preceding subparagraph (A) and inserting ``at a rate determined 
        by the Secretary concerned, not to exceed'';
            (2) in subparagraph (A), by striking ``$4,000'' and 
        inserting ``$10,000''; and
            (3) in subparagraph (B), by striking ``$6,000'' and 
        inserting ``$12,000''.

SEC. 620. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED FORCES HEALTH 
              PROFESSIONAL SCHOLARSHIP AND FINANCIAL ASSISTANCE 
              PROGRAM.

    Section 2127 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f)(1) In order to increase participation in the program under 
this subchapter, the Secretary of Defense may offer to a person who 
signs an agreement under section 2122 of this title an accession bonus 
of not more than $20,000.
    ``(2) In the case of an individual who receives an accession bonus 
under this subsection, but fails to commence or complete obligated 
service under this subchapter, the repayment provisions of section 
324(f) of title 37 shall apply to the accession bonus under this 
subsection.''.

             Subtitle C--Retired Pay and Survivor Benefits

SEC. 621. WAIVER OF RECOUPMENT OF OVERPAYMENTS OF RETIRED PAY TO SPOUSE 
              OR FORMER SPOUSE AS A RESULT OF RETROACTIVE DISABILITY 
              DETERMINATION.

    Section 2774 of title 10, United States Code, is amended by adding 
at the end the following new subsection: The Director of the Office of 
Management and Budget or the Secretary concerned, as the case may be, 
shall waive any claim for overpayment against a spouse or former spouse 
of a member if--
            ``(A) the payment was disposable retired pay that, pursuant 
        to section 1408 of this title, a court treated as property for 
        the purpose of issuing a final decree of divorce, dissolution, 
        annulment, or legal separation, including a court ordered, 
        ratified, or approved property settlement incident to such 
        decree; and
            ``(B) the claim for overpayment is attributable to a 
        determination of entitlement to disability compensation under 
        title 38.
    ``(2) In this section:
            ``(A) The term `court' has the meaning given such term in 
        section 1408(a)(1) of this title.
            ``(B) The term `disposable retired pay' has the meaning 
        given such term in section 1408(a)(4) of this title.
            ``(C) The term `final decree' has the meaning given such 
        term in section 1408(a)(3) of this title.
            ``(D) The term `member' has the meaning given such term in 
        section 1408(a)(5) of this title.
            ``(E) The term `spouse or former spouse' has the meaning 
        given such term in section 1408(a)(6) of this title.''.

SEC. 622. SURVIVOR BENEFIT PLAN; EXTENSION OF PERIOD FOR ELECTION 
              DEEMED TO HAVE BEEN MADE.

    (a) In General.--Section 1450(f)(3)(C) of title 10, United States 
Code, is amended by striking ``one year'' and inserting ``five years''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to divorces, dissolutions, annulments, or legal 
separations that become effective after the end of the 90-day period 
beginning on the date of enactment of this Act.

SEC. 623. ALLOWING MEMBER TO SUBMIT APPLICATION FOR DIRECT PAYMENT.

    (a) Permit Application for Direct Payment by Member.--Section 
1408(d) of title 10, United States Code, is amended in the first 
sentence of paragraph (1) by inserting ``by a member or former member 
or the spouse or former spouse of such member'' after ``the Secretary 
concerned''.
    (b) Conditions for Direct Payment.--Section 1408(d) of such title 
is further amended by adding at the end the following new paragraph:
            ``(8) A former spouse who accepts payment shall be deemed--
                    ``(A) to have consented and agreed to the recovery 
                of any future overpayments, including recovery by 
                involuntary collection from the former spouse or his or 
                her estate; and
                    ``(B) to have agreed to give prompt notice in 
                writing to the Secretary if--
                            ``(i) the operative court order upon which 
                        payment is based is vacated, modified, or set 
                        aside;
                            ``(ii) the former spouse remarries, if all 
                        or a part of the payment is for alimony; or
                            ``(iii) the former spouse is ineligible for 
                        child support payments due to the death, 
                        emancipation, adoption, or attainment of 
                        majority of a child whose support is provided 
                        through direct payment to a former spouse from 
                        retired pay.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to applications for direct payment of retired pay submitted to 
the Secretary concerned after the end of the 90-day period beginning on 
the date of enactment of this Act.

SEC. 624. DIVISION OF RETIRED PAY TO BE BASED ON MEMBER'S LENGTH OF 
              SERVICE AND PAY GRADE AT TIME OF DIVORCE.

    (a) In General.--Section 1408(c) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
            ``(5) In the case of a member as to whom a decree of 
        divorce, dissolution, annulment, or legal separation becomes 
        final before the date on which the member begins to receive 
        retired pay, the total monthly retired pay to which a member is 
        entitled, for purposes of determining `disposable retired pay,' 
        as defined in paragraph (4) of subsection (a), that a court may 
        treat in the manner described in paragraph (1), shall be 
        limited to retired pay computed based on the pay grade, and the 
        length of service of the member while married, that are 
        creditable toward entitlement to basic pay and to retired pay 
        as of the date a marital property interest in retired pay 
        terminates. Amounts so calculated shall be increased by the 
        cumulative percentage of increases in basic pay and retired pay 
        between the date a marital property interest in retired pay 
        terminates and the effective date of the member's retirement. 
        Upon request and pursuant to regulations, the Secretary 
        concerned shall calculate disposable retired pay described in 
        this paragraph.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to divorces, dissolutions, annulments, and legal 
separations that become effective after the end of the 90-day period 
beginning on the date of enactment of this Act.

SEC. 625. INCREASES FOR DIVISIONS OF RETIRED PAY EXPRESSED AS A DOLLAR 
              AMOUNT.

    (a) Monetary Amount Adjustment.--Section 1408(a)(2)(C) of title 10, 
United States Code, is amended by striking ``expressed in dollars'' and 
inserting ``expressed as a specific dollar amount, with such amount, if 
so ordered, being adjusted in the same manner and at the same time as 
retired pay is adjusted to reflect changes in the Consumer Price Index 
under section 1401a of this title,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to court orders that become effective after the end 
of the 90-day period beginning on the date of enactment of this Act.

SEC. 626. LUMP SUM PAYMENTS TO FORMER SPOUSES OF MEMBERS OF THE 
              UNIFORMED SERVICES.

    (a) Authority for Lump Sum Payment.--(1) Chapter 74 of title 10, 
United States Code, is amended by adding at the end the following new 
section:
``Sec. 1468. Lump sum payments for certain amounts payable to former 
              spouse
    ``(a) If the present value of a periodic amount described in 
subsection (b) payable to a former spouse does not exceed $5,000, the 
Secretary concerned shall pay, in a lump sum, an amount equal to such 
present value to the former spouse eligible for such benefit.
    ``(b) A periodic amount described in this subsection means:
            ``(1) An annuity under the Survivor Benefit Plan 
        (subchapter II of chapter 73 of this title).
            ``(2) Payment of retired pay pursuant to a court order 
        resulting from the treatment by the court under section 1408(c) 
        of this title of disposable retired pay of a member of the 
        uniformed services as the property of the member and his 
        spouse.
    ``(c) With the consent of the former spouse, the Secretary 
concerned may pay, in a lump sum, an amount equal to the present value 
of a periodic amount described in subsection (b) in excess of $5,000.
    ``(d) Payment of a lump sum under subsection (a) or (c) of this 
section shall constitute full payment of the amounts described in 
subsection (b) to the former spouse.
    ``(e) For purposes of this section, the term `present value' means 
the present value calculated by using the mortality table, interest 
rate, and actuarial assumptions pursuant to regulations prescribed by 
the Secretary of Defense.
    ``(f) If a former spouse eligible for a payment under subsection 
(b) or (c) of this section elects to have all or a portion of such 
payment paid directly to an eligible retirement plan, and specifies the 
eligible retirement plan to which such payment is to be paid (in such 
form and at such time as the Secretary concerned may prescribe), such 
payment shall be made in the form of a transfer by the Secretary 
concerned to the trustee of the eligible retirement plan so specified. 
For purposes of the preceding sentence, the term `eligible retirement 
plan' has the same meaning as `eligible retirement plan' for purposes 
of section 414(v)(2)(B) of the Internal Revenue Code of 1986 (26 U.S.C. 
414(v)(2)(B)).''.
    (2) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1468. Lump sum payments for certain amounts payable to former 
                            spouse.''.
    (b) Rollover Treatment for Lump Sum Payments Paid to Former Spouses 
of Members of the Uniformed Services.--Section 414 of the Internal 
Revenue Code of 1986 (relating to definitions and special rules) is 
amended by adding at the end the following new subsection:
    ``(w) Lump Sum Payments to Former Spouses of Members of the 
Uniformed Services.--
            ``(1) Eligible for rollover treatment.--For purposes of 
        this part including section 408, relating to individual 
        retirement accounts, any amount of a lump sum payment paid to 
        an individual under the authority of section 1468 of title 10, 
        United States Code, shall be considered an amount paid out of 
        an individual retirement account to the individual for whose 
        benefit the account is maintained and eligible for rollover 
        treatment under section 402(c)(6).
            ``(2) Transfer by secretary concerned to trustee.--Any 
        amount of lump sum payment transferred by the Secretary 
        concerned to a trustee of an eligible retirement plan in 
        accordance with section 1468 of title 10, United States Code, 
        shall be treated as an amount transferred in a direct trustee-
        to-trustee transfer in accordance with section 401(a)(31) and, 
        as a result, shall not be includible in gross income for the 
        taxable year of such transfer. For purposes of this paragraph, 
        the term `eligible retirement plan' has the meaning given such 
        term by section 401(a)(31)(D).''.

SEC. 627. PROHIBIT COURT-ORDERED PAYMENTS BEFORE RETIREMENT BASED ON 
              IMPUTATION OF RETIRED PAY.

    (a) Authority.--Section 1408(c)(3) of title 10, United States Code, 
is amended--
            (1) by inserting ``(A)'' after ``(3)''; and
            (2) by adding at the end the following new subparagraph:
                    ``(B) A court may not order a member to make 
                payments based upon an imputation of a property 
                interest in future retired pay of any kind to a spouse 
                or former spouse before the date of the member's actual 
                retirement.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to final court orders or court orders seeking enforcement of 
prior final decrees issued on or after the date of the enactment of 
this Act.

SEC. 628. REVOCATION OF TEN-YEAR RULE FOR DIRECT PAYMENT OF RETIRED 
              PAY.

    (a) Revocation of Ten-Year Rule.--Section 1408(d) of title 10, 
United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraphs (3) through (7) as 
        paragraphs (2) through (6), respectively.
    (b) Effective Date.--The amendments made by this section shall take 
effect on the first day of the first month which begins more than 120 
days after the date of enactment of this Act and shall apply only to 
payments of retired pay for periods beginning on or after the effective 
date of this section in the case of any former spouse of a member or 
former member of the uniformed services.

SEC. 629. SURVIVOR BENEFIT PLAN; MULTIPLE BENEFICIARIES.

    (a) Permit Spouse and Former Spouse Coverage.--Section 1448(b)(2) 
of title 10, United States Code, is amended--
            (1) in subparagraph (B)--
                    (A) by striking ``prevents payment'' and inserting 
                ``reduces the amount''; and
                    (B) by striking ``including payment'' and inserting 
                ``including the amount of an annuity''; and
            (2) in subparagraph (C), by striking ``which former spouse 
        is to be provided the annuity'' and inserting ``the base amount 
        applicable in determining the amount of the annuity of each 
        former spouse''.
    (b) Permit Spouse and Former Spouse Annuities.--Section 1450(a)(1) 
of such title is amended to read as follows:
            ``(1) Surviving spouse and former spouse(s).--The eligible 
        surviving spouse and every eligible former spouse.''.
    (c) Permit Reductions in Retired Pay in the Case of Multiple 
Beneficiaries.--Section 1452 of such title is amended by adding at the 
end the following new subsection:
    ``(k) Reductions in Retired Pay in the Case of Multiple 
Beneficiaries.--When a participant in the Plan has elected to provide 
an annuity to a spouse and to one or more former spouses, reductions in 
retired pay required by subsection (a) shall be made for each annuity 
elected, in an amount based on the base amount applicable to each 
annuity. In the case of a reduction in retired pay to provide an 
annuity to a former spouse to whom payment of a portion of a member's 
retired pay is being made pursuant to a court order under section 1408 
of this title, such reduction in retired pay shall be deducted from the 
amounts paid to such member, to such former spouse, or both, as 
provided by court order or by agreement of the parties.''.
    (d) Effective Date.--The amendments made by subsections (a), (b), 
and (c) apply with respect to elections made on or after the date of 
enactment of this Act. Any election to provide an annuity to a spouse 
or former spouse who was prevented from being a beneficiary under the 
laws in effect before the date of enactment of this Act shall be made 
within 180 days following the date of enactment of this Act.
    (e) Coverage for Survivors of Retirement-Eligible Members Who Die 
on Active Duty.--(1) Section 1448(d) of such title is amended--
            (A) in paragraph (3), by striking ``the Secretary--(A) may 
        not pay an annuity under paragraph (1) or (2); but (B)'' and 
        inserting ``the Secretary''; and
            (B) by amending paragraph (5) to read as follows:
            ``(5) Computation.--(A) The amount of an annuity payable to 
        a former spouse pursuant to paragraph (3) shall be computed on 
        the basis of a base amount equal to the amount of retired pay 
        that, under the authority of section 1408(c) of this title, is 
        treated under a court order or spousal agreement as the 
        property of such former spouse.
            ``(B) The amount of an annuity payable under paragraph (1) 
        or (2) shall be computed under section 1451(c) of this title; 
        however, the retired pay otherwise applicable with respect to 
        such computation shall be reduced by an amount equal to the 
        base amount that provides the basis for computing the amount of 
        an annuity payable to a former spouse under paragraph (3) of 
        this subsection.''.
    (2) Effective Date.--The amendments made by paragraph (1) shall 
apply with respect to survivors of retirement-eligible members who die 
on active duty on or after the date of enactment of this Act.
    (f) Coverage for Survivors of Persons Dying When Eligible To Elect 
Reserve Component Annuity.--(1) Section 1448(f) of such title is 
amended--
            (A) by striking ``the Secretary--(A) may not pay an annuity 
        under paragraph (1) or (2); but (B)'' and inserting ``the 
        Secretary''; and
            (B) by amending paragraph (4) to read as follows:
            ``(4) Computation.--(A) The amount of an annuity payable to 
        a former spouse pursuant to paragraph (3) shall be computed on 
        the basis of a base amount equal to the amount of retired pay 
        that, under the authority of section 1408(c) of this title, is 
        treated under a court order or spousal agreement as the 
        property of such former spouse.
            ``(B) The amount of an annuity payable under paragraph (1) 
        or (2) shall be computed under section 1451(c) of this title; 
        however, the retired pay otherwise applicable with respect to 
        such computation shall be reduced by an amount equal to the 
        base amount that provides the basis for computing the amount of 
        an annuity payable to a former spouse under paragraph (3) of 
        this subsection.''.
            (2) Effective date.--The amendments made by paragraph (1) 
        shall apply with respect to survivors of persons eligible to 
        elect reserve-component annuity retirement-eligible members who 
        die on or after the date of enactment of this Act.

SEC. 630. SURVIVOR BENEFIT PLAN; FINANCIAL RESPONSIBILITY FOR SURVIVOR 
              BENEFIT PLAN PARTICIPATION.

    (a) Spouse and Former Spouse Annuities.--Section 1452(a) of title 
10, United States Code, is amended--
            (1) in paragraph (1), by inserting ``paragraph (6) of this 
        subsection or'' after ``Except as provided in''; and
            (2) by adding at the end the following new paragraph:
            ``(6) Court order.--If a court order requires the former 
        spouse to pay all or a part of the costs associated with 
        providing an annuity to the former spouse, the participant's 
        retired pay shall not be reduced by the portion that the former 
        spouse is required to pay. The portion of Plan costs that a 
        former spouse is required to pay pursuant to a Court order 
        under this paragraph must either be paid by direct remittance 
        or as a deduction from the former spouses share of the member's 
        retired pay that is received by direct payment pursuant to 
        section 1408 of this title.''.
    (b) Effective Date.--The amendment made by this section shall apply 
with respect to divorces, dissolutions, annulments, or legal 
separations that become effective after the end of the 90-day period 
beginning on the date of enactment of this Act.

SEC. 631. SURVIVOR BENEFIT PLAN; PRESUMPTIVE PROPORTIONATE SHARE.

    (a) Presumptive Base Amount for Former Spouse.--Section 1447(6) of 
title 10, United States Code, is amended by adding at the end the 
following new subparagraph:
                    ``(D) Presumptive proportionate amount for former 
                spouse.--In the case of an annuity provided under the 
                Plan for a former spouse, unless otherwise agreed to by 
                the member and former spouse or ordered by a court, 
                such term means any amount of monthly retired pay, 
                which is not less than $300, payable to such former 
                spouse as a result of a court treating disposable 
                retired pay of a member as the property of the member 
                and his spouse under the authority of section 
                1408(c).''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to divorces, dissolutions, annulments, and legal 
separations that become effective after the end of the 90-day period 
beginning on the date of enactment of this Act.

    Subtitle D--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 641. CONTINUATION OF COMMISSARY AND EXCHANGE PRIVILEGES.

    Section 1146 of title 10, United States Code is amended--
            (1) by inserting ``, or a member of the Selected Reserve of 
        the Ready Reserve who is involuntarily separated from the 
        Selected Reserve due to force shaping requirements directed by 
        the Secretary of the military department concerned,'' after 
        ``active duty'' the first place it appears; and
            (2) by striking ``October 1, 1990, and ending on December 
        31, 2001'' and inserting ``October 1, 2007, and ending on 
        December 31, 2012''.

                       Subtitle E--Other Matters

SEC. 651. CHANGE IN THE DEFINITION OF SEA DUTY FOR CAREER SEA PAY TO 
              INCLUDE MULTI-CREW SHIPS.

    Section 305a(e)(1)(A) of title 37, United States Code, is amended--
            (1) by striking ``or'' at the end of clause (ii); and
            (2) by adding at the end the following new clause:
                            ``(iv) while serving as an off-cycle 
                        crewmember of a multi-crewed ship; or''.

SEC. 652. ESTABLISHMENT OF ARMY INCENTIVE FUND.

    (a) Establishment of Fund.--Part II of subtitle B of title 10, 
United States Code, is amended by adding at the end the following new 
chapter:

       ``CHAPTER 376--FUND FOR PAYMENT OF INCENTIVES AND BONUSES

``Sec.
``4101. Fund for payment of incentives and bonuses.
``Sec. 4101. Fund for payment of incentives and bonuses
    ``(a) Establishment of Fund.--There is established on the books of 
the Treasury a fund to be known as the Army Incentive Fund (hereinafter 
in this section referred to as the `Fund'), which shall be administered 
by the Secretary of the Treasury. The Fund shall be used for the 
accumulation of funds in order to finance on an actuarially sound basis 
Army bonus and incentive liabilities that have been specifically 
authorized by law to be paid from the Fund.
    ``(b) Definitions.--In this section:
            ``(1) The term `specifically authorized Army bonus and 
        incentive liabilities' means liabilities of the Department of 
        the Army for a bonus or incentive under--
                    ``(A) chapter 5 of title 37, that is specifically 
                authorized by law to be paid from the Fund; or
                    ``(B) section 681 of the National Defense 
                Authorization Act for Fiscal Year 2006 (Public Law 109-
                163).
            ``(2) The term `normal cost', with respect to any period of 
        time, means the present value of future bonuses and incentives 
        payable to persons who during such period qualify for a bonus 
        or incentive authorized by law to be paid from the Fund.
    ``(c) Assets of the Fund.--There shall be deposited into the Fund 
the following, which shall constitute the assets of the Fund:
            ``(1) Amounts paid into the Fund under subsection (g).
            ``(2) Any amount appropriated directly to the Fund.
            ``(3) Any return on investment of the assets of the Fund.
    ``(d) Payments From the Fund.--The Secretary of the Treasury shall 
transfer from the Fund to the Secretary of the Army only such amounts 
as are necessary to enable the Secretary to make required payments of 
specifically authorized Army bonus and incentive liabilities, as 
defined in subsection (b)(1). The Secretary of the Treasury and the 
Secretary of the Army shall enter into an agreement as to how and when, 
and the amounts in which, such transfers shall be made. Except for 
investments under subsection (h), amounts in the Funds may not be used 
for any purpose other than transfers described in this subsection.
    ``(e) Board of Actuaries.--The Board of Actuaries established under 
section 2006(e) of this title (hereinafter in this section referred to 
as the `Board') shall report to the Secretary of Defense annually on 
the actuarial status of the Fund and shall furnish its advice and 
opinion on matters referred to it by the Secretary.
    ``(f) Determinations of Contributions to the Fund.--(1) The 
Secretary of Defense shall carry out periodic actuarial valuations of 
any program for a bonus or incentive authorized to be paid from the 
Fund.
    ``(2) Based on the most recent such valuation, the Secretary of 
Defense shall estimate the normal cost for such program for the next 
fiscal year.
    ``(3) At the time of such evaluation, the Secretary of Defense 
shall make determinations for such program in the same manner, as far 
as practicable, as determinations are made under paragraphs (3) and (4) 
of section 2006(f) of this title.
    ``(4) Based on the determinations under paragraphs (2) and (3), the 
Secretary of Defense shall determine the amount needed to be 
appropriated to the Department of the Army for the next fiscal year for 
payments to be made to the Fund under subsection (g).
    ``(5) All determinations under this subsection shall be made using 
methods and assumptions approved by the Board (including assumptions of 
interest rates) and in accordance with generally accepted actuarial 
principles and practices.
    ``(g) Payments Into the Fund.--(1) The Secretary of the Army shall 
pay into the Fund each month the amount that, based upon the most 
recent actuarial valuation of a program for a bonus or incentive 
authorized to be paid from the Fund, is equal to the normal cost for 
the program for the preceding month.
    ``(2) The Secretary of the Army shall pay into the Fund at the 
beginning of each fiscal year (or as soon thereafter as appropriations 
are available for such purpose) an amount, if any, for the amortization 
of any liability to the Fund, or actuarial gain or loss to the Fund, 
related to the determinations made under subsection (f)(3).
    ``(3) Amounts paid into the Fund under this section shall be paid 
from appropriations available for the pay of members of the Army.
    ``(h) Investments of Assets of the Fund.--The Secretary of the Army 
may request the Secretary of the Treasury to invest such portion of the 
fund as is not, in the judgment of the Secretary of the Army, required 
to meet current withdrawals. Such investments shall be made by the 
Secretary of the Treasury in public debt securities with maturities 
suitable to the needs of the fund, as determined by the Secetary of the 
Army, and bearing interest at a rate determined by the Secretary of the 
Treasury, taking into consideration current market yields on 
outstanding marketable obligations of the United States of comparable 
maturity.
    ``(i) Transfer of Funds After Termination.--If the use of the Fund 
is terminated, as determined by the Secretary of the Army, and the 
amount in the Fund is in excess of all liabilities for future payments 
for bonuses and incentives for which funds were transferred into the 
Fund, the amount by which the amount in the Fund exceeds the 
liabilities may be transferred to the appropriation that is available 
for the pay of members of the Army at the time of the transfer.''.
    (b) Clerical Amendments.--The tables of chapters for part II of 
subtitle B of such title is amended by adding at the end the following 
new item:

``376. Fund for Payment of Incentives and Bonuses...........   4101.''.

SEC. 653. EXPANSION OF SELECTED RESERVE EDUCATION LOAN REPAYMENT 
              PROGRAM.

    (a) Additional Loans Eligible for Repayment.--Paragraph (1) of 
section 16301(a) of title 10, United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (B)
            (2) by striking the period at the end of subparagraph (C) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(D) any loan incurred for educational purposes 
                made by a lender that is--
                            ``(i) an agency or instrumentality of a 
                        State;
                            ``(ii) a financial or credit institution 
                        (including an insurance company) that is 
                        subject to examination and supervision by an 
                        agency of the United States or any State;
                            ``(iii) a pension fund approved by the 
                        Secretary for purposes of this section; or
                            ``(iv) a nonprofit private entity 
                        designated by a State, regulated by such State, 
                        and approved by the Secretary for purposes of 
                        this section.''.
    (b) Eligibility of Officers.--Paragraph (2) of such section is 
amended--
            (1) by striking ``Except as provided in paragraph (3), the 
        Secretary'' and inserting ``The Secretary''; and
            (2) by striking ``an enlisted member of the Selected 
        Reserve of the Ready Reserve of an armed force in a reserve 
        component and military specialty'' and inserting ``a member of 
        the Selected Reserve of the Ready Reserve of an armed force in 
        a reserve component and officer program or military 
        specialty''.
    (c) Conforming Amendments.--Such section is further amended--
            (1) by striking paragraph (3); and
            (2) in the heading, by striking ``enlisted members of 
        selected reserve with critical specialties'' and inserting 
        ``members of the selected reserve''.
    (d) Clerical Amendment.--The table of sections at the beginning of 
chapter 1609 of such title is amended by striking the item relating to 
section 16301 and inserting the following new item:

``16301. Education loan repayment program: members of the Selected 
                            Reserve.''.

SEC. 654. REEMPLOYMENT RIGHTS FOLLOWING CERTAIN NATIONAL GUARD DUTY.

    Section 4312(c)(4) of title 38, United States Code, is amended--
            (1) by striking ``or'' at the end of subparagraph (D);
            (2) by striking the period at the end of subparagraph (E) 
        and inserting ``; or''; and
            (3) by adding at the end the following new subparagraph:
                    ``(F) ordered to full-time National Guard duty 
                under the provisions of section 502(f) of title 32 when 
                the period of duty is designated by the Secretary of 
                Defense as covered by this subparagraph.''.

SEC. 655. ALLOW MEMBER TO WAIVE NOTICE AND PROVIDE COURT ORDER UPON 
              REQUEST.

    (a) Allow Member To Waive Notice and Provide Court Order Upon 
Request.--Section 1408(g) of title 10, United States Code, is amended--
            (1) by striking ``A person'' and inserting ``Unless notice 
        is waived by the member, a person''; and
            (2) by striking ``(together with a copy of such order)'' 
        and inserting ``and, upon request, a copy of such order''.
    (b) Effective Date.--The amendments made by this section shall 
apply to court orders received by the Secretary concerned after the end 
of the 90-day period beginning on the date of enactment of this Act.

SEC. 656. DISREGARD PERIODS OF CONFINEMENT FOR DEPENDENT VICTIMS OF 
              ABUSE.

    (a) Disregard Periods of Confinement for Dependent Victims of 
Abuse.--Paragraph (2)(A) of section 1408(h) of title 10, United States 
Code, is amended by inserting ``(including any periods of confinement 
served prior to convening authority action on the record of trial 
related to the misconduct that resulted in the termination of 
eligibility to receive retired pay)'' after ``on the basis of years of 
service''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective as of October 23, 1992, as if included in section 1408(h) of 
title 10, United States Code, as enacted by section 653(a)(2) of the 
National Defense Authorization Act for Fiscal Year 1993 (Public Law 
102-484).

SEC. 657. CLARIFYING AMENDMENT REGARDING JURISDICTION FOR PURPOSES OF 
              ALLOCATION OF RETIRED PAY UNDER THE UNIFORMED SERVICES 
              FORMER SPOUSE PROTECTION ACT.

    Section 1408(c) of title 10, United States Code, is amended by 
striking paragraph (4).

SEC. 658. OVERSEAS NATURALIZATION OF MILITARY FAMILY MEMBERS.

    (a) Section 319 of the Immigration and Nationality Act (8 U.S.C. 
1430) is amended by adding at the end the following new subsection:
    ``(e) In the case of a person lawfully admitted for permanent 
residence who is the spouse or child of a member of the Armed Forces 
authorized to accompany such member and reside abroad with the member 
pursuant to the member's official orders, and who is so accompanying 
and residing with the member (in marital union if a spouse), such 
residence and physical presence abroad shall be treated as residence 
and physical presence in any State or district of the Department of 
Homeland Security in the United States for the purpose of satisfying 
the requirements of this section or sections 316 or 322 of this Act for 
naturalization, and for the purpose of satisfying section 
101(a)(13)(C)(i) or (ii) of this Act.''.
    (b) Overseas Naturalization Authority.--Section 1701(d) of the 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136; 8 U.S.C. 1443a) is amended by inserting ``, and persons 
eligible for naturalization under section 319(e) of the Immigration and 
Nationality Act,'' after ``Armed Forces''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and apply to any 
application pending before the Secretary of Homeland Security on or 
after the date of enactment.

                   TITLE VII--HEALTH CARE PROVISIONS

                      TRICARE Program Improvements

SEC. 701. REVISING TRICARE PROGRAM COST SHARING AMOUNTS.

    (a) Authority.--Section 1086(b) of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
            ``(5) Notwithstanding paragraphs (1) through (4), the 
        Secretary of Defense shall promulgate regulations to revise the 
        requirements for payments by beneficiaries under this 
        subsection in order to reflect increases in health care costs. 
        Such requirements, which may include a revised deductible 
        amount, an enrollment fee, and future indexing, need not be 
        uniform for all such beneficiaries. Any such enrollment fee may 
        be a condition of eligibility for health care benefits under 
        chapter 55 of this title.''.
    (b) Implementation.--The Secretary of Defense shall promulgate the 
regulations required by section 1086(b)(5) of title 10, United States 
Code, as added by subsection (a), after first considering the 
recommendations of the Task Force on the Future of Military Health Care 
regarding the beneficiary and Government cost sharing structure 
required to sustain military health benefits over the long term, as 
required by subsections (c)(3)(H) and (e)(1) of section 711 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2285). The regulations shall become effective 
not later than 90 days after the date of enactment of this Act. The 
Secretary shall submit the regulations, and a report describing the 
rationale for the changes promulgated, to the Committees on Armed 
Services of the Senate and House of Representatives at least 30 days 
before such regulations become effective.

SEC. 702. EXCLUSION OF SURROGACY MATERNITY AND INFANT CARE.

    (a) In General.--Chapter 55 of title 10, United States Code, is 
amended by inserting after section 1074k the following new section:
``Sec. 1074l. Exclusion of surrogacy maternity and infant care
    ``(a) In General.--Health care services, including pre-natal care, 
maternity care, and newborn infant care, arising from a surrogate 
pregnancy are excluded under this chapter.
    ``(b) Emergency Health Care Services.--Subsection (a) does not 
preclude the provision of emergency health care services in facilities 
of the uniformed services on a reimbursable basis.
    ``(c) Definition.--As used in this section, the term `surrogate 
pregnancy' means a pregnancy in which a fertile woman who is not the 
wife of the sperm donor agrees, whether or not for a fee, to be 
impregnated for the purpose of carrying to term a child to be 
surrendered to the care of the sperm donor and his wife or to any other 
person or persons.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item related to section 
1074k the following new item:

``1074l. Exclusion of surrogacy maternity and infant care.''.

SEC. 703. SUSPENSION OF HEALTH CARE ELIGIBILITY FOR FRAUD.

    (a) In General.--Section 1073 of title 10, United States Code, is 
amended by adding at the end the following new subsection:
    ``(c) Suspension of Health Care Eligibility for Fraud.--In the case 
of any covered beneficiary who knowingly makes or causes to be made or 
conspires, aids, or assists in, agrees to, arranges for, or in any way 
procures the making or presentation of a false or fraudulent affidavit, 
declaration, certificate, statement, voucher, or paper (including by 
electronic means) concerning any claim for benefits for such covered 
beneficiary or his or her dependent under this chapter, the Secretary 
may at his option, notwithstanding any other provision of this chapter, 
limit, restrict, or suspend the eligibility under this chapter of that 
covered beneficiary for such period, not exceeding five years, as the 
Secretary deems appropriate. The Secretary shall, after consultation 
with the other administering Secretaries, establish by regulation 
procedures, including notice and opportunity for a hearing, for the 
implementation of this subsection.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect 90 days after enactment of this Act.

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

             Subtitle A--Acquisition Policy and Management

SEC. 801. UNIFIED COMBATANT COMMAND FOR JOINT WARFIGHTING 
              EXPERIMENTATION: ACQUISITION AUTHORITY.

    Section 167a of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``and acquire'' and 
        inserting ``, acquire and sustain''; and
            (2) by striking subsection (f).

SEC. 802. LIMITED AUTHORIZATION TO ACQUIRE ITEMS PRODUCED IN IRAQ OR 
              AFGHANISTAN FOR USE BY IRAQI OR AFGHANI FORCES.

    Notwithstanding any other provision of law, the head of the 
contracting activity in Iraq or Afghanistan may authorize the use of 
funds appropriated or otherwise made available to the Department of 
Defense for the procurement of any article or item covered by 
subparagraphs (B) through (E) of section 2533a(b)(1) of title 10, 
United States Code, that is grown, reprocessed, reused, or produced 
outside the United States, provided that:
            (1) such procurement is conducted in Iraq or Afghanistan in 
        support of contingency operations;
            (2) such article or item is grown, reprocessed, reused, or 
        produced in Iraq or Afghanistan;
            (3) such article or item is to be used only by the military 
        forces, police, or other security personnel of the nation of 
        Iraq or Afghanistan; and
            (4) offers are requested from as many potential sources as 
        is practicable under the circumstances.

SEC. 803. AUTHORITY TO USE SIMPLIFIED ACQUISITION PROCEDURES FOR 
              CERTAIN COMMERCIAL ITEMS.

    Section 4202 of the Clinger Cohen Act (division D of Public Law 
104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by striking 
subsection (e).

SEC. 804. MINIMUM ANNUAL PURCHASE FOR CIVIL RESERVE AIR FLEET 
              CONTRACTS.

    (a) In General.--Chapter 931 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 9515. Minimum annual purchase for Civil Reserve Air Fleet 
              contracts
    ``(a) In General.--The Secretary of Defense is authorized to award 
to air carriers or air carrier teaming arrangements (carriers) 
participating in the Civil Reserve Air Fleet (CRAF) program annual 
airlift contracts with a minimum purchase amount determined in 
accordance with this section.
    ``(b) Minimum Annual Contract Awards.--Such contract minimum 
purchase amount shall be based on forecast needs but may not be for 
more than eighty percent of the annual average expenditures of airlift 
for the prior 5-year period. Unusually high demand years, such as 
during a conflict, will normally be omitted to obtain a more accurate 
forecast. Award amounts shall be divided among said carriers 
proportional to their relative commitments to the CRAF program.
    ``(c) Distribution of Amounts.--Should any of the amounts set aside 
for the annual minimum airlift purchase not be utilized to purchase 
actual transportation from a carrier to whom said contract is awarded, 
such remainder must be transferred to the carrier; however, 
proportional adjustment shall be made for periods when services from 
the carrier were unavailable for usage by the Department of Defense, 
such as refused business, suspended operations, or when the air carrier 
is placed in non-use status pursuant to section 2640 of this title for 
safety issues. If the cumulative annual purchases of actual 
transportation services exceed the minimum annual contract amount for a 
carrier, no additional amount will be transferred.
    ``(d) Merger of Funds.--Amounts available to the military 
departments for transportation equal to the proportional share of usage 
by each military department shall be transferred to the transportation 
working capital fund to fund the award of said contracts. Each military 
department shall be entitled to obtain transportation of equal value or 
transfer that entitlement to other military departments or Department 
of Defense units. Such transferred value shall be merged with the 
appropriations of the receiving unit.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``9515. Minimum annual purchase for Civil Reserve Air Fleet 
                            contracts.''.

SEC. 805. STREAMLINE JURISDICTION OVER GOVERNMENT CONTRACT CLAIMS, 
              DISPUTES AND APPEALS ARISING OUT OF MARITIME CONTRACTS.

    Section 4 of the Contract Disputes Act of 1978 (41 U.S.C. 603) is 
amended to read as follows:
    ``Sec. 4.  Appeals under subsection (g) of section 8 and suits 
under section 10 arising out of maritime contracts shall be governed 
exclusively by this Act.''.

SEC. 806. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY 
              AUTHORIZED DISPOSALS FROM THE NATIONAL DEFENSE STOCKPILE.

    (a) Fiscal Year 2000 Disposal Authority.--Paragraph (5) of section 
3402(b) of the National Defense Authorization Act for Fiscal Year 2000 
(Public Law 106-65; 50 U.S.C. 98d note), as amended by section 3302 of 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163; 119 Stat. 3546), is amended by striking ``$600,000,000 
before'' and inserting ``$730,000,000 by''.
    (b) 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(a) 
of the John Warner National Defense Authorization Act for Fiscal Year 
2007 (Public Law 109-364; 120 Stat. 2513), is amended by striking 
``$1,016,000,000'' in paragraph (7) and inserting ``$1,469,102,000''.

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

SEC. 811. REPEALING THE SUNSET PROVISION OF THE ACQUISITION WORKFORCE 
              TRAINING FUND.

    Section 37(h)(3) of the Office of Federal Procurement Policy Act 
(41 U.S.C. 433(h)(3)) is striking subparagraph (H).

SEC. 812. REVITALIZATION OF DEPARTMENT OF DEFENSE LABORATORIES.

    (a) Laboratory Revitalization.--Section 2805 of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (d) as subsection (e); and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Laboratory Revitalization.--(1) For the revitalization and 
recapitalization of laboratories owned by the United States and under 
the jurisdiction of the Secretary concerned, the Secretary may spend 
from appropriations available--
            ``(A) for operation and maintenance amounts necessary to 
        carry out an unspecified minor military construction project 
        costing not more than $2,000,000; or
            ``(B) for military construction not otherwise authorized by 
        law amounts necessary to carry out an unspecified minor 
        military construction project costing not more than $5,000,000.
    ``(2) For projects conducted pursuant to this subsection, 
$2,000,000 shall be the amount applied for purposes of subsection 
(b)(1).
    ``(3) For purposes of this subsection, the term `laboratory' 
includes--
            ``(A) a research, engineering, and development center;
            ``(B) a test and evaluation activity; and
            ``(C) any buildings, structures, or facilities located at 
        and supporting such centers or activities.
            ``(4) For purposes of this subsection, the amounts allowed 
        to be applied in any one fiscal year to projects at any one 
        laboratory shall be limited in size to the larger of the 
        amounts applicable as set forth in subsection (d)(1).''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Military Construction 
        Funding.--'' after ``(a)'';
            (2) in subsection (b), by inserting ``Notifications.--'' 
        after ``(b)'';
            (3) in subsection (c), by inserting ``Operation and 
        Maintenance Funding.--'' after ``(c)''; and
            (4) in subsection (e), as redesignated by subsection 
        (a)(1), by inserting ``Limitations.--'' after ``(e)''.

SEC. 813. EXTENSION OF THE AUTHORITY TO CARRY OUT CERTAIN PROTOTYPE 
              PROJECTS.

    Section 845(i) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended by striking ``September 30, 
2008'' and inserting ``September 30, 2013''.

SEC. 814. QUALIFICATIONS FOR PUBLIC AIRCRAFT STATUS OF AIRCRAFT UNDER 
              CONTRACT WITH THE ARMED FORCES.

    (a) Amendment to Definition.--Section 40102(a)(41)(E) of title 49, 
United States Code, is amended--
            (1) by inserting ``or an operational support service'' 
        after ``transportation''; and
            (2) by adding at the end the following new sentence: ``For 
        purposes of this paragraph, `an operational support service' 
        means a mission performed by an air operator that uses fixed or 
        rotary winged aircraft to provide a service other than 
        transportation.''.
    (b) Armed Forces Operational Mission.--Section 40125(c) of such 
title is amended--
            (1) in paragraph (1)(C), by inserting ``or an operational 
        support service'' after ``transportation''; and
            (2) by adding at the end the following new paragraph:
            ``(3) Compliance of civil aircraft operations.--If the 
        Secretary of Defense (or the Secretary of the department in 
        which the Coast Guard is operating) does not make a designation 
        under paragraph (1)(C) with regard to a chartered aircraft, the 
        transportation or operational support service provided to the 
        armed forces by such aircraft must be in compliance with the 
        Federal Aviation Regulations under title 14, Code of Federal 
        Regulations.''.
    (c) Technical Corrections.--
            (1) Section 40125(b) of such title is amended by striking 
        ``40102(a)(37)'' each place it appears and inserting 
        ``40102(a)(41)''.
            (2) Section 40125(c) of such title is amended by striking 
        ``40102(a)(37)(E)'' each place it appears and inserting 
        ``40102(a)(41)(E)''.

SEC. 815. EXTENDING THE DETERMINATION OF SHORTAGE CATEGORY POSITIONS 
              FOR CERTAIN FEDERAL ACQUISITION POSITIONS.

    Section 1413(b) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1665), is amended by 
striking ``September 30, 2007'' and inserting ``September 30, 2012''.

SEC. 816. MULTIYEAR PROCUREMENT AUTHORITY FOR ELECTRICITY FROM 
              RENEWABLE ENERGY SOURCES.

    (a) In General.--Section 2410o(a) of title 10, United States Code, 
is amended--
            (1) by striking ``and hydrazine-related products'' and 
        inserting ``hydrazine-related products, and electricity from 
        renewable energy sources which include, but are not limited to 
        solar, wind, biomass, landfill gas, ocean (including tidal, 
        wave, current and thermal), geothermal, municipal solid waste 
        or new hydroelectric generation capacity achieved from 
        increased efficiency at hydroelectric projects''; and
            (2) by inserting before the period at the end the 
        following: ``or in the best interests of the United States''.
    (b) Clerical Amendments.--(1) The heading of such section is 
amended to read as follows:
``Sec. 2410o. Multiyear procurement authority: purchase of dinitrogen 
              tetroxide, hydrazine, hydrazine-related products, and 
              electricity from renewable energy''.
            (2) The table of sections at the beginning of chapter 141 
        of such title is amended by striking the item relating to 
        section 2410o and inserting the following new item:

``2410o. Multiyear procurement authority: purchase of dinitrogen 
                            tetroxide, hydrazine, hydrazine-related 
                            products, and electricity from renewable 
                            energy.''.

SEC. 817. EXEMPTION FOR SPECIAL OPERATIONS COMMAND.

    (a) Exemption.--Chapter 6 of title 10, United States Code, is 
amended by inserting after section 167a the following new section:
``Sec. 167b. Exemption for the commander of the United States Special 
              Operations Command
    ``Pursuant to section 167 of this title, the commander of the 
special operations command is responsible for, and has the authority to 
conduct all affairs of, such command relating to special operations 
activities. The commander of the special operations command may carry 
out his functions under section 167 without regard to sections 2401, et 
seq., of this title if the Secretary of Defense makes a determination 
that carrying out such functions in such manner is required for 
national security interests.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``167b. Exemption for the commander of the United States Special 
                            Operations Command.''.

                       Subtitle C--Other Matters

SEC. 821. APPLICABILITY OF STATUTORY EXECUTIVE COMPENSATION CAP MADE 
              PROSPECTIVE.

    Section 808(e)(2) of the National Defense Authorization Act for 
Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1838; 41 U.S.C. 435) is 
amended by striking ``before, on,'' and inserting ``on''.

SEC. 822. AUTHORITY TO APPOINT AN ACTING CHAIR FOR THE COST ACCOUNTING 
              STANDARDS BOARD.

    Paragraph (1) of section 26(a) of the Office of Federal Procurement 
Policy Act (41 U.S.C. 422(a)(1)) is amended by striking ``The Board 
shall consist of 5 members, including the Administrator, who shall 
serve as Chairman, and 4 members, all of whom shall have experience in 
Government contract cost accounting, and who shall be appointed as 
follows:'' and inserting ``The Board shall consist of the Chair and 4 
other members. The Chair shall be the Administrator. However, for those 
time periods in which the Administrator position is vacant, the 
Director of the Office of Management and Budget may appoint an employee 
of the Office of Management and Budget to serve as Chair. The 4 other 
members, all of whom shall have experience in Government contract cost 
accounting, shall be appointed as follows:''.

SEC. 823. SMALL BUSINESS INNOVATION RESEARCH AWARDS; USE OF PROGRAM 
              FUNDS FOR ADMINISTRATIVE COSTS.

    Section 9 of the Small Business Act (15 U.S.C. 638) is amended--
            (1) in subsection (f)(2)(A), by striking ``any'' and 
        inserting ``more than 3.0 percent''; and
            (2) in subsection (n)(2)(A), by striking ``any'' and 
        inserting ``more than 3.0 percent''.

SEC. 824. SMALL BUSINESS INNOVATION RESEARCH PROGRAM; DISCRETIONARY 
              TECHNICAL ASSISTANCE.

    Section 9(q)(3) of the Small Business Act (15 U.S.C. 638(q)(3)) is 
amended--
            (1) in subparagraph (A), by striking ``$4,000'' and 
        inserting ``$5,000''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B) Second phase.--Each agency referred to in 
                paragraph (1) may provide directly, or authorize any 
                second phase SBIR award recipient to purchase with 
                funds available from their SBIR awards, services 
                described in paragraph (1), in an amount equal to not 
                more than $8,000 per year, per award.''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

SEC. 901. DEPARTMENT OF DEFENSE BOARD OF ACTUARIES.

    (a)(1)  Establishment.--There is established in the Department of 
Defense a Department of Defense Board of Actuaries (hereinafter in this 
section referred to as the ``Board''). The Board shall consist of three 
members who shall be appointed by the President from among qualified 
professional actuaries who are members of the Society of Actuaries.
    (2)(A) Except as provided in subparagraph (B), the members of the 
Board shall serve for a term of 15 years, except that a member of the 
Board appointed to fill a vacancy occurring before the end of the term 
for which his predecessor was appointed shall only serve until the end 
of such term. A member may serve after the end of his term until his 
successor has taken office. A member of the Board may be removed by the 
President.
    (B) The three current members of the Department of Defense 
Retirement Board of Actuaries and the Department of Defense Education 
Benefits Board of Actuaries shall serve the remainder of their existing 
terms as members of the Board pursuant to subparagraph (A).
    (C) A member of the Board who is not otherwise an employee of the 
United States is entitled to receive pay at the daily equivalent of the 
annual rate of basic pay of the highest rate of basic pay then 
currently being paid under the General Schedule of subchapter III of 
chapter 53 of title 5, United States Code, for each day the member is 
engaged in the performance of duties vested in the Board and is 
entitled to travel expenses, including a per diem allowance, in 
accordance with section 5703 of title 5.
    (b) Report.--The Board shall report to the Secretary of Defense 
annually on the actuarial status of the Department of Defense Military 
Retirement Fund established by section 1461 of title 10, United States 
Code, and the Department of Defense Education Benefits Fund established 
by section 2006 of title 10, and shall furnish its advice and opinion 
on matters referred to it by the Secretary.
    (c) Records.--The Secretary shall keep, or cause to be kept, such 
records as necessary for determining the actuarial status of the Funds.
    (d) DoD Education Benefits Fund.--The Board shall review valuations 
of the Department of Defense Education Benefits Fund under section 
2006(f) of title 10, United States Code, and shall recommend to the 
President and thereafter to the Congress such changes as in the Board's 
judgment are appropriate and necessary to protect the public interest 
and maintain the Department of Defense Education Benefits Fund on a 
sound actuarial basis.
    (e) DoD Military Retirement Fund.--The Board shall review 
valuations of the Department of Defense Military Retirement Fund under 
section 1465(c) of title 10, United States Code, and shall report 
periodically, not less than once every four years, to the President and 
thereafter to the Congress on the status of the Department of Defense 
Military Retirement Fund. The Board shall include in such report 
recommendations for such changes as in the Board's judgment are 
appropriate and necessary to protect the public interest and maintain 
the Department of Defense Military Retirement Fund on a sound actuarial 
basis.
    (f) Repeal of Superceded Provisions.--(1) Section 1464 of title 10, 
United States Code, is repealed.
    (2) Section 2006 of title 10 is amended by striking subsection (e).
    (g) Conforming Amendments.--
            (1) The table of sections at the beginning of chapter 74 of 
        title 10, United States Code, is amended by striking the item 
        relating to section 1464.
            (2) Section 1175(h)(4) of such title is amended by striking 
        ``Retirement'' the first place it appears.
            (3) Section 1460(b) of such title is amended by striking 
        ``Retirement''.
            (4) Section 1466(c)(3) of such title is amended by striking 
        ``Retirement''.
            (5) Section 12521(6) of such title is amended by striking 
        ``Department of Defense Education Benefits Board of Actuaries 
        referred to in section 2006(e)(1) of this title'' and inserting 
        ``Department of Defense Board of Actuaries''.

SEC. 902. LIMITATION ON MAJOR DEPARTMENT OF DEFENSE HEADQUARTERS 
              ACTIVITIES PERSONNEL.

    Section 130a of title 10, United States Code, is amended--
            (1) in subsection (c)(2), by striking ``as Major DoD 
        Headquarters Activities in accordance with Department of 
        Defense Directive 5100.73'' and all that follows through the 
        period at the end and inserting ``in regulations prescribed by 
        the Secretary of Defense.''; and
            (2) by adding at the end the following new subsection:
    ``(e) Flexibility in Order To Achieve Cost Savings or Eliminate 
Contracts Associated With Inherently Governmental Functions.--If the 
Secretary of a military department or the commander of a combatant 
command certifies to the Secretary of Defense that a waiver of the 
limitation in subsection (a) or a reallocation among the military 
departments or combatant commands of the number of personnel 
permissible under subsection (a) either shall result in a cost savings 
or is necessary to eliminate a contract associated with an inherently 
governmental function (including cost savings or the elimination of a 
contract resulting from guidelines and procedures prescribed pursuant 
to section 343 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163)), the Secretary of Defense shall waive 
such limitation or make such reallocation to the extent necessary to 
achieve the cost savings or to eliminate the contract.''.

SEC. 903. FLEXIBILITY TO ADJUST THE NUMBER OF ARMY DEPUTY CHIEFS OF 
              STAFF AND ASSISTANT CHIEFS OF STAFF.

    Section 3035(b) of title 10, United States Code, is amended to read 
as follows:
    ``(b) The Secretary of the Army shall prescribe the number of 
Deputy Chiefs of Staff and Assistant Chiefs of Staff, for a total of 
not more than eight positions.''.

SEC. 904. RECEIPTS FOR EMPLOYEES AND MILITARY MEMBERS OF THE DEPARTMENT 
              OF DEFENSE.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1060c. Receipts for employees and military members of the 
              Department of Defense
    ``Notwithstanding the provisions of section 6051 of title 26, and 
pursuant to regulations prescribed by the Secretary of Defense, all 
statements required by section 6051 of title 26, and all periodic 
statements of leave and earnings, shall be furnished electronically to 
military members and civilian employees of the Department of Defense. 
The Secretary of Defense shall ensure that those employees or military 
members without reliable access to electronic media will receive the 
statements in another format.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1060c. Receipts for employees and military members of the Department 
                            of Defense.''.

SEC. 905. CENTERS FOR EXCELLENCE IN HUMAN RIGHTS.

    (a) Establishment.--The Secretary of Defense may operate Centers 
for Excellence in Human Rights.
    (b) Missions.--
            (1) The Human Rights Centers shall be used to provide and 
        facilitate education, training, research, and reform, and to 
        develop programs to combat the growing phenomenon of 
        trafficking in persons, and strategic planning for integrating 
        respect for human rights into all aspects of military 
        operations, doctrine, education, judicial systems, other 
        internal control mechanisms, and relations with civil society.
            (2) The Human Rights Centers may sponsor conferences, 
        symposia, seminars, academic exchanges, and courses, as well as 
        special projects such as studies, reviews, design of curricula, 
        and evaluations.
            (3) The Human Rights Centers will place special emphasis on 
        implementation of reforms that result in measurable real world 
        improvements providing effective security while respecting 
        human rights.
            (4) The Centers may perform such other missions as the 
        Secretary of Defense may specify.
    (c) Joint Operation With Educational Institutions and Non-
Governmental Organizations Authorized.--The Secretary of Defense may 
enter into agreements with appropriate officials of institutions of 
higher education and non-governmental organizations to provide for 
joint operation of the Centers. Any such agreements shall provide for 
the institution or organization to furnish necessary administrative 
services for the Centers, including administration and allocation of 
funds.
    (d) Acceptance of Donations.--
            (1) Except as provided in paragraph (2), the Secretary of 
        Defense may accept, on behalf of the Centers, gifts and 
        donations to be used to defray the costs of the Centers or to 
        enhance the operation of the Centers. Such donations may be 
        accepted from any State or local government, any foreign 
        government, any foundation or other charitable organization 
        (including any that is organized or operates under the laws of 
        a foreign country), or any other private source in the United 
        States or a foreign country.
            (2) The Secretary may not accept a gift or donation under 
        paragraph (1) if the acceptance of the gift or donation would 
        compromise or appear to compromise--
                    (A) the ability of the Department of Defense, any 
                employee of the Department, or members of the Armed 
                Forces, to carry out any responsibility or duty of the 
                Department in a fair and objective manner; or
                    (B) the integrity of any program of the Department 
                of Defense or of any person involved in such a program.
            (3) The Secretary shall prescribe written guidance setting 
        forth the criteria to be used in determining whether or not the 
        acceptance of a foreign gift or donation would have a result 
        described in paragraph (2).
            (4) Funds accepted by the Secretary under paragraph (1) 
        shall be credited to appropriations available to the Department 
        of Defense for the Centers. Funds so credited shall be merged 
        with the appropriations to which credited and shall be 
        available for the Center for the same purposes and the same 
        period as the appropriations with which merged.
    (e) Gift or Donation Defined.--For purposes of this section, a gift 
or donation is a gift or donation of funds, materials (including 
research materials), property, or services (including lecture services 
and faculty services).
    (f) Formulation and Execution of Programs.--
            (1) The Secretary of Defense may exercise the authorities 
        of this section only with the concurrence of the Secretary of 
        State.
            (2) The Secretaries of Defense and State shall jointly 
        formulate any program or other activities undertaken pursuant 
        to the authority of this section. The Secretaries shall 
        coordinate with one another, under procedures that they jointly 
        establish, to ensure implementation of such programs and 
        activities, including in a manner that incorporates appropriate 
        vetting procedures, irrespective of the source of funding for 
        the activity, and that avoids duplication with existing 
        programs.

             Subtitle B--Chemical Demilitarization Program

SEC. 911. CHANGE IN TERMINATION REQUIREMENT FOR CHEMICAL 
              DEMILITARIZATION CITIZENS' ADVISORY COMMISSIONS.

    Section 172 of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 106 Stat. 2341) is amended--
            (1) in subsections (b), (f), and (g), by striking 
        ``Assistant Secretary of the Army (Research, Development, and 
        Acquisition)'' and inserting ``Assistant Secretary of the Army 
        (Acquisition, Logistics, and Technology)''; and
            (2) in subsection (h), by striking ``after the stockpile 
        located in that commission's State has been destroyed'' and 
        inserting ``after closure activities required pursuant to 
        regulations promulgated by the Administrator of the 
        Environmental Protection Agency pursuant to the Solid Waste 
        Disposal Act (42 U.S.C. 6901 et seq.) have been completed for 
        the chemical agent destruction facility in the commission's 
        State, or upon the request of the Governor of the commission's 
        State, whichever occurs first''.

                Subtitle C--Intelligence-Related Matters

SEC. 921. REPEAL OF STANDARDS OF MANDATORY DISQUALIFICATION FROM 
              ELIGIBILITY FOR DEPARTMENT OF DEFENSE SECURITY CLEARANCE.

    Section 986 of title 10, United States Code, is repealed.

SEC. 922. TECHNICAL AMENDMENTS TO TITLE 10, UNITED STATES CODE, ARISING 
              FROM ENACTMENT OF THE INTELLIGENCE REFORM AND TERRORISM 
              PREVENTION ACT OF 2004.

    (a) References to Head of Intelligence Community.--Title 10, United 
States Code, is amended by striking ``Director of Central 
Intelligence'' each place it appears in the following provisions and 
inserting ``Director of National Intelligence'':
            (1) Section 192(c)(2).
            (2) Section 193(d)(2).
            (3) Section 193(e).
            (4) Section 201(a).
            (5) Section 201(b)(1).
            (6) Section 201(c)(1).
            (7) Section 425(a).
            (8) Section 426(a)(3).
            (9) Section 426(b)(2).
            (10) Section 441(c).
            (11) Section 441(d).
            (12) Section 443(d).
            (13) Section 2273(b)(1).
            (14) Section 2723(a).
    (b) References to Head of Central Intelligence Agency.--Such title 
is further amended by striking ``Director of Central Intelligence'' 
each place it appears in the following provisions and inserting 
``Director of the Central Intelligence Agency'':
            (1) Section 431(b)(1).
            (2) Section 444.
    (c) Other Amendments.--Section 201 of such title is further 
amended--
            (1) in subsection (b), by amending paragraph (1) to read as 
        follows:
            ``(1) In the event of a vacancy in a position referred to 
        in paragraph (2), before appointing an individual to fill the 
        vacancy or recommending to the President an individual to be 
        nominated to fill the vacancy, the Secretary of Defense shall 
        obtain the concurrence of the Director of National Intelligence 
        as provided in section 106(b) of the National Security Act of 
        1947 (50 U.S.C. 403-6(b)).''; and
            (2) in subsection (c), by striking ``National Foreign 
        Intelligence Program'' and inserting ``National Intelligence 
        Program''.

SEC. 923. PROTECTION OF INFORMATION REGARDING WEAPONS OF MASS 
              DESTRUCTION.

    (a) Prohibition From Disclosure Under Freedom of Information Act.--
Information in the possession of the Department of Defense concerning 
weapons of mass destruction, as defined in subsection (d) of this 
section, shall not be disclosed under section 552 of title 5, United 
States Code (commonly referred to as the Freedom of Information Act 
(FOIA)) for the period of time the sensitivity of the information can 
be reasonably confirmed. Any information controlled under the Atomic 
Energy Act of 1954, as amended, is exempt from the provisions of this 
Act. This exemption shall be implemented in a manner so as to not 
unduly restrict the public's current level of access to environmental 
impact statements, records concerning healthcare activities, or other 
information essential to inform official decision-making concerning the 
health and safety of the public.
    (b) Requirement for Safeguarding.--The Department of Defense shall 
safeguard information concerning weapons of mass destruction 
commensurate with the sensitivity of the information concerned and 
shall take all reasonable actions to ensure parties outside the Federal 
government with whom the Department shares such information safeguard 
it in the same manner.
    (c) Application of State or Local Disclosure Laws.--Information 
subject to this section that the Department has provided to State and 
local authorities shall not be made available pursuant to any State or 
local law requiring disclosure of information or records.
    (d) Definitions.--In this section:
            (1) The term ``weapon of mass destruction'' has the same 
        meaning as given in the Defense Against Weapons of Mass 
        Destruction Act of 1996 (50 U.S.C. 2302).
            (2) The term ``information concerning weapons of mass 
        destruction'' means information that--
                    (A) would assist in developing, producing, or using 
                weapons of mass destruction or in evading the detection 
                or the monitoring of the development, production, use, 
                or presence of weapons of mass destruction; or
                    (B) would disclose a vulnerability to the effects 
                of a weapon of mass destruction; and
                    (C) has been determined to be currently sensitive 
                by an official designated as an Initial Denial 
                Authority for the Department of Defense component 
                concerned pursuant to Department of Defense Directive 
                5400.7-R, ``DoD Freedom of Information Act Program'', 
                September 1998, or successor directive.
        Examples of such information could include information that 
        remains current and sensitive, such as but not limited to, 
        formulas and design descriptions of lethal and incapacitating 
        materials; maps, designs, security/emergency response plans, 
        and vulnerability assessments for facilities containing weapons 
        of mass destruction materials; studies of the effects and 
        possible methods of weaponization of weapons of mass 
        destruction materials; design details, capabilities, and 
        application of detection, surveillance, countermeasures, and 
        measurement equipment or plans; United States Government 
        evaluations of response plans of State and local governments; 
        and evaluation of weapons of mass destruction dispersal systems 
        or methods.
    (e) Reporting.--Ninety days following the one-year anniversary of 
the effective date of this section, the Department of Defense will 
provide to the Department of Justice and the Office of Management and 
Budget a report detailing the number of FOIA requests received for 
information covered under this section, a description of the 
information requested, and specific actions taken as a result of the 
request.

SEC. 924. PROHIBITION ON DISCLOSURE OF CERTAIN GEODETIC PRODUCTS.

    Section 455 of title 10, United States Code, is amended by adding 
at the end the following new subsections:
    ``(d) Prohibition on Disclosure of Geodetic Products.--Any person, 
including any current and former government and contractor personnel, 
who knowingly distributes, transfers or engages in the sale of any 
product that the Secretary of Defense has withheld from the public in 
accordance with subsection (b) shall be subject to the penalties and 
administrative actions set forth in subsection (e).
    ``(e) Penalties and Administrative Sanctions.--(1) Criminal 
Penalties.--Whoever engages in conduct constituting a violation of 
subsection (b) or (d) shall be imprisoned for not more than 5 years or 
fined as provided under title 18, or both.
    ``(2) Civil Penalties.--The Attorney General may bring a civil 
action in an appropriate United States district court against any 
person who engages in conduct constituting a violation of subsection 
(b) or (d). Upon proof of such conduct by a preponderance of the 
evidence, the person is subject to a civil penalty. An individual who 
engages in such conduct is subject to a civil penalty of not more than 
$50,000 for each violation plus twice the amount of compensation that 
the individual received or offered for the prohibited conduct. An 
organization that engages in such conduct is subject to a civil penalty 
of not more than $500,000 for each violation plus twice the amount of 
compensation that the organization received or offered for the 
prohibited conduct.''.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

SEC. 1001. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDGET CYCLE FOR THE 
              DEPARTMENT OF DEFENSE.

    Section 1405 of the Department of Defense Authorization Act, 1986 
(Public Law 99-145; 99 Stat. 744; 31 U.S.C. 1105 note) is repealed.

SEC. 1002. SHORT-TERM INVESTMENT OF BURDEN SHARING CONTRIBUTIONS FROM 
              REPUBLIC OF KOREA.

    Section 2350j(b) of title 10, United States Code, is amended--
            (1) by striking ``Contributions'' and inserting ``(1) 
        Contributions''; and
            (2) by inserting at the end the following new paragraph:
            ``(2) The Secretary of Defense may authorize the deposit of 
        contributions accepted under subsection (a) from the Republic 
        of Korea in Korean Won into an account that is interest bearing 
        if the contributions are invested in treasury obligations of 
        the Republic of Korea of not more than six months maturity. 
        Interest received on such accounts shall be treated the same as 
        the contributions on which the interest was earned and shall be 
        available for the same purpose as those contributions.''.

SEC. 1003. INCREASE LIMITATION ON ADVANCE BILLING OF WORKING CAPITAL 
              FUND CUSTOMERS.

    Section 2208(l)(3) of title 10, United States Code, is amended by 
striking ``$1,000,000,000'' and inserting ``$2,000,000,000''.

          Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. TEMPORARY WAIVER OF THE MINIMUM AIRCRAFT CARRIER 
              REQUIREMENT.

    Section 5062(b) of title 10, United States Code, is amended by 
inserting after the first sentence the following new sentence: 
``Notwithstanding the preceding sentence or any other provision of law, 
the naval combat forces of the Navy may include less than 11 
operational aircraft carriers for the period of time between the 
decommissioning of the USS ENTERPRISE (CVN 65) and the commissioning of 
the CVN 78.''.

SEC. 1012. DISPOSALS TO FOREIGN NATIONS.

    The text of section 7307 of title 10, United States Code, is 
amended to read as follows:
    ``(a) Notification Requirements for Transfers of All Vessels.--The 
Secretary of Defense, with the concurrence of the Secretary of State, 
may dispose of a naval vessel to another nation (whether by sale, 
lease, grant, loan, barter, transfer, or otherwise) in accordance with 
applicable provisions of law, but only after--
            ``(1) the Secretary of Defense notifies the Committee on 
        Armed Services of the Senate and the Committee on Armed 
        Services of the House of Representatives in writing of the 
        proposed disposition; and
            ``(2) 30 days of continuous session of Congress have 
        expired following the date on which such notice is sent to 
        those committees.
    ``(b) Continuity of a Session.--For purposes of subsection (a)(2), 
the continuity of a session of Congress is broken only by an 
adjournment of the Congress sine die, and the days on which either 
House is not in session because of an adjournment or more than 3 days 
to a day certain are excluded in the computation of such 30-day 
period.''.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. USE OF FUNDS FOR COUNTER-DRUG AND COUNTER-TERRORISM.

    Section 1022(b) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1594), as amended by 
section 1022 of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163; 119 Stat. 3427), is further amended by 
striking ``fiscal years 2006 and 2007'' and inserting ``fiscal year 
2008''.

            Subtitle D--Matters Related to Homeland Security

SEC. 1031. SUPPORT TO NATIONAL SPECIAL SECURITY EVENTS AND OTHER 
              CRITICAL NATIONAL SECURITY ACTIVITIES.

    (a) In General.--Chapter 1 of title 32, United States Code, is 
amended by adding at the end the following new section:
``Sec. 116. Defense support of civil authorities
    ``(a)  In General.--At the request of a Federal department or 
agency head, and when authorized by the Secretary of Defense, the 
Governor of a State may employ under this title units or members of the 
National Guard of that State to provide defense support of civil 
authorities to the requesting Federal department or agency, as 
specified in subsection (c). Subject to the exceptions in subsections 
(d), the costs incurred by the National Guard shall be reimbursed to 
the Department of Defense from the appropriations available to the 
Federal department or agency to which the support was provided. This 
reimbursement will include the costs of--
            ``(1) the pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses of personnel of the 
        National Guard of that State;
            ``(2) the operation and maintenance of the equipment and 
        facilities of the National Guard of that State; and
            ``(3) the procurement of services and equipment, and the 
        leasing of equipment, for the National Guard of that State.
    ``(b) Crediting of Receipts.--Any funds received by the Department 
of Defense as reimbursement for support provided by units or members of 
the National Guard under this section shall be credited, at the option 
of the Secretary of Defense, to:
            ``(1) the appropriation, fund, or account to fund the 
        support; or
            ``(2) the appropriate appropriation, fund, or account 
        currently available for such purpose.
    ``(c) Activities Included.--Defense support of civil authorities 
activities authorized by subsection (a) include support provided for 
National Special Security Events and other activities determined by the 
Secretary of Defense as being critical to national security such as:
            ``(1) Ground reconnaissance activities;
            ``(2) Airborne reconnaissance activities;
            ``(3) Logistical support;
            ``(4) Emergency medical assistance and services;
            ``(5) Communications services;
            ``(6) Security assistance and services; and
            ``(7) Air and ground transportation.
    ``(d) Waiver of Reimbursement.--A Federal department or agency to 
which support is provided under this chapter is not required to 
reimburse the Department of Defense for such support if the Secretary 
of Defense waives reimbursement. The Secretary of Defense may waive the 
reimbursement requirement under this section if--
            ``(1) the support is provided in the normal course of 
        military training or operations; or
            ``(2) the support provided results in a benefit to units or 
        members of the National Guard providing the support that is 
        substantially equivalent to that which would otherwise be 
        obtained from military operations or training.
    ``(e) Requirements for Requests.--Requests for assistance from 
Federal departments or agencies under this section shall be submitted 
to the Secretary of Defense. Any such request shall include the 
following:
            ``(1) The specific support capability requested.
            ``(2) The duration of the requested support activities.
            ``(3) A certification that the requested support activities 
        will be fully reimbursable.
            ``(4) A certification from the Governor of the involved 
        State(s) that the requested support will be provided at a time 
        when the personnel involved are not in Federal service.
    ``(f) Characterization of Service.--All duty performed under this 
section shall be considered to be full-time National Guard duty under 
section 502(f) of this title.
    ``(g) Duration.--The period for which support may be provided to a 
Federal department or agency under this section shall be limited to 180 
days. When requested by the head of a Federal department or agency, the 
Secretary of Defense may, with the concurrence of the Governor of the 
State, extend the period of time for an additional 90 days to meet 
extraordinary circumstances.
    ``(h) Training and Benefits.--A member of the National Guard 
performing duty under this section shall, in addition to performing 
such duty, participate in the training required under section 502(a) of 
this title. The pay, allowances, and other benefits of the member while 
participating in the training shall be the same as those to which the 
member is entitled while performing the duty under this chapter. The 
member is not entitled to additional pay, allowances, or other benefits 
for participation in training required under section 502(a)(1) of this 
title.
    ``(i) Training Limitations.--To ensure that the use of units and 
personnel of the National Guard of a State for activities specified in 
subsections (a) and (b) of this section does not degrade the training 
and readiness of such units and personnel, the following requirements 
shall apply in determining the activities that units and personnel of 
the National Guard of a State may perform:
            ``(1) The performance of the activities is not to affect 
        adversely the quality of that training or otherwise interfere 
        with the ability of a member or unit of the National Guard to 
        perform the military functions of the member or unit.
            ``(2) The performance of the activities is not to degrade 
        the military skills of the members of the National Guard 
        performing those activities.
    ``(j) Support Excluded.--Defense support of civil authorities 
activities conducted under authority of this section may not be 
provided if the provision of such support will affect adversely the 
military preparedness of the United States.
    ``(k) Relationship to Other Authorities.--Nothing in this chapter 
shall be construed as a limitation on the authority of any unit of the 
National Guard of a State, when such unit is not in Federal service, to 
perform functions authorized to be performed by the National Guard by 
the laws of the State concerned.
    ``(l) Definitions.--For purposes of this section:
            ``(1) The term `State' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, Guam 
        or the Virgin Islands.
            ``(2) The term `National Special Security Event' means an 
        event designated as such as authorized by the President that, 
        by virtue of its political, economic, social, or religious 
        significance, may be the target of terrorism or other criminal 
        activity.''.
    (b) Clerical and Conforming Amendments.--
            (1) The table of sections at the beginning of such chapter 
        is amended by adding at the end the following new item:

``116. Defense support of civil authorities.''.
            (2) Section 115 of title 10, United States Code, is 
        amended--
                    (A) by redesignating subsection (i) (the second 
                place it appears) as subsection (j); and
                    (B) in subsection (j), as redesignated, by 
                inserting ``or defense support of civil authorities 
                under section 116'' after ``chapter 9''.

                       Subtitle E--Other Matters

SEC. 1041. PROTECTION OF DEPARTMENT OF DEFENSE PERSONS DESIGNATED BY 
              THE SECRETARY OF DEFENSE.

    Section 2674(b)(1) of title 10, United States Code, is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        after the first sentence the following new sentence: ``In 
        addition, the Secretary may authorize such law enforcement and 
        security personnel to provide for the physical security and 
        protection of Department of Defense personnel and others 
        entitled to Federal protection from assault and other crimes of 
        violence under Federal statutes, within or outside the United 
        States, when threat conditions cause the Secretary to determine 
        that such protection is necessary for reasons of national 
        security.'';
            (2) in subparagraph (A), by striking ``status; and'' and 
        inserting ``status within or outside the United States;'';
            (3) by striking the period at the end of subparagraph (B) 
        and inserting ``; and''; and
            (4) by adding at the end the following new subparagraphs:
                    ``(C) may, when providing for the physical security 
                and protection of persons under this section, make 
                arrests without a warrant for violations of the United 
                States Code committed in their presence to the extent 
                otherwise authorized by law.
                    ``(D) Nothing in paragraph (1) shall be construed 
                to preclude or limit, in any way, the implied or 
                inherent powers of the Secretary of Defense, the duties 
                and authorities of the United States Department of 
                State, United States Secret Service or any other 
                Federal law enforcement agency.
                    ``(E) The powers granted to law enforcement and 
                security personnel under paragraph (1), who provide for 
                the physical security and protection of Department of 
                Defense personnel entitled to Federal protection from 
                assault and other crimes of violence under Federal 
                statutes, shall be exercised only in accordance with 
                guidelines approved by the Secretary and the Attorney 
                General; said powers shall be exercised with the 
                concurrence of the Department of State to the extent 
                they are exercised outside the United States.''.

SEC. 1042. CLARIFICATION OF JURISDICTION OF THE UNITED STATES DISTRICT 
              COURTS TO HEAR BID PROTEST DISPUTES INVOLVING MARITIME 
              CONTRACTS.

    Section 1491 of title 28, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Jurisdiction over any actions described under subsection 
(b)(1) of this section arising out of a maritime contract or a proposed 
maritime contract shall be governed by this section, and shall not be 
subject to the jurisdiction of the District Courts of the United States 
under the Act of March 9, 1920, commonly known as the `Suits in 
Admiralty Act' (41 Stat. 525; 46 U.S.C. App. 741 et seq.), or the Act 
of March 3, 1925, commonly known as the `Public Vessels Act' (43 Stat. 
1112; 46 U.S.C. App. 781 et seq.).''.

SEC. 1043. CANCELLATION OF USE OF AIRCRAFT FOR PROFICIENCY FLYING: 
              LIMITATION.

    (a) In General.--Section 2245 of title 10, United States Code, is 
repealed.
    (b) Clerical Amendment.--The table of sections at the beginning of 
subchapter 1 of chapter 134 of such title is amended by striking the 
item relating to section 2245.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2007.

SEC. 1044. PROMPT CONVERSION OF ARMY FORCES IN HAWAII.

    (a) Finding.--The Congress finds that the conversion in Hawaii of 
the 2nd Brigade of the 25th Infantry Division to a Stryker Brigade 
Combat Team is necessary to the national defense, supports U.S. foreign 
policy, and conforms to prior direction of Congress with regard to the 
reorganization of the Army into a more effective fighting force.
    (b) Conversion.--The Secretary of the Army shall convert the 2nd 
Brigade of the 25th Infantry Division to a Stryker Brigade Combat Team, 
at its current location, and such conversion shall proceed to 
completion notwithstanding any other provision of law.

SEC. 1045. EXPAND COOPERATIVE AGREEMENT AUTHORITY FOR MANAGEMENT OF 
              CULTURAL RESOURCES TO INCLUDE OFF-INSTALLATION 
              MITIGATION.

    (a) Expanded Authority.--Section 2684(a) of title 10, United States 
Code, is amended to read as follows:
    ``(a) Authority.--(1) The Secretary of Defense or the secretary of 
a military department may enter into a cooperative agreement with a 
State, local or tribal government or other entity--
            ``(A) for the preservation, management, maintenance, and 
        improvement of cultural resources; and
            ``(B) for the conduct of research regarding cultural 
        resources.
    ``(2) Such cultural resources must be located--
            ``(A) on a military installation; or
            ``(B) off a military installation, but only if the 
        cooperative agreement directly relieves or eliminates current 
        or anticipated restrictions that would or might restrict, 
        impede, or otherwise interfere, whether directly or indirectly, 
        with current or anticipated military training, testing, or 
        operations on the installation.
    ``(3) Activities under the cooperative agreement shall be subject 
to the availability of funds to carry out the cooperative agreement.''.
    (b) Expanded Definition.--Subsection (c) of such section is amended 
by adding at the end the following new paragraph:
            ``(5) An Indian sacred site, as the that term is defined in 
        section 1(b)(iii) of Executive Order 13007.''.

                  TITLE XI--CIVILIAN PERSONNEL MATTERS

SEC. 1101. COMPENSATION FOR FEDERAL WAGE SYSTEM EMPLOYEES FOR CERTAIN 
              TRAVEL HOURS.

    Section 5544(a) of title 5, United States Code, is amended in the 
third sentence in the matter following paragraph (3) by inserting ``, 
including travel by an employee to such an event and the return of such 
employee from such event to his or her official duty station,'' after 
``event''.

SEC. 1102. SPECIAL BENEFITS FOR CIVILIAN EMPLOYEES ASSIGNED ON 
              DEPLOYMENT TEMPORARY CHANGE OF STATION.

    (a) Authority.--Subchapter II of chapter 57 of title 5, United 
States Code, is amended by inserting after section 5737 the following 
new section:
``Sec. 5737a. Civilian employees deployed in contingency operations: 
              quarters, rations, and other benefits
    ``(a) Covered Employees.--This section applies to civilian 
employees in the Executive Branch who are assigned on a temporary 
change of station in support of a contingency operation in an overseas 
location.
    ``(b) Quarters and Rations at Deployment Duty Station.--The head of 
an agency may provide an employee assigned as described in subsection 
(a) with quarters and rations, without charge, during the period of the 
assignment.
    ``(c) Storage of Privately Owned Vehicle.--The head of an agency, 
during the period an employee is assigned as described in subsection 
(a) and for such additional period as determined by the head of an 
agency, may provide for the storage without charge, or reimburse an 
employee for the storage, of one motor vehicle that is owned or leased 
by the employee (or a dependent of the employee) and is for the 
personal use of the employee. Only one vehicle per employee may be 
stored under this provision.
    ``(d) Relationship to Other Pay and Allowances.--A payment, 
quarters, allowance, or benefit under this section may be provided in 
addition to any other pay, allowance, or benefit to which the employee 
is entitled.
    ``(e) Regulations.--The Administrator of the General Services 
Administration shall prescribe regulations to carry out this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `civilian employee' has the meaning given 
        the term `employee' in section 2105(a) of this title.
            ``(2) The term `temporary change of station' means an 
        assignment from the employee's official duty station to a 
        temporary duty station for which an employee receives payments 
        under section 5737 of this title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 57 of such title is amended by inserting after the item 
relating to section 5737 the following new item:

``5737a. Civilian employees deployed in contingency operations: 
                            quarters, rations, and other benefits.''.

SEC. 1103. AUTHORITY TO WAIVE LIMITATION ON PREMIUM PAY FOR FEDERAL 
              CIVILIAN EMPLOYEES.

    (a) Waiver Authority.--During calendar year 2008 and 
notwithstanding section 5547 of title 5, United States Code, the head 
of an Executive agency may waive the limitation, up to $212,100, for 
total compensation, including limitations on the aggregate of basic pay 
and premium pay payable in a calendar year, to an employee who performs 
work while in an overseas location that is in the area of 
responsibility of the Commander of the United States Central Command, 
in direct support of, or directly related to--
            (1) a military operation, including a contingency 
        operation; or
            (2) an operation in response to a declared emergency.
    (b) Additional Pay Not Considered Basic Pay.--To the extent that a 
waiver under subsection (a) results in payment of additional premium 
pay of a type that is normally creditable as basic pay for retirement 
or any other purpose, such additional pay shall not be considered to be 
basic pay for any purpose, nor shall it be used in computing a lump-sum 
payment for accumulated and accrued annual leave under section 5551 of 
title 5, United States Code.
    (c) Regulations.--The Director of the Office of Personnel 
Management may issue regulations to ensure appropriate consistency 
among heads of executive agencies in the exercise of authority granted 
by this section.

SEC. 1104. INCREASE IN AUTHORIZED NUMBER OF DEFENSE INTELLIGENCE SENIOR 
              EXECUTIVE SERVICE EMPLOYEES.

    Section 1606(a) of title 10, United States Code, is amended by 
striking ``594'' and inserting ``644 in fiscal year 2008 and 694 in 
fiscal year 2009''.

SEC. 1105. ACCUMULATION OF ANNUAL LEAVE BY SENIOR LEVEL EMPLOYEES.

    Section 6304(f)(1) of title 5, United States Code, is amended--
            (1) by striking ``in'' in the matter preceding subparagraph 
        (A);
            (2) by striking ``the'' each place it appears and inserting 
        ``in the'';
            (3) by striking ``or'' at the end of subparagraph (D);
            (4) by striking the period at the end of subparagraph (E) 
        and inserting a semicolon; and
            (5) by adding at the end the following new subparagraphs:
                    ``(F) designated as a senior-level position under 
                subsection (a) of section 5376 of this title; or
                    ``(G) designated as a senior-level position under 
                subsection (a) of section 1607 of title 10.''.

SEC. 1106. TRAVEL COMPENSATION FOR PREVAILING RATE EMPLOYEES.

    (a) Eligibility for Compensatory Time Off for Travel.--Section 
5550b(a) of title 5, United States Code, is amended by striking 
``section 5542(b)(2)'' and inserting ``sections 5542(b)(2) and 
5544(a)''.
    (b) Conforming Amendment.--Section 5541(2)(xi) of such title is 
amended by striking ``section 5544'' and inserting ``sections 5544 and 
5550b''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on the earlier of--
            (1) the effective date of any regulations prescribed to 
        carry out such amendments; or
            (2) the 90th day after the date of the enactment of this 
        Act.

SEC. 1107. ANNUITY COMMENCING DATES.

    (a) Civil Service Retirement System.--Section 8345(b)(1) of title 
5, United States Code, is amended by striking ``the first day of the 
month after'' both places it appears and inserting ``the day after''.
    (b) Federal Employees' Retirement System.--Section 8464(a) of such 
title is amended to read as follows:
    ``(a) Except as otherwise provided in this chapter--
            ``(1) an annuity payable from the Fund commences on the day 
        after--
                    ``(A) separation from the service, in the case of 
                an employee or Member retiring under section 8412 or 
                8414; or
                    ``(B) pay ceases and the applicable age and service 
                requirements are met in the case of an employee or 
                Member retiring under section 8413; and
            ``(2) an annuity payable from the Fund commences on the day 
        after separation from the service or the day after pay ceases 
        and the requirements for title to an annuity are met in the 
        case of an employee or Member retiring under section 8451.''.

SEC. 1108. LIFE INSURANCE COVERAGE FOR EMPLOYEES CALLED TO ACTIVE DUTY.

    Section 8706(b) of title 5, Untied States Code, is amended by 
adding at the end the following new paragraph:
            ``(5) The insurance of an employee continues for up to 24 
        months after discontinuance of pay for any employee who--
                    ``(A) is enrolled in life insurance under this 
                chapter;
                    ``(B) is a member of a reserve component of the 
                armed forces;
                    ``(C) is called or ordered to active duty;
                    ``(D) is placed on leave without pay to perform 
                active duty; and
                    ``(E) serves on active duty for a period of more 
                than 30 consecutive days.''.

SEC. 1109. FLEXIBILITY IN SETTING PAY FOR EMPLOYEES WHO MOVE FROM A 
              DEPARTMENT OF DEFENSE OR COAST GUARD NONAPPROPRIATED FUND 
              INSTRUMENTALITY POSITION TO A DOD OR COAST GUARD POSITION 
              IN THE GENERAL SCHEDULE PAY SYSTEM.

    Section 5334(f) of title 5, United States Code, is amended to read 
as follows:
    ``(f)(1) This subsection applies to an employee of a 
nonappropriated fund instrumentality of the Department of Defense or 
the Coast Guard described in section 2105(c) who moves, voluntarily or 
involuntarily, without a break in service of more than 3 days, to a 
position in the Department of Defense or the Coast Guard, respectively, 
that is subject to this subchapter.
    ``(2) For an employee subject to this subsection, service in a 
covered nonappropriated fund instrumentality shall be treated as 
Federal service in the executive branch for the purpose of applying any 
regulations issued by the Director of the Office of Personnel 
Management governing the setting of an employee's rate of basic pay 
under this subchapter based on rates received under another Federal pay 
system. In the case of such an employee who is moved involuntarily and 
without a substantial change in duties, the employee is entitled under 
this paragraph to the lowest step of the employee's grade that equals 
or exceeds the employee's rate of basic pay under the nonappropriated 
fund instrumentality immediately prior to so moving (after applying 
geographic pay conversion consistent with the regulations described in 
the first sentence of this paragraph) or, if there is no such step, the 
maximum rate of the grade (except as may be provided for under section 
5365 or any other provision of law).
    ``(3) Notwithstanding any other provision of law, in the case of an 
employee subject to this subsection, the employee's initial rate of 
basic pay under this subchapter may be set under the authority provided 
by the second sentence in section 5333 (subject to applicable 
regulatory requirements) as if the employee were a newly appointed 
employee, if the resulting rate would exceed the rate set under 
paragraph (2).''.

SEC. 1110. INFORMING GOVERNMENT CONTRACTOR EMPLOYEES OF THEIR 
              WHISTLEBLOWER RIGHTS.

    (a) Policy.--The head of each Executive agency shall prescribe in 
regulation a policy for informing employees of a contractor of their 
whistleblower rights and protections under section 2409 of title 10, 
United States Code, and section 265 of title 41, United States Code, as 
implemented by title 48, Code of Federal Regulations, subpart 3.9.
    (b) Content of Regulations.--The regulations shall include the 
following requirements:
            (1) Employees of Government contractors shall be notified 
        in writing of the provisions of section 2409 of title 10, 
        United States Code, and section 265 of title 41, United States 
        Code.
            (2) Such notice to contractor employees shall state that 
        the restrictions imposed by any employee agreement or non-
        disclosure agreement shall not supersede, conflict with, or 
        otherwise alter the employee rights created by section 2409 of 
        title 10, United States Code, and section 265 of title 41, 
        United States Code, or their implementing regulations.
    (c) Definition.--In this section, the term ``contractor'' has the 
meaning given that term in section 2409(e)(4) of title 10, United 
States Code, and section 265(e)(2) of title 41, United States Code.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

SEC. 1201. AUTHORITY TO TRAIN AND EQUIP FOREIGN PERSONNEL TO ASSIST IN 
              ACCOUNTING FOR MISSING PERSONNEL.

    (a) In General.--The Secretary of Defense, with the concurrence of 
the Secretary of State, may provide assistance to foreign nations to 
assist the Department of Defense with recovery and accounting 
activities for missing United States personnel.
    (b) Types of Assistance.--Such assistance may include the provision 
of equipment, supplies, services, training, and funding: Provided 
further, That the authority to provide assistance under this section is 
in addition to any other authority to provide assistance to foreign 
nations.
    (c) Limitation.--Assistance authorized under this section may not 
exceed $1,000,000 in any fiscal year.

SEC. 1202. PROVISION OF SUPPORT AND SERVICES TO FOREIGN MILITARY AND 
              STATE AIRCRAFT.

    (a) In General.--(1) Section 9626 of title 10, United States Code, 
is amended to read as follows:
``Sec. 9626. Aircraft supplies and services: foreign military or other 
              foreign state aircraft
    ``(a) Authority.--The Secretary of the Air Force, under such 
regulations as he may prescribe, may provide any of the following 
supplies or services, when in the best interests of the United States, 
on a reimbursable basis without an advance of funds if similar supplies 
and services are furnished on a like basis to military aircraft and 
other state aircraft of the United States by the foreign country 
concerned:
            ``(1) Routine airport services, including landing and 
        takeoff assistance, servicing aircraft with fuel, use of 
        runways, parking and servicing, baggage and cargo loading and 
        unloading, to military and other state aircraft of foreign 
        countries.
            ``(2) Miscellaneous supplies, including Air Force-owned 
        fuel, provisions, spare parts, and general stores, but not 
        including ammunition, to military and other state aircraft of 
        foreign countries.
    ``(b) Routine Airport Services.--(1) Routine airport services may 
be furnished under this section at no cost to the foreign country 
concerned where such services are provided by United States Air Force 
personnel and equipment without direct cost to the Air Force.
            ``(2) When furnishing routine airport services under this 
        section to military or other state aircraft of a foreign 
        country, the Secretary may furnish such services without 
        reimbursement if such services are provided under an agreement 
        that provides for the reciprocal furnishing by such country of 
        routine airport services to military and other state aircraft 
        of the United States without reimbursement.
            ``(3) If routine airport services are furnished under this 
        section by a working-capital fund activity of the Air Force 
        established under section 2208 of this title and such activity 
        is not reimbursed directly for the costs incurred by the 
        activity in furnishing those services by reason of paragraph 
        (2), the working-capital fund activity shall be reimbursed for 
        such costs out of operating funds currently available to the 
        Air Force.''.
            (2) The table of sections at the beginning of chapter 939 
        of such title is amended by striking the item relating to 
        section 9626 and inserting the following new item:

``9626. Aircraft supplies and services: foreign military or other 
                            foreign state aircraft.''.
    (b) Conforming Amendment.--Section 9629(3) of such title is amended 
by striking ``of a foreign military or air attache''.

     Subtitle B--Nonproliferation Matters and Countries of Concern

SEC. 1211. REPEAL OF CERTAIN LAWS PERTAINING TO THE JOINT COMMITTEE FOR 
              THE REVIEW OF COUNTERPROLIFERATION PROGRAMS.

    (a) Joint Committee for the Review of Counterproliferation Programs 
of the United States.--Section 1605 of the National Defense 
Authorization Act for Fiscal Year 1994 (title XVI of Public Law 103-
160; 22 U.S.C. 2751 note) is repealed.
    (b) Reports on Counterproliferation Activities and Programs.--
Section 1503 of the National Defense Authorization Act for Fiscal Year 
1995 (title XV of Public Law 103-337; 22 U.S.C. 2751 note) is repealed.

                       Subtitle C--Other Matters

SEC. 1221. COOPERATIVE RESEARCH AND DEVELOPMENT AGREEMENTS: NATO 
              ORGANIZATIONS; ALLIED AND FRIENDLY FOREIGN COUNTRIES.

    Subsection (e) of section 2350a, of title 10, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``an arms cooperation opportunities 
                document'' both places it appears and inserting ``a 
                cooperative opportunities document''; and
                    (B) by striking ``a Mission Need Statement'' in 
                subparagraph (B) and inserting ``an analysis of 
                alternatives plan''; and
            (2) in paragraph (2), by striking ``An arms cooperation 
        opportunities document'' and inserting ``A cooperative 
        opportunities document''.

SEC. 1222. AMENDMENT TO THE COMPOSITION OF THE BOARD OF VISITORS OF THE 
              WESTERN HEMISPHERE INSTITUTE FOR SECURITY COOPERATION.

    Section 2166(e)(1)(F) of title 10, United States Code, is amended 
to read as follows:
                    ``(F) The commanders of the combatant commands 
                having geographic responsibilities for the Western 
                Hemisphere, or designees of those officers.''.

SEC. 1223. ACCEPT FUNDS FROM THE GOVERNMENT OF PALAU.

    Section 1933(a) of title 48, United States Code, is amended--
            (1) by inserting ``(1)'' before ``In recognition''; and
            (2) by adding at the end the following new paragraph--
            ``(2) The Secretary of Defense may accept the $250,000 
        annual funds from the Government of Palau. Funds accepted by 
        the Secretary under this section from the Government of Palau 
        shall be credited to the appropriations available to the 
        Department of Defense for the Civic Action Team. Funds so 
        credited shall be merged with the appropriations to which 
        credited and shall be available to the Civic Action Team for 
        the same purposes and the same period as the appropriations 
        with which they are merged.''.

SEC. 1224. SHARING RISKS IN INTERNATIONAL OPERATIONS.

    (a) Sharing Risks in International Operations.--Chapter 443 of 
title 49, United States Code, is amended by adding at the end the 
following new subchapter:

                     ``SUBCHAPTER II--RISK SHARING

``Sec.
``44311. Sharing risks in international operations.
``Sec. 44311. Sharing risks in international operations
    ``(a) Risk-Sharing Obligations.--With the approval of the 
President, the Secretary of Defense or the Secretary of State may incur 
obligations that arise from losses incurred as a result of 
participation in an international risk-sharing agreement covering 
aircraft operations in support of the North Atlantic Treaty 
Organization or other similar international organization or alliance, 
without regard to the nationality of registration or ownership of 
aircraft.
    ``(b) Risk-Sharing Revolving Fund.--(1) At the time of such 
obligation and for each obligation there will be established a 
revolving fund in the Treasury, to be known as the air operations risk-
sharing revolving fund to be administered by the Secretary of 
Transportation, and to be available without fiscal year limitation. The 
fund is distinct from the aviation insurance revolving fund established 
by section 44307 of this chapter.
    ``(2) The fund shall be used to pay the amounts due to other 
nations or organizations and to receive contributions from other 
nations or organizations under an agreement referred to in subsection 
(a). Contributions received by the United States under an agreement 
referred to in subsection (a) and credited to the air operations risk-
sharing revolving fund may be used to pay subsequent amounts due other 
nations or organizations under such agreement. When payment is due 
under an agreement referenced in subsection (a), and the fund either 
has no monies or the monies in the fund are insufficient to make the 
payment, the Secretary of the Department that has incurred the 
obligation pursuant to subsection (a) shall provide the necessary 
amount to the air operations risk-sharing revolving fund or directly to 
the other nations or organizations.
    ``(3) The Secretary of the Department that has incurred the 
obligation pursuant to subsection (a) may request and the Secretary of 
Transportation may transfer funds from the air operations risk-sharing 
revolving fund to the aviation insurance revolving fund in order to 
satisfy, in whole or in part, an obligation owed to the Secretary of 
Transportation to cover losses incurred at the request of the Secretary 
concerned pursuant to section 44305(b) of this title.
    ``(4) On request of the Secretary of Transportation, the Secretary 
of the Treasury may invest all or any part of the amount in the air 
operations risk-sharing revolving fund in interest-bearing securities 
of the United States government. The interest on, and the proceeds 
from, the sale or redemption of the securities shall be credited to the 
air operations risk sharing revolving fund.
    ``(5) At the completion of air operations entered pursuant to (a) 
above, the Secretary of the Department that has incurred the obligation 
shall terminate the risk-sharing revolving fund when the Secretary 
reasonably believes that no additional claims or contributions will be 
received. Amounts in the risk-sharing revolving fund will be 
transferred to the miscellaneous receipts account in the Treasury. Any 
contributions received after termination will also be transferred to 
that account.
    ``(c) Indemnification Not Affected.--This section does not affect a 
requirement to make a prompt payment to the Secretary of Transportation 
for credit to the aviation insurance revolving fund under an indemnity 
agreement under section 44305(b) of this title.
    ``(d) Expenses Not Incurred.--The requirement for the Secretary of 
Transportation to pay expenses incurred through the use of appropriated 
funds under 44307(d) of this title shall not apply to this section.''.
    (b) Clerical and Conforming Amendments.--
            (1) The table of sections at the beginning of such chapter 
        is amended--
                    (A) by inserting ``SUBCHAPTER I--GENERAL'' after 
                ``CHAPTER 443--INSURANCE''; and
                    (B) by adding at the end the following:

                     ``SUBCHAPTER II--RISK SHARING

``44311. Sharing risks in international operations.''.
            (2) Chapter 443 is further amended by inserting 
        ``SUBCHAPTER I--GENERAL'' before section 44301.
            (3) Section 44307(a)(1) of such title is amended--
                    (A) by inserting ``to be known as the aviation 
                insurance revolving fund'' before the period at the end 
                of the first sentence; and
                    (B) by striking ``fund payments to carry out this 
                chapter'' in the second sentence and inserting 
                ``aviation insurance revolving fund payments to carry 
                out this chapter except pursuant to section 44311''.
    (c) Permanent Appropriation.--Section 9514 of title 10, United 
States Code, is amended--
            (1) by redesignating subsection (g) as subsection (h); and
            (2) by inserting after subsection (f) the following new 
        subsection (g):
    ``(g) Risk-Sharing Obligations Authority and Permanent 
Appropriation.--(1) Upon approval by the President, the Secretary of 
Defense, after consultation with the Secretary of State, is authorized 
to enter into an international sharing of risk agreements pursuant to 
section 44311 of title 49 with regard to civil aircraft supporting 
military operations of the North Atlantic Treaty Organization or 
similar international organization or alliance in which the United 
States is a party. The Secretary of Defense may incur obligations that 
arise from losses incurred as a result of an international risk-sharing 
agreement covering aircraft operations in support of the North Atlantic 
Treaty Organization or other similar international organization or 
alliance, without regard to the nationality of registration or 
ownership of the aircraft.
    ``(2) To fund obligations of such international sharing of risk 
agreements, there is authorized to be appropriated to the Secretary of 
Defense such sums as may be necessary to pay or incur such obligations. 
Any final judgment rendered in any suit authorized under Federal law 
and any final payment or settlement in furtherance of such 
international sharing of risk agreements shall, upon the presentation 
of a duly authenticated copy thereof, be paid by the proper accounting 
officers of the Department of Defense into the air operations risk-
sharing revolving fund from funds specifically appropriated by Congress 
for such international risk-sharing agreement; otherwise there is 
hereby appropriated, out of any money in the Treasury of the United 
States not otherwise appropriated, a sum sufficient to pay any such 
judgment or award or settlement.''.

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

SEC. 1301. RATIONALIZING REWARDS FOR ASSISTANCE IN COMBATING TERRORISM.

    Section 127b of title 10, United States Code, is amended--
            (1) in subsection (b), by striking ``$200,000'' and 
        inserting ``$5,000,000'';
            (2) in subsection (c)(1)(B), by striking ``$50,000'' and 
        inserting ``$1,000,000''; and
            (3) in subsection (d)(2), by striking ``$100,000'' and 
        inserting ``$2,000,000''.

  TITLE XIV--ADDITIONAL AUTHORIZATIONS FOR INCREASED COSTS DUE TO THE 
GLOBAL WAR ON TERROR FOR MILITARY ACTIVITIES AND MILITARY CONSTRUCTION 
                          FOR FISCAL YEAR 2008

SEC. 1401. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Army as follows:
            (1) For aircraft, $1,900,306,000.
            (2) For missiles, $492,734,000.
            (3) For weapons and tracked combat vehicles, 
        $4,780,172,000.
            (4) For ammunition, $313,000,000.
            (5) For other procurement, $13,630,977,000.

SEC. 1402. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for procurement for the Navy as follows:
            (1) For aircraft, $3,099,958,000.
            (2) For weapons, including missiles and torpedoes, 
        $251,281,000.
            (3) For other procurement, $793,311,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for procurement for the Marine Corps in the amount 
of $2,462,140,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for procurement of ammunition 
for the Navy and Marine Corps in the amount of $590,090,000.

SEC. 1403. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement for the Air Force as follows:
            (1) For aircraft, $3,336,809,000.
            (2) For ammunition, $74,005,000.
            (3) For missiles, $1,800,000.
            (4) For other procurement, $3,760,206,000.

SEC. 1404. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Defense-wide procurement in the amount of $469,768,000.

SEC. 1405. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Joint Improvised Explosive Device Defeat Fund in the amount of 
$4,000,000,000.

SEC. 1406. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Department of Defense for research, development, 
test, and evaluation, as follows:
            (1) For the Army, $141,653,000.
            (2) For the Navy, $618,428,000.
            (3) For the Air Force, $1,369,781,000.
            (4) For Defense-wide activities, $727,498,000.

SEC. 1407. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
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, $46,230,964,000.
            (2) For the Navy, $5,426,407,000.
            (3) For the Marine Corps, $4,013,093,000.
            (4) For the Air Force, $10,536,330,000.
            (5) For the Defense-wide activities, $6,098,990,000.
            (6) For the Army Reserve, $158,410,000.
            (7) For the Navy Reserve, $69,598,000.
            (8) For the Marine Corps Reserve, $68,000,000
            (9) For the Army National Guard, $466,150,000.
            (10) For the Air National Guard, $31,168,000.

SEC. 1408. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Armed Forces and other activities and agencies of 
the Department of Defense for providing capital for working capital and 
revolving funds in amounts as follows:
            (1) For the Defense Working Capital Funds, $1,676,275,000.
            (2) For the National Defense Sealift Fund, $5,110,000.

SEC. 1409. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) Defense Health Program.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2008 for 
expenses, not otherwise provided for, for the Defense Health Program, 
in the amount of $1,022,842,000 is for Operation and Maintenance.
    (b) Drug Interdiction and Counter Drug Activities, Defense-Wide.--
Funds are hereby authorized to be appropriated for the Department of 
Defense for fiscal year 2008 for expenses, not otherwise provided for, 
for Drug Interdiction and Counter-Drug Activities, Defense-wide, in the 
amount of $257,618,000.
    (c) Defense Inspector General.--Funds are hereby authorized to be 
appropriated for the Department of Defense for fiscal year 2008 for 
expenses, not otherwise provided for, for the Office of the Inspector 
General of the Department of Defense, in the amount of $4,394,000, is 
for Operation and Maintenance.

SEC. 1410. IRAQ FREEDOM FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Iraq Freedom Fund in the amount of $107,500,000.

SEC. 1411. AFGHANISTAN SECURITY FORCES FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Afghanistan Security Forces Fund in the amount of 
$2,700,000,000.

SEC. 1412. IRAQ SECURITY FORCES FUND.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the Iraq Security Forces Fund in the amount of $2,000,000,000.

SEC. 1413. ADDITIONAL END STRENGTHS FOR ACTIVE FORCES.

    In addition to the end strengths authorized in section 401 of this 
Act, the Armed Forces are authorized additional strengths for active 
duty personnel as of September 30, 2008, as follows:
            (1) The Army, 36,000.
            (2) The Marine Corps, 9,000.

SEC. 1414. MILITARY PERSONNEL.

    This section would authorize an additional $17,070,263,000 for 
military personnel.

SEC. 1415. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 1415(1), the Secretary of the Army may 
acquire real property and carry out military construction projects for 
the installations or locations outside the United States, and in the 
amounts set forth in the following table:

                                         Army: Outside the United States
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Afghanistan...................................  Bagram Air Base.................................    103,000,000
Iraq..........................................  Camp Adder......................................     80,650,000
                                                Al Asad.........................................     86,100,000
                                                Camp Anaconda...................................     88,200,000
                                                Fallujah........................................        880,000
                                                Camp Marez......................................        880,000
                                                Mosul...........................................     43,000,000
                                                Q-West..........................................     26,000,000
                                                Camp Ramadi.....................................        880,000
                                                Scania..........................................      5,000,000
                                                Camp Speicher...................................     103,700,00
                                                Camp Taqqadum...................................        880,000
                                                Tikrit..........................................     43,000,000
                                                Camp Victory....................................     34,400,000
                                                Camp Warrior....................................        880,000
                                                Various Locations...............................    102,000,000
                                                                                                 ---------------
                                                Total...........................................    719,450,000
----------------------------------------------------------------------------------------------------------------

SEC. 1416. MILITARY CONSTRUCTION AUTHORIZATION OF APPROPRIATIONS, ARMY.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2007, for military construction, land 
acquisition, and military family housing functions of the Department of 
the Army in the total amount of $738,850,000 as follows:
            (1) For military construction projects outside the United 
        States authorized by section 607(a), $719,450,000.
            (2) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $19,400,000.

SEC. 1417. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 1417(1), the Secretary of the Navy may 
acquire real property and carry out military construction projects for 
the installations or locations inside the United States, and in the 
amounts set forth in the following table:

                                         Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
                     State                                    Installation or Location                 Amount
----------------------------------------------------------------------------------------------------------------
California.....................................  Camp Pendleton...................................   102,034,000
                                                 Twenty-Nine Palms................................     4,440,000
North Carolina.................................  Camp Lejeune.....................................    43,340,000
                                                                                                   -------------
                                                 Total............................................   149,814,000
----------------------------------------------------------------------------------------------------------------

SEC. 1418. MILITARY CONSTRUCTION AUTHORIZATION OF APPROPRIATIONS, NAVY.

    Subject to section 2825 of title 10, United States Code, funds are 
hereby authorized to be appropriated for fiscal years beginning after 
September 30, 2007, for military construction, land acquisition, and 
military family housing functions of the Department of the Navy in the 
total amount of $169,071,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $149,814,000.
            (2) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $7,491,000.
            (3) For construction and acquisition, planning and design, 
        and improvement of military family housing and facilities, 
        $11,766,000.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2007''.

                            TITLE XXI--ARMY

    [TO BE SUBMITTED AT A LATER DATE]

                            TITLE XXII--NAVY

    [TO BE SUBMITTED AT A LATER DATE]

                         TITLE XXIII--AIR FORCE

    [TO BE SUBMITTED AT A LATER DATE]

                      TITLE XXIV--DEFENSE AGENCIES

    [TO BE SUBMITTED AT A LATER DATE]

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

    [TO BE SUBMITTED AT A LATER DATE]

       TITLE XXVI--CHEMICAL DEMILITARIZATION CONSTRUCTION PROGRAM

    [TO BE SUBMITTED AT A LATER DATE]

            TITLE XXVII--GUARD AND RESERVE FORCES FACILITIES

    [TO BE SUBMITTED AT A LATER DATE]

        TITLE XXVIII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

    [TO BE SUBMITTED AT A LATER DATE]

          TITLE XXIX--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

SEC. 2901. ALTERNATIVE AUTHORITY FOR ACQUISITION AND IMPROVEMENT OF 
              MILITARY HOUSING.

    Section 2883(c) of title 10, United States Code, is amended--
            (1) in paragraph (1), by adding at the end the following 
        new subparagraph:
                    ``(G) Subject to subsection (f), any amounts that 
                the Secretary of Defense transfers to that Fund from 
                amounts in the Department of Defense Base Closure 
                Account 2005.''; and
            (2) in paragraph (2), by adding at the end the following 
        new subparagraph:
                    ``(G) Subject to subsection (f), any amounts that 
                the Secretary of Defense transfers to that Fund from 
                amounts in the Department of Defense Base Closure 
                Account 2005.''.

SEC. 2902. INCREASED THRESHOLD FOR CONGRESSIONAL NOTIFICATION OF LEASES 
              FOR MILITARY FAMILY HOUSING FACILITIES IN A FOREIGN 
              COUNTRY.

    Section 2828(f) of title 10, United States Code, is amended by 
striking ``$500,000'' and inserting ``$1,000,000''.

SEC. 2903. UPDATING FOREIGN CURRENCY FLUCTUATION ADJUSTMENT FOR CERTAIN 
              MILITARY FAMILY HOUSING LEASES IN KOREA.

    Section 2828(e)(5)(A) of title 10, United States Code, is amended 
to read as follows:
                    ``(A) for--
                            ``(i) foreign currency fluctuations from 
                        October 1, 1987, in the case of maximum lease 
                        amounts provided for under paragraphs (1), (2), 
                        and (3); or
                            ``(ii) foreign currency appreciation during 
                        the previous fiscal year, starting from October 
                        1, 2002, in the case of the maximum lease 
                        amount provided for under paragraph (4); and''.

SEC. 2904. FLEXIBILITY IN DETERMINING DOMESTIC FAMILY HOUSING LEASE 
              MAXIMUMS.

    Section 2828(b) of title 10, United States Code, is amended--
            (1) in paragraph (2), by striking ``paragraphs (3) and 
        (4)'' and inserting ``paragraphs (3), (4), and (7)''; and
            (2) by adding at the end the following new paragraph:
            ``(7) The Secretary of the Army may lease not more than 600 
        of the 10,000 family housing units provided in paragraph (1) at 
        an amount not greater than 33 percent above the maximum lease 
        amount under paragraph (3), as adjusted under paragraph (5) for 
        the fiscal year in which a unit is leased under this paragraph. 
        The maximum lease amount provided in this paragraph shall apply 
        only to Army family housing in areas designated by the 
        Secretary of the Army and for leases not to exceed a term of 2 
        years.''.

SEC. 2905. EXTENSION OF AUTHORITY TO ACCEPT EQUALIZATION PAYMENTS FOR 
              FACILITY EXCHANGES.

    Paragraph (5) of section 2809(c) of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 2126) is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2010''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2911. CONSOLIDATION OF REAL PROPERTY PROVISIONS WITHOUT 
              SUBSTANTIVE CHANGE.

    (a) Consolidation.--Section 2663 of title 10, United States Code, 
is amended by adding at the end the following new subsection:
    ``(h) Options for Military Construction Projects.--(1) The 
Secretary of a military department may acquire an option on a parcel of 
real property before or after its acquisition is authorized by law, if 
he considers it suitable and likely to be needed for a military project 
of his department.
    ``(2) As consideration for an option acquired under paragraph (1), 
the Secretary may pay, from funds available to his department for real 
property activities, an amount that is not more than 12 percent of the 
appraised fair market value of the property.''.
    (b) Conforming Amendments.--(1) Section 2677 of such title is 
repealed.
    (2) The table of sections at the beginning of chapter 159 of such 
title is amended by striking the item relating to section 2677.

SEC. 2912. TRANSFER OF THE AIR FORCE MEMORIAL TO THE DEPARTMENT OF THE 
              AIR FORCE.

    (a) Transfer of Jurisdiction.--Notwithstanding any other provision 
of section 2863 of the National Defense Authorization Act for Fiscal 
Year 2002 (Public Law 107-107; 115 Stat. 1330), and section 2881 of the 
National Defense Authorization Act for Fiscal Year 2000 (Public Law 
106-65; 113 Stat. 879), administrative jurisdiction, custody, and 
control of the parcel of land described in section 2863(b)(1) of the 
National Defense Authorization Act for Fiscal Year 2002 is hereby 
transferred to the Secretary of the Air Force.
    (b) Access and Management of the Air Force Memorial.--In addition 
to existing authorities, the Secretary of the Air Force may enter into 
a cooperative agreement with the Air Force Memorial Foundation or other 
appropriate private organizations to provide management, maintenance 
and repair of the Air Force Memorial and surrounding site and to 
guarantee public access to the memorial.

                      Subtitle C--Land Conveyances

SEC. 2921. LAND TRANSFER OF ARLINGTON NAVAL ANNEX TO ARLINGTON NATIONAL 
              CEMETERY.

    Section 2881(h) of the National Defense Authorization Act for 
Fiscal Year 2000 (Public Law 106-65; 113 Stat. 879), is amended by 
striking paragraphs (1) and (2) and inserting the following new 
paragraphs:
            ``(1) January 1, 2013;
            ``(2) the date when the Arlington Naval Annex property is 
        no longer required (as determined by the Secretary of Defense) 
        for use as temporary office space; or
            ``(3) twelve months after the date the Secretary of the 
        Army notifies the Secretary of Defense that the Arlington Naval 
        Annex property is needed for the expansion of Arlington 
        National Cemetery.''.

                       Subtitle D--Other Matters

SEC. 2931. AUTHORITY TO USE OPERATION AND MAINTENANCE FUNDS FOR 
              CONSTRUCTION PROJECTS OUTSIDE THE UNITED STATES.

    (a) In General.--Chapter 169 of title 10, United States Code, is 
amended by inserting after section 2809 the following new section:
``Sec. 2810. Authority to use operation and maintenance funds for 
              construction projects outside the United States
    ``(a) In General.--The Secretary of Defense may obligate 
appropriated funds available for operation and maintenance to carry out 
a construction project outside the United States that the Secretary 
determines meets each of the following conditions:
            ``(1) The construction is necessary to meet urgent military 
        operational requirements involving the use of the armed forces 
        in support of a declaration of war, the declaration by the 
        President of a national emergency under section 201 of the 
        National Emergencies Act (50 U.S.C. 1621), or a contingency 
        operation.
            ``(2) The requirement is of a temporary nature, such that 
        there is no intention of using the construction after the 
        operational requirements have been satisfied.
            ``(3) The level of construction is the minimum necessary to 
        meet the temporary operational requirements.
    ``(b) Limitation on Use of Authority.--(1) The total cost of the 
construction projects carried out under this section shall not exceed 
$200,000,000 in any fiscal year.
            ``(2) The Secretary of Defense may waive the limitation 
        imposed by paragraph (1) if the Secretary determines that the 
        obligation of operation and maintenance funds for construction 
        projects in excess of the amount specified in such paragraph is 
        vital to the national security.
            ``(3) Upon use of the waiver authority granted by paragraph 
        (2), the Secretary shall notify the Office of Management and 
        Budget of the amounts of operation and maintenance funds 
        obligated in excess of $200,000,000 along with a description of 
        the projects so funded.
    ``(c) Relation to Other Authorities.--The authority provided by 
this section, and the limited authority provided by section 2805(c) of 
this title, are the only authorities available to the Secretary of 
Defense and the Secretaries of the military departments to use 
appropriated funds available for operation and maintenance to carry out 
construction projects.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2809 the following new item:

``2810. Authority to use operation and maintenance funds for 
                            construction projects outside the United 
                            States.''.

SEC. 2932. STREAMLINING MILITARY CONSTRUCTION TO REDUCE FACILITY 
              ACQUISITION AND CONSTRUCTION CYCLE TIME.

    Section 2805 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``$1,500,000'' and inserting 
                ``$3,000,000''; and
                    (B) by striking ``$3,000,000'' in the last sentence 
                and inserting ``$7,000,000'';
            (2) in subsection (b)(1), by striking ``$750,000'' and 
        inserting ``$1,500,000''; and
            (3) in subsection (c)(1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``$1,500,000'' and 
                        inserting ``$3,000,000''; and
                            (ii) by striking ``or'' at the end;
                    (B) in subparagraph (B)--
                            (i) by striking ``$750,000'' and inserting 
                        ``$1,500,000''; and
                            (ii) by striking the period at the end and 
                        inserting ``; or'' and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(C) $2,000,000, in cases where the disposal of 
                obsolete facilities as part of the project results in a 
                reduction in facility footprint at least equal to the 
                footprint of the new facility. The approving official 
                must certify the demolition (or disposal by other 
                means) of the offsetting facility.''.

SEC. 2933. AMENDMENT OF THE FEDERAL LAND POLICY AND MANAGEMENT ACT OF 
              1976 TO INCLUDE NEVADA AS A STATE WHERE THE MILITARY CAN 
              ACCESS PUBLIC LAND VIA A PERMIT GRANTED BY THE SECRETARY 
              OF THE INTERIOR.

    Section 302(d) of the Federal Land Policy and Management Act of 
1976 (43 U.S.C. 1732) is amended--
            (1) by inserting ``or Nevada, as appropriate,'' after 
        ``Governor of Alaska''; and
            (2) by inserting ``or Nevada, as appropriate,'' after 
        ``Recreation Area)''.
                                 <all>
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