`[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1585 Reported in House (RH)]






                                                  Union Calendar No. 86
110th CONGRESS
  1st Session
                                H. R. 1585

                          [Report No. 110-146]

     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 HOUSE OF REPRESENTATIVES

                             March 20, 2007

 Mr. Skelton (for himself and Mr. Hunter) (both by request) introduced 
   the following bill; which was referred to the Committee on Armed 
                                Services

                              May 11, 2007

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on March 
                               20, 2007]

_______________________________________________________________________

                                 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. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

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

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
                            Enhancement Package vehicles.
Sec. 112. Multiyear procurement authority for M2A3 Bradley Fighting 
                            Vehicles, M3A3 Cavalry Fighting Vehicles, 
                            and M2A3 Bradley Fire Support Team 
                            Vehicles.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
                            helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Joint Network Node program 
                            pending certification to Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
                            production line pending report.

                       Subtitle C--Navy Programs

Sec. 121. Authority to transfer funds for submarine engineered 
                            refueling overhauls and conversions and for 
                            aircraft carrier refueling complex 
                            overhauls.
Sec. 122. Multiyear procurement authority for Virginia-class submarine 
                            program.
Sec. 123. Limitation on final assembly of VH-71 Presidential transport 
                            helicopters.
Sec. 124. Limitation on operational deployment of weapons system that 
                            uses Trident missiles converted to carry 
                            conventional payloads.
Sec. 125. Program to provide contractors with capital expenditure 
                            incentives.
Sec. 126. Limitation on use of shipbuilding and conversion, Navy, funds 
                            for employment of nonimmigrant workers.
Sec. 127. Limitation on concurrent design and construction on first 
                            ship of a shipbuilding program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on retiring C-5 aircraft.
Sec. 132. Limitation on Joint Cargo Aircraft.
Sec. 133. Clarification of limitation on retirement of U-2 aircraft.
Sec. 134. Repeal of requirement to maintain retired C-130E tactical 
                            airlift aircraft.

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Operational test and evaluation of Future Combat Systems 
                            network.
Sec. 212. Limitation on systems development and demonstration of Joint 
                            Light Tactical Vehicle program.
Sec. 213. Requirement to obligate funds for development and procurement 
                            of a competitive propulsion system for the 
                            Joint Strike Fighter.
Sec. 214. Limitation on use of funds for manufacturing science and 
                            technology program.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Oversight of Missile Defense Agency programs by Director of 
                            Operational Test and Evaluation.
Sec. 222. Fielding of ballistic missile defense capabilities and future 
                            roles and missions of Missile Defense 
                            Agency.
Sec. 223. Limitation on use of funds for replacing warhead on SM-3 
                            Block IIA missile.
Sec. 224. Two-year extension of Comptroller General assessments of 
                            ballistic missile defense programs.
Sec. 225. Independent study on deploying missile defense system in 
                            Europe.
Sec. 226. Sense of Congress concerning full support for development and 
                            fielding of a layered ballistic missile 
                            defense.

                       Subtitle D--Other Matters

Sec. 231. Responsibility for human systems integration activities.
Sec. 232. Expansion of authority for encouragement of technology 
                            transfer.
Sec. 233. Army Venture Capital Fund demonstration.
Sec. 234. Independent tests for combat helmet pad suspension systems.
Sec. 235. Report on implementation of Manufacturing Technology Program.
Sec. 236. Assessment of sufficiency of test and evaluation personnel.
Sec. 237. Repeal of requirement for separate reports on technology area 
                            review and assessment summaries.

                  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 Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Arctic Surplus 
                            Superfund Site, Fairbanks, Alaska.
Sec. 313.  Payment to Environmental Protection Agency of stipulated 
                            penalty in connection with Jackson Park 
                            Housing Complex, Washington.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Increase in threshold amount for contracts for procurement of 
                            capital assets in advance of availability 
                            of working-capital funds for the 
                            procurement.
Sec. 322. Authorization of availability of working-capital funds for 
                            certain product improvements.
Sec. 323. Authorization of use of working-capital funds for acquisition 
                            of certain items.
Sec. 324. Modification to public-private competition requirements 
                            before conversion to contractor 
                            performance.
Sec. 325. Public-private competition at end of period specified in 
                            performance agreement not required.
Sec. 326. Guidelines on insourcing new and contracted out functions.
Sec. 327. Additional requirements for annual report on public-private 
                            competitions.
Sec. 328. Restriction on Office of Management and Budget influence over 
                            Department of Defense public-private 
                            competitions.
Sec. 329. Bid Protests by Federal Employees in actions under Office of 
                            Management Budget Circular A-76.
Sec. 330. Public-private competition required before conversion to 
                            contractor performance.

              Subtitle D--Extension of Program Authorities

Sec. 331. Extension of Arsenal Support Program Initiative.
Sec. 332. Extension of period for reimbursement for helmet pads 
                            purchased by members of the Armed Forces 
                            deployed in contingency operations.

                          Subtitle E--Reports

Sec. 341. Inclusion of National Guard readiness for civil support 
                            missions in quarterly personnel and unit 
                            readiness report.
Sec. 342. Plan to improve readiness of active and reserve component 
                            ground forces.
Sec. 343. Plan for optimal use of strategic ports by commander of 
                            Surface Distribution and Deployment 
                            Command.
Sec. 344. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 345. Annual report on prepositioned materiel and equipment.
Sec. 346. Conditions on relocation of North American Aerospace Defense 
                            command center and related functions from 
                            Cheyenne Mountain to Peterson Air Force 
                            Base.
Sec. 347. Report on public-private partnerships.

                       Subtitle F--Other Matters

Sec. 351. Increase in threshold amount for contracts for procurement of 
                            capital assets in advance of availability 
                            of working-capital funds for the 
                            procurement.
Sec. 352. Authority for Department of Defense to provide support for 
                            certain sporting events.
Sec. 353. Reasonable restrictions on payment of full replacement value 
                            for lost or damaged personal property 
                            transported at Government expense.
Sec. 354. Priority transportation on Department of Defense aircraft of 
                            retired members residing in Commonwealths 
                            and possessions of the United States for 
                            certain health care services.
Sec. 355. Recovery of missing military property.
Sec. 356. Retention of Army combat uniforms by members of Army deployed 
                            in support of contingency operations.
Sec. 357. Issue of serviceable material other than to Armed Forces.
Sec. 358. Prohibition on deactivation of 36th Rescue Flight.
Sec. 359. Limitation on expenditure of funds for initial flight 
                            screening at Pueblo Memorial Airport.
Sec. 360. Reauthorization and modification of multi-trades 
                            demonstration project.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
                            levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
                            active duty end strengths for fiscal years 
                            2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
                            duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
                            duty in the grades of lieutenant commander, 
                            commander, and captain.

                       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.
Sec. 416. Future authorizations and accounting for certain reserve 
                            component personnel authorized to be on 
                            active duty or full-time National Guard 
                            duty to provide operational support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
                            strengths.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.
Sec. 423. Offsetting transfers from National Defense Stockpile 
                            Transaction Fund.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
                            and responsibility.
Sec. 502. Increase in years of commissioned service threshold for 
                            discharge of probationary officers and for 
                            use of force shaping authority.
Sec. 503. Special promotion authority for Navy career military 
                            professors.

                 Subtitle B--Reserve Component Matters

Sec. 511. Mandatory separation of Reserve officers in the grade of 
                            lieutenant general or vice admiral after 
                            completion of 38 years of commissioned 
                            service.
Sec. 512. Constructive service credit upon original appointment of 
                            reserve officers in certain health care 
                            professions.
Sec. 513. Maximum period of temporary Federal recognition of person as 
                            Army National Guard officer or Air Force 
                            Reserve officer.
Sec. 514. Military technicians (dual status) in the Selected Reserve.
Sec. 515. Working group on reintegration of reserve component members 
                            returning from deployment.
Sec. 516. National Guard yellow ribbon reintegration program.
Sec. 517. Advance notice to members of reserve components of deployment 
                            in support of contingency operations.

                   Subtitle C--Education and Training

Sec. 521. Reduction or elimination of service obligation in an Army 
                            Reserve or Army National Guard troop 
                            program unit for certain persons selected 
                            as medical students at Uniformed Services 
                            University of the Health Sciences.
Sec. 522. Increase in annual limit on number of ROTC scholarships under 
                            Army Reserve and Army National Guard 
                            program.
Sec. 523. Revisions to authority to pay tuition for off-duty training 
                            or education.
Sec. 524. National Defense University master's degree programs.
Sec. 525. Recodification in title 38, United States Code, of certain 
                            educational assistance programs for members 
                            of the reserve components.
Sec. 526. Secretary of Defense evaluation of the adequacy of the 
                            degree-granting authorities of certain 
                            military universities and educational 
                            institutions.
Sec. 527. Navy Junior Reserve Officers' Training Corps unit for 
                            Southold, Mattituck, and Greenport high 
                            schools.

                Subtitle D--General Service Authorities

Sec. 531. Authority to reduce required service obligation for initial 
                            appointment of qualified health 
                            professionals as officers in critical 
                            specialties.
Sec. 532. Reenlistment in former enlisted grade after service as an 
                            officer.

       Subtitle E--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate certain civilian employees of the 
                            Federal Government as eligible for legal 
                            assistance from Department of Defense legal 
                            staff resources.

                   Subtitle F--Decorations and Awards

Sec. 551. Authorization and request for award of Medal of Honor to 
                            Leslie H. Sabo, Jr., for acts of valor 
                            during the Vietnam War.
Sec. 552. Authorization and request for award of Medal of Honor to 
                            Henry Svehla for acts of valor during the 
                            Korean War.
Sec. 553. Authorization and request for award of Medal of Honor to 
                            Woodrow W. Keeble for acts of valor during 
                            the Korean War.
Sec. 554. Authorization and request for award of Medal of Honor to 
                            Private Philip G. Shadrach for acts of 
                            valor during the Civil War.
Sec. 555. Authorization and request for award of Medal of Honor to 
                            Private George D. Wilson for acts of valor 
                            as one of Andrews Raiders during the Civil 
                            War.
Sec. 556. Cold War Victory Medal.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 561. Tuition assistance for military dependents in overseas areas 
                            where schools operated by Defense 
                            Dependents' Education System are not 
                            reasonably available.
Sec. 562. Continuation of authority to assist local educational 
                            agencies that benefit dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.

                       Subtitle H--Other Matters

Sec. 571. Extension of authority to accept gifts, devises, or bequests 
                            to benefit members of the Armed Forces, 
                            dependents, and civilian employees of the 
                            Department of Defense.
Sec. 572. Uniform performance policies for military bands and other 
                            musical units.
Sec. 573. Repeal of limitation on number of academies of Department of 
                            Defense STARBASE Program in a single State.
Sec. 574. Combat veterans mentoring program for current members of the 
                            Armed Forces.
Sec. 575. Recognition of members of the Monuments, Fine Arts, and 
                            Archives program of the Civil Affairs and 
                            Military Government Sections of the Armed 
                            Forces during and following World War II.
Sec. 576. Program to commemorate 50th anniversary of the Vietnam War.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
                            without dependents who attend accession 
                            training while maintaining a primary 
                            residence.
Sec. 603. Income replacement payments for reserve component members 
                            experiencing extended and frequent 
                            mobilization for active duty service.
Sec. 604. Participation of members of the uniformed services in Thrift 
                            Savings Plan.
Sec. 605. Enhancement of referral bonus to encourage service in the 
                            Army.
Sec. 606. Guaranteed pay increase for members of the Armed Forces of 
                            one-half of one percentage point higher 
                            than Employment Cost Index.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
                            health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 615. Increase in incentive special pay and multiyear retention 
                            bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Definition of sea duty for career sea pay to include multi-
                            crew ships.
Sec. 618. Reenlistment bonus for members of the Selected Reserve.
Sec. 619. Availability of Selected Reserve accession bonus for persons 
                            who previously served in the Armed Forces 
                            for a short period.
Sec. 620. Availability of nuclear officer continuation pay for officers 
                            with more than 26 years of commissioned 
                            service.
Sec. 621. Waiver of years-of-service limitation on receipt of critical 
                            skills retention bonus.
Sec. 622. Accession bonus for participants in the Armed Forces Health 
                            Professional Scholarship and Financial 
                            Assistance Program.
Sec. 623. Payment of assignment incentive pay for Reserve members 
                            serving in combat zone for more than 22 
                            months.
Sec. 624. Increase in maximum monthly rate of hardship duty pay.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Allowance for participation in Reserve screening conducted 
                            through electronic means.
Sec. 632. Allowance for civilian clothing for members of the Armed 
                            Forces traveling in connection with medical 
                            evacuation.
Sec. 633. Moving expenses for JROTC instructors who agree to serve in 
                            hard-to-fill positions.
Sec. 634. Transportation of additional motor vehicle of members on 
                            change of permanent station to or from 
                            nonforeign areas outside the continental 
                            United States.
Sec. 635. Payment of inactive duty training travel costs for certain 
                            Selected Reserve members.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Disregarding periods of confinement of member in determining 
                            benefits for dependents who are victims of 
                            abuse by the member.
Sec. 642. Continuation of authority for members of the Armed Forces to 
                            designate a recipient for a portion of the 
                            death gratuity.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
                            offset for dependency and indemnity 
                            compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
                            required Survivor Benefit Plan annuity 
                            offset for dependency and indemnity 
                            compensation.
Sec. 645. Expansion of combat-related special compensation eligibility 
                            for chapter 61 military retirees with fewer 
                            than 20 years of creditable service.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Access to Defense Commissary and Exchange System by surviving 
                            spouse and dependents of certain disabled 
                            veterans.
Sec. 652. Authority to continue commissary and exchange benefits for 
                            certain involuntarily separated members of 
                            the Armed Forces.
Sec. 653. Authorization of installment deductions from pay of employees 
                            of executive branch instrumentalities to 
                            collect indebtedness to the United States.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
                            authorities of the uniformed services.
Sec. 662. Transitional provisions.

                       Subtitle G--Other Matters

Sec. 671. Expansion of education loan repayment program for members of 
                            the Selected Reserve.
Sec. 672. Ensuring entry into United States after time abroad for 
                            permanent resident alien military spouses 
                            and children.
Sec. 673. Overseas naturalization for military spouses and children.

                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Extension of prohibition on increases in certain health care 
                            costs for members of the uniformed 
                            services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
                            pharmacy system of pharmacy benefits 
                            program.
Sec. 703. Fair pricing under pharmacy benefits program.
Sec. 704. Prohibition on conversion of military medical and dental 
                            positions to civilian medical and dental 
                            positions.
Sec. 705.  Establishment of Nurse Practitioner Program.
Sec. 706. Services of mental health counselors.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Stipend for members of Reserve Components for health care for 
                            certain dependents.
Sec. 709. Joint Pathology Center.
Sec. 710. Report on training in preservation of remains under combat or 
                            combat-related conditions.
Sec. 711. Pre- and post-deployment assessments for the purpose of 
                            determining the cognitive functioning and 
                            brain health of deployed members of the 
                            Armed Forces.
Sec. 712. Guaranteed funding for Walter Reed Army Medical Center.

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

             Subtitle A--Acquisition Policy and Management

Sec. 801. Definition of commercial services.
Sec. 802. Acquisition workforce provisions.
Sec. 803. Guidance on defense procurements made through contracts of 
                            other agencies.
Sec. 804. Prohibition on procurement from beneficiaries of foreign 
                            subsidies.
Sec. 805. Prohibition on procurement from companies in violation of the 
                            Iran and Syria Nonproliferation Act.
Sec. 806. Lead systems integrators.
Sec. 807. Procurement goal for Native Hawaiian-serving institutions and 
                            Alaska Native-serving institutions.
Sec. 808. Reinvestment in domestic sources of strategic materials.
Sec. 809. Clarification of the protection of strategic materials 
                            critical to national security.
Sec. 810. Debarment of contractors convicted of criminal violations of 
                            the Arms Export Control Act.

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

Sec. 811. Change to the Truth in Negotiations Act exception for the 
                            acquisition of a commercial item.
Sec. 812. Clarification of submission of cost or pricing data on 
                            noncommercial modifications of commercial 
                            items.
Sec. 813. Plan for restricting Government-unique contract clauses on 
                            commercial contracts.
Sec. 814. Extension of authority for use of simplified acquisition 
                            procedures for certain commercial items.
Sec. 815. Extension of authority to fill shortage category positions 
                            for certain federal acquisition positions.
Sec. 816. Extension of authority to carry out certain prototype 
                            projects.
Sec. 817. Clarification of limited acquisition authority for special 
                            operations command.
Sec. 818. Exemption of special operations command from certain 
                            requirements for contracts relating to 
                            vessels, aircraft, and combat vehicles.
Sec. 819. Provision of authority to maintain equipment to unified 
                            combatant command for joint warfighting.

               Subtitle C--Accountability in Contracting

Sec. 821. Limitation on length of noncompetitive contracts.
Sec. 822. Maximizing fixed-price procurement contracts.
Sec. 823. Public disclosure of justification and approval documents for 
                            noncompetitive contracts.
Sec. 824. Disclosure of Government contractor audit findings.
Sec. 825. Study of acquisition workforce.
Sec. 826. Report to Congress.

         Subtitle D--Contracts Relating to Iraq and Afghanistan

Sec. 831. Memorandum of understanding on matters relating to 
                            contracting.
Sec. 832. Comptroller General reviews and reports on contracting in 
                            Iraq and Afghanistan.
Sec. 833. Definitions.
Sec. 834. Competition for equipment supplied to Iraq and Afghanistan.

                       Subtitle E--Other Matters

Sec. 841. Rapid Commercial Information Technology Identification 
                            Demonstration Project.
Sec. 842. Report to Congress required on delays in major phases of 
                            acquisition process for major automated 
                            information system programs.
Sec. 843. Requirement for licensing of certain military designations 
                            and likenesses of weapons systems to toy 
                            and hobby manufacturers.
Sec. 844. Change in grounds for waiver of limitation on service 
                            contract to acquire military flight 
                            simulator.
Sec. 845. Evaluation of cost of compliance with requirement to buy 
                            certain articles from American sources.
Sec. 846. Requirements relating to waivers of certain domestic source 
                            limitations.
Sec. 847. Multiple cost threshold breaches.
Sec. 848. Phone cards.
Sec. 849. Jurisdiction under Contract Disputes Act of 1978 over claims, 
                            disputes, and appeals arising out of 
                            maritime contracts.
Sec. 850. Clarification of jurisdiction of the United States district 
                            courts to hear bid protest disputes 
                            involving maritime contracts.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Additional requirements relating to limitation on major 
                            Department of Defense headquarters 
                            activities personnel.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
                            assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
                            Department of Defense leadership positions.
Sec. 904. Revisions in functions and activities of special operations 
                            command.
Sec. 905. Redesignation of the Department of the Navy as the Department 
                            of the Navy and Marine Corps.
Sec. 906. Management system of the Department of Defense.
Sec. 907. Acquisition parity for Special Operations Command.
Sec. 908. Department of Defense Board of Actuaries.

                      Subtitle B--Space Activities

Sec. 911. Space protection policy and strategy.
Sec. 912. Biennial report on management of space cadre within the 
                            Department of Defense.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
                            States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Reports on foreign language proficiency.
Sec. 932. Technical amendments to title 10, United States Code, arising 
                            from enactment of the Intelligence Reform 
                            and Terrorism Prevention Act of 2004.

                Subtitle E--Roles and Missions Analysis

Sec. 941. Analysis and organization of roles and missions of Department 
                            of Defense.
Sec. 942. Identification of core competencies of the military 
                            departments and other entities within the 
                            Department of Defense.
Sec. 943. Review of capabilities of the military departments and other 
                            entities.
Sec. 944. Joint Requirements Oversight Council additional duties 
                            relating to core mission areas.
Sec. 945. Requirement for certification of major systems prior to 
                            technology development.
Sec. 946. Presentation of future-years mission budget by core mission 
                            area.
Sec. 947. Future capability planning by Joint Requirements Oversight 
                            Council.

                       Subtitle F--Other Matters

Sec. 951. Department of Defense consideration of effect of climate 
                            change on Department facilities, 
                            capabilities, and missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
                            under National Security Education Program.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
                            fiscal year 2008.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of foreign-built vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
                            forces of the United States Navy.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
                            support to law enforcement agencies 
                            conducting counter-terrorism activities.

                          Subtitle D--Reports

Sec. 1031. Extension and modification of report relating to hardened 
                            and deeply buried targets.
Sec. 1032. Comptroller General review of the Joint Improvised Explosive 
                            Device Defeat Organization.
Sec. 1033. Report on a national joint modeling and simulation 
                            development strategy.

                       Subtitle E--Other Matters

Sec. 1041. Enhancement of corrosion control and prevention functions 
                            within Department of Defense.
Sec. 1042. Support by National Guard for national special security 
                            events and other critical national security 
                            activities.
Sec. 1043. Improved authority to provide rewards for assistance in 
                            combating terrorism.
Sec. 1044. Revision of proficiency flying definition.
Sec. 1045. Support for non-Federal development and testing of material 
                            for chemical agent defense.
Sec. 1046. Congressional Commission on the Strategic Posture of the 
                            United States.
Sec. 1047. Technical and clerical amendments.
Sec. 1048. Repeal of certification requirement.
Sec. 1049. Prohibition on sale by Department of Defense of parts for F-
                            14 fighter aircraft.
Sec. 1050. Maintenance of capability for space-based nuclear detection.
Sec. 1051. Additional weapons of mass destruction civil support teams.
Sec. 1052. Sense of Congress regarding need to replace Army M109 155mm 
                            self-propelled howitzer.
Sec. 1053. Sense of Congress regarding detainees at Naval Station, 
                            Guantanamo Bay, Cuba.
Sec. 1054. Repeal of provisions in section 1076 of Public Law 109-364 
                            relating to use of Armed Forces in major 
                            public emergencies.

                  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. Accumulation of annual leave by senior level employees.
Sec. 1104. Travel compensation for wage grade personnel.
Sec. 1105. Death gratuity authorized for Federal employees.
Sec. 1106. Modifications to the National Security Personnel System.
Sec. 1107. Annuity commencing dates.
Sec. 1108. Flexibility in setting pay for employees who move from a 
                            Department of Defense or Coast Guard 
                            nonappropriated fund instrumentality 
                            position to a position in the General 
                            Schedule pay system.
Sec. 1109. Transportation of dependents, household effects, and 
                            personal property to former home following 
                            death of Federal employee where death 
                            resulted from disease or injury incurred in 
                            a combat zone.
Sec. 1110. Use of leave transfer program by wounded veterans who are 
                            Federal employees.
Sec. 1111. Requirement for full implementation of personnel 
                            demonstration project.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Military-to-military contacts and comparable activities.
Sec. 1202. Authority for support of military operations to combat 
                            terrorism.
Sec. 1203. Medical care and temporary duty travel expenses for liaison 
                            officers of certain foreign nations.
Sec. 1204. Extension and expansion of Department of Defense authority 
                            to participate in multinational military 
                            centers of excellence.
Sec. 1205. Reauthorization of Commanders' Emergency Response Program.
Sec. 1206. Expansion of program to build the capacity of foreign 
                            military forces to include Pakistan's other 
                            security forces.
Sec. 1207. Authority to provide assistance to foreign nations to assist 
                            in recovery and accounting activities for 
                            missing United States Government personnel.
Sec. 1208. Authority to provide automatic identification system data on 
                            maritime shipping to foreign countries and 
                            international organizations.
Sec. 1209. Report on foreign assistance-related programs, projects, and 
                            activities carried out by the Department of 
                            Defense.

                  Subtitle B--Matters Relating to Iraq

Sec. 1221. Modification of authorities relating to the Special 
                            Inspector General for Iraq Reconstruction.
Sec. 1222. Continuation of prohibition on establishment of permanent 
                            military installations in Iraq or United 
                            States control over oil resources of Iraq.
Sec. 1223. Report on Department of Defense efforts to build the 
                            capacity of the Government of Iraq to carry 
                            out reconstruction activities in Iraq.
Sec. 1224. Report on implementation of Multi-National Forces-Iraq/
                            United States Embassy Baghdad Joint 
                            Campaign Plan and efforts to achieve 
                            political reform in Iraq.
Sec. 1225. Report on training of the Iraqi Security Forces.
Sec. 1226. Sense of Congress on responsibilities of the Iraqi Council 
                            of Representatives to enact laws to achieve 
                            political reform and diminish support for 
                            the insurgency in Iraq.

              Subtitle C--Matters Relating to Afghanistan

Sec. 1231. Special Inspector General for Afghanistan Reconstruction.
Sec. 1232. Report on progress toward security and stability in 
                            Afghanistan.
Sec. 1233. Report on progress of the Department of Defense's counter-
                            narcotics program for Afghanistan.
Sec. 1234. United States plan for sustaining the Afghanistan National 
                            Security Forces.

                       Subtitle D--Other Matters

Sec. 1241. Cooperative research and development agreements: NATO 
                            organizations; allied and friendly foreign 
                            countries.
Sec. 1242. Extension of Counterproliferation Program Review Committee.
Sec. 1243. Sense of Congress concerning the Western Hemisphere 
                            Institute for Security Cooperation.
Sec. 1244. Sense of Congress concerning the strategic military 
                            capabilities and intentions of the People's 
                            Republic of China.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1302. Funding allocations.
Sec. 1303. New initiatives for the Cooperative Threat Reduction 
                            Program.
Sec. 1304. Requirements relating to chemical weapons destruction at 
                            Shchuch'ye, Russia.
Sec. 1305. Repeal of restrictions on Cooperative Threat Reduction 
                            Program.
Sec. 1306. Authority to use Cooperative Threat Reduction funds outside 
                            the former Soviet Union.

                 TITLE XIV--WOUNDED WARRIOR ASSISTANCE

Sec. 1401. Definitions.

          Subtitle A--Improved Assistance for Wounded Warriors

Sec. 1411. Improvements to medical and dental care for members of the 
                            Armed Forces assigned to hospitals in an 
                            outpatient status.
Sec. 1412. Establishment of a Department of Defense-wide Ombudsman 
                            Office.
Sec. 1413. Establishment of toll-free hot line for reporting 
                            deficiencies in medical-related support 
                            facilities and expedited response to 
                            reports of deficiencies.
Sec. 1414. Notification to Congress of hospitalization of combat 
                            wounded service members.
Sec. 1415. Independent medical advocate for members before medical 
                            evaluation boards.
Sec. 1416. Training and workload for physical evaluation board liaison 
                            officers.
Sec. 1417. Standardized training program and curriculum for Department 
                            of Defense disability evaluation system.
Sec. 1418. Improved training for health care professionals, medical 
                            care case managers, and service member 
                            advocates on particular conditions of 
                            recovering service members.
Sec. 1419. Pilot program to establish an Army Wounded Warrior Battalion 
                            at an appropriate active duty base.
Sec. 1420. Criteria for removal of member from temporary disability 
                            retired list.
Sec. 1421. Improved transition of members of the Armed Forces to 
                            Department of Veterans Affairs upon 
                            retirement or separation.
Sec. 1422. Establishment of Medical Support Fund for support of members 
                            of the Armed Forces returning to military 
                            service or civilian life.
Sec. 1423. Oversight Board for Wounded Warriors.
Sec. 1424. Option for members of reserve components to use military 
                            medical treatment facilities closest to 
                            home for certain injuries.
Sec. 1425. Plans and research for reducing post traumatic stress 
                            disorder.

                    Subtitle B--Studies and Reports

Sec. 1431. Annual report on military medical facilities.
Sec. 1432. Access of recovering service members to adequate outpatient 
                            residential facilities.
Sec. 1433. Evaluation and report on Department of Defense and 
                            Department of Veterans Affairs disability 
                            evaluation systems.
Sec. 1434. Study and report on support services for families of 
                            recovering service members.
Sec. 1435. Report on traumatic brain injury classifications.
Sec. 1436. Evaluation of the Polytrauma Liaison Officer/Non-
                            Commissioned Officer Program.
Sec. 1437. Study and report on standard soldier patient tracking 
                            system.
Sec. 1438. Study and report on waiting periods for appointments at 
                            Department of Veterans Affairs medical 
                            facilities.

                     Subtitle C--General Provisions

Sec. 1451. Moratorium on conversion to contractor performance of 
                            Department of Defense functions at military 
                            medical facilities.
Sec. 1452. Prohibition on transfer of resources from medical care.
Sec. 1453. Increase in physicians at hospitals of the Department of 
                            Veterans Affairs.

  TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OPERATION 
              IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose and statement of congressional policy.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Joint Improvised Explosive Device Defeat Fund.
Sec. 1506. Defense-wide activities procurement.
Sec. 1507. Research, development, test, and evaluation.
Sec. 1508. Operation and maintenance.
Sec. 1509. Working capital funds.
Sec. 1510. Other Department of Defense programs.
Sec. 1511. Iraq Freedom Fund.
Sec. 1512. Iraq Security Forces Fund.
Sec. 1513. Afghanistan Security Forces Fund.
Sec. 1514. Military personnel.
Sec. 1515. Authorized Army construction and land acquisition projects.
Sec. 1516. Authorized Navy construction and land acquisition projects.
Sec. 1517. Treatment as additional authorizations.

                 TITLE XVI--NATIONAL GUARD ENHANCEMENT

Sec. 1601. Short title.

                   Subtitle A--National Guard Bureau

Sec. 1611. Enhancement of duties and position of Chief of the National 
                            Guard Bureau.
Sec. 1612. Establishment of National Guard Bureau as joint activity of 
                            Department of Defense.
Sec. 1613. Enhancement of functions of National Guard Bureau.
Sec. 1614. Requirement for Secretary of Defense to prepare annual plan 
                            for response to natural disasters and 
                            terrorist events.
Sec. 1615. Determination of Department of Defense civil support 
                            requirements.
Sec. 1616. Conforming and clerical amendments.

          Subtitle B--Additional Reserve Component Enhancement

Sec. 1621. United States Northern Command.
Sec. 1622. Council of Governors.
Sec. 1623. Reserve Policy Board.
Sec. 1624. Requirements for certain high-level positions to be held by 
                            reserve component general or flag officers.
Sec. 1625. Retirement age and years of service limitations on certain 
                            reserve general and flag officers.
Sec. 1626. Additional reporting requirements relating to National Guard 
                            equipment.

             TITLE XVII--DEFENSE READINESS PRODUCTION BOARD

Sec. 1701. Purpose.
Sec. 1702. Establishment of Defense Readiness Production Board.
Sec. 1703. Defense Production Industry Advisory Council.
Sec. 1704. Role of Chairman of Board in certain reporting processes.
Sec. 1705. Authority to use multiyear contracts.
Sec. 1706. Transfer authority.
Sec. 1707. Special authority for use of working capital funds for 
                            critical readiness requirements.
Sec. 1708. Strategic Readiness Fund.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

Sec. 2001. Short title.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
                            2006 project.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Repeal of authorization for construction of Navy Outlying 
                            Landing Field, Washington County, North 
                            Carolina.

                         TITLE XXIII--AIR FORCE

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

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorized base closure and realignment activities funded 
                            through Department of Defense Base Closure 
                            Account 2005.
Sec. 2404. Authorization of appropriations, Defense Agencies.

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2005 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2004 
                            projects.
Sec. 2704. Effective date.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Temporary authority to support revitalization of Department 
                            of Defense laboratories through unspecified 
                            minor military construction projects.
Sec. 2802. Increased threshold for congressional notification of leases 
                            for military family housing facilities in 
                            foreign countries.
Sec. 2803. Limitation on use of alternative authority for acquisition 
                            and improvement of military housing for 
                            privatization of temporary lodging 
                            facilities.
Sec. 2804. Expansion of authority to exchange reserve component 
                            facilities.
Sec. 2805. Extension of authority to accept cash equalization payments 
                            for reserve component facility exchanges.
Sec. 2806. Authority to use operation and maintenance funds for 
                            construction projects outside the United 
                            States.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Continued consolidation of real property provisions without 
                            substantive change.
Sec. 2812. Cooperative agreement authority for management of cultural 
                            resources on certain sites outside military 
                            installations.
Sec. 2813. Agreements to limit encroachments and other constraints on 
                            military training, testing, and operations.
Sec. 2814. Expansion to all military departments of Army pilot program 
                            for purchase of certain municipal services 
                            for military installations.
Sec. 2815. Retention of proceeds from enhanced use leases at Selfridge 
                            Air National Guard Base.
Sec. 2816. Prohibition on commercial flights into Selfridge Air 
                            National Guard Base.

                Subtitle C--Base Closure and Realignment

Sec. 2821. Transfer of funds from Department of Defense Base Closure 
                            Account 2005 to Department of Defense 
                            Housing Funds.

                      Subtitle D--Land Conveyances

Sec. 2831. Conditions on acquisition of land for expansion of Pinon 
                            Canyon Maneuver Site, Colorado.
Sec. 2832. Grant of easement, Eglin Air Force Base, Florida.
Sec. 2833. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.
Sec. 2834. Additional conditions on lease of property for headquarters 
                            facility for United States Southern 
                            Command, Florida.
Sec. 2835. Transfer of jurisdiction, former Nike missile site, Grosse 
                            Isle, Michigan.
Sec. 2836. Land Exchange, Fort Hood, Texas.
Sec. 2837. Exchange of jurisdiction over real property involving Fort 
                            Belvoir, Virginia.
Sec. 2838. Modification of conveyance authority, Marine Corps Base, 
                            Camp Pendleton, California.

                      Subtitle E--Energy Security

Sec. 2851. Repeal of congressional notification requirement regarding 
                            cancellation ceiling for Department of 
                            Defense energy savings performance 
                            contracts.
Sec. 2852. Report on opportunities for leveraging funds of the 
                            Department of Defense and States to prevent 
                            disruption in event of electric grid or 
                            pipeline failures.

                       Subtitle F--Other Matters

Sec. 2861. Revised deadline for transfer of Arlington Naval Annex to 
                            Arlington National Cemetery.
Sec. 2862. Transfer of jurisdiction over Air Force Memorial to 
                            Department of the Air Force.
Sec. 2863. Establishment of national military working dog teams 
                            monument on suitable military installation.
Sec. 2864. Naming housing facility at Fort Carson, Colorado, in honor 
                            of the Honorable Joel Hefley, a former 
                            member of the United States House of 
                            Representatives.
Sec. 2865. Naming Navy and Marine Corps Reserve Center at Rock Island, 
                            Illinois, in honor of the Honorable Lane 
                            Evans, a former member of the United States 
                            House of Representatives.
Sec. 2866. Naming of research laboratory at Air Force Rome Research 
                            Site, Rome, New York, in honor of the 
                            Honorable Sherwood L. Boehlert, a former 
                            member of the United States House of 
                            Representatives.
Sec. 2867. Naming of administration building at Joint Systems 
                            Manufacturing Center, Lima, Ohio, in honor 
                            of the Honorable Michael G. Oxley, a former 
                            member of the United States House of 
                            Representatives.
Sec. 2868. Naming of Logistics Automation Training Facility, Army 
                            Quartermaster Center and School, Fort Lee, 
                            Virginia, in honor of General Richard H. 
                            Thompson.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

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

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Study on using existing pits for the Reliable Replacement 
                            Warhead program.
Sec. 3112. National Nuclear Security Administration study on nuclear 
                            weapons complex protective forces.
Sec. 3113. Report on retirement and dismantlement of nuclear warheads.
Sec. 3114. Assessment of security risks posed to nuclear weapons 
                            complex.
Sec. 3115. Department of Energy report on plan to strengthen and expand 
                            International Radiological Threat Reduction 
                            program.
Sec. 3116. Department of Energy report on plan to strengthen and expand 
                            Materials Protection, Control, and 
                            Accounting program.
Sec. 3117. Authority to use International Nuclear Materials Protection 
                            and Cooperation program funds outside the 
                            former Soviet Union.
Sec. 3118. Increased authority for ombudsman under Energy Employees 
                            Occupational Illness Compensation Program.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2008.
Sec. 3502. Temporary authority to transfer obsolete combatant vessels 
                            to Navy for disposal.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

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

            DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

                          TITLE I--PROCUREMENT

              Subtitle A--Authorization of Appropriations

Sec. 101. Army.
Sec. 102. Navy and Marine Corps.
Sec. 103. Air Force.
Sec. 104. Defense-wide activities.
Sec. 105. National Guard and Reserve equipment.

                       Subtitle B--Army Programs

Sec. 111. Multiyear procurement authority for M1A2 Abrams System 
                            Enhancement Package vehicles.
Sec. 112. Multiyear procurement authority for M2A3 Bradley Fighting 
                            Vehicles, M3A3 Cavalry Fighting Vehicles, 
                            and M2A3 Bradley Fire Support Team 
                            Vehicles.
Sec. 113. Multiyear procurement authority for conversion of CH-47D 
                            helicopters to CH-47F configuration.
Sec. 114. Multiyear procurement authority for CH-47F helicopters.
Sec. 115. Limitation on use of funds for Joint Network Node program 
                            pending certification to Congress.
Sec. 116. Prohibition on closure of Army Tactical Missile System 
                            production line pending report.

                       Subtitle C--Navy Programs

Sec. 121. Authority to transfer funds for submarine engineered 
                            refueling overhauls and conversions and for 
                            aircraft carrier refueling complex 
                            overhauls.
Sec. 122. Multiyear procurement authority for Virginia-class submarine 
                            program.
Sec. 123. Limitation on final assembly of VH-71 Presidential transport 
                            helicopters.
Sec. 124. Limitation on operational deployment of weapons system that 
                            uses Trident missiles converted to carry 
                            conventional payloads.
Sec. 125. Program to provide contractors with capital expenditure 
                            incentives.
Sec. 126. Limitation on use of shipbuilding and conversion, Navy, funds 
                            for employment of nonimmigrant workers.
Sec. 127. Limitation on concurrent design and construction on first 
                            ship of a shipbuilding program.

                     Subtitle D--Air Force Programs

Sec. 131. Limitation on retiring C-5 aircraft.
Sec. 132. Limitation on Joint Cargo Aircraft.
Sec. 133. Clarification of limitation on retirement of U-2 aircraft.
Sec. 134. Repeal of requirement to maintain retired C-130E tactical 
                            airlift aircraft.

              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, $3,928,139,000.
            (2) For missiles, $2,114,902,000.
            (3) For weapons and tracked combat vehicles, 
        $3,311,117,000.
            (4) For ammunition, $2,238,176,000.
            (5) For other procurement, $11,465,456,000.
            (6) For the Joint Improvised Explosive Device Defeat Fund, 
        $500,000,000.

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, $12,750,767,000.
            (2) For weapons, including missiles and torpedoes, 
        $3,058,387,000.
            (3) For shipbuilding and conversion, $15,744,120,000.
            (4) For other procurement, $5,443,612,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for procurement for the Marine Corps in the amount 
of $2,580,257,000.
    (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 the Marine Corps in the amount of $1,060,484,000.

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, $12,356,270,000.
            (2) For ammunition, $868,917,000.
            (3) For missiles, $5,138,002,000.
            (4) For other procurement, $15,441,762,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for Defense-wide procurement in the amount of $3,537,834,000.

SEC. 105. NATIONAL GUARD AND RESERVE EQUIPMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the procurement of aircraft, missiles, wheeled and tracked combat 
vehicles, tactical wheeled vehicles, ammunition, other weapons, and 
other procurement for the reserve components of the Armed Forces in the 
amount of $1,131,850,000.

                       Subtitle B--Army Programs

SEC. 111. MULTIYEAR PROCUREMENT AUTHORITY FOR M1A2 ABRAMS SYSTEM 
              ENHANCEMENT PACKAGE VEHICLES.

    (a) Authority.--The Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
procurement of M1A2 Abrams System Enhancement Package vehicles.
    (b) Limitation on Term of Contract.--Notwithstanding subsection (k) 
of section 2306b of title 10, United States Code, a contract under this 
section may not be for a period in excess of five program years.

SEC. 112. MULTIYEAR PROCUREMENT AUTHORITY FOR M2A3 BRADLEY FIGHTING 
              VEHICLES, M3A3 CAVALRY FIGHTING VEHICLES, AND M2A3 
              BRADLEY FIRE SUPPORT TEAM VEHICLES.

    (a) Authority.--The Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
procurement of M2A3 Bradley Fighting Vehicles, M3A3 Cavalry Fighting 
Vehicles, and M2A3 Bradley Fire Support Team Vehicles.
    (b) Limitation on Term of Contract.--Notwithstanding subsection (k) 
of section 2306b of title 10, United States Code, a contract under this 
section may not be for a period in excess of four program years.

SEC. 113. MULTIYEAR PROCUREMENT AUTHORITY FOR CONVERSION OF CH-47D 
              HELICOPTERS TO CH-47F CONFIGURATION.

    (a) Authority.--The Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
conversion of CH-47D helicopters to the CH-47F configuration.
    (b) Limitation on Term of Contract.--Notwithstanding subsection (k) 
of section 2306b of title 10, United States Code, a contract under this 
section may not be for a period in excess of five program years.

SEC. 114. MULTIYEAR PROCUREMENT AUTHORITY FOR CH-47F HELICOPTERS.

    (a) Authority.--The Secretary of the Army may, in accordance with 
section 2306b of title 10, United States Code, enter into a multiyear 
contract, beginning with the fiscal year 2008 program year, for 
procurement of CH-47F helicopters.
    (b) Limitation on Term of Contract.--Notwithstanding subsection (k) 
of section 2306b of title 10, United States Code, a contract under this 
section may not be for a period in excess of five program years.

SEC. 115. LIMITATION ON USE OF FUNDS FOR JOINT NETWORK NODE PROGRAM 
              PENDING CERTIFICATION TO CONGRESS.

    Of the amounts authorized to be appropriated for fiscal year 2008 
for Other Procurement, Army, that are available for the Joint Network 
Node program, not more than 50 percent may be obligated or expended 
until the Secretary of the Army submits to the congressional defense 
committees the Secretary's certification, in writing, that--
            (1) the Joint Network Node program is a program of record 
        in accordance with Department of Defense Instruction 5000.2, 
        ``Operation of the Defense Acquisition System'', dated May 12, 
        2003;
            (2) the Director of Operational Test and Evaluation has 
        approved a plan for an operational test and evaluation of the 
        Joint Network Node system; and
            (3) the Army plans to procure all future lots of equipment 
        for the Joint Network Node program through a competitive bid 
        process.

SEC. 116. PROHIBITION ON CLOSURE OF ARMY TACTICAL MISSILE SYSTEM 
              PRODUCTION LINE PENDING REPORT.

    (a) Prohibition.--Amounts appropriated pursuant to the 
authorization of appropriations in section 101(2) for missiles, Army, 
and in section 1502(4) for missile procurement, Army, and any other 
appropriated funds available to the Secretary of the Army may not be 
used to commence, continue, or complete the closure of the production 
line for the Army Tactical Missile System program until at least 120 
days after the date on which the Secretary of the Army submits to the 
congressional defense committees a report that contains--
            (1) the certification of the Secretary that the long range 
        surface-to-surface strike and counter battery mission of the 
        Army can be adequately performed by other elements of the Armed 
        Forces;
            (2) a plan to mitigate any shortfalls in the industrial 
        base that would be created by the closure of the production 
        line; and
            (3) a plan to replace the Army's capability to perform long 
        range surface-to-surface strike and counter battery missions.
    (b) Submission of Report.--The report referred to in subsection (a) 
is required not later than April 1, 2008.

                       Subtitle C--Navy Programs

SEC. 121. AUTHORITY TO TRANSFER FUNDS FOR SUBMARINE ENGINEERED 
              REFUELING OVERHAULS AND CONVERSIONS AND FOR AIRCRAFT 
              CARRIER REFUELING COMPLEX OVERHAULS.

    (a) In General.--Chapter 633 of title 10, United States Code, is 
amended by adding at the end the following:
``Sec. 7317. Transfer of funds for submarine engineered refueling 
              overhauls and conversions and for aircraft carrier 
              refueling complex overhauls
    ``(a) Authority.--From amounts made available to the Department of 
Defense for fiscal year 2008 or any fiscal year thereafter, the 
Secretary of Defense may transfer, to the account for procurement, 
Navy, for shipbuilding and conversion, such amounts as the Secretary 
determines necessary to cover the costs of submarine engineered 
refueling overhauls and conversions or aircraft carrier refueling 
complex overhauls. Amounts so transferred shall be merged with and be 
available for the same purposes and for the same time period as the 
appropriation to which transferred. This transfer authority is in 
addition to any other transfer authority available to the Secretary.
    ``(b) Determination.--The authority under this section may be 
exercised only where the Secretary determines that the transfer of 
funds is required because of the discovery, during the overhaul or 
conversion concerned, of unanticipated and emergent maintenance or 
repair.
    ``(c) Notification.--A transfer may be made under this section if--
            ``(1) the Secretary determines that the overhaul or 
        conversion concerned can be completed, so as to return the 
        submarine or aircraft carrier to a full operational status, 
        with that transfer; and
            ``(2) the Secretary submits to the congressional defense 
        committees a written notification of the determination required 
        by subsection (b) and the determination required by paragraph 
        (1), together with explanations of the basis for each such 
        determination.
    ``(d) Limitation of $20,000,000.--An overhaul or conversion may 
receive one or more transfers under this section, but may not receive 
more than $20,000,000 in such transfers, regardless of fiscal year.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``7317. Transfer of funds for submarine engineered refueling overhauls 
                            and conversions and for aircraft carrier 
                            refueling complex overhauls.''.

SEC. 122. 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 2008 program year, for the 
procurement of Virginia-class submarines and Government-furnished 
equipment associated with the Virginia-class submarine program.
    (b) Limitation.--The Secretary 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, with 
        respect to that contract, each of the findings required by 
        subsection (a) of section 2306(b) of title 10, United States 
        Code; and
            (2) a period of 30 days has elapsed after the date of the 
        transmission of such certification.

SEC. 123. LIMITATION ON FINAL ASSEMBLY OF VH-71 PRESIDENTIAL TRANSPORT 
              HELICOPTERS.

    (a) In General.--No funds appropriated pursuant to an authorization 
of appropriations or otherwise made available for aircraft procurement, 
Navy, may be obligated or expended for the final assembly of more than 
five VH-71 Presidential transport helicopters.
    (b) Exception.--The limitation in subsection (a) does not apply to 
a helicopter if the final assembly of the helicopter is carried out in 
the United States.

SEC. 124. LIMITATION ON OPERATIONAL DEPLOYMENT OF WEAPONS SYSTEM THAT 
              USES TRIDENT MISSILES CONVERTED TO CARRY CONVENTIONAL 
              PAYLOADS.

    (a) Limitation.--No funds appropriated or otherwise available to 
the Department of Defense for fiscal year 2008 may be obligated or 
expended for operational deployment of a weapons system that uses 
Trident missiles converted to carry conventional payloads.
    (b) Notification.--Within 30 days after the date on which the 
Secretary of Defense determines that the weapons system referred to in 
subsection (a) is fully functional and that fielding the weapons system 
is necessary to meet military requirements, the Secretary shall submit 
to the congressional defense committees notification, in writing, of 
that determination.

SEC. 125. PROGRAM TO PROVIDE CONTRACTORS WITH CAPITAL EXPENDITURE 
              INCENTIVES.

    (a) In General.--From amounts made available for procurement, Navy, 
for shipbuilding and conversion, for fiscal year 2008 or any fiscal 
year thereafter, the Secretary of the Navy may carry out a program 
under which the Secretary provides contractors with capital expenditure 
incentives to support investment in facilities and process improvements 
for current and future Navy vessel construction contracts.
    (b) Use of Funds.--Amounts provided to a contractor under the 
program may be used for improvements that benefit any one or more of 
the shipbuilding programs in the contractor's facilities.
    (c) Analysis Required.--Amounts may be provided to a contractor 
under the program only if the contractor presents a proposal containing 
a fully supported analysis that demonstrates that the investment would 
lead to ship construction or life cycle savings to the Federal 
Government by--
            (1) improvements in design, material, technology, or 
        manufacturing process;
            (2) investing in shipyard infrastructure that would support 
        construction process improvement;
            (3) investing in specialized workforce training, including 
        apprenticeship training programs; or
            (4) investing in construction process that would reduce 
        life cycle maintenance costs of the vessels under construction 
        at the contractor's facilities.
    (d) Approval.--The Secretary shall not provide amounts to a 
contractor under the program unless the Secretary determines that--
            (1) the analysis contained in the proposal is sound; and
            (2) providing those amounts is in the best interests of the 
        United States.
    (e) Demonstration of Savings to the Federal Government.--The 
Secretary shall not provide amounts to a contractor under the program 
unless the Secretary and the contractor, as part of the approval 
process for a proposal, agree to measures, benchmarks, and recoupment 
provisions in the event the investment fails to demonstrate savings to 
the Federal Government.
    (f) Report.--At the end of each fiscal year, beginning with fiscal 
year 2008, the Secretary shall submit to the congressional defense 
committees a report on the activities carried out under this section 
during that fiscal year. The report shall describe each incentive 
approved during that fiscal year and, for each such incentive, include 
an estimate of the costs of providing the incentive and an analysis of 
the potential savings to the Federal Government from the investment.
    (g) Regulations.--The Secretary shall prescribe regulations to 
carry out this section. The initial regulations shall be prescribed not 
later than 180 days after the date of the enactment of this Act.

SEC. 126. LIMITATION ON USE OF SHIPBUILDING AND CONVERSION, NAVY, FUNDS 
              FOR EMPLOYMENT OF NONIMMIGRANT WORKERS.

    (a) Limitation on the Use of Funds.--
            (1) In general.--Except as provided in subsection (c), 
        funds appropriated or otherwise available to the Department of 
        Defense for Shipbuilding and Conversion, Navy, for fiscal year 
        2008 or any fiscal year thereafter may not be used for the 
        purpose of ship construction at the facility of a contractor 
        who, for the purposes of United States Navy ship construction, 
        employs or contracts for foreign workers who are legally 
        present in the United States under a H2B visa.
            (2) Contractors covered.--Paragraph (1) applies to prime 
        contractors and subcontracts at any tier under such contracts.
    (b) Analysis of Shipyard Labor.--
            (1) In general.--The Assistant Secretary of the Navy for 
        Research, Development, and Acquisition shall maintain a five-
        year forecast of potential labor surplus, by shipyard, for each 
        of the shipyards that construct ships for the Navy based on the 
        Navy's annual naval vessel construction plan required by 
        section 231 of title 10, United States Code.
            (2) Inclusion in plan.--The forecast required by paragraph 
        (1) shall be included in each plan submitted in accordance with 
        section 231 of title 10, United States Code.
    (c) Exception for Shortage of United States Workers.--The Secretary 
of the Navy may waive the restriction in subsection (a) for a 
contractor for a fiscal year if the contractor certifies to the 
Secretary for that fiscal year that--
            (1) the contractor has fully complied with all existing 
        laws and regulations regarding labor certifications in support 
        of an application for alien employment via the H2B visa 
        process;
            (2) a Department of Labor regional certifying officer has 
        issued a determination approving such an application, in 
        accordance with existing laws and regulations; and
            (3) the contractor has attempted to recruit United States 
        shipyard workers in the geographical area surrounding shipyards 
        identified in the most recent Navy annual naval vessel 
        construction plan as having potential labor surpluses, in a 
        manner that is consistent with procedures which shall be 
        prescribed by the Secretary and that--
                    (A) is appropriate for the occupation;
                    (B) offers, at a minimum, the same transportation 
                and housing benefits to be offered to alien employees; 
                and
                    (C) is most likely to bring responses.

SEC. 127. LIMITATION ON CONCURRENT DESIGN AND CONSTRUCTION ON FIRST 
              SHIP OF A SHIPBUILDING PROGRAM.

    (a) In General.--For any shipbuilding program that is a major 
defense acquisition program under section 2430 of title 10, United 
States Code, the start of construction of a first ship (as defined in 
subsection (b)) may not occur until the Secretary of the Navy certifies 
to the congressional defense committees that the detailed design of the 
ship is completed and approved by the relevant design certification 
agents, to a level determined by the Secretary to be acceptable for 
commencement of construction, via a report described in subsection (d).
    (b) First Ship.--For purposes of subsection (a), a ship is a first 
ship if--
            (1) the ship is the first ship to be constructed under that 
        shipbuilding program;
            (2) the shipyard at which the ship is to be constructed has 
        not previously started construction on a ship under that 
        shipbuilding program; or
            (3) the ship is the first ship to be constructed following 
        a major design change, characterized as a change in flight, 
        under that shipbuilding program.
    (c) Start of Construction.--For purposes of subsection (a), start 
of construction means the beginning of fabrication of the hull and 
superstructure of the ship.
    (d) Report.--The Secretary of the Navy shall provide the 
certification required by subsection (a) in a report that provides an 
assessment of each of the following:
            (1) The degree of completion of the detailed design 
        drawings and specifications for the ship.
            (2) The readiness of the shipyard facilities and workforce 
        to begin construction.
            (3) The maturity level of research and development efforts 
        of any new technologies that will be used in the ship's command 
        and control systems, weapons systems, sensor systems, 
        mechanical or electrical systems, or hull.
            (4) The ability to meet cost and schedule estimates within 
        the applicable program baseline.
    (e) Applicability.--
            (1) New shipbuilding programs.--This section applies to 
        each shipbuilding program beginning after the date of the 
        enactment of this Act.
            (2) Major design changes for existing shipbuilding 
        programs.--In addition, subsection (b)(3) applies to any major 
        design change occurring after the date of the enactment of this 
        Act to any shipbuilding program in existence as of the date of 
        the enactment of this Act.

                     Subtitle D--Air Force Programs

SEC. 131. LIMITATION ON RETIRING C-5 AIRCRAFT.

    (a) Certification and Cost Analysis Required.--The Secretary of the 
Air Force may not proceed with a decision to retire C-5A aircraft from 
the inventory of the Air Force in any number that would reduce the 
total number of such aircraft in the inventory below 111 until 45 days 
after the Secretary of the Air Force submits to the congressional 
defense committees the following:
            (1) The Secretary's certification that--
                    (A) the Secretary is able to comply with subsection 
                (g) of section 8062 of title 10, United States Code; 
                and
                    (B) retiring the aircraft will not significantly 
                increase operational risk of not meeting the National 
                Military Strategy.
            (2) A cost analysis with respect to the aircraft to be 
        retired that--
                    (A) evaluates which alternative is more prudent in 
                meeting strategic airlift mobility requirements--
                            (i) to retire the aircraft; or
                            (ii) to perform the Avionics Modernization 
                        Program (AMP) and the Reliability Enhancement 
                        and Re-engining Program (RERP) on the aircraft; 
                        and
                    (B) evaluates the cost of C-17 aircraft to replace 
                the capability of the aircraft to be retired.
    (b) Additional Requirements for Cost Analysis.--The cost analysis 
required by subsection (a)(2) shall be performed by a Federally Funded 
Research and Development Center selected by the Air Force and shall 
conform to the following requirements:
            (1) The cost analysis shall include one analysis that uses 
        ``constant year dollars'' and one analysis that uses ``then 
        year dollars''.
            (2) For each such analysis, the time period covered by the 
        analysis shall be the expected service life of the aircraft 
        concerned.
            (3) For each such analysis, the ownership costs evaluated 
        shall include costs for--
                    (A) planned technology insertions or upgrades over 
                the service life of the aircraft to meet emerging 
                requirements;
                    (B) research and development;
                    (C) testing;
                    (D) procurement;
                    (E) production;
                    (F) production termination;
                    (G) operations;
                    (H) training;
                    (I) maintenance;
                    (J) sustainment;
                    (K) military construction;
                    (L) personnel;
                    (M) cost of replacement due to attrition; and
                    (N) disposal.
            (4) The cost analysis shall include each of the following:
                    (A) An assessment of the quality of each cost 
                analysis.
                    (B) A discussion of each of the following:
                            (i) The assumptions used.
                            (ii) The benefits to be realized from each 
                        alternative.
                            (iii) Adverse impacts to be realized from 
                        each alternative.
                            (iv) Cargo capacity, operational 
                        availability, departure reliability, and 
                        mission capability.
                            (v) Aircraft basing.
                            (vi) Aircrew ratios and associated training 
                        requirements.
                            (vii) Performing AMP and RERP on only C-5B 
                        and C5C aircraft.
                    (C) A summary table that compares and contrasts 
                each alternative with respect to each of the 
                requirements of this subsection.
    (c) Conforming Repeal.--Section 132 of the National Defense 
Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 
1411) is repealed.

SEC. 132. LIMITATION ON JOINT CARGO AIRCRAFT.

    No funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for procurement, or for 
research, development, test, and evaluation, may be obligated or 
expended for the Joint Cargo Aircraft until 30 days after the Secretary 
of Defense submits to the congressional defense committees each of the 
following:
            (1) The Air Force Air Mobility Command's Airlift Mobility 
        Roadmap.
            (2) The Department of Defense Intra-Theater Airlift 
        Capabilities Study.
            (3) The Department of Defense Joint Intra-Theater 
        Distribution Assessment.
            (4) The Joint Cargo Aircraft Functional Area Series 
        Analysis.
            (5) The Joint Cargo Aircraft Analysis of Alternatives.
            (6) The Secretary's certification that--
                    (A) there is, within the Department of the Army, 
                Department of the Air Force, Army National Guard, or 
                Air National Guard, a capability gap or shortfall with 
                respect to intra-theater airlift; and
                    (B) validated requirements exist to fill that gap 
                or shortfall through procurement of the Joint Cargo 
                Aircraft.

SEC. 133. CLARIFICATION OF LIMITATION ON RETIREMENT OF U-2 AIRCRAFT.

    Section 133(b) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2112) is 
amended--
            (1) in paragraph (1)--
                    (A) by striking ``After fiscal year 2007'' and 
                inserting ``For each fiscal year after fiscal year 
                2007''; and
                    (B) by inserting after ``Secretary of Defense'' the 
                following: ``, in that fiscal year,''; and
            (2) in paragraph (2)--
                    (A) by inserting after ``Department of Defense'' 
                the following: ``in a fiscal year''; and
                    (B) by inserting after ``Congress'' the following: 
                ``in that fiscal year''.

SEC. 134. REPEAL OF REQUIREMENT TO MAINTAIN RETIRED C-130E TACTICAL 
              AIRLIFT AIRCRAFT.

    Section 137(b) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2114) is 
repealed.

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

              Subtitle A--Authorization of Appropriations

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

    Subtitle B--Program Requirements, Restrictions, and Limitations

Sec. 211. Operational test and evaluation of Future Combat Systems 
                            network.
Sec. 212. Limitation on systems development and demonstration of Joint 
                            Light Tactical Vehicle program.
Sec. 213. Requirement to obligate funds for development and procurement 
                            of a competitive propulsion system for the 
                            Joint Strike Fighter.
Sec. 214. Limitation on use of funds for manufacturing science and 
                            technology program.

                 Subtitle C--Ballistic Missile Defense

Sec. 221. Oversight of Missile Defense Agency programs by Director of 
                            Operational Test and Evaluation.
Sec. 222. Fielding of ballistic missile defense capabilities and future 
                            roles and missions of Missile Defense 
                            Agency.
Sec. 223. Limitation on use of funds for replacing warhead on SM-3 
                            Block IIA missile.
Sec. 224. Two-year extension of Comptroller General assessments of 
                            ballistic missile defense programs.
Sec. 225. Independent study on deploying missile defense system in 
                            Europe.
Sec. 226. Sense of Congress concerning full support for development and 
                            fielding of a layered ballistic missile 
                            defense.

                       Subtitle D--Other Matters

Sec. 231. Responsibility for human systems integration activities.
Sec. 232. Expansion of authority for encouragement of technology 
                            transfer.
Sec. 233. Army Venture Capital Fund demonstration.
Sec. 234. Independent tests for combat helmet pad suspension systems.
Sec. 235. Report on implementation of Manufacturing Technology Program.
Sec. 236. Assessment of sufficiency of test and evaluation personnel.
Sec. 237. Repeal of requirement for separate reports on technology area 
                            review and assessment summaries.

              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, $10,082,498,000.
            (2) For the Navy, $17,333,601,000.
            (3) For the Air Force, $25,738,960,000.
            (4) For Defense-wide activities, $20,141,264,000, of which 
        $180,264,000 is authorized for the Director of Operational Test 
        and Evaluation.

SEC. 202. AMOUNT FOR DEFENSE SCIENCE AND TECHNOLOGY.

    (a) Fiscal Year 2008.--Of the amounts authorized to be appropriated 
by section 201, $11,504,291,000 shall be available for the Defense 
Science and Technology Program, including basic research, applied 
research, and advanced technology development projects.
    (b) Basic Research, Applied Research, and Advanced Technology 
Development Defined.--For purposes of this section, the term ``basic 
research, applied research, and advanced technology development'' means 
work funded in program elements for defense research and development 
under Department of Defense budget activity 1, 2, or 3.

    Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. OPERATIONAL TEST AND EVALUATION OF FUTURE COMBAT SYSTEMS 
              NETWORK.

    (a) Operational Test and Evaluation Required.--The Secretary of the 
Army, in cooperation with the Director, Operational Test and 
Evaluation, shall complete an operational test and evaluation (as 
defined in section 139(a)(2)(A) of title 10, United States Code), of 
the FCS network in a realistic environment simulating operational 
conditions. The operational test and evaluation shall--
            (1) be conducted and approved by the Director, Operational 
        Test and Evaluation;
            (2) be conducted using production representative equipment, 
        sensors, and software for the FCS network;
            (3) be conducted in a manner that simulates a full Future 
        Combat Systems brigade;
            (4) be conducted, to the maximum extent possible, using 
        actual communications equipment instead of computer 
        simulations;
            (5) be conducted in a realistic operational electronic 
        warfare environment, including enemy electronic warfare and 
        network attacks; and
            (6) include, to the maximum extent possible, all sensor 
        information feeds the FCS network is designed to incorporate.
    (b) FCS Network Defined.--In this section, the term ``FCS network'' 
includes all sensors, information systems, computers, and 
communications systems necessary to support Future Combat Systems 
brigade operations.
    (c) Report.--Not later than 120 days after completing the 
operational test and evaluation required by subsection (a), the 
Director, Operational Test and Evaluation shall submit to the 
congressional defense committees a report on the outcome of the 
operational test and evaluation. The report shall include, at a 
minimum--
            (1) an evaluation of the overall operational effectiveness 
        of the FCS network, including--
                    (A) an evaluation of the FCS network's capability 
                to transmit the volume and classes of data required by 
                Future Combat Systems approved requirements; and
                    (B) an evaluation of the FCS network's performance 
                in a degraded condition due to enemy network attack, 
                sophisticated enemy electronic warfare, adverse weather 
                conditions, and terrain variability;
            (2) an evaluation of the FCS network's ability to improve 
        friendly force knowledge of the location and capability of 
        enemy forces and combat systems; and
            (3) an evaluation of the overall operational suitability of 
        the FCS network.
    (d) Limitation Pending Submission of Report.--
            (1) In general.--No funds appropriated pursuant to an 
        authorization of appropriations or otherwise made available to 
        the Department of the Army for any fiscal year may be obligated 
        for low-rate initial production or full-rate production of 
        Future Combat Systems manned ground vehicles until 60 days 
        after the date on which the report is submitted under 
        subsection (c).
            (2) Waiver authority.--The Secretary of Defense may waive 
        the limitation in paragraph (1) if the Secretary determines 
        that such a waiver is critical for national security. Such a 
        waiver shall not become effective until 14 days after the date 
        on which the Secretary submits to the congressional defense 
        committees a written notice of the waiver.
            (3) Inapplicability to the non line of sight cannon 
        vehicle.--The limitation in paragraph (1) does not apply to the 
        Non Line of Sight Cannon vehicle.

SEC. 212. LIMITATION ON SYSTEMS DEVELOPMENT AND DEMONSTRATION OF JOINT 
              LIGHT TACTICAL VEHICLE PROGRAM.

    No funds appropriated pursuant to an authorization of 
appropriations or otherwise made available for any fiscal year may be 
obligated or expended for the Joint Light Tactical Vehicle program 
beyond the Design Readiness Review for the acquisition program phase of 
systems development and demonstration until after the certification for 
the Joint Light Tactical Vehicle program is made and submitted as 
required by section 2366a of title 10, United States Code, and a 
progress report is received for review by the congressional defense 
committees.

SEC. 213. REQUIREMENT TO OBLIGATE FUNDS FOR DEVELOPMENT AND PROCUREMENT 
              OF A COMPETITIVE PROPULSION SYSTEM FOR THE JOINT STRIKE 
              FIGHTER.

    Of the funds appropriated pursuant to an authorization of 
appropriations or otherwise made available, for fiscal year 2008 or any 
fiscal year thereafter, for research, development, test, and evaluation 
and procurement for the Joint Strike Fighter program, the Secretary of 
Defense shall obligate sufficient annual amounts to develop and procure 
a competitive propulsion system for the Joint Strike Fighter in order 
to conduct a competitive propulsion source selection.

SEC. 214. LIMITATION ON USE OF FUNDS FOR MANUFACTURING SCIENCE AND 
              TECHNOLOGY PROGRAM.

    (a) In General.--No funds available to the Office of the Secretary 
of Defense for any fiscal year may be obligated or expended for a 
manufacturing science and technology project unless the Director, 
Defense Research and Engineering, ensures that--
            (1) the project is awarded using competitive procedures in 
        accordance with section 2304 of title 10, United States Code;
            (2) the project is carried out--
                    (A) under the Manufacturing Technology Program 
                established by section 2521 of title 10, United States 
                Code; and
                    (B) in compliance with all requirements of any 
                directive that applies to manufacturing technology; and
            (3) a technology transition agreement has been fully 
        executed between the Director and a prospective technology 
        user.
    (b) Definitions.--In this subsection:
            (1) The term ``technology transition agreement'' means an 
        agreement signed by officials of the Department of Defense that 
        includes--
                    (A) a description of the prospective technology 
                user's relevant technology needs in priority order;
                    (B) a description of the minimum increment of 
                capability that must be developed in order for the 
                prospective technology user to consider implementing 
                the technology;
                    (C) a schedule of technology transition windows for 
                each technology need;
                    (D) a description of discrete technology 
                deliverables that specifically identifies which user 
                need would be fulfilled by each deliverable;
                    (E) a schedule for technology deliverables that 
                aligns with user defined technology transition 
                opportunities; and
                    (F) a commitment by the prospective technology user 
                to program for advanced development or procurement 
                funding, as appropriate, upon successful delivery of 
                the technology, in accordance with the other terms of 
                the agreement.
            (2) The term ``prospective technology user'' has the 
        meaning given that term in section 2521(c)(6) of title 10, 
        United States Code.

                 Subtitle C--Ballistic Missile Defense

SEC. 221. OVERSIGHT OF MISSILE DEFENSE AGENCY PROGRAMS BY DIRECTOR OF 
              OPERATIONAL TEST AND EVALUATION.

    (a) MDA to Report to OT&E.--The Director of the Missile Defense 
Agency shall report promptly to the Director of Operational Test and 
Evaluation the results of--
            (1) all operational test and evaluation conducted by the 
        Missile Defense Agency with respect to any major defense 
        acquisition program; and
            (2) all studies conducted in connection with such 
        operational test and evaluation.
    (b) OT&E Observers at MDA Tests.--The Director of Operational Test 
and Evaluation may require that such observers as the Director of 
Operational Test and Evaluation may designate are present during the 
preparation for, and the conduct of, the test part of any test and 
evaluation conducted by the Missile Defense Agency with respect to any 
major defense acquisition program.
    (c) OT&E Access to Information.--The Director of Operational Test 
and Evaluation shall have access to all information of the Department 
of Defense (including information of the Missile Defense Agency) that 
the Director considers necessary to review in order to carry out this 
section.

SEC. 222. FIELDING OF BALLISTIC MISSILE DEFENSE CAPABILITIES AND FUTURE 
              ROLES AND MISSIONS OF MISSILE DEFENSE AGENCY.

    (a) Availability of RDT&E Funds for Fiscal 2009.--Upon approval by 
the Secretary of Defense, funds appropriated pursuant to an 
authorization of appropriations or otherwise made available for fiscal 
year 2009 for research, development, test, and evaluation for the 
Missile Defense Agency--
            (1) may be used for the development and fielding of 
        ballistic missile defense capabilities; and
            (2) may not be used for operations and support activities.
    (b) Budgeting for Operations and Support for Fiscal 2009.--For 
fiscal year 2009, any amount in the budget submitted to Congress under 
section 1105(a) of title 31, United States Code, for operations and 
support activities for the Missile Defense Agency shall be set forth 
under the account of the Department of Defense for operation and 
maintenance, Defense-wide, and, within that account, under the 
subaccount (or other budget activity level) for the Missile Defense 
Agency.
    (c) Plan Required.--Not later than March 1, 2008, the Director of 
the Missile Defense Agency shall submit to the Committee on Armed 
Services of the Senate and the Committee on Armed Services of the House 
of Representatives a plan for transitioning the Missile Defense Agency 
from using research, development, test, and evaluation funds for 
missile defense fielding activities to using procurement funds for 
those activities where practicable.
    (d) Study Required.--
            (1) In general.--The Secretary of Defense shall enter into 
        an agreement with one of the Federally Funded Research and 
        Development Centers under which the Center will carry out a 
        study to examine, and make recommendations with respect to, the 
        long-term structure, roles, and missions of the Missile Defense 
        Agency.
            (2) Matters included.--
                    (A) Review.--The study shall include a full review 
                of the structure, roles, and missions of the Missile 
                Defense Agency.
                    (B) Assessments.--The study shall include an 
                examination and assessment of the current and future--
                            (i) structure, roles, and missions of the 
                        Missile Defense Agency; and
                            (ii) relationship of the Missile Defense 
                        Agency with--
                                    (I) the Office of the Under 
                                Secretary of Defense for Acquisition, 
                                Technology, and Logistics;
                                    (II) the Office of the Under 
                                Secretary of Defense for Policy;
                                    (III) the Director of Operational 
                                Test and Evaluation;
                                    (IV) the Commander of the United 
                                States Strategic Command and other 
                                combatant commanders; and
                                    (V) the military departments.
                    (C) Recommendations.--The study shall include 
                recommendations as to how the Missile Defense Agency 
                can be made more effective to support the needs of the 
                warfighter. The recommendations shall include specific 
                recommendations as to whether--
                            (i) the Missile Defense Agency should be 
                        maintained in its current configuration;
                            (ii) the scope and nature of the Missile 
                        Defense Agency should be changed from an 
                        organization focused on research and 
                        development to an organization focused on 
                        combat support; and
                            (iii) the Missile Defense Agency should be 
                        abolished and its responsibilities transferred 
                        to the United States Strategic Command and the 
                        military departments.
            (3) Cooperation from government.--In carrying out the 
        study, the Federally Funded Research and Development Center 
        shall receive the full and timely cooperation of the Secretary 
        of Defense and any other United States Government official in 
        providing the Center with analyses, briefings, and other 
        information necessary for the fulfillment of its 
        responsibilities.
            (4) Report.--Not later than September 1, 2008, the 
        Federally Funded Research and Development Center shall submit 
        to the Committees on Armed Services of the Senate and House of 
        Representatives a report on its findings, conclusions, and 
        recommendations.
            (5) Funding.--Funds for the study shall be provided from 
        amounts appropriated for the Department of Defense.

SEC. 223. LIMITATION ON USE OF FUNDS FOR REPLACING WARHEAD ON SM-3 
              BLOCK IIA MISSILE.

    None of the funds appropriated or otherwise made available pursuant 
to an authorization of appropriations in this Act may be obligated or 
expended to replace the unitary warhead on the SM-3 Block IIA missile 
with the Multiple Kill Vehicle until after the Secretary of Defense 
certifies to Congress that--
            (1) the United States and Japan have reached an agreement 
        to replace the unitary warhead on the SM-3 Block IIA missile; 
        and
            (2) replacing the unitary warhead on the SM-3 Block IIA 
        missile with the Multiple Kill Vehicle will not delay the 
        expected deployment date of 2014-2015 for that missile.

SEC. 224. TWO-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF 
              BALLISTIC MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act for Fiscal 
Year 2002 (10 U.S.C. 2431 note) is amended--
            (1) in paragraph (1), by striking ``through 2008'' and 
        inserting ``through 2010''; and
            (2) in paragraph (2), by striking ``through 2009'' and 
        inserting ``through 2011''.

SEC. 225. INDEPENDENT STUDY ON DEPLOYING MISSILE DEFENSE SYSTEM IN 
              EUROPE.

    (a) Study Required.--The Secretary of Defense shall enter into an 
agreement with one of the Federally Funded Research and Development 
Centers under which the Center will carry out a study on the political, 
technical, operational, force structure, and budgetary implications of 
deploying a long-range missile defense system in Europe.
    (b) Analysis of Administration Proposal.--The study shall provide a 
full analysis of the Administration's proposal to protect forward-
deployed radars, Europe, and the United States by deploying, in Europe, 
interceptors and radars of the Ground-Based Midcourse Defense (GMD) 
system. In providing the analysis, the study shall examine each of the 
following:
            (1) The technical capabilities of the GMD system, as so 
        deployed, to effectively protect forward-deployed radars, 
        Europe, and the United States.
            (2) The political implications of such a deployment on the 
        United States, the North Atlantic Treaty Organization, and 
        other interested parties.
            (3) The operational issues associated with such a 
        deployment.
            (4) The force structure implications of such a deployment.
            (5) The budgetary implications of such a deployment.
    (c) Analysis of Alternatives.--The study shall also provide a full 
analysis of alternative systems that could be deployed to fulfill, in 
whole or in part, the protective purposes of the Administration's 
proposal. The alternative systems shall include a range of feasible 
combinations of other missile defense systems that are available or are 
expected to be available as of 2020. In providing the analysis, the 
study shall examine, for each alternative system included, the 
following:
            (1) The technical capabilities of the alternative system, 
        as so deployed, to effectively protect forward-deployed radars, 
        Europe, and the United States.
            (2) The political implications of such a deployment on the 
        United States, the North Atlantic Treaty Organization, and 
        other interested parties.
            (3) The operational issues associated with such a 
        deployment.
            (4) The force structure implications of such a deployment.
            (5) The budgetary implications of such a deployment.
    (d) Cooperation Required.--In carrying out the study, the Federally 
Funded Research and Development Center shall receive the cooperation of 
the Secretary of Defense, the Secretary of State, the Director of 
National Intelligence, and any other United States Government official 
in providing the Center with analyses, briefings, and other information 
necessary for the fulfillment of its responsibilities.
    (e) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Federally Funded Research and Development 
Center shall submit to the congressional defense committees and the 
Secretary of Defense a report on the results of the study. The report 
shall be in unclassified form, but may include a classified annex.
    (f) Funding.--Of the amounts appropriated or otherwise made 
available pursuant to the authorization of appropriations in section 
201(4), $1,000,000 is available to carry out the study required by this 
section.

SEC. 226. SENSE OF CONGRESS CONCERNING FULL SUPPORT FOR DEVELOPMENT AND 
              FIELDING OF A LAYERED BALLISTIC MISSILE DEFENSE.

    It is the sense of Congress that--
            (1) the development and proliferation of ballistic missile 
        and nuclear capabilities by rogue nations continues to grow, 
        posing a serious threat to the national security of the United 
        States, United States military forces deployed, and United 
        States national security interests more broadly, as 
        demonstrated by--
                    (A) the July 2006 test by North Korea of six short-
                range missiles and one longer-range Taepo Dong-2 
                missile, and the October 2006 test by North Korea of a 
                nuclear device;
                    (B) the November 2006 and January 2007 test by Iran 
                of nearly a dozen missiles and an ongoing effort by 
                Iran to enrich uranium;
                    (C) the reported proliferation of BM-25 
                intermediate range ballistic missiles from North Korea 
                to Iran; and
                    (D) the reported January 2007 test by Syria of 
                Scud-D short-range ballistic missiles;
            (2) the United States must have the capability to defend 
        its homeland and forward-deployed military forces against the 
        threats highlighted in paragraph (1);
            (3) the United States is committed to working with its 
        allies to obtain the capability to defend our broader national 
        security interests against ballistic missile threats 
        highlighted in paragraph (1);
            (4) as specified in the John Warner National Defense 
        Authorization Act for Fiscal Year 2007, ``It is the policy of 
        the United States that the Department of Defense accord 
        priority within the missile defense program to the development, 
        testing, fielding, and improvement of effective near-term 
        missile defense capabilities, including the ground-based 
        midcourse defense system, the Aegis ballistic missile defense 
        system, the Patriot PAC-3 system, the Terminal High Altitude 
        Area Defense system, and the sensors necessary to support such 
        systems.'';
            (5) the Congress fully supports efforts by the Department 
        of Defense to continue development, testing, and fielding of an 
        effective, integrated, robust, layered ballistic missile 
        defense system that is capable of intercepting ballistic 
        missiles as described in paragraph (1) in various phases of 
        flight;
            (6) a layered defense requires fielding components on land 
        and sea, space-based and other sensors, along with the command 
        and control capability that ties the various components 
        together; and
            (7) it is in the national security interest of the United 
        States to continue development, testing, and operations of the 
        United States ballistic missile defense system to hedge against 
        uncertainty in the development, test, and fielding of ballistic 
        missile capabilities by rogue nations.

                       Subtitle D--Other Matters

SEC. 231. RESPONSIBILITY FOR HUMAN SYSTEMS INTEGRATION ACTIVITIES.

    (a) In General.--The Secretary of Defense, acting through the Under 
Secretary of Defense for Acquisition, Technology, and Logistics, shall 
coordinate and manage human systems integration activities throughout 
the acquisition programs of the Department of Defense.
    (b) Administration.--In carrying out subsection (a), the Secretary 
shall--
            (1) designate a senior official to be responsible for the 
        effort; and
            (2) supervise the planning, management, and coordination of 
        such activities.
    (c) Responsibilities.--In carrying out this section, the Secretary 
shall--
            (1) develop a Department of Defense Instruction, and as 
        necessary a Department of Defense Directive, specific to human 
        systems integration activities; and
            (2) identify and recommend, as appropriate, resource 
        requirements for human systems integration activities.
    (d) Designation.--The designation required by subsection (b)(2) 
shall be made not later than 60 days after the date of the enactment of 
this Act.

SEC. 232. EXPANSION OF AUTHORITY FOR ENCOURAGEMENT OF TECHNOLOGY 
              TRANSFER.

    Section 2514(c) of title 10, United States Code, is amended--
            (1) by redesignating paragraphs (3) and (4) as paragraphs 
        (4) and (5), respectively; and
            (2) by inserting after paragraph (2) the following:
    ``(3)(A) Under the Program, the defense laboratories and research 
centers may, through leases, contracts, or other appropriate 
arrangements, provide facilities, services, and equipment to private 
industry in order to promote accelerated development of critical 
technologies and technology transfer initiatives that support the 
Department of Defense.
    ``(B) The facilities, services, and equipment provided under this 
paragraph shall be provided on a non-interference basis.
    ``(C) The defense laboratory or research center--
            ``(i) shall charge, accept, and retain fees in amounts 
        necessary to recover the full costs of the facilities, 
        services, and equipment provided, including capital improvement 
        costs, utility and service costs, and equipment depreciation 
        costs; and
            ``(ii) may charge, accept, and retain fees for providing 
        the facilities, services, and equipment.
    ``(D) The defense laboratory or research center may accept payment 
in cash or in kind for fees charged under subparagraph (C).
    ``(E) Fees accepted under subparagraph (C) shall be credited to the 
account that was used to cover the costs for which the payment was 
provided. Amounts so credited shall be merged with amounts in that 
account, and shall be available for the same purposes, and subject to 
the same conditions and limitations, as other amounts in that 
account.''.

SEC. 233. ARMY VENTURE CAPITAL FUND DEMONSTRATION.

    (a) In General.--Of the amounts appropriated pursuant to the 
authorization of appropriations in section 201(1) or otherwise made 
available for research, development, test, and evaluation, Army, 
$10,000,000 is available for the Army Venture Capital Fund 
demonstration, to be used only for investment in renewable energy 
technologies.
    (b) Definition.--For purposes of this section, the Army Venture 
Capital Fund demonstration is the program for which funds were 
initially provided in section 8150 of the Department of Defense 
Appropriations Act, 2002 (division A of Public Law 107-117; 115 Stat. 
2281), as extended and revised in section 8105 of Department of Defense 
Appropriations Act, 2003 (Public Law 107-248; 116 Stat. 1562).

SEC. 234. INDEPENDENT TESTS FOR COMBAT HELMET PAD SUSPENSION SYSTEMS.

    (a) In General.--From amounts made available pursuant to the 
authorization of appropriations in section 201(4) for research, 
development, test, and evaluation, Defense-wide, the Secretary of 
Defense shall carry out a test and evaluation of combat helmet pad 
suspension systems. The test and evaluation shall be carried out using 
verified product representative samples from the five producers of 
combat helmet pad suspension systems that are qualified as of the date 
of the enactment of this Act. The test and evaluation shall include an 
operational assessment of the pad suspension systems, including a field 
user evaluation.
    (b) Independent Laboratory.--The test and evaluation shall be 
carried out in an objective and transparent manner by a certified and 
qualified laboratory that is independent of the Federal Government.
    (c) Report.--Not later than September 30, 2008, the Secretary shall 
submit to the congressional defense committees a report on the results 
of the test and evaluation.

SEC. 235. REPORT ON IMPLEMENTATION OF MANUFACTURING TECHNOLOGY PROGRAM.

    (a) Report Required.--Not later than March 1, 2008, the Secretary 
of Defense shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the House of 
Representatives a report on the implementation of the technologies and 
processes developed under the Manufacturing Technology Program required 
by section 2521 of title 10, United States Code.
    (b) Elements.--The report shall identify each technology or process 
implemented and, for each such technology or process, shall identify--
            (1) the project of the Manufacturing Technology Program 
        through which the technology or process was developed, the 
        Federal and non-Federal participants in that project, and the 
        duration of the project;
            (2) the organization or program implementing the technology 
        or process, and the type of implementation;
            (3) the total Federal funding required to implement the 
        technology or process, including--
                    (A) funds provided by military departments and 
                Defense Agencies under the Manufacturing Technology 
                Program;
                    (B) funds provided by the Department of Defense, or 
                any element of the Department, to co-develop the 
                technology or process;
                    (C) to the maximum extent possible, funds provided 
                by the Department of Defense, or any element of the 
                Department, to--
                            (i) mature the technology or process prior 
                        to transition to the Manufacturing Technology 
                        Program; and
                            (ii) fully implement the technology or 
                        process;
            (4) the total value of industry cost share, if applicable; 
        and
            (5) the total value of cost avoidance or cost savings 
        directly attributable to the implementation of the technology 
        or process.
    (c) Definition.--For purposes of this section, the term 
``implementation'' refers to--
            (1) the use of a technology or process in the manufacture 
        of defense materiel;
            (2) the identification of a technology or process in the 
        manufacturing baseline for a program of record that has not yet 
        achieved full rate production; or
            (3) the use of a technology or process for the manufacture 
        of commercial items.
    (d) Scope.--The report shall include technologies or processes 
developed with funds appropriated or otherwise made available for 
Manufacturing Technology for fiscal years 2002 through 2007.

SEC. 236. ASSESSMENT OF SUFFICIENCY OF TEST AND EVALUATION PERSONNEL.

    (a) Assessment Required.--The Director of Operational Test and 
Evaluation shall assess whether the Director's professional staff meets 
the requirement of section 139(j) of title 10, United States Code, that 
the staff be sufficient to carry out the Director's duties and 
responsibilities.
    (b) Inclusion in Report.--The Director shall include the results of 
the assessment in the report, required by section 139(g) of title 10, 
United States Code, summarizing the operational test and evaluation 
activities during fiscal year 2007.

SEC. 237. REPEAL OF REQUIREMENT FOR SEPARATE REPORTS ON TECHNOLOGY AREA 
              REVIEW AND ASSESSMENT SUMMARIES.

    Subsection (c) of section 253 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3179; 10 U.S.C. 
2501 note) is repealed.

                  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 Moses Lake 
                            Wellfield Superfund Site, Moses Lake, 
                            Washington.
Sec. 312. Reimbursement of Environmental Protection Agency for certain 
                            costs in connection with Arctic Surplus 
                            Superfund Site, Fairbanks, Alaska.
Sec. 313.  Payment to Environmental Protection Agency of stipulated 
                            penalty in connection with Jackson Park 
                            Housing Complex, Washington.

                 Subtitle C--Workplace and Depot Issues

Sec. 321. Increase in threshold amount for contracts for procurement of 
                            capital assets in advance of availability 
                            of working-capital funds for the 
                            procurement.
Sec. 322. Authorization of availability of working-capital funds for 
                            certain product improvements.
Sec. 323. Authorization of use of working-capital funds for acquisition 
                            of certain items.
Sec. 324. Modification to public-private competition requirements 
                            before conversion to contractor 
                            performance.
Sec. 325. Public-private competition at end of period specified in 
                            performance agreement not required.
Sec. 326. Guidelines on insourcing new and contracted out functions.
Sec. 327. Additional requirements for annual report on public-private 
                            competitions.
Sec. 328. Restriction on Office of Management and Budget influence over 
                            Department of Defense public-private 
                            competitions.
Sec. 329. Bid Protests by Federal Employees in actions under Office of 
                            Management Budget Circular A-76.
Sec. 330. Public-private competition required before conversion to 
                            contractor performance.
Sec. 331. Reauthorization and modification of multi-trades 
                            demonstration project.

              Subtitle D--Extension of Program Authorities

Sec. 341. Extension of Arsenal Support Program Initiative.
Sec. 342. Extension of period for reimbursement for helmet pads 
                            purchased by members of the Armed Forces 
                            deployed in contingency operations.

                          Subtitle E--Reports

Sec. 351. Inclusion of National Guard readiness for civil support 
                            missions in quarterly personnel and unit 
                            readiness report.
Sec. 352. Plan to improve readiness of active and reserve component 
                            ground forces.
Sec. 353. Plan for optimal use of strategic ports by commander of 
                            Surface Distribution and Deployment 
                            Command.
Sec. 354. Independent assessment of Civil Reserve Air Fleet viability.
Sec. 355. Annual report on prepositioned materiel and equipment.
Sec. 356. Conditions on relocation of North American Aerospace Defense 
                            command center and related functions from 
                            Cheyenne Mountain to Peterson Air Force 
                            Base.
Sec. 357. Report on public-private partnerships.

                       Subtitle F--Other Matters

Sec. 361. Authority for Department of Defense to provide support for 
                            certain sporting events.
Sec. 362. Reasonable restrictions on payment of full replacement value 
                            for lost or damaged personal property 
                            transported at Government expense.
Sec. 363. Priority transportation on Department of Defense aircraft of 
                            retired members residing in Commonwealths 
                            and possessions of the United States for 
                            certain health care services.
Sec. 364. Recovery of missing military property.
Sec. 365. Retention of Army combat uniforms by members of Army deployed 
                            in support of contingency operations.
Sec. 366. Issue of serviceable material other than to Armed Forces.
Sec. 367. Prohibition on deactivation of 36th Rescue Flight.
Sec. 368. Limitation on expenditure of funds for initial flight 
                            screening at Pueblo Memorial Airport.

              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, $28,868,671,000.
            (2) For the Navy, $33,138,090,000.
            (3) For the Marine Corps, $4,923,993,000.
            (4) For the Air Force, $33,393,333,000.
            (5) For Defense-wide activities, $22,732,978,000.
            (6) For the Army Reserve, $2,508,062,000.
            (7) For the Naval Reserve, $1,182,883,000.
            (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, $5,845,809,000.
            (11) For the Air National Guard, $5,044,365,000.
            (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 Cooperative Threat Reduction programs, 
        $398,000,000.
            (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, $102,000,000.
            (2) For the National Defense Sealift Fund, $1,535,194,000.
            (3) For the Defense Working Capital Fund, Defense 
        Commissary, $1,250,000,000.

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 $22,471,047,000, of which--
            (1) $21,974,304,000 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, Defense.--(1) 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, Defense, in the amount of 
$1,455,724,000, of which--
            (A) $1,162,452,000 is for Operation and Maintenance;
            (B) $274,846,000 is for Research, Development, Test, and 
        Evaluation; and
            (C) $18,426,000 is for Procurement.
    (2) Amounts authorized to be appropriated under paragraph (1) are 
authorized for--
            (A) the destruction of lethal chemical agents and munitions 
        in accordance with section 1412 of the Department of Defense 
        Authorization Act, 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 MOSES LAKE WELLFIELD SUPERFUND 
              SITE, MOSES LAKE, WASHINGTON.

    (a) Authority to Reimburse.--Notwithstanding section 2215 of title 
10, United States Code, the Secretary of Defense may transfer not more 
than $91,588.51 to the Moses Lake Wellfield Superfund Site 10-6J 
Special Account for the purpose described in section 315(a)(2) of the 
John Warner National Defense Authorization Act for Fiscal Year 2007 
(Public Law 110-364; 120 Stat. 2141).
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(16) for 
environmental restoration, defense-wide.

SEC. 312. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN 
              COSTS IN CONNECTION WITH ARCTIC SURPLUS SUPERFUND SITE, 
              FAIRBANKS, ALASKA.

    (a) Authority to Reimburse.--Notwithstanding section 2215 of title 
10, United States Code, the Secretary of Defense may 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'' and entered into by 
the Department of Defense and the Environmental Protection Agency on 
December 11, 2003.
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(16) for 
environmental restoration, defense-wide.

SEC. 313. PAYMENT TO ENVIRONMENTAL PROTECTION AGENCY OF STIPULATED 
              PENALTY IN CONNECTION WITH JACKSON PARK HOUSING COMPLEX, 
              WASHINGTON.

    (a) Payment Required.--Notwithstanding section 2215 of title 10, 
United States Code, the Secretary of the Navy may 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 failure of the Department of the Navy 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 agreement entered into by the Department of the Navy and 
the Environmental Protection Agency (U.S. EPA Docket Number CERCLA-10-
2005-0023).
    (b) Source of Funds.--Any payment under subsection (a) shall be 
made using funds authorized to be appropriated by section 301(14) for 
environmental restoration, Navy.

                 Subtitle C--Workplace and Depot Issues

SEC. 321. INCREASE IN THRESHOLD AMOUNT FOR CONTRACTS FOR PROCUREMENT OF 
              CAPITAL ASSETS IN ADVANCE OF AVAILABILITY OF WORKING-
              CAPITAL FUNDS FOR THE PROCUREMENT.

    Section 2208(k)(2) of title 10, United States Code, is amended by 
striking ``$100,000'' and inserting ``$250,000''.

SEC. 322. AUTHORIZATION OF AVAILABILITY OF WORKING-CAPITAL FUNDS FOR 
              CERTAIN PRODUCT IMPROVEMENTS.

    Section 2208 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(s) Product Improvement.--(1) An engineering service, 
manufacturing effort, developmental testing, or operational test and 
evaluation effort for product improvement of a weapon system platform, 
major end item, component of a major end item, or article that is 
financed by a working-capital fund may be performed or acquired, if--
            ``(A) the combined cost of the engineering services, 
        manufacturing efforts, development testings, and operational 
        test and evaluation efforts for the product improvements that 
        are financed by the working-capital fund is less than 
        $15,000,000;
            ``(B) the unit cost of the platform, item, component, or 
        article is less than $1,000,000; and
            ``(C) the product improvement would improve the reliability 
        and maintainability, extend the useful life, enhance safety, 
        lower maintenance costs, provide performance enhancement, or 
        expand the performance capability of the weapon system platform 
        or major end item.
    ``(2) Funds described in paragraph (1) may be used in accordance 
with that paragraph for a commercial or industrial type function 
performed as part of a public-private partnership at the Center of 
Industrial and Technical Excellence designated under section 2474 of 
this title.
    ``(3) Each report submitted under subsection (q) for a working-
capital fund shall include a description of any use of funds described 
in paragraph (1) that is financed by that working-capital fund and a 
description of the anticipated product improvement under subparagraph 
(C) of that paragraph.''.

SEC. 323. AUTHORIZATION OF USE OF WORKING-CAPITAL FUNDS FOR ACQUISITION 
              OF CERTAIN ITEMS.

    Section 2208 of title 10, United States Code, as amended by section 
332, is further amended by adding at the end the following new 
subsection:
    ``(t) Acquisition Threshold for Weapons System Modification, 
Improvement and Lifecycle Extension.-- (1) Any of the following items 
may be provided through working-capital funds, if the item has a unit 
cost of not more than $500,000:
            ``(A) An item that is materiel for supplies or supply chain 
        management, assemblies, spare or repair parts, modification 
        kits, or any other item of equipment to provide maintenance, 
        repair, or overhaul and rework.
            ``(B) An item for continuous technology refreshment to 
        provide newer technologies that improve reliability and 
        maintainability, extend the useful life, enhance safety, lower 
        maintenance costs, provide performance enhancement, or expand 
        the performance capability of a weapons system platform.
    ``(2) With respect to an item described in paragraph (1), the 
Secretary of each military department may increase the acquisition 
threshold under paragraph (1) to an amount that does not exceed 
$1,000,000, if the Secretary--
            ``(A) determines the increase is necessary to maintain core 
        logistics capabilities required by section 2464 of this title; 
        and
            ``(B) not later than 30 days after such an increase, 
        notifies Congress of the increase and the reasons for the 
        increase.
    ``(3) An item described in paragraph (1) may be an item used for a 
commercial- or industrial-type function performed at a Center of 
Industrial and Technical Excellence designated under section 2474 of 
this title.''.

SEC. 324. MODIFICATION TO PUBLIC-PRIVATE COMPETITION REQUIREMENTS 
              BEFORE CONVERSION TO CONTRACTOR PERFORMANCE.

    (a) Comparison of Retirement System Costs.--Section 2461(a)(1) of 
title 10, United States Code is amended--
            (1) in subparagraph (F), by striking ``and'' at the end;
            (2) by redesignating subparagraph (G) as subparagraph (H); 
        and
            (3) by inserting after subparagraph (F) the following new 
        subparagraph (G):
            ``(G) requires that the contractor shall not receive an 
        advantage for a proposal that would reduce costs for the 
        Department of Defense by--
                    ``(i) not making an employer-sponsored health 
                insurance plan (or payment that could be used in lieu 
                of such a plan), health savings account, or medical 
                savings account, available to the workers who are to be 
                employed to perform the function under the contract;
                    ``(ii) offering to such workers an employer-
                sponsored health benefits plan that requires the 
                employer to contribute less towards the premium or 
                subscription share than the amount that is paid by the 
                Department of Defense for health benefits for civilian 
                employees of the Department under chapter 89 of title 
                5; or
                    ``(iii) offering to such workers a retirement 
                benefit that, in any year, costs less than the annual 
                retirement cost factor applicable to civilian employees 
                of the Department of Defense under chapter 84 of title 
                5; and''.
    (b) Conforming Amendments.--Such title is further amended--
            (1) by striking section 2467; and
            (2) in section 2461--
                    (A) by redesignating subsections (b) through (d) as 
                subsections (c) through (e); and
                    (B) by inserting after subsection (a) the following 
                new subsection (b):
    ``(b) Requirement to Consult DOD Employees.--(1) Each officer or 
employee of the Department of Defense responsible for determining under 
Office of Management and Budget Circular A-76 whether to convert to 
contractor performance any function of the Department of Defense--
            ``(A) shall, at least monthly during the development and 
        preparation of the performance work statement and the 
        management efficiency study used in making that determination, 
        consult with civilian employees who will be affected by that 
        determination and consider the views of such employees on the 
        development and preparation of that statement and that study; 
        and
            ``(B) may consult with such employees on other matters 
        relating to that determination.
    ``(2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 of title 
5, consultation with representatives of that labor organization shall 
satisfy the consultation requirement in paragraph (1).
    ``(B) In the case of employees other than employees referred to in 
subparagraph (A), consultation with appropriate representatives of 
those employees shall satisfy the consultation requirement in paragraph 
(1).
    ``(C) The Secretary of Defense shall prescribe regulations to carry 
out this subsection. The regulations shall include provisions for the 
selection or designation of appropriate representatives of employees 
referred to in paragraph (2)(B) for purposes of consultation required 
by paragraph (1)''.
    (c) Technical Amendments.--Section 2461 of such title, as amended 
by subsection (a) is further amended--
            (1) in subsection (a)(1)--
                    (A) in subparagraph (B), by inserting after 
                ``2003'' the following: ``, or any successor 
                circular''; and
                    (B) in subparagraph (D), by striking ``and 
                reliability'' and inserting ``, reliability, and 
                timeliness''; and
            (2) in subsection (c)(2), as redesignated under subsection 
        (b)(2), by inserting ``of'' after ``examination''.

SEC. 325. PUBLIC-PRIVATE COMPETITION AT END OF PERIOD SPECIFIED IN 
              PERFORMANCE AGREEMENT NOT REQUIRED.

    Section 2461(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) A public-private competition may not be required 
        under Office of Management and Budget Circular A-76 or any 
        other provision of law at the end of the period specified in 
        the performance agreement for any function of the Department of 
        Defense performed by Department of Defense civilian 
        employees.''.

SEC. 326. GUIDELINES ON INSOURCING NEW AND CONTRACTED OUT FUNCTIONS.

    (a) Codification and Revision of Requirement for Guidelines.--
            (1) In general.--Chapter 146 of title 10, United States 
        Code, is amended by inserting after section 2462 the following 
        new section:
``Sec. 2463. Guidelines for use of civilian employees to perform 
              Department of Defense functions
    ``(a) Guidelines Required.--The Under Secretary of Defense for 
Personnel and Readiness shall devise and implement guidelines to ensure 
that consideration is given to using, on a regular basis, civilian 
employees of the Department of Defense to perform new functions and 
functions that are performed by contractors and could be performed by 
such civilian employees. The Secretary of a military department may 
prescribe regulations, if the Secretary determines such regulations are 
necessary for implementing such guidelines within that military 
department.
    ``(b) Special Consideration for Certain Functions.--The guidelines 
implemented under subsection (a) shall provide for special 
consideration to be given to using civilian employees of the Department 
of Defense to perform any function that--
    ``(1) was performed by a civilian employee of the Department of 
Defense at any time on or after October 1, 1980;
    ``(2) is associated with the performance of an inherently 
governmental function (as that term is defined in section 5 of the 
Federal Activities Inventory Reform Act of 1998 (31 U.S.C. 501 note));
    ``(3) has been performed by a contractor pursuant to a contract 
awarded on a non-competitive basis; or
    ``(4) has been performed poorly by a contractor because of 
excessive costs or inferior quality, as determined by a contracting 
officer.
    ``(c) Exclusion of Certain Functions From Competitions.--No public-
private competition may be required under this chapter for any function 
of the Department of Defense that--
    ``(1) is associated with the performance of an inherently 
governmental function;
    ``(2) has been performed by a contractor pursuant to a contract 
that was awarded on a noncompetitive basis, including a contract 
awarded without the conduct of a public-private competition under this 
section; or
    ``(3) has been performed poorly by a contractor because of 
excessive costs or inferior quality, as determined by a contracting 
officer.
    ``(d) Limitation on Competitions for New and Expanded Functions.--
(1) A public-private competition may not be conducted under this 
section for any Department of Defense function before--
            ``(A) the commencement of the performance by civilian 
        employees of the Department of Defense of a new Department of 
        Defense function;
            ``(B) the commencement of the performance by civilian 
        employees of the Department of Defense of any Department of 
        Defense function pursuant to the guidelines implemented under 
        subsection (a);
            ``(C) the expansion of the scope of any Department of 
        Defense function performed by civilian employees of the 
        Department of Defense.
    ``(2) The Secretary may use the flexible hiring authority available 
to the Secretary under the National Security Personnel System, as 
established pursuant to section 9902 of title 5 to facilitate the 
performance by civilian employees of the Department of Defense of 
functions described in subsection (b).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2462 the following new item:

``2463. Guidelines for use of civilian employees to perform Department 
                            of Defense functions.''.
            (3) Deadline for issuance of guidelines.--
                    (A) Deadline.--The Secretary of Defense shall 
                implement the guidelines required under section 2463 of 
                title 10, United States Code, as added by paragraph 
                (1), by not later than 60 days after the date of the 
                enactment of this Act.
                    (B) Moratorium on competitions until guidelines are 
                implemented.--No study or competition may be begun or 
                announced pursuant to section 2461 of title 10, United 
                States Code, or otherwise pursuant to Office of 
                Management and Budget Circular A-76 relating to the 
                possible conversion to performance by a contractor of 
                any Department of Defense function until the guidelines 
                required under section 2463 of such title, as added by 
                paragraph (1) are implemented.
    (b) Establishment of Inventory of Work Performed by Contractors.--
Section 115a of title 10, United States Code is amended--
            (1) in subsection (a)--
                    (A) by striking ``and'' at the end of paragraph 
                (1);
                    (B) by striking the period at the end of paragraph 
                (2) and inserting ``; and'';
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) the estimated manpower requirements of each component 
        of the Department of Defense projected to be met by contractor 
        performance of Department of Defense functions and the 
        estimated funding requirements associated with such contractor 
        performance for the next fiscal year.''.
            (2) by adding at the end the following new subsection:
    ``(i) In each report, the Secretary shall include for each military 
department, combatant command, and major defense organization, a 
separate report describing contractor performance of Department of 
Defense functions during the preceding fiscal year. Chapter 35 of title 
44 shall not apply to such report. In each such report, the Secretary 
shall--
            ``(1) specify the number of work-year equivalents performed 
        by contractors in performing functions for each Department;
            ``(2) identify the contracting organization, the component 
        of the Department of Defense administering the contract, and 
        the organization whose requirements are being met through the 
        contractor performance of the function, with an explanation in 
        the event these organizational elements are distinct.
            ``(3) identify each organization specified under paragraph 
        (2) at the unit level of detail, as maintained in the 
        Department's manpower documentation systems;
            ``(4) identify the funding source for the contract under 
        which the function is performed by appropriation and operating 
        agency, and the associated funding levels obligated and 
        disbursed for the reported work-year equivalents;
            ``(5) identify the functions and missions performed by the 
        contractor;
            ``(6) specify whether the contract for the function was 
        entered into pursuant to a public-private competition; and
            ``(7) describe the process by which the Department of 
        Defense validates the contractor performance of such functions 
        under section 2463 of this title.''.
    (c) Conforming Repeal.--The National Defense Authorization Act for 
Fiscal Year 2006 (Public Law 109-163) is amended by striking section 
343.
    (d) Inspector General Report.--Not later than 90 days after the 
date of the enactment of this Act, the Inspector General of the 
Department of Defense shall submit to the congressional defense 
committees a report on the implementation of this section and the 
amendments made by this section. The report shall contain the 
assessment of the Inspector General of whether--
            (1) the guidelines required under section 2463(a) of title 
        10, United States Code, as added by subsection (a), have been 
        implemented;
            (2) such guidelines, if developed, conform to the 
        requirements of that section;
            (3) a contractor inventory has been established pursuant to 
        subsections (a)(3) and (i) of section 115a of such title, as 
        added by subsection (b);
            (4) functions for which the performance of which the 
        Secretary of Defense has entered into a contract are being 
        reviewed on a regular basis for possible conversion to 
        performance by civilian employees of the Department of Defense; 
        and
            (5) performance by civilian employees of the Department of 
        Defense is being considered to the maximum extent practicable 
        for all new functions of the Department of Defense.

SEC. 327. ADDITIONAL REQUIREMENTS FOR ANNUAL REPORT ON PUBLIC-PRIVATE 
              COMPETITIONS.

    Paragraph (1) of subsection (b) of section 2462 is amended by 
adding at the end the following new paragraphs:
            ``(4) For any function converted to performance by a 
        contractor, the effect of such conversion on the quality of the 
        performance of the function.
            ``(5) For any function for which a public-private 
        competition is anticipated during any subsequent fiscal year, 
        an assessment of whether any method of business reform or 
        reengineering other than a public-private competition, 
        including a decision to consolidate, restructure, or reengineer 
        an organization, function, or activity covered under section 
        2475 of this title, could, if implemented in the future, 
        achieve any anticipated or budgeted savings.''.

SEC. 328. RESTRICTION ON OFFICE OF MANAGEMENT AND BUDGET INFLUENCE OVER 
              DEPARTMENT OF DEFENSE PUBLIC-PRIVATE COMPETITIONS.

    (a) Restriction on Office of Management and Budget.--The Office of 
Management and Budget may not direct or require the Secretary of 
Defense or the Secretary of a military department to prepare for, 
undertake, continue, or complete a public-private competition or direct 
conversion of a Department of Defense function to performance by a 
contractor under Office of Management and Budget Circular A-76, or any 
other successor regulation, directive, or policy.
    (b) Restriction on Secretary of Defense.--The Secretary of Defense 
or the Secretary of a military department may not prepare for, 
undertake, continue, or complete a public-private competition or direct 
conversion of a Department of Defense function to performance by a 
contractor under Office of Management and Budget Circular A-76, or any 
other successor regulation, directive, or policy by reason of any 
direction or requirement provided by the Office of Management and 
Budget.
    (c) Suspension and Review of Ongoing Public-Private Competitions.--
            (1) Suspension.--During the 90-day period that begins on 
        the date of the enactment of this Act, the Secretary of Defense 
        shall suspend any review or public-private competition pursuant 
        to Office of Management and Budget Circular A-76 that is being 
        carried out on the date of the enactment of this Act.
            (2) Review.--During the 90-day period described in 
        paragraph (1), the Secretary of Defense shall review each 
        suspended review and public-private competition and shall 
        determine, wholly independently and without regard to 
        direction, guidance, encouragement, or requirement from the 
        Office of Management and Budget, whether to cancel or continue 
        each review or public-private competition.
            (3) Criteria for continuation.--The Secretary of Defense 
        may not continue a review or public-private competition 
        pursuant to a determination under paragraph (2) unless the 
        official responsible for the performance of the function and 
        the Secretary of the military department concerned or agency 
        head submits to the congressional defense committees a 
        certification that the determination was made wholly 
        independently and without regard to direction, guidance, 
        encouragement, or requirement from the Office of Management and 
        Budget and after considering less costly and controversial 
        alternatives to such review or public-private competition.

SEC. 329. BID PROTESTS BY FEDERAL EMPLOYEES IN ACTIONS UNDER OFFICE OF 
              MANAGEMENT BUDGET CIRCULAR A-76.

    (a) Eligibility to Protest Public-Private Competitions.--Section 
3551(2) of title 31, United States Code, is amended to read as follows:
            ``(2) The term `interested party'--
                    ``(A) with respect to a contract or a solicitation 
                or other request for offers described in paragraph (1), 
                means an actual or prospective bidder or offeror whose 
                direct economic interest would be affected by the award 
                of the contract or by failure to award the contract; 
                and
                    ``(B) with respect to a public-private competition 
                conducted under Office of Management and Budget 
                Circular A-76 with respect to the performance of an 
                activity or function of a Federal agency, or a decision 
                to convert a function performed by Federal employees to 
                private sector performance without a competition under 
                Office of Management and Budget Circular A-76, 
                includes--
                            ``(i) any official who submitted the agency 
                        tender in such competition; and
                            ``(ii) any one individual who, for the 
                        purpose of representing the Federal employees 
                        engaged in the performance of the activity or 
                        function for which the public-private 
                        competition is conducted in a protest under 
                        this subchapter that relates to such public-
                        private competition, has been designated as the 
                        agent of the Federal employees by a majority of 
                        such employees.''.
    (b) Expedited Action.--
            (1) In general.--Subchapter V of chapter 35 of such title 
        is amended by adding at the end the following new section:

``SEC. 3557. EXPEDITED ACTION IN PROTESTS OF PUBLIC-PRIVATE 
              COMPETITIONS.

    ``For any protest of a public-private competition conducted under 
Office of Management and Budget Circular A-76 with respect to the 
performance of an activity or function of a Federal agency, the 
Comptroller General shall administer the provisions of this subchapter 
in the manner best suited for expediting the final resolution of the 
protest and the final action in the public-private competition.''.
            (2) Clerical amendment.--The chapter analysis at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 3556 the following new item:

``3557. Expedited action in protests of public-private competitions.''.
    (b) Right to Intervene in Civil Action.--Section 1491(b) of title 
28, United States Code, is amended by adding at the end the following 
new paragraph:
            ``(5) If an interested party who is a member of the private 
        sector commences an action described in paragraph (1) with 
        respect to a public-private competition conducted under Office 
        of Management and Budget Circular A-76 regarding the 
        performance of an activity or function of a Federal agency, or 
        a decision to convert a function performed by Federal employees 
        to private sector performance without a competition under 
        Office of Management and Budget Circular A-76, then an 
        interested party described in section 3551(2)(B) of title 31 
        shall be entitled to intervene in that action.''.
    (c) Applicability.--Subparagraph (B) of section 3551(2) of title 
31, United States Code (as added by subsection (a)), and paragraph (5) 
of section 1491(b) of title 28, United States Code (as added by 
subsection (c)), shall apply to--
            (1) a protest or civil action that challenges final 
        selection of the source of performance of an activity or 
        function of a Federal agency that is made pursuant to a study 
        initiated under Office of Management and Budget Circular A-76 
        on or after January 1, 2004; and
            (2) any other protest or civil action that relates to a 
        public-private competition initiated under Office of Management 
        and Budget Circular A-76, or to a decision to convert a 
        function performed by Federal employees to private sector 
        performance without a competition under Office of Management 
        and Budget Circular A-76, on or after the date of the enactment 
        of this Act.

SEC. 330. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO 
              CONTRACTOR PERFORMANCE.

    (a) In General.--The Office of Federal Procurement Policy Act (41 
U.S.C. 403 et seq.) is amended by adding at the end the following new 
section:

``SEC. 43. PUBLIC-PRIVATE COMPETITION REQUIRED BEFORE CONVERSION TO 
              CONTRACTOR PERFORMANCE.

    ``(a) Public-Private Competition.--(1) A function of an executive 
agency performed by 10 or more agency civilian employees may not be 
converted, in whole or in part, to performance by a contractor unless 
the conversion is based on the results of a public-private competition 
that--
            ``(A) formally compares the cost of performance of the 
        function by agency civilian employees with the cost of 
        performance by a contractor;
            ``(B) creates an agency tender, including a most efficient 
        organization plan, in accordance with Office of Management and 
        Budget Circular A-76, as implemented on May 29, 2003, or any 
        successor circular;
            ``(C) includes the issuance of a solicitation;
            ``(D) determines whether the submitted offers meet the 
        needs of the executive agency with respect to factors other 
        than cost, including quality, reliability, and timeliness;
            ``(E) examines the cost of performance of the function by 
        agency civilian employees and the cost of performance of the 
        function by one or more contractors to demonstrate whether 
        converting to performance by a contractor will result in 
        savings to the Government over the life of the contract, 
        including--
                    ``(i) the estimated cost to the Government (based 
                on offers received) for performance of the function by 
                a contractor;
                    ``(ii) the estimated cost to the Government for 
                performance of the function by agency civilian 
                employees; and
                    ``(iii) an estimate of all other costs and 
                expenditures that the Government would incur because of 
                the award of such a contract;
            ``(F) requires continued performance of the function by 
        agency civilian employees unless the difference in the cost of 
        performance of the function by a contractor compared to the 
        cost of performance of the function by agency civilian 
        employees would, over all performance periods required by the 
        solicitation, be equal to or exceed the lesser of--
                    ``(i) 10 percent of the personnel-related costs for 
                performance of that function in the agency tender; or
                    ``(ii) $10,000,000; and
            ``(G) examines the effect of performance of the function by 
        a contractor on the agency mission associated with the 
        performance of the function.
    ``(2) A function that is performed by the executive agency and is 
reengineered, reorganized, modernized, upgraded, expanded, or changed 
to become more efficient, but still essentially provides the same 
service, shall not be considered a new requirement.
    ``(3) In no case may a function being performed by executive agency 
personnel be--
            ``(A) modified, reorganized, divided, or in any way changed 
        for the purpose of exempting the conversion of the function 
        from the requirements of this section; or
            ``(B) converted to performance by a contractor to 
        circumvent a civilian personnel ceiling.
    ``(b) Requirement to Consult Employees.--(1) Each civilian employee 
of an executive agency responsible for determining under Office of 
Management and Budget Circular A-76 whether to convert to contractor 
performance any function of the executive agency--
            ``(A) shall, at least monthly during the development and 
        preparation of the performance work statement and the 
        management efficiency study used in making that determination, 
        consult with civilian employees who will be affected by that 
        determination and consider the views of such employees on the 
        development and preparation of that statement and that study; 
        and
            ``(B) may consult with such employees on other matters 
        relating to that determination.
    ``(2)(A) In the case of employees represented by a labor 
organization accorded exclusive recognition under section 7111 of title 
5, consultation with representatives of that labor organization shall 
satisfy the consultation requirement in paragraph (1).
    ``(B) In the case of employees other than employees referred to in 
subparagraph (A), consultation with appropriate representatives of 
those employees shall satisfy the consultation requirement in paragraph 
(1).
    ``(C) The head of each executive agency shall prescribe regulations 
to carry out this subsection. The regulations shall include provisions 
for the selection or designation of appropriate representatives of 
employees referred to in paragraph (2)(B) for purposes of consultation 
required by paragraph (1).
    ``(c) Congressional Notification.--(1) Before commencing a public-
private competition under subsection (a), the head of an executive 
agency shall submit to Congress a report containing the following:
            ``(A) The function for which such public-private 
        competition is to be conducted.
            ``(B) The location at which the function is performed by 
        agency civilian employees.
            ``(C) The number of agency civilian employee positions 
        potentially affected.
            ``(D) The anticipated length and cost of the public-private 
        competition, and a specific identification of the budgetary 
        line item from which funds will be used to cover the cost of 
        the public-private competition.
            ``(E) A certification that a proposed performance of the 
        function by a contractor is not a result of a decision by an 
        official of an executive agency to impose predetermined 
        constraints or limitations on such employees in terms of man 
        years, end strengths, full-time equivalent positions, or 
        maximum number of employees.
    ``(2) The report required under paragraph (1) shall include an 
examination of the potential economic effect of performance of the 
function by a contractor on--
            ``(A) agency civilian employees who would be affected by 
        such a conversion in performance; and
            ``(B) the local community and the Government, if more than 
        50 agency civilian employees perform the function.
            ``(3)(A) A representative individual or entity at a 
        facility where a public-private competition is conducted may 
        submit to the head of the executive agency an objection to the 
        public private competition on the grounds that the report 
        required by paragraph (1) has not been submitted or that the 
        certification required by paragraph (1)(E) is not included in 
        the report submitted as a condition for the public private 
        competition. The objection shall be in writing and shall be 
        submitted within 90 days after the following date:
                    ``(i) In the case of a failure to submit the report 
                when required, the date on which the representative 
                individual or an official of the representative entity 
                authorized to pose the objection first knew or should 
                have known of that failure.
                    ``(ii) In the case of a failure to include the 
                certification in a submitted report, the date on which 
                the report was submitted to Congress.
            ``(B) If the head of the executive agency determines that 
        the report required by paragraph (1) was not submitted or that 
        the required certification was not included in the submitted 
        report, the function for which the public-private competition 
        was conducted for which the objection was submitted may not be 
        the subject of a solicitation of offers for, or award of, a 
        contract until, respectively, the report is submitted or a 
        report containing the certification in full compliance with the 
        certification requirement is submitted.
    ``(d) Exemption for the Purchase of Products and Services of the 
Blind and Other Severely Handicapped Persons.--This section shall not 
apply to a commercial or industrial type function of an executive 
agency that--
            ``(1) is included on the procurement list established 
        pursuant to section 2 of the Javits-Wagner-O'Day Act (41 U.S.C. 
        47); or
            ``(2) is planned to be changed to performance by a 
        qualified nonprofit agency for the blind or by a qualified 
        nonprofit agency for other severely handicapped persons in 
        accordance with that Act.
    ``(e) Inapplicability During War or Emergency.--The provisions of 
this section shall not apply during war or during a period of national 
emergency declared by the President or Congress.''.
    (b) Clerical Amendment.--The table of sections in section 1(b) of 
such Act is amended by adding at the end the following new item:

``Sec. 43. Public-private competition required before conversion to 
                            contractor performance.''.

SEC. 331. REAUTHORIZATION AND MODIFICATION OF MULTI-TRADES 
              DEMONSTRATION PROJECT.

    (a) Reauthorization and Expansion.--Section 338 of the National 
Defense Authorization Act for Fiscal Year 2004 (10 U.S.C. 5013 note) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``shall'' and inserting ``may''; 
                and
                    (B) by striking ``three Naval Aviation Depots'' and 
                inserting ``the Air Force Air Logistics Centers and the 
                Navy Fleet Readiness Centers'';
            (2) in subsection (b), by striking ``a Naval Aviation 
        Depot'' and inserting ``an Air Force Air Logistics Center or 
        Navy Fleet Readiness Center'';
            (3) by striking subsection (d) and redesignating 
        subsections (e) through (g) as subsections (d) through (f), 
        respectively;
            (4) in subsection (d), as so redesignated, by striking 
        ``2004 through 2006'' and inserting ``2008 through 2013'';
            (5) in subsection (e), as so redesignated, by striking 
        ``2007'' and inserting ``2014''; and
            (6) by amending subsection (f), as so redesignated, to read 
        as follows:
    ``(f) Annual GAO Report.--By not later than 30 days after the last 
day of a fiscal year, the Comptroller General shall submit to the 
congressional defense committees a report on the demonstration project 
under this section.''.
    (b) Clerical Amendments.--
            (1) Heading.--The heading for such section is amended to 
        read as follows: ``air force air logistics center and navy 
        fleet readiness center multi-trades demonstration project''.
            (2) Table of contents.--The items relating to such section 
        in the table of contents in section 2(b) of such Act and in the 
        table of contents at the beginning of title III of such Act are 
        each amended to read as follows:

``Sec. 338. Air Force Logistics Center and Navy Fleet Readiness Center 
                            multi-trades demonstration project.''.

              Subtitle D--Extension of Program Authorities

SEC. 341. EXTENSION OF ARSENAL SUPPORT PROGRAM INITIATIVE.

    Section 343 of the Floyd D. Spence National Defense Authorization 
Act for Fiscal Year 2001 (Public Law 106-398; 10 U.S.C. 4551 note) is 
amended--
            (1) in subsection (a), by striking ``2008'' and inserting 
        ``2010''; and
            (2) in subsection (g)(1), by striking ``2008'' and 
        inserting ``2010''.

SEC. 342. EXTENSION OF PERIOD FOR REIMBURSEMENT FOR HELMET PADS 
              PURCHASED BY MEMBERS OF THE ARMED FORCES DEPLOYED IN 
              CONTINGENCY OPERATIONS.

    (a) Extension.--Section 351 of the Ronald W. Reagan National 
Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 
Stat. 1857) is amended--
            (1) in subsection (a)(3), by inserting before the period at 
        the end the following: ``, or in the case of protective helmet 
        pads purchased by a member from a qualified vendor for that 
        member's personal use, on September 30, 2007'';
            (2) in subsection (c)--
                    (A) by inserting after ``Armed Forces'' the 
                following: ``shall comply with regular Department of 
                Defense procedures for the submission of claims and''; 
                and
                    (B) by inserting before the period at the end the 
                following: ``or one year after the date on which the 
                purchase of the protective, safety, or health equipment 
                was made, whichever occurs last''; and
            (3) in subsection (d), by adding at the end the following 
        new sentence: ``Subsection (a)(1) shall not apply in the case 
        of the purchase of protective helmet pads by or on behalf of a 
        member.''.
    (b) Funding.--Amounts for reimbursements made under section 351 of 
the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 after the date of the enactment of this Act shall be derived from 
supplemental appropriations for the Department of Defense for fiscal 
year 2008, contingent upon such appropriations being enacted.

                          Subtitle E--Reports

SEC. 351. INCLUSION OF NATIONAL GUARD READINESS FOR CIVIL SUPPORT 
              MISSIONS IN QUARTERLY PERSONNEL AND UNIT READINESS 
              REPORT.

    (a) Inclusion.--Section 482 of title 10, United States Code, is 
amended--
            (1) by redesignating subsection (f) as subsection (h);
            (2) by inserting after subsection (e) the following new 
        subsections (f) and (g):
    ``(f) Readiness of National Guard to Perform Civil Support 
Missions.--Each report shall also include an assessment of the 
readiness of the National Guard to perform tasks required to support 
the National Response Plan for support to civil authorities.
    ``(g) Availability of National Guard Readiness Information to 
States.--With respect to the information required to be included in a 
report under subsection (f) that is relevant to the National Guard of a 
State, the Secretary of Defense shall make that information available 
to the Governor of the State.''; and
            (3) in subsection (a), by striking ``subsections (b), (d), 
        and (e)'' and inserting ``subsections (b), (d), (e), and (f)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to a report submitted after the date of the 
enactment of this Act.
    (c) Report to Congress.--As part of the budget justification 
materials submitted to Congress in support of the President's budget 
for fiscal year 2009, the Secretary of Defense shall submit to the 
congressional defense committees a report on any steps the Secretary 
has taken to prepare to implement the requirement under subsection (f) 
of section 482 of title 10, United States Code, as added by subsection 
(a). The report shall include a description of the Secretary's plans 
for assessing the personnel, equipment, and training readiness of the 
National Guard, including the standards and measures that will be 
applied and mechanisms for sharing information with State Governors.

SEC. 352. PLAN TO IMPROVE READINESS OF ACTIVE AND RESERVE COMPONENT 
              GROUND FORCES.

    (a) Report Required.--At the same time that the budget is submitted 
under section 1105(a) of title 31, United States Code, for a fiscal 
year, the Secretary of Defense shall submit to the congressional 
defense committees a report on improving the readiness of the active 
and reserve components of the ground forces of the United States Armed 
Forces. Each such report shall include--
            (1) a summary of the readiness of each reporting unit of 
        the active and reserve components of the ground forces and a 
        summary of the readiness of each major combat unit of each 
        military department by readiness level, as reflected in the 
        Department of Defense status of resources and training system;
            (2) an identification of the extent to which the actual 
        readiness ratings of the active and reserve components of the 
        United States Armed Forces have been upgraded based on the 
        judgment of commanders and any efforts of the Secretary of 
        Defense to analyze the trends and implications of such 
        upgrades;
            (3) the goals of the Secretary of Defense for managing the 
        readiness of the active and reserve components of the ground 
        forces, expressed in terms of the number of units or percentage 
        of the force that the Secretary plans to maintain at each level 
        of readiness, and the Secretary's projected timeframe for 
        achieving each such goal;
            (4) a prioritized list of items and actions to be 
        accomplished during the fiscal year during which the report is 
        submitted and during the fiscal years covered by the future 
        years defense program that the Secretary of Defense believes 
        are necessary to significantly improve the readiness of the 
        active and reserve components of the ground forces and achieve 
        the goals and timeframes described in paragraph (3); and
            (5) a detailed investment strategy and plan for each fiscal 
        year covered by the future years defense program under section 
        221 of title 10, United States Code, that outlines the 
        resources required to improve the readiness of the active and 
        reserve components of the ground forces, including a 
        description of how each resource identified in such plan 
        relates to funding requested by the Secretary in the 
        Secretary's annual budget, and how each such resource will 
        specifically enable the Secretary to achieve the readiness 
        goals described in paragraph (3) within the projected 
        timeframes.
    (b) Comptroller General Review.--By not later than 60 days after 
the date on which the report is submitted under subsection (a), the 
Comptroller General shall review the report and, as the Comptroller 
General determines appropriate, submit to the congressional defense 
committees any additional information that the Comptroller General 
determines will further inform the congressional defense committees on 
issues relating to the readiness of the active and reserve components 
of the ground forces of the United States Armed Forces.

SEC. 353. PLAN FOR OPTIMAL USE OF STRATEGIC PORTS BY COMMANDER OF 
              SURFACE DISTRIBUTION AND DEPLOYMENT COMMAND.

    By not later than January 30, 2008, the Secretary of Defense shall 
develop and implement a plan to optimize the use of strategic ports by 
the Surface Distribution and Deployment Command. Such plan shall--
            (1) address cost effectiveness, manning requirements, 
        location, and maximization of utilization of resources for each 
        strategic port; and
            (2) include--
                    (A) an analysis of how each Surface Distribution 
                and Deployment Command strategic port is chosen for the 
                worldwide deployment and distribution of Department of 
                Defense supplies, personal property, and personnel; and
                    (B) provisions for consultation with the local port 
                authority for any strategic port at which there is no 
                permanent Surface Distribution and Deployment Command 
                presence.

SEC. 354. INDEPENDENT ASSESSMENT OF CIVIL RESERVE AIR FLEET VIABILITY.

    (a) Independent Assessment Required.--The Secretary of Defense 
shall provide for an independent assessment of the viability of the 
Civil Reserve Air Fleet to be conducted by a federally-funded research 
and development center selected by the Secretary.
    (b) Contents of Assessment.--The assessment required by subsection 
(a) shall include each of the following:
            (1) An assessment of the Civil Reserve Air Fleet as of the 
        date of the enactment of this Act, including an assessment of--
                    (A) the level of increased use of commercial assets 
                to fulfill Department of Defense transportation 
                requirements as a result of the increased global 
                mobility requirements in response to the terrorist 
                attacks of September 11, 2001;
                    (B) the extent of charter air carrier participation 
                in fulfilling increased Department of Defense 
                transportation requirements as a result of the 
                increased global mobility requirements in response to 
                the terrorist attacks of September 11, 2001;
                    (C) any policy of the Secretary of Defense to limit 
                the percentage of income a single air carrier 
                participating in the Civil Reserve Air Fleet may earn 
                under contracts with the Secretary during any calendar 
                year and the effects of such policy on the air carrier 
                industry in peacetime and during periods during which 
                the armed forces are deployed in support of a 
                contingency operation for which the Civil Reserve Air 
                Fleet is not activated; and
                    (D) any risks to the charter air carrier industry 
                as a result of the expansion of the industry in 
                response to contingency operations resulting in 
                increased demand by the Department of Defense.
            (2) A strategic assessment of the viability of the Civil 
        Reserve Air Fleet that compares such viability as of the date 
        of the enactment of this Act with the projected viability of 
        the Civil Reserve Air Fleet five, ten, and 15 years after the 
        date of the enactment of this Act, including for activations at 
        each of stages 1, 2, and 3--
                    (A) an examination of the requirements of the 
                Department of Defense for Civil Reserve Air Fleet for 
                the support of operational and contingency plans, 
                including any anticipated changes in the Department's 
                organic airlift capacity, logistics concepts, and 
                personnel and training requirements;
                    (B) an assessment of air carrier participation in 
                the Civil Reserve Air Fleet; and
                    (C) a comparison between the requirements of the 
                Department needs described in subparagraph (A) and air 
                carrier participation described in subparagraph (B).
            (3) An examination of any perceived barriers to Civil 
        Reserve Air Fleet viability, including--
                    (A) the operational planning system of the Civil 
                Reserve Air Fleet;
                    (B) the reward system of the Civil Reserve Air 
                Fleet;
                    (C) the long-term affordability of the Aviation War 
                Risk Insurance Program;
                    (D) the effect on United States air carriers 
                operating overseas routes during periods of Civil 
                Reserve Air Fleet Activation;
                    (E) increased foreign ownership of United States 
                air carriers;
                    (F) increased operational costs during activation 
                as a result of hazardous duty pay, routing delays, and 
                inefficiencies in cargo handling by the Department of 
                Defense;
                    (G) the effect of policy initiatives by the 
                Secretary of Transportation to encourage international 
                code sharing and alliances; and
                    (H) the effect of limitations imposed by the 
                Secretary of Defense to limit commercial shipping 
                options for certain routes and package sizes.
            (4) Recommendations for improving the Civil Reserve Air 
        Fleet program.
    (c) Submission to Congress.--Upon the completion of the assessment 
required under subsection (a) and by not later than April 1, 2008, the 
Secretary shall submit to the congressional defense committees a report 
on the assessment.
    (d) Comptroller General Report.--Not later than 90 days after the 
report is submitted under subsection (c), the Comptroller General shall 
conduct a review of the assessment required under subsection (a).

SEC. 355. ANNUAL REPORT ON PREPOSITIONED MATERIEL AND EQUIPMENT.

    (a) Annual Report Required.--Chapter 131 of title 10, United States 
Code, is amended by adding at the end the following new section:
``Sec. 2229a. Annual report on prepositioned materiel and equipment
    ``(a) Annual Report Required.--Not later than the date of the 
submission of the President's budget request for a fiscal year under 
section 1105 of title 31, the Secretary of Defense shall submit to the 
congressional defense committees a report on the status of the materiel 
in the prepositioned stocks as of the end of the fiscal year preceding 
the fiscal year during which the report is submitted. Each report shall 
be unclassified and may contain a classified annex. Each report shall 
include the following information:
            ``(1) The level of fill for major end items of equipment 
        and spare parts in each prepositioned set as of the end of the 
        fiscal year covered by the report.
            ``(2) The material condition of equipment in the 
        prepositioned stocks as of the end of such fiscal year, rated 
        based on the Department of Defense Status of Resources and 
        Training system and grouped by category or major end item.
            ``(3) A list of major end items of equipment drawn from the 
        prepositioned stocks during such fiscal year and a description 
        of how that equipment was used and whether it was returned to 
        the stocks after being used.
            ``(4) A timeline for completely reconstituting any 
        shortfall in the prepositioned stocks.
            ``(5) An estimate of the amount of funds required to 
        completely reconstitute any shortfall in the prepositioned 
        stocks and a description of the Secretary's plan for carrying 
        out such complete reconstitution.
            ``(6) A list of any operations plan affected by any 
        shortfall in the prepositioned stocks and a description of any 
        action taken to mitigate any risk that such a shortfall may 
        create.
    ``(b) Comptroller General Review.--By not later than 60 days after 
the date on which the report is submitted under subsection (a), the 
Comptroller General shall review the report and, as the Comptroller 
General determines appropriate, submit to the congressional defense 
committees any additional information that the Comptroller General 
determines will further inform the congressional defense on issues 
relating to the status of the materiel in the prepositioned stocks.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2229a. Annual report on prepositioned materiel and equipment.''.

SEC. 356. CONDITIONS ON RELOCATION OF NORTH AMERICAN AEROSPACE DEFENSE 
              COMMAND CENTER AND RELATED FUNCTIONS FROM CHEYENNE 
              MOUNTAIN TO PETERSON AIR FORCE BASE.

    (a) Submission of Cost-Benefit Analysis and Relocation Plan.--The 
Secretary of Defense may not commence the relocation of or, if 
previously commenced, continue the relocation of the North American 
Aerospace Defense command center and related functions from Cheyenne 
Mountain to Peterson Air Force Base, Colorado, until after the end of 
the 180-day period beginning on the date on which the Secretary submits 
to Congress a report containing--
            (1) an analysis comparing the total costs associated with 
        the relocation, including costs determined as part of ongoing 
        security-related studies of the relocation, to anticipated 
        operational benefits from the relocation; and
            (2) the final plans for the relocation of the North 
        American Aerospace Defense command center and related 
        functions.
    (b) Comptroller General Review.--Not later than 60 days after the 
date on which the Secretary of Defense submits the report required by 
subsection (a), the Comptroller General shall submit to Congress a 
review of the report and the final plans of the Secretary for 
relocation of the North American Aerospace Defense command center and 
related functions.

SEC. 357. REPORT ON PUBLIC-PRIVATE PARTNERSHIPS.

    (a) Report Required.--Not later than April 1, 2008, the Secretary 
of Defense shall submit to the Committee on Armed Services of the House 
of Representatives and the Committee of Armed Services of the Senate a 
report regarding public-private partnerships at Centers of Industrial 
and Technical Excellence designated under section 2474 of title 10, 
United States Code.
    (b) Contents of Report.--The report required under paragraph (1) 
shall include a description of each of the following:
            (1) Common approaches and procedures for the military 
        departments regarding implementation of public-private 
        partnerships.
            (2) Consistent cost methodologies and reimbursement 
        guidance applicable to maintenance and repair workload 
        performed by Federal Government personnel.
            (3) Implementation procedures for completing contract 
        negotiations for public-private partnerships within 12 months.
            (4) The Secretary's utilization of commercial practices to 
        replace existing inventory and component management, technical 
        publication data, document management, and equipment 
        maintenance, and calibration requirements of the Department of 
        Defense.
            (5) Delegation of Class 2 Design authority based on 
        commercial practices to maintain the form, fit, and function of 
        a weapon system platform, major end item, component of a major 
        end item, or article.
            (6) The Secretary's plan to expand Department of Defense 
        core capabilities, as defined in section 2464 of such title.

                       Subtitle F--Other Matters

SEC. 361. AUTHORITY FOR DEPARTMENT OF DEFENSE TO PROVIDE SUPPORT FOR 
              CERTAIN SPORTING EVENTS.

    (a) Provision of Support.--Section 2564 of title 10, United States 
Code, is amended--
            (1) in subsection (c), by adding at the end the following 
        new paragraphs:
            ``(4) A sporting event sanctioned by the United States 
        Olympic Committee through the Paralympic Military Program.
            ``(5) Any national or international paralympic sporting 
        event (other than a sporting event described in paragraph (1) 
        through (4))--
                    ``(A) that--
                            ``(i) is held in the United States or any 
                        of its territories or commonwealths;
                            ``(ii) is governed by the International 
                        Paralympic Committee; and
                            ``(iii) is sanctioned by the United States 
                        Olympic Committee; and
                    ``(B) for which participation exceeds 100 amateur 
                athletes.''; and
            (2) by adding at the end the following new subsection:
    ``(g) Funding for Support of Certain Events.--(1) Amounts for the 
provision of support for a sporting event described in paragraph (4) or 
(5) of subsection (c) shall be derived from the Support for 
International Sporting Competitions, Defense account established by 
section 5802 of the Omnibus Consolidated Appropriations Act, 1997 (10 
U.S.C. 2564 note), notwithstanding any limitation under that section 
relating to the availability of funds in such account for the provision 
of support for international sporting competitions.
    ``(2) The total amount expended for any fiscal year to provide 
support for sporting events described in subsection (c)(5) may not 
exceed $1,000,000.''.
    (b) Source of Funds.--Section 5802 of the Omnibus Consolidated 
Appropriations Act, 1997 (10 U.S.C. 2564 note) is amended--
            (1) by inserting after ``international sporting 
        competitions'' the following: ``and for support of sporting 
        competitions authorized under section 2564(c)(4) and (5), of 
        title 10, United States Code,''; and
            (2) by striking ``45 days'' and inserting ``15 days''.

SEC. 362. REASONABLE RESTRICTIONS ON PAYMENT OF FULL REPLACEMENT VALUE 
              FOR LOST OR DAMAGED PERSONAL PROPERTY TRANSPORTED AT 
              GOVERNMENT EXPENSE.

    Section 2636a(d) of title 10, United States Code, is amended by 
adding at the end the following new sentence: ``The regulations may 
include a requirement that a member of the armed forces or civilian 
employee comply with reasonable restrictions prescribed by the 
Secretary in order to receive the full amount deducted under subsection 
(b).''.

SEC. 363. PRIORITY TRANSPORTATION ON DEPARTMENT OF DEFENSE AIRCRAFT OF 
              RETIRED MEMBERS RESIDING IN COMMONWEALTHS AND POSSESSIONS 
              OF THE UNITED STATES FOR CERTAIN HEALTH CARE SERVICES.

    (a) Availability of Transportation.--Chapter 157 of title 10, 
United States Code, is amended by inserting after section 2641a the 
following new section:
``Sec. 2641b. Space-available travel on Department of Defense aircraft: 
              retired members residing in Commonwealths and possessions 
              of the United States for certain health care services
    ``(a) Priority Transportation.--The Secretary of Defense shall 
provide transportation on Department of Defense aircraft on a space-
available basis for any member or former member of the uniformed 
services described in subsection (b), and a single dependent of the 
member if needed to accompany the member, at a priority level in the 
same category as the priority level for an unaccompanied dependent over 
the age of 18 traveling on environmental and morale leave.
    ``(b) Eligible Members and Former Members.--A member or former 
member eligible for priority transport under subsection (a) is a 
covered beneficiary under chapter 55 of this title who--
            ``(1) is entitled to retired or retainer pay or, but for 
        age, would be eligible for retired pay under chapter 1223 of 
        this title;
            ``(2) resides in or is located in a Commonwealth or 
        possession of the United States; and
            ``(3) is referred by a primary care physician located in 
        that Commonwealth or possession to a specialty care provider 
        for services to be provided outside of that Commonwealth or 
        possession.
    ``(c) Scope of Priority.--The increased priority for space-
available transportation required by subsection (a) applies with 
respect to both--
            ``(1) the travel from the Commonwealth or possession of the 
        United States to receive the specialty care services; and
            ``(2) the return travel.
    ``(d) Definitions.--In this section, the term `specialty care 
provider' has the meaning given that term in section 1074i(b) of this 
title.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2641a the following new item:

``2641b. Space-available travel on Department of Defense aircraft: 
                            retired members residing in Commonwealths 
                            and possessions of the United States for 
                            certain health care services.''.

SEC. 364. RECOVERY OF MISSING MILITARY PROPERTY.

    (a) In General.--Chapter 165 of title 10, United States Code, is 
amended by adding at the end the following new sections:
``Sec. 2788. Property accountability: regulations
    ``The Secretary of a military department may prescribe regulations 
for the accounting for the property of that department and the fixing 
of responsibility for that property.
``Sec. 2789. Individual equipment: unauthorized disposition
    ``(a) Prohibition.--No member of the armed forces may sell, lend, 
pledge, barter, or give any clothing, arms, or equipment furnished to 
such member by the United States to any person other than a member of 
the armed forces under the jurisdiction of the Secretary of the same 
military department as the member to which it is furnished, or an 
officer of the United States who is authorized to receive it.
    ``(b) Seizure of Improperly Disposed Property.--If a member of the 
armed forces has disposed of property in violation of subsection (a) 
and the property is in the possession of a person who is neither a 
member of the armed forces under the jurisdiction of the Secretary of 
the same military department as the member who disposed of the 
property, nor an officer of the United States who is 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 the 
property, wherever found. Possession of such property furnished by the 
United States to a member of the armed forces by a person who is 
neither a member of the armed forces, nor an officer of the United 
States, is prima facie evidence that the property has been disposed of 
in violation of subsection (a).
    ``(c) Delivery of Seized Property.--If an officer who seizes 
property under subsection (b) is not authorized to retain it for the 
United States, the officer shall deliver the property to a person who 
is authorized to retain it.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new items:

``2788. Property accountability: regulations.
``2789. Individual equipment: unauthorized disposition.''.
    (c) Conforming Amendments.--
            (1) In general.--Such title is further amended by striking 
        the following sections:
                    (A) Section 4832.
                    (B) Section 4836.
                    (C) Section 9832.
                    (D) Section 9836.
            (2) Clerical amendments.--
                    (A) Chapter 453.--The table of sections at the 
                beginning of chapter 453 of such title is amended by 
                striking the items relating to sections 4832 and 4836.
                    (B) Chapter 953.--The table of sections at the 
                beginning of chapter 953 of such title is amended by 
                striking the items relating to sections 9832 and 9836.

SEC. 365. RETENTION OF ARMY COMBAT UNIFORMS BY MEMBERS OF ARMY DEPLOYED 
              IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Retention of Combat Uniforms.--Chapter 435 of title 10, United 
States Code, is amended by adding at the end the following new section:
``Sec. 4566. Retention of Army combat uniforms by members deployed in 
              support of contingency operations
    ``The Secretary of the Army may authorize a member of the Army who 
has been deployed in support of a contingency operation for at least 30 
days to retain, after that member is no longer so deployed, the 
exterior articles of uniform that were issued to that member as part of 
an Army combat uniform.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``4566. Retention of Army combat uniforms by members deployed in 
                            support of contingency operations.''.
    (c) Effective Date.--Section 4566 of title 10, United States Code, 
as added by subsection (a), shall apply with respect to a member of the 
Army who completes a deployment on or after October 1, 2007.

SEC. 366. 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 R.O.T.C.
``7912. Rifles and ammunition for target practice: educational 
                            institutions having corps of midshipmen.
``7913. Supplies: military instruction camps.
``Sec. 7911. Arms, tentage, and equipment: educational institutions not 
              maintaining units of R.O.T.C
    ``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 midshipmen
    ``(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 midshipmen of sufficient number 
for target practice. He may also issue 40 rounds of ball cartridges for 
each midshipman for each range at which target practice is held, but 
not more than 120 rounds each year for each midshipman 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 at the beginning of 
subtitle C of such title, and the table of chapters at the beginning of 
part IV of such subtitle, are each amended by inserting after the item 
relating to chapter 665 the following new item:


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

SEC. 367. PROHIBITION ON DEACTIVATION OF 36TH RESCUE FLIGHT.

    The Secretary of Defense shall ensure that no action is taken to 
deactivate the Air Force unit known as the 36th Rescue Flight that is 
assigned to Fairchild Air Force Base in Spokane, Washington, or to 
reassign or reorganize any of the search and rescue capabilities of 
that unit.

SEC. 368. LIMITATION ON EXPENDITURE OF FUNDS FOR INITIAL FLIGHT 
              SCREENING AT PUEBLO MEMORIAL AIRPORT.

    Of the amounts authorized to be appropriated for initial flight 
screening at Pueblo Memorial Airport, not more than 50 percent shall be 
expended until the Secretary of the Air Force submits to the 
congressional defense committees a certification that the Secretary has 
developed a plan, together with the City of Pueblo, Colorado, to meet 
Air Force crash, fire, and rescue requirements to support Air Force 
flight operations at Pueblo Memorial Airport.

              TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

                       Subtitle A--Active Forces

Sec. 401. End strengths for active forces.
Sec. 402. Revision in permanent active duty end strength minimum 
                            levels.
Sec. 403. Additional authority for increases of Army and Marine Corps 
                            active duty end strengths for fiscal years 
                            2009 and 2010.
Sec. 404. Increase in authorized strengths for Army officers on active 
                            duty in the grade of major.
Sec. 405. Increase in authorized strengths for Navy officers on active 
                            duty in the grades of lieutenant commander, 
                            commander, and captain.

                       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.
Sec. 416. Future authorizations and accounting for certain reserve 
                            component personnel authorized to be on 
                            active duty or full-time National Guard 
                            duty to provide operational support.
Sec. 417. Revision of variances authorized for Selected Reserve end 
                            strengths.

              Subtitle C--Authorization of Appropriations

Sec. 421. Military personnel.
Sec. 422. Armed Forces Retirement Home.
Sec. 423. Offsetting transfers from National Defense Stockpile 
                            Transaction Fund.

                       Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) In General.--The Armed Forces are authorized strengths for 
active duty personnel as of September 30, 2008, as follows:
            (1) The Army, 525,400.
            (2) The Navy, 329,098.
            (3) The Marine Corps, 189,000.
            (4) The Air Force, 329,651.
    (b) Limitation.--
            (1) Army.--The authorized strength for the Army provided in 
        paragraph (1) of subsection (a) for active duty personnel for 
        fiscal year 2008 is subject to the condition that costs of 
        active duty personnel of the Army for that fiscal year in 
        excess of 489,400 shall be paid out of funds authorized to be 
        appropriated for that fiscal year by section 1514.
            (2) Marine corps.--The authorized strength for the Marine 
        Corps provided in paragraph (3) of subsection (a) for active 
        duty personnel for fiscal year 2008 is subject to the condition 
        that costs of active duty personnel of the Marine Corps for 
        that fiscal year in excess of 180,000 shall be paid out of 
        funds authorized to be appropriated for that fiscal year by 
        section 1514.

SEC. 402. REVISION IN PERMANENT ACTIVE DUTY END STRENGTH MINIMUM 
              LEVELS.

    Section 691(b) of title 10, United States Code, is amended by 
striking paragraphs (1) through (4) and inserting the following new 
paragraphs:
            ``(1) For the Army, 525,400.
            ``(2) For the Navy, 329,098.
            ``(3) For the Marine Corps, 189,000.
            ``(4) For the Air Force, 329,563.''.

SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY AND MARINE CORPS 
              ACTIVE DUTY END STRENGTHS FOR FISCAL YEARS 2009 AND 2010.

    (a) Authority to Increase Army Active Duty End Strengths.--For each 
of fiscal years 2009 and 2010, the Secretary of Defense may, as the 
Secretary determines necessary for the purposes described in subsection 
(c), establish the active-duty end strength for the Army at a number 
greater than the number otherwise authorized by law up to the number 
equal to the fiscal-year 2008 baseline plus 22,000.
    (b) Marine Corps.--For each of fiscal years 2009 and 2010, the 
Secretary of Defense may, as the Secretary determines necessary for the 
purposes described in subsection (c), establish the active-duty end 
strength for the Marine Corps at a number greater than the number 
otherwise authorized by law up to the number equal to the fiscal-year 
2008 baseline plus 13,000.
    (c) Purpose of Increases.--The purposes for which increases may be 
made in Army and Marine Corps active duty end strengths under this 
section are--
            (1) to support operational missions; and
            (2) to achieve transformational reorganization objectives, 
        including objectives for increased numbers of combat brigades 
        and battalions, increased unit manning, force stabilization and 
        shaping, and rebalancing of the active and reserve component 
        forces.
    (d) Relationship to Presidential Waiver Authority.--Nothing in this 
section shall be construed to limit the President's authority under 
section 123a of title 10, United States Code, to waive any statutory 
end strength in a time of war or national emergency.
    (e) Relationship to Other Variance Authority.--The authority under 
this section is in addition to the authority to vary authorized end 
strengths that is provided in subsections (e) and (f) of section 115 of 
title 10, United States Code.
    (f) Budget Treatment.--
            (1) Fiscal years 2009 and 2010 budgets.--The budget for the 
        Department of Defense for fiscal years 2009 and 2010 as 
        submitted to Congress shall comply, with respect to funding, 
        with subsections (c) and (d) of section 691 of title 10, United 
        States Code.
            (2) Other increases.--If the Secretary of Defense plans to 
        increase the Army or Marine Corps active duty end strength for 
        a fiscal year under this section, then the budget for the 
        Department of Defense for that fiscal year as submitted to 
        Congress shall include the amounts necessary for funding that 
        active duty end strength in excess of the fiscal year 2008 
        active duty end strength authorized for that service under 
        section 401.
    (g) Definitions.--In this section:
            (1) Fiscal-year 2008 baseline.--The term ``fiscal-year 2008 
        baseline'', with respect to the Army and Marine Corps, means 
        the active-duty end strength authorized for those services in 
        section 401.
            (2) Active-duty end strength.--In this subsection, the term 
        ``active-duty end strength'' means the strength for active-duty 
        personnel of one of the Armed Forces as of the last day of a 
        fiscal year.
    (h) Repeal of Other Discretionary Authority to Temporarily Increase 
Army and Marine Corps Active Duty End Strengths.--
            (1) Base law.--Section 403 of the Ronald W. Reagan National 
        Defense Authorization Act for Fiscal Year 2005 (Public Law 108-
        375; 10 U.S.C. 115 note) is repealed.
            (2) Delayed amendment.--Section 403 of the John Warner 
        National Defense Authorization Act for Fiscal Year 2007 (Public 
        Law 109-364; 120 Stat. 2169) is repealed.

SEC. 404. INCREASE IN AUTHORIZED STRENGTHS FOR ARMY OFFICERS ON ACTIVE 
              DUTY IN THE GRADE OF MAJOR.

    The portion of the table in section 523(a)(1) of title 10, United 
States Code, relating to the Army is amended to read as follows:


------------------------------------------------------------------------
                                Number of officers who may be serving on
 Total number of commissioned           active duty in grade of:
 officers (excluding officers  -----------------------------------------
  in categories specified in                   Lieutenant
subsection (b)) on active duty      Major        Colonel       Colonel
------------------------------------------------------------------------
  Army:
  20,000                              7,768         5,253         1,613
  25,000                              8,689         5,642         1,796
  30,000                              9,611         6,030         1,980
  35,000                             10,532         6,419         2,163
  40,000                             11,454         6,807         2,347
  45,000                             12,375         7,196         2,530
  50,000                             13,297         7,584         2,713
  55,000                             14,218         7,973         2,897
  60,000                             15,140         8,361         3,080
  65,000                             16,061         8,750         3,264
  70,000                             16,983         9,138         3,447
  75,000                             17,903         9,527         3,631
  80,000                             18,825         9,915         3,814
  85,000                             19,746        10,304         3,997
  90,000                             20,668        10,692         4,181
  95,000                             21,589        11,081         4,364
  100,000                            22,511        11,469         4,548
  110,000                            24,354        12,246         4,915
  120,000                            26,197        13,023         5,281
  130,000                            28,040        13,800         5,648
  170,000                            35,412        16,908      7,116''.
------------------------------------------------------------------------

SEC. 405. INCREASE IN AUTHORIZED STRENGTHS FOR NAVY OFFICERS ON ACTIVE 
              DUTY IN THE GRADES OF LIEUTENANT COMMANDER, COMMANDER, 
              AND CAPTAIN.

    The table in section 523(a)(2) of title 10, United States Code, is 
amended to read as follows:


------------------------------------------------------------------------
                                Number of officers who may be serving on
 Total number of commissioned           active duty in grade of:
 officers (excluding officers  -----------------------------------------
  in categories specified in     Lieutenant
subsection (b)) on active duty    Commander     Commander      Captain
------------------------------------------------------------------------
  Navy:
  30,000                              7,698         5,269         2,222
  33,000                              8,189         5,501         2,334
  36,000                              8,680         5,733         2,447
  39,000                              9,172         5,965         2,559
  42,000                              9,663         6,197         2,671
  45,000                             10,155         6,429         2,784
  48,000                             10,646         6,660         2,896
  51,000                             11,136         6,889         3,007
  54,000                             11,628         7,121         3,120
  57,000                             12,118         7,352         3,232
  60,000                             12,609         7,583         3,344
  63,000                             13,100         7,813         3,457
  66,000                             13,591         8,044         3,568
  69,000                             14,245         8,352         3,718
  72,000                             17,517         9,890      4,467''.
------------------------------------------------------------------------

                       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) End Strength Reductions.--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.
    (c) End Strength Increases.--Whenever units or individual members 
of the Selected Reserve of any reserve component 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, 29,240.
            (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, 13,944.
            (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.

SEC. 416. FUTURE AUTHORIZATIONS AND ACCOUNTING FOR CERTAIN RESERVE 
              COMPONENT PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY OR 
              FULL-TIME NATIONAL GUARD DUTY TO PROVIDE OPERATIONAL 
              SUPPORT.

    (a) Review of Operational Support Missions Performed by Certain 
Reserve Component Personnel.--
            (1) Review required.--The Secretary of Defense shall 
        conduct a review of the long-term operational support missions 
        performed by members of the reserve components authorized under 
        section 115(b) of title 10 United States Code to be on active 
        duty or full-time National Guard duty for the purpose of 
        providing operational support, with the objectives of such 
        review being--
                    (A) minimizing the number of reserve component 
                members who perform such service for a period greater 
                than 1095 consecutive days, or cumulatively for 1095 
                days out of the previous 1460 days; and
                    (B) determining which long-term operational support 
                missions being performed by such members would more 
                appropriately be performed by members of the Armed 
                Forces on active duty under other provisions of title 
                10, United States Code, or by full-time support 
                personnel of reserve components.
            (2) Submission of results.--Not later than March 1, 2008, 
        the Secretary shall submit to Congress the results of the 
        review, including a description of the adjustments in 
        Department of Defense policy to be implemented as a result of 
        the review and such recommendations for changes in statute, as 
        the Secretary considers to be appropriate.
    (b) Improved Accounting for Reserve Component Personnel Providing 
Operational Support.--Section 115(b) of title 10, United States Code, 
is amended by adding at the end the following new paragraph:
    ``(4) As part of the budget justification materials submitted by 
the Secretary of Defense to Congress in support of the end strength 
authorizations required under subparagraphs (A) and (B) of subsection 
(a)(1) for fiscal year 2009 and each fiscal year thereafter, the 
Secretary shall provide the following:
            ``(A) The number of members, specified by reserve 
        component, authorized under subparagraphs (A) and (B) of 
        paragraph (1) who were serving on active duty or full-time 
        National Guard duty for operational support beyond each of the 
        limits specified under subparagraphs (A) and (B) of paragraph 
        (2) at the end of the fiscal year preceding the fiscal year for 
        which the budget justification materials are submitted.
            ``(B) The number of members, specified by reserve 
        component, on active duty for operational support who, at the 
        end of the fiscal year for which the budget justification 
        materials are submitted, are projected to be serving on active 
        duty or full-time National Guard duty for operational support 
        beyond such limits.
            ``(C) The number of members, specified by reserve 
        component, on active duty or full-time National Guard duty for 
        operational support who are included in, and counted against, 
        the end strength authorizations requested under subparagraphs 
        (A) and (B) of subsection (a)(1).
            ``(D) A summary of the missions being performed by members 
        identified under subparagraphs (A) and (B).''.

SEC. 417. REVISION OF VARIANCES AUTHORIZED FOR SELECTED RESERVE END 
              STRENGTHS.

    Section 115(f)(3) of title 10, United States Code, is amended by 
striking ``2 percent'' and inserting ``3 percent''.

              Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel for fiscal year 2008 a total of 
$115,439,889,000. The authorization in the preceding sentence 
supersedes any other authorization of appropriations (definite or 
indefinite) for such purpose for fiscal year 2008.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is authorized to be appropriated for fiscal year 2008 from 
the Armed Forces Retirement Home Trust Fund the sum of $61,624,000 for 
the operation of the Armed Forces Retirement Home.

SEC. 423. OFFSETTING TRANSFERS FROM NATIONAL DEFENSE STOCKPILE 
              TRANSACTION FUND.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Defense shall transfer $150,000,000 from the 
unobligated balances of the National Defense Stockpile Transaction Fund 
to the Miscellaneous Receipts Fund of the United States Treasury to 
offset estimated costs arising from section 702 and the amendments made 
by such section.

                   TITLE V--MILITARY PERSONNEL POLICY

                  Subtitle A--Officer Personnel Policy

Sec. 501. Assignment of officers to designated positions of importance 
                            and responsibility.
Sec. 502. Increase in years of commissioned service threshold for 
                            discharge of probationary officers and for 
                            use of force shaping authority.
Sec. 503. Special promotion authority for Navy career military 
                            professors.

                 Subtitle B--Reserve Component Matters

Sec. 511. Mandatory separation of Reserve officers in the grade of 
                            lieutenant general or vice admiral after 
                            completion of 38 years of commissioned 
                            service.
Sec. 512. Constructive service credit upon original appointment of 
                            reserve officers in certain health care 
                            professions.
Sec. 513. Maximum period of temporary Federal recognition of person as 
                            Army National Guard officer or Air Force 
                            Reserve officer.
Sec. 514. Military technicians (dual status) in the Selected Reserve.
Sec. 515. Working group on reintegration of reserve component members 
                            returning from deployment.
Sec. 516. National Guard yellow ribbon reintegration program.
Sec. 517. Advance notice to members of reserve components of deployment 
                            in support of contingency operations.

                   Subtitle C--Education and Training

Sec. 521. Reduction or elimination of service obligation in an Army 
                            Reserve or Army National Guard troop 
                            program unit for certain persons selected 
                            as medical students at Uniformed Services 
                            University of the Health Sciences.
Sec. 522. Increase in annual limit on number of ROTC scholarships under 
                            Army Reserve and Army National Guard 
                            program.
Sec. 523. Revisions to authority to pay tuition for off-duty training 
                            or education.
Sec. 524. National Defense University master's degree programs.
Sec. 525. Recodification in title 38, United States Code, of certain 
                            educational assistance programs for members 
                            of the reserve components.
Sec. 526. Secretary of Defense evaluation of the adequacy of the 
                            degree-granting authorities of certain 
                            military universities and educational 
                            institutions.
Sec. 527. Navy Junior Reserve Officers' Training Corps unit for 
                            Southold, Mattituck, and Greenport high 
                            schools.

                Subtitle D--General Service Authorities

Sec. 531. Authority to reduce required service obligation for initial 
                            appointment of qualified health 
                            professionals as officers in critical 
                            specialties.
Sec. 532. Reenlistment in former enlisted grade after service as an 
                            officer.

       Subtitle E--Military Justice and Legal Assistance Matters

Sec. 541. Authority to designate certain civilian employees of the 
                            Federal Government as eligible for legal 
                            assistance from Department of Defense legal 
                            staff resources.

                   Subtitle F--Decorations and Awards

Sec. 551. Authorization and request for award of Medal of Honor to 
                            Leslie H. Sabo, Jr., for acts of valor 
                            during the Vietnam War.
Sec. 552. Authorization and request for award of Medal of Honor to 
                            Henry Svehla for acts of valor during the 
                            Korean War.
Sec. 553. Authorization and request for award of Medal of Honor to 
                            Woodrow W. Keeble for acts of valor during 
                            the Korean War.
Sec. 554. Authorization and request for award of Medal of Honor to 
                            Private Philip G. Shadrach for acts of 
                            valor during the Civil War.
Sec. 555. Authorization and request for award of Medal of Honor to 
                            Private George D. Wilson for acts of valor 
                            as one of Andrews Raiders during the Civil 
                            War.
Sec. 556. Cold War Victory Medal.

     Subtitle G--Impact Aid and Defense Dependents Education System

Sec. 561. Tuition assistance for military dependents in overseas areas 
                            where schools operated by Defense 
                            Dependents' Education System are not 
                            reasonably available.
Sec. 562. Continuation of authority to assist local educational 
                            agencies that benefit dependents of members 
                            of the Armed Forces and Department of 
                            Defense civilian employees.

                       Subtitle H--Other Matters

Sec. 571. Extension of authority to accept gifts, devises, or bequests 
                            to benefit members of the Armed Forces, 
                            dependents, and civilian employees of the 
                            Department of Defense.
Sec. 572. Uniform performance policies for military bands and other 
                            musical units.
Sec. 573. Repeal of limitation on number of academies of Department of 
                            Defense STARBASE Program in a single State.
Sec. 574. Combat veterans mentoring program for current members of the 
                            Armed Forces.
Sec. 575. Recognition of members of the Monuments, Fine Arts, and 
                            Archives program of the Civil Affairs and 
                            Military Government Sections of the Armed 
                            Forces during and following World War II.
Sec. 576. Program to commemorate 50th anniversary of the Vietnam War.

                  Subtitle A--Officer Personnel Policy

SEC. 501. ASSIGNMENT OF OFFICERS TO DESIGNATED POSITIONS OF IMPORTANCE 
              AND RESPONSIBILITY.

    (a) Continuation in Grade While Awaiting Orders.--Section 601(b) of 
title 10, United States Code, is amended by striking paragraph (4) and 
inserting the following new paragraph:
            ``(4) at the discretion of the Secretary of Defense, while 
        the officer is awaiting orders after being relieved from the 
        position designated under subsection (a) or by law to carry one 
        of those grades, but not for more than 60 days beginning on the 
        day the officer is relieved from the position, unless, during 
        such period, the officer is placed under orders to another 
        position designated under subsection (a) or by law to carry one 
        of those grades, in which case paragraph (2) will also apply to 
        the officer.''.
    (b) Conforming Amendment Regarding General and Flag Officer 
Ceilings.--Section 525(e) of such title is amended by striking 
paragraph (2) and inserting the following new paragraph:
            ``(2) At the discretion of the Secretary of Defense, an 
        officer of that armed force who has been relieved from a 
        position designated under section 601(a) of this title or by 
        law to carry one of the grades specified in such section, but 
        only during the 60-day period beginning on the date on which 
        the assignment of the officer to the first position is 
        terminated or until the officer is assigned to a second such 
        position, whichever occurs first.''.

SEC. 502. INCREASE IN YEARS OF COMMISSIONED SERVICE THRESHOLD FOR 
              DISCHARGE OF PROBATIONARY OFFICERS AND FOR USE OF FORCE 
              SHAPING AUTHORITY.

    (a) Active-Duty List Officers.--
            (1) Extended probationary period.--Paragraph (1)(A) of 
        section 630 of title 10, United States Code, is amended by 
        striking ``five years'' and inserting ``six years''.
            (2) Section heading.--The heading of such section is 
        amended by striking ``five years'' and inserting ``six years''.
            (3) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of subchapter III of 
        chapter 36 of such title is amended to read as follows:

``630. Discharge of commissioned officers with less than six years of 
                            active commissioned service or found not 
                            qualified for promotion for first 
                            lieutenant or lieutenant (junior grade).''.
    (b) Officer Force Shaping Authority.--Section 647(b)(1) of such 
title is amended by striking ``5 years'' both places it appears and 
inserting ``six years''.
    (c) Reserve Officers.--
            (1) Extended probationary period.--Subsection (a)(1)(A) of 
        section 14503 of such title is amended by striking ``five 
        years'' and inserting ``six years''.
            (2) Section heading.--The heading of such section is 
        amended by striking ``five years'' and inserting ``six years''.
            (3) Table of sections.--The item relating to such section 
        in the table of sections at the beginning of chapter 1407 of 
        such title is amended to read as follows:

``14503. Discharge of officers with less than six years of commissioned 
                            service or found not qualified for 
                            promotion to first lieutenant or lieutenant 
                            (junior grade).''.

SEC. 503. SPECIAL PROMOTION AUTHORITY FOR NAVY CAREER MILITARY 
              PROFESSORS.

    (a) Removal From Chapter 36 Promotion Process.--Paragraph (2) of 
section 641 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, and permanent professors at the United 
        States Naval Academy.''.
    (b) Establishment of Special Promotion Process.--Chapter 603 of 
such title is amended by inserting after section 6970 the following new 
section:
``Sec. 6970a. Permanent professors: promotion
    ``(a) Promotion Authority.--An officer of the Navy or Marine Corps 
serving as a permanent professor at the Naval Academy in the grade of 
commander or lieutenant colonel may be recommended for promotion to the 
grade of captain or colonel, as the case may be.
    ``(b) Eligibility for Promotion.--An officer described in 
subsection (a) is not eligible for promotion under this section until 
after the date on which the officer completes six years of service as a 
permanent professor or career military professor.
    ``(c) Actual Promotion.--The promotion of an officer recommended 
for promotion under this section is subject to appointment of the 
officer to the higher grade by the President, by and with the advice 
and consent of the Senate.''.
    (c) Clerical Amendment.--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 B--Reserve Component Matters

SEC. 511. MANDATORY SEPARATION OF RESERVE OFFICERS IN THE GRADE OF 
              LIEUTENANT GENERAL OR VICE ADMIRAL AFTER COMPLETION OF 38 
              YEARS OF COMMISSIONED SERVICE.

    (a) Mandatory Separation.--Section 14508 of title 10, United States 
Code, is amended--
            (1) by redesignating subsections (c), (d), and (e) as 
        subsections (e), (f), and (g), 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.''.
    (b) Clerical Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``for Brigadier 
        Generals and Rear Admirals (Lower Half)'' after ``Grade'' in 
        the subsection heading; and
            (2) in subsection (b), by inserting ``for Major Generals 
        and Rear Admirals'' after ``Grade'' in the subsection heading.

SEC. 512. CONSTRUCTIVE SERVICE CREDIT UPON ORIGINAL APPOINTMENT OF 
              RESERVE OFFICERS IN CERTAIN HEALTH CARE PROFESSIONS.

    (a) Inclusion of Additional Health Care Professions.--Paragraph (2) 
of section 12207(b) of title 10, United States Code, is amended to read 
as follows:
    ``(2)(A) If the Secretary of Defense determines that the number of 
officers in a health profession described in subparagraph (B) who are 
serving in an active status in a reserve component of the Army, Navy, 
or Air Force in grades below major or lieutenant commander is 
critically below the number needed in such health profession by such 
reserve component in such grades, the Secretary of Defense may 
authorize the Secretary of the military department concerned to credit 
any person who is receiving an original appointment as an officer for 
service in such health profession with a period of constructive credit 
in such amount (in addition to any amount credited such person under 
paragraph (1)) as will result in the grade of such person being that of 
captain or, in the case of the Navy Reserve, lieutenant.
    ``(B) The types of health professions referred to in subparagraph 
(A) include the following:
            ``(i) Any health profession performed by officers in the 
        Medical Corps of the Army or the Navy or by officers of the Air 
        Force designated as a medical officer.
            ``(ii) Any health profession performed by officers in the 
        Dental Corps of the Army or the Navy or by officers of the Air 
        Force designated as a dental officer.
            ``(iii) Any health profession performed by officers in the 
        Medical Service Corps of the Army or the Navy or by officers of 
        the Air Force designated as a medical service officer or 
        biomedical sciences officer.
            ``(iv) Any health profession performed by officers in the 
        Army Medical Specialist Corps.
            ``(v) Any health profession performed by officers of the 
        Nurse Corps of the Army or the Navy or by officers of the Air 
        Force designated as a nurse.
            ``(vi) Any health profession performed by officers in the 
        Veterinary Corps of the Army or by officers designated as a 
        veterinary officer.''.
    (b) Conforming Amendment.--Paragraph (3) of such section is amended 
by striking ``a medical or dental officer'' and inserting ``officers 
covered by paragraph (2)''.

SEC. 513. MAXIMUM PERIOD OF TEMPORARY FEDERAL RECOGNITION OF PERSON AS 
              ARMY NATIONAL GUARD OFFICER OR AIR FORCE RESERVE OFFICER.

    Section 308(a) of title 32, United States Code, is amended in the 
last sentence by striking ``six months'' and inserting ``one year''.

SEC. 514. MILITARY TECHNICIANS (DUAL STATUS) IN THE SELECTED RESERVE.

    (a) Retention of Military Technicians Who Lose Dual Status Due to 
Combat-Related Disability.--Section 10216 of title 10, United States 
Code, is amended by inserting after subsection (f) the following new 
subsection:
    ``(g) Retention of Military Technicians Who Lose Dual Status Due to 
Combat-Related Disability.--(1) Notwithstanding subsection (d) of this 
section or subsections (a)(3) and (b) of section 10218 of this title, 
if a military technician (dual status) loses such dual status as the 
result of a combat-related disability (as defined in section 1413a of 
this title), the person may be retained as a non-dual status technician 
so long as--
            ``(A) the combat-related disability does not prevent the 
        person from performing the non-dual status functions or 
        position; and
            ``(B) the person, while a non-dual status technician, is 
        not disqualified from performing the non-dual status functions 
        or position because of performance, medical, or other reasons.
    ``(2) A person so retained shall be removed not later than 30 days 
after becoming eligible for an unreduced annuity and becoming 60 years 
of age.
    ``(3) Persons retained under the authority of this subsection do 
not count against the limitations of section 10217(c) of this title.''.
    (b) Temporary Employment Authority.--Subsection (a) of such section 
is amended by adding at the end the following new paragraph:
    ``(4) The secretary of a military department may temporarily waive 
the requirements of subsection (a)(1)(B) in order to fill a military 
technician (dual status) position while that position is vacant as a 
result of the mobilization of the technician normally assigned to that 
position under a call to active duty for a period of more than 30 days 
under section 12301, 12302, or 12304 of this title in support of a 
contingency operation. In no case may the waiver authority be used in 
connection with any position for more than two years. The Secretary of 
Defense shall prescribe regulations to carry out this paragraph.''.
    (c) Deferral of Mandatory Separation.--Subsection (f) of such 
section is amended--
            (1) by striking ``The Secretary of the Army'' and inserting 
        ``(1) The Secretary of the Army and the Secretary of the Air 
        Force'';
            (2) by striking ``the military technician (dual status) 
        reaches age 60 and attains eligibility for an unreduced annuity 
        (as defined in section 10218(c) of this title).'' and inserting 
        the following: ``the military technician (dual status)--
            ``(A) reaches age 60 and attains eligibility for an 
        unreduced annuity; or
            ``(B) attains eligibility for an unreduced annuity after 
        age 60, but in no case may the separation be deferred for more 
        than 30 days after the person reaches age 62.''; and
            (3) by adding at the end the following new paragraph:
    ``(2) For purposes of this subsection, the determination of whether 
a technician is eligible for an unreduced annuity shall be made in the 
manner provided by section 10218(d) of this title.''.

SEC. 515. WORKING GROUP ON REINTEGRATION OF RESERVE COMPONENT MEMBERS 
              RETURNING FROM DEPLOYMENT.

    (a) Working Group Required.--The Secretary of Defense shall 
establish within the Department of Defense a working group to identify 
and assess the reintegration needs of members of the reserve components 
who return from overseas operational deployment.
    (b) Members.--The working group shall consist of 16 members, to be 
appointed by the Secretary of Defense. The Secretary shall attempt to 
achieve a balance of members on the working group from, at a minimum, 
the following:
            (1) The Department of Defense.
            (2) The Department of Veterans Affairs.
            (3) One member each from the Army National Guard of the 
        United States, the Army Reserve, the Navy Reserve, the Marine 
        Corps Reserve, the Air National Guard of the United States, and 
        the Air Force Reserve.
            (4) At least one dependent of a member of the Army National 
        Guard or Air National Guard who has been deployed overseas.
            (5) At least one dependent of a member of the Army Reserve, 
        Navy Reserve, Marine Corps Reserve, or Air Force Reserve who 
        has been deployed overseas.
            (6) One State adjutant general.
            (7) Representatives of other Federal agencies and non-
        Federal members, as considered appropriate by the Secretary.
    (c) Responsibilities.--The working group shall--
            (1) identify and assess the needs of members of the reserve 
        components returning from deployment in making the transition 
        to civilian life, including members who have experienced 
        multiple recent deployments and members who have been wounded 
        or injured during deployment, and identify and assess the needs 
        of the families of such members;
            (2) develop recommendations on means of improving 
        assistance to such members in meeting the needs identified in 
        paragraph (1) on their return from deployment and in meeting 
        the need of their families identified in paragraph (1); and
            (3) assess the current transition and reintegration 
        programs employed by the reserve components for members and 
        their families following redeployment.
    (d) Elements of Assessment.--The assessment required by subsection 
(c)(3) shall include--
            (1) a comparison of existing reintegration programs by 
        service, State, or command;
            (2) an analysis of participation of other Federal agencies 
        in current programs;
            (3) the costs associated with different programs;
            (4) identification of best practices from existing 
        programs; and
            (5) a recommended plan for incorporating the best practices 
        into current reserve component demobilization activities.
    (e) Consultation.--In carrying out its responsibilities under 
subsection (c), the working group shall consult with the following:
            (1) Representatives of organizations that assist wounded or 
        injured members of the reserve components.
            (2) Representatives of organizations that assist family 
        members of members of the reserve components.
            (3) Representatives of such other public or private 
        organizations and entities as the working group considers 
        appropriate.
    (f) Report.--
            (1) Report required.--Not later than 180 days after the 
        date of the enactment of this Act, the working group shall 
        submit to the Secretary of Defense and Congress a report on its 
        activities under subsection (c).
            (2) Elements.--The report shall include the following:
                    (A) The results of the identifications and 
                assessments required under subsection (c).
                    (B) The recommendations developed under subsection 
                (c)(2), including recommendations regarding the 
                following:
                            (i) The provision of outreach and 
                        assistance to members of the reserve components 
                        returning from deployment and the provision of 
                        outreach and assistance to their families.
                            (ii) The improvement of collaboration 
                        between the public and private sectors in order 
                        to ensure the successful transition of such 
                        members and their families upon the return of 
                        such members from deployment.
            (3) Availability to public.--The Secretary shall take 
        appropriate actions to make the report available to the public, 
        including through the internet web site of the Department of 
        Defense.

SEC. 516. NATIONAL GUARD YELLOW RIBBON REINTEGRATION PROGRAM.

    (a) Establishment.--The Secretary of Defense, in coordination with 
the Chief of the National Guard Bureau, shall establish a national 
combat veteran reintegration program to provide National Guard members 
and their families with sufficient information, services, referral, and 
proactive outreach opportunities throughout the entire deployment 
cycle. This program shall be known as the Yellow Ribbon Reintegration 
Program. The Secretary may also use funds made available to carry out 
this section to support reintegration programs for members of the Army 
Reserve, Marine Corps Reserve, Navy Reserve, and Air Force Reserve and 
their families.
    (b) Purpose.--The Yellow Ribbon Reintegration Program shall consist 
of informational events and activities for reserve component members, 
their families, and community members through the four phases of the 
deployment cycle:
            (1) Pre-deployment.
            (2) Deployment.
            (3) Demobilization.
            (4) Post-deployment-reconstitution.
    (c) Consultation.--The National Guard Bureau Chief shall consult 
with the following parties during establishment of the program:
            (1) The Adjutant General of the Minnesota National Guard 
        and officials associated with the State's ``Beyond the Yellow 
        Ribbon'' Reintegration Program, the Adjutant General of New 
        Hampshire, the Adjutant General of Oregon, and the Adjutant 
        General of Washington.
            (2) Adjutants General of the remaining States and 
        territories.
    (d) Organization.--
            (1) Executive agent.--The Secretary shall designate the 
        National Guard Bureau as the Department of Defense executive 
        agent for the Yellow Ribbon Reintegration Program.
            (2) Establishment of the office for reintegration 
        programs.--
                    (A) In general.--The National Guard Bureau shall 
                establish the Office for Reintegration Programs within 
                the National Guard Bureau Joint Staff. This office 
                shall administer all reintegration programs in 
                coordination with State National Guard organizations. 
                The office shall be responsible for coordination with 
                existing National Guard family and support programs. 
                The Directors of the Army National Guard and Air 
                National Guard may appoint liaison officers to work 
                with the permanent office staff. The office shall 
                closely coordinate with the Army National Guard and Air 
                National Guard Directorates for Manpower and Personnel 
                with respect to existing family support structure, 
                mobilization schedules, training schedules, training 
                plans and programs, and any other personnel issues.
                    (B) Establishment of a center for excellence in 
                reintegration.--The Office for Reintegration Programs 
                shall establish a Center for Excellence in 
                Reintegration within the office. The Center shall 
                collect and analyze ``lessons learned'' and suggestions 
                from State National Guard organizations with existing 
                or developing reintegration programs. The Center shall 
                also assist in developing training aids and briefing 
                materials and training representatives from State 
                National Guard organizations. Representatives from 
                State National Guard organizations with successful 
                reintegration programs may augment the Office staff.
            (3) Advisory board.--
                    (A) Appointment.--The Chief of the National Guard 
                Bureau shall appoint an advisory board to analyze and 
                report areas of success and areas for necessary 
                improvements. The advisory board shall include, but is 
                not limited to, the Director of the Army National 
                Guard, the Director of the Air National Guard, the 
                Assistant Secretary of Defense for Reserve Affairs, an 
                Adjutant General on a rotational basis as determined by 
                the Chief of the National Guard Bureau, the Director of 
                the National Guard Bureau Manpower and Personnel 
                Directorate (J-1), and any other Department of Defense, 
                Federal Government agency, or outside organization as 
                determined by the Chief of the National Guard Bureau. 
                The members of the advisory board may designate 
                representatives in their stead.
                    (B) Schedule.--The advisory board shall meet on a 
                schedule as determined by the Chief of the National 
                Guard Bureau.
                    (C) Initial reporting requirement.--The advisory 
                board shall issue internal reports as necessary and 
                shall submit an initial report to the Committees on 
                Armed Services not later than 180 days after the end of 
                a one-year period from establishment of the Office for 
                Reintegration Programs. This report shall contain--
                            (i) an evaluation of the reintegration 
                        program's implementation by State National 
                        Guard organizations;
                            (ii) an assessment of any unmet resource 
                        requirements;
                            (iii) an assessment of the reintegration 
                        program's further inclusion of other reserve 
                        component members and the necessity for further 
                        expansion to incorporate all the reserve 
                        components; and
                            (iv) recommendations regarding closer 
                        coordination between the Office of 
                        Reintegration Programs and State National Guard 
                        organizations.
                    (D) Annual reports.--The advisory board shall 
                submit annual reports to the Committees on Armed 
                Services of the Senate and House of Representatives 
                following the initial report by the first week in March 
                of subsequent years following the initial report.
            (4) State deployment cycle support teams.--The Office for 
        Reintegration Programs shall employ personnel to administer the 
        Yellow Ribbon Reintegration Program at the State level. The 
        Chief of the National Guard Bureau shall assign State 
        Deployment Cycle Support Team members based on State need, 
        geographical dispersion, and military population. The Office 
        for Reintegration Programs is encouraged to employ wounded 
        service members and returning combat veterans whenever 
        possible. The primary function of team members shall be--
                    (A) developing and managing the reintegration 
                curriculum;
                    (B) contracting and recruiting for necessary 
                service providers; and
                    (C) ensuring that providers' skills adapt to the 
                unique military nature of the reintegration program.
    (e) Program.--
            (1) In general.--The Office for Reintegration Programs 
        shall analyze the demographics, placement of State Family 
        Assistance Centers (FAC), and FAC resources before a 
        mobilization alert is issued to affected State National Guard 
        organizations. The Office of Reintegration Programs shall 
        consult with affected State National Guard organizations 
        following the issuance of a mobilization alert and implement 
        the reintegration events in accordance with the Reintegration 
        Program phase model.
            (2) Pre-deployment phase.--The pre-deployment phase shall 
        constitute the time from first notification of mobilization 
        until deployment of the mobilized National Guard unit. Events 
        and activities shall focus on providing education and ensuring 
        the readiness of service members, families, and communities for 
        the rigors of a combat deployment.
            (3) Deployment phase.--The deployment phase shall 
        constitute the period from deployment of the mobilized National 
        Guard unit until the unit arrives at a demobilization station 
        inside the continental United States. Events and services 
        provided shall focus on the challenges and stress associated 
        with separation and having a member in a combat zone. 
        Information sessions shall utilize State National Guard 
        resources in coordination with the Employer Support of Guard 
        and Reserve Office, Transition Assistance Advisors, and the 
        State Family Programs Director.
            (4) Demobilization phase.--
                    (A) In general.--The demobilization phase shall 
                constitute the period from arrival of the National 
                Guard unit at the demobilization station until its 
                departure for home station. In the interest of 
                returning members as soon as possible to their home 
                stations, reintegration briefings during the 
                demobilization phase shall be minimized. State 
                Deployment Cycle Support Teams are encouraged, however, 
                to assist demobilizing members in enrolling in the 
                Department of Veterans Affairs system using form 1010EZ 
                during the Demobilization Phase. State Deployment Cycle 
                Support Teams may provide other events from the initial 
                reintegration activity as determined by the State 
                National Guard organizations. Remaining events shall be 
                conducted during the post-deployment-reconstitution 
                phase.
                    (B) Initial reintegration activity.--The purpose of 
                this reintegration program is to educate service 
                members about the resources that are available to them 
                and to connect members to service providers who can 
                assist them in overcoming the challenges of 
                reintegration
            (5) Post-deployment-reconstitution phase.--
                    (A) In general.--The post-deployment-reconstitution 
                phase shall constitute the period from arrival at home 
                station until 180 days following demobilization. 
                Activities and services provided shall focus on 
                reconnecting service members with their families and 
                communities and providing resources and information 
                necessary for successful reintegration. Reintegration 
                events shall begin with elements of the Initial 
                Reintegration Activity program that were not completed 
                during the demobilization phase.
                    (B) 30-day, 60-day, and 90-day reintegration 
                activities.--The State National Guard organizations 
                shall hold reintegration activities at the 30-day, 60-
                day, and 90-day interval following demobilization. 
                These activities shall focus on reconnecting service 
                members and family members with the service providers 
                from initial reintegration activity to ensure service 
                members and their families understand what benefits 
                they are entitled to and what resources are available 
                to help them overcome the challenges of reintegration. 
                The reintegration activities shall also provide a forum 
                for service members and families to address negative 
                behaviors related to combat stress and transition.
                    (C) Service member pay.--Service members shall 
                receive appropriate pay for days spent attending the 
                Reintegration Activities at the 30-day, 60-day, and 90-
                day interval.
                    (D) Monthly individual reintegration program.--The 
                Office for Reintegration Programs, in coordination with 
                State National Guard organizations, shall offer a 
                monthly reintegration program for individual service 
                members released from active duty or formerly in a 
                medical hold status. The program shall focus on the 
                special needs of this service member subset and the 
                Office for Reintegration Programs shall develop an 
                appropriate program of services and information.

SEC. 517. ADVANCE NOTICE TO MEMBERS OF RESERVE COMPONENTS OF DEPLOYMENT 
              IN SUPPORT OF CONTINGENCY OPERATIONS.

    (a) Advance Notice Required.--The Secretary of Defense shall ensure 
that a member of a reserve component who will be called or ordered to 
active duty for a period of more than 30 days in support of a 
contingency operation (as defined in section 101(a)(13) of title 10, 
United States Code) receives notice in advance of the mobilization 
date. At a minimum the notice shall be provided not less than 30 days 
before the mobilization date, but with a goal of 90 days before the 
mobilization date.
    (b) Reduction or Waiver of Notice Requirement.--The Secretary of 
Defense may waive the requirement of subsection (a), or authorize 
shorter notice than the minimum specified in such subsection, during a 
war or national emergency declared by the President or Congress or to 
meet mission requirements. If the waiver or reduction is made on 
account of mission requirements, the Secretary shall submit to Congress 
a report detailing the reasons for the waiver or reduction and the 
mission requirements at issue.

                   Subtitle C--Education and Training

SEC. 521. REDUCTION OR ELIMINATION OF SERVICE OBLIGATION IN AN ARMY 
              RESERVE OR ARMY NATIONAL GUARD TROOP PROGRAM UNIT FOR 
              CERTAIN PERSONS SELECTED AS MEDICAL STUDENTS AT UNIFORMED 
              SERVICES UNIVERSITY OF THE HEALTH SCIENCES.

    Paragraph (3) of section 2107a(b) of title 10, United States Code, 
is amended to read as follows:
    ``(3)(A) Subject to subparagraph (C), in the case of a person 
described in subparagraph (B), the Secretary may, at any time and with 
the consent of the person, modify an agreement described in paragraph 
(1)(F) submitted by the person for the purpose of reducing or 
eliminating the troop program unit service obligation specified in the 
agreement and to establish, in lieu of that obligation, an active duty 
service obligation.
    ``(B) Subparagraph (A) applies with respect to the following 
persons:
            ``(i) A cadet under this section at a military junior 
        college.
            ``(ii) A cadet or former cadet under this section who is 
        selected under section 2114 of this title to be a medical 
        student at the Uniformed Services University of the Health 
        Sciences.
            ``(iii) A cadet or former cadet under this section who 
        signs an agreement under section 2122 of this title for 
        participation in the Armed Forces Health Professions 
        Scholarship and Financial Assistance program.
    ``(C) The modification of an agreement described in paragraph 
(1)(F) may be made only if the Secretary determines that it is in the 
best interests of the United States to do so.''.

SEC. 522. INCREASE IN ANNUAL LIMIT ON NUMBER OF ROTC SCHOLARSHIPS UNDER 
              ARMY RESERVE AND ARMY NATIONAL GUARD PROGRAM.

    Subsection (h) of section 2107a of title 10, United States Code, is 
amended by striking ``416'' and inserting ``424''.

SEC. 523. REVISIONS TO AUTHORITY TO PAY TUITION FOR OFF-DUTY TRAINING 
              OR EDUCATION.

    (a) Inclusion of Coast Guard.--Section 2007(a) of title 10, United 
States Code, is amended by striking ``Subject to subsection (b), the 
Secretary of a military department'' and inserting ``Subject to 
subsections (b) and (c), the Secretary concerned''.
    (b) Commissioned Officers on Active Duty.--Section 2007(b) of title 
10, United States Code, is amended--
            (1) in paragraph (1)--
                    (A) by inserting after ``commissioned officer on 
                active duty'' the following: ``(other than a member of 
                the Ready Reserve)'';
                    (B) by striking ``the Secretary of the military 
                department concerned'' and inserting ``the Secretary 
                concerned''; and
                    (C) by striking ``or full-time National Guard 
                duty'' both places it appears; and
            (2) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``the Secretary of the military department'' 
                and inserting ``the Secretary concerned'';
                    (B) in subparagraph (B), by inserting after 
                ``active duty service'' the following: ``for which the 
                officer was ordered to active duty''; and
                    (C) in subparagraph (C), by striking ``Secretary'' 
                and inserting ``Secretary concerned''.
    (c) Authority to Pay Tuition Assistance to Members of the Ready 
Reserve.--Section 2007(c) of title 10, United States Code, is amended 
to read as follows:
    ``(c) In the case of a member of the Ready Reserve, the following 
provisions apply:
            ``(1) If the member is an officer of the Selected Reserve, 
        or of the Ready Reserve but not of the Selected Reserve, the 
        Secretary concerned may not pay charges under subsection (a) 
        unless the officer agrees to remain a member of the Selected 
        Reserve or of the Ready Reserve (as applicable) for at least 
        four years after completion of the education or training for 
        which the charges are paid.
            ``(2) If the member is an enlisted member in the Selected 
        Reserve, or in the Ready Reserve but not in the Selected 
        Reserve, the Secretary concerned may order the member to serve, 
        after completion of the education or training for which the 
        charges are paid, in the Selected Reserve or in the Ready 
        Reserve (as applicable) for such period of time as the 
        Secretary concerned prescribes, but not for more than four 
        years.
            ``(3) In addition, if the member is a member of the 
        Individual Ready Reserve, the Secretary concerned may not pay 
        charges under subsection (a) unless the Secretary concerned, 
        based upon the needs of the service and the military skills or 
        specialties of the member, selects the member for participation 
        under this section. The Secretary concerned shall designate the 
        military skills or specialties of members to be eligible for 
        selection under this section.''.
    (d) Conforming Amendment.--Section 2007 of title 10, United States 
Code, is further amended--
            (1) by striking subsection (d); and
            (2) by redesignating subsections (e) and (f) as subsections 
        (d) and (e), respectively.
    (e) Repayment.--Subsection (e) of such section, as so redesignated 
by subsection (d), is amended--
            (1) by striking ``an officer'' and inserting ``a member'';
            (2) by striking ``subsection (b)'' and inserting ``this 
        section'';
            (3) by striking ``of active duty''; and
            (4) by striking ``the officer'' and inserting ``the 
        member''.
    (f) Regulations.--Such section is further amended by adding at the 
end the following new subsection:
    ``(f) This section shall be administered under regulations 
prescribed by the Secretary of Defense or, with respect to the Coast 
Guard when it is not operating as a service in the Navy, the Secretary 
of Homeland Security.''.

SEC. 524. NATIONAL DEFENSE UNIVERSITY MASTER'S DEGREE PROGRAMS.

    (a) In General.--Section 2163 of title 10, United States Code, is 
amended--
            (1) by striking the heading and inserting the following:
``Sec. 2163. National Defense University: master's degree programs'';
            (2) in subsection (a), by inserting after ``master of 
        science'' the following: ``or master of arts''; and
            (3) in subsection (b), by adding at the end the following 
        new paragraph:
            ``(4) Master of arts in strategic security studies.--The 
        degree of master of arts in strategic security studies, to 
        graduates of the University who fulfill the requirements of the 
        program at the School for National Security Executive 
        Education.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 108 of such title is amended by striking the item relating to 
section 2163 and inserting the following new item:

``2163. National Defense University: master's degree programs.''.
    (c) Applicability to 2006-2007 Graduates.--Paragraph (4) of section 
2163(b) of title 10, United States Code (as added by subsection (a) of 
this section), applies to any person who becomes a graduate on or after 
September 6, 2006.

SEC. 525. RECODIFICATION IN TITLE 38, UNITED STATES CODE, OF CERTAIN 
              EDUCATIONAL ASSISTANCE PROGRAMS FOR MEMBERS OF THE 
              RESERVE COMPONENTS.

    (a) In General.--Part III of title 38, United States Code, is 
amended by inserting after chapter 32 the following new chapter:

    ``CHAPTER 33--EDUCATIONAL ASSISTANCE FOR MEMBERS OF THE RESERVE 
                               COMPONENTS

             ``subchapter i--members of the selected reserve

``Sec.
``3301. Educational assistance program: establishment; amount.
``3302. Eligibility for educational assistance.
``3303. Time limitation for use of entitlement.
``3304. Termination of assistance.
``3305. Failure to participate satisfactorily; penalties.
``3306. Administration of program
``3307. Reports to Congress.

   ``subchapter ii--reserve component members supporting contingency 
                operations and certain other operations

``3321. Purpose.
``3322. Educational assistance program.
``3323. Eligibility for educational assistance.
``3324. Time limitation for use of entitlement.
``3325. Termination of assistance.
``3326. Administration of program.

            ``SUBCHAPTER I--MEMBERS OF THE SELECTED RESERVE

``Sec. 3301. Educational assistance program: establishment; amount
    ``(a) Establishment.--To encourage membership in units of the 
Selected Reserve of the Ready Reserve, the Secretary of Veterans 
Affairs, shall establish and maintain a program to provide educational 
assistance to members of the Selected Reserve of the Ready Reserve of 
the Armed Forces. The Secretary of each military department shall, 
under regulations prescribed by the Secretary of Defense, provide to 
individuals who meet the eligibility requirements under section 3302 of 
this title the opportunity to receive educational assistance under this 
subchapter and shall maintain a program to increase the rate of 
educational assistance under this subchapter in accordance with 
subsection (i).
    ``(b) Amount of Payment.--(1) Each educational assistance program 
established under subsection (a) shall provide for payment by the 
Secretary of Veterans Affairs of an educational assistance allowance to 
each person entitled to educational assistance under this subchapter 
who is pursuing a program of education. Except as provided in 
subsections (d) through (f), the educational assistance allowance shall 
be paid at the rates in effect under the former chapter 1606 of title 
10, as in effect immediately before the date of the enactment of the 
National Defense Authorization Act for Fiscal Year 2008, as increased 
under paragraph (3).
    ``(2) For each month of less than half-time pursuit of a program of 
education, educational assistance under this subchapter shall be paid 
at a rate of 25 percent of the amount payable for a month of full-time 
pursuit of a program of education, except that no payment may be made 
to a person for less than half-time pursuit if tuition assistance is 
otherwise available to the person for such pursuit from the military 
department concerned.
    ``(3) With respect to any fiscal year, the Secretary shall provide 
a percentage increase (rounded to the nearest dollar) in the rates 
payable under subparagraphs (A), (B), and (C) of paragraph (1) equal to 
the percentage by which--
            ``(A) the Consumer Price Index (all items, United States 
        city average) for the 12-month period ending on the June 30 
        preceding the beginning of the fiscal year for which the 
        increase is made, exceeds
            ``(B) such Consumer Price Index for the 12-month period 
        preceding the 12-month period described in subparagraph (A).
    ``(c) Approved Programs of Education; Maximum Months of 
Assistance.--(1) Educational assistance may be provided under this 
subchapter for pursuit of any program of education that is an approved 
program of education for purposes of chapter 30 of this title.
    ``(2) Subject to section 3695 of this title, the maximum number of 
months of educational assistance that may be provided to any person 
under this subchapter is 36 (or the equivalent thereof in part-time 
educational assistance).
    ``(3)(A) Notwithstanding any other provision of this subchapter or 
chapter 36 of this title, any payment of an educational assistance 
allowance described in subparagraph (B) of this paragraph shall not--
            ``(i) be charged against the entitlement of any individual 
        under this subchapter; or
            ``(ii) be counted toward the aggregate period for which 
        section 3695 of this title limits an individual's receipt of 
        assistance.
    ``(B) The payment of the educational assistance allowance referred 
to in subparagraph (A) of this paragraph is the payment of such an 
allowance to the individual for pursuit of a course or courses under 
this subchapter if the Secretary of Veterans Affairs finds that the 
individual--
            ``(i) had to discontinue such course pursuit as a result of 
        being ordered to serve on active duty under section 12301(a), 
        12301(d), 12301(g), 12302, or 12304 of title 10; and
            ``(ii) failed to receive credit or training time toward 
        completion of the individual's approved educational, 
        professional, or vocational objective as a result of having to 
        discontinue, as described in clause (i), the individual's 
        course pursuit.
    ``(C) The period for which, by reason of this subsection, an 
educational assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 of 
this title shall not exceed the portion of the period of enrollment in 
the course or courses for which the individual failed to receive credit 
or with respect to which the individual lost training time, as 
determined under subparagraph (B)(ii).
    ``(d) Programs of Apprenticeship.--(1) Except as provided in 
paragraph (2), the amount of the monthly educational assistance 
allowance payable to a person pursuing a full-time program of 
apprenticeship or other on-the-job training under this subchapter is--
            ``(A) for each of the first six months of the person's 
        pursuit of such program, 75 percent of the monthly educational 
        assistance allowance otherwise payable to such person under 
        this subchapter;
            ``(B) for each of the second six months of the person's 
        pursuit of such program, 55 percent of such monthly educational 
        assistance allowance; and
            ``(C) for each of the months following the first 12 months 
        of the person's pursuit of such program, 35 percent of such 
        monthly educational assistance allowance.
    ``(2) In any month in which any person pursuing a program of 
education consisting of a program of apprenticeship or other on-the-job 
training fails to complete 120 hours of training, the amount of the 
monthly educational assistance allowance payable under this subchapter 
to the person shall be limited to the same proportion of the applicable 
full-time rate as the number of hours worked during such month, rounded 
to the nearest 8 hours, bears to 120 hours.
    ``(3)(A) Except as provided in subparagraph (B), for each month 
that such person is paid a monthly educational assistance allowance 
under this subchapter, the person's entitlement under this subchapter 
shall be charged at the rate of--
            ``(i) 75 percent of a month in the case of payments made in 
        accordance with paragraph (1)(A);
            ``(ii) 55 percent of a month in the case of payments made 
        in accordance with paragraph (1)(B); and
            ``(iii) 35 percent of a month in the case of payments made 
        in accordance with paragraph (1)(C).
    ``(B) Any such charge to the entitlement shall be reduced 
proportionately in accordance with the reduction in payment under 
paragraph (2).
    ``(e) Correspondence Courses.--(1)(A) The amount of the educational 
assistance allowance payable under this subchapter to a person who 
enters into an agreement to pursue, and is pursuing, a program of 
education exclusively by correspondence is an amount equal to 55 
percent of the established charge which the institution requires 
nonveterans to pay for the course or courses pursued by such person.
    ``(B) For purposes of subparagraph (A), the term `established 
charge' means the lesser of--
            ``(i) the charge for the course or courses determined on 
        the basis of the lowest extended time payment plan offered by 
        the institution and approved by the appropriate State approving 
        agency; or
            ``(ii) the actual charge to the person for such course or 
        courses.
    ``(C) Such allowance shall be paid quarterly on a pro rata basis 
for the lessons completed by the person and serviced by the 
institution.
    ``(2) In each case in which the amount of educational assistance is 
determined under paragraph (1), the period of entitlement of the person 
concerned shall be charged with one month for each amount equal to the 
amount of the monthly rate payable under subsection (b)(1)(A) for the 
fiscal year concerned which is paid to the individual as an educational 
assistance allowance.
    ``(f) Flight Training.--(1) The Secretary of Veterans Affairs may 
approve the pursuit of flight training (in addition to a course of 
flight training that may be approved under section 3680A(b) of this 
title) by an individual entitled to educational assistance under this 
subchapter if--
            ``(A) such training is generally accepted as necessary for 
        the attainment of a recognized vocational objective in the 
        field of aviation;
            ``(B) the individual possesses a valid private pilot 
        certificate and meets, on the day the individual begins a 
        course of flight training, the medical requirements necessary 
        for a commercial pilot certificate; and
            ``(C) the flight school courses meet Federal Aviation 
        Administration standards for such courses and are approved by 
        the Federal Aviation Administration and the State approving 
        agency.
    ``(2) Each individual who is pursuing a program of education 
consisting exclusively of flight training approved as meeting the 
requirements of paragraph (1) shall be paid an educational assistance 
allowance under this subchapter in the amount equal to 60 percent of 
the established charges for tuition and fees which similarly 
circumstanced nonveterans enrolled in the same flight course are 
required to pay.
    ``(3) No educational assistance allowance may be paid under this 
subchapter to an individual for any month during which such individual 
is pursuing a program of education consisting exclusively of flight 
training until the Secretary has received from that individual and the 
institution providing such training a certification of the flight 
training received by the individual during that month and the tuition 
and other fees charged for that training.
    ``(4) The period of entitlement of an individual pursuing a program 
of education described in paragraph (1) shall be charged with one month 
for each amount equal to the amount of the monthly rate payable under 
subsection (b)(1)(A) for the fiscal year concerned which is paid to 
that individual as an educational assistance allowance for such 
program.
    ``(5) The number of solo flying hours for which an individual may 
be paid an educational assistance allowance under this subsection may 
not exceed the minimum number of solo flying hours required by the 
Federal Aviation Administration for the flight rating or certification 
which is the goal of the individual's flight training.
    ``(g) Individualized Tutorial Assistance.--(1)(A) Subject to 
subparagraph (B), the Secretary of Veterans Affairs shall approve 
individualized tutorial assistance for any person entitled to 
educational assistance under this subchapter who--
                    ``(i) is enrolled in and pursuing a postsecondary 
                course of education on a half-time or more basis at an 
                educational institution; and
                    ``(ii) has a deficiency in a subject required as a 
                part of, or which is prerequisite to, or which is 
                indispensable to the satisfactory pursuit of, the 
                program of education.
    ``(B) The Secretary of Veterans Affairs shall not approve 
individualized tutorial assistance for a person pursuing a program of 
education under this paragraph unless such assistance is necessary for 
the person to successfully complete the program of education.
    ``(2)(A) Subject to subparagraph (B), the Secretary of Veterans 
Affairs shall pay to a person receiving individualized tutorial 
assistance pursuant to paragraph (1) a tutorial assistance allowance. 
The amount of the allowance payable under this paragraph may not exceed 
$100 for any month, nor aggregate more than $1,200. The amount of the 
allowance paid under this paragraph shall be in addition to the amount 
of educational assistance allowance payable to a person under this 
subchapter.
    ``(B) A tutorial assistance allowance may not be paid to a person 
under this paragraph until the educational institution at which the 
person is enrolled certifies that--
            ``(i) the individualized tutorial assistance is essential 
        to correct a deficiency of the person in a subject required as 
        a part of, or which is prerequisite to, or which is 
        indispensable to the satisfactory pursuit of, an approved 
        program of education;
            ``(ii) the tutor chosen to perform such assistance is 
        qualified to provide such assistance and is not the person's 
        parent, spouse, child (whether or not married or over eighteen 
        years of age), brother, or sister; and
            ``(iii) the charges for such assistance do not exceed the 
        customary charges for such tutorial assistance.
    ``(3)(A) A person's period of entitlement to educational assistance 
under this subchapter shall be charged only with respect to the amount 
of tutorial assistance paid to the person under this subsection in 
excess of $600.
    ``(B) A person's period of entitlement to educational assistance 
under this subchapter shall be charged at the rate of one month for 
each amount of assistance paid to the individual under this section in 
excess of $600 that is equal to the amount of the monthly educational 
assistance allowance which the person is otherwise eligible to receive 
for full-time pursuit of an institutional course under this subchapter.
    ``(h) Courses Beyond Baccalaureate Degree.--A program of education 
in a course of instruction beyond the baccalaureate degree level shall 
be provided under this subchapter, subject to the availability of 
appropriations.
    ``(i) Special Skills.--(1) In the case of a person who has a skill 
or specialty designated by the Secretary of the military department 
concerned as a skill or specialty in which there is a critical shortage 
of personnel or for which it is difficult to recruit or, in the case of 
critical units, retain personnel, the Secretary of the military 
department concerned may increase the rate of the educational 
assistance allowance applicable to that person to such rate in excess 
of the rate prescribed under subparagraphs (A) through (D) of 
subsection (b)(1) as the Secretary of Defense considers appropriate, 
but the amount of any such increase may not exceed $350 per month.
    ``(2) In the case of a person who has a skill or specialty 
designated by the Secretary of the military department concerned as a 
skill or specialty in which there is a critical shortage of personnel 
or for which it is difficult to recruit or, in the case of critical 
units, retain personnel, who is eligible for educational benefits under 
chapter 30 (other than section 3012) of this title and who meets the 
eligibility criteria specified in subparagraphs (A) and (B) of section 
3302(a)(1) of this title, the Secretary of the military department 
concerned may increase the rate of the educational assistance allowance 
applicable to that person to such rate in excess of the rate prescribed 
under section 3015 of this title as the Secretary of Defense considers 
appropriate, but the amount of any such increase may not exceed $350 
per month.
    ``(3) The authority provided by paragraphs (1) and (2) shall be 
exercised by the Secretaries of the military departments under 
regulations prescribed by the Secretary of Defense.
    ``(j) Licensing and Certification.--(1) Subject to paragraph (3), 
the amount of educational assistance payable under this subchapter for 
a licensing or certification test described in section 3452(b) of this 
title is the lesser of $2,000 or the fee charged for the test.
    ``(2) The number of months of entitlement charged in the case of 
any individual for such licensing or certification test is equal to the 
number (including any fraction) determined by dividing the total amount 
of educational assistance paid such individual for such test by the 
full-time monthly institutional rate of educational assistance which, 
but for paragraph (1), such individual would otherwise be paid under 
subsection (b).
    ``(3) In no event shall payment of educational assistance under 
this subsection for such a test exceed the amount of the individual's 
available entitlement under this subchapter.
``Sec. 3302. Eligibility for educational assistance
    ``(a) Eligibility.--A person who--
            ``(1) after June 30, 1985--
                    ``(A) enlists, reenlists, or extends an enlistment 
                as a Reserve for service in the Selected Reserve for a 
                period of not less than six years; or
                    ``(B) is appointed as, or is serving as, a reserve 
                officer and agrees to serve in the Selected Reserve for 
                a period of not less than six years in addition to any 
                other period of obligated service in the Selected 
                Reserve to which the person may be subject; and
            ``(2) before applying for benefits under this section, has 
        completed the requirements of a secondary school diploma (or an 
        equivalency certificate);
is entitled to educational assistance under section 3301 of this title.
    ``(b) Active Duty for Training Required.--Educational assistance 
may not be provided to a member under this subchapter until the member 
has completed the initial period of active duty for training required 
of the member.
    ``(c) Notification.--Each person who becomes entitled to 
educational assistance under subsection (a) shall at the time the 
person becomes so entitled be given a statement in writing summarizing 
the provisions of this subchapter and stating clearly and prominently 
the substance of sections 3304 and 3305 of this title as such sections 
may apply to the person. At the request of the Secretary of Veterans 
Affairs, the Secretary of Defense shall transmit a notice of 
entitlement for each such person to that Secretary.
    ``(d) Bar From Dual Eligibility.--A person who serves in the 
Selected Reserve may not receive credit for such service under both the 
program established by chapter 30 of this title and the program 
established by this subchapter but shall elect (in such form and manner 
as the Secretary of Veterans Affairs may prescribe) the program to 
which such service is to be credited. However, a person may not receive 
credit under the program established by this subchapter for service (in 
any grade) on full-time active duty or full-time National Guard duty 
for the purpose of organizing, administering, recruiting, instructing, 
or training the reserve components in a position which is included in 
the end strength required to be authorized each year by section 
115(a)(1)(B) of title 10.
``Sec. 3303. Time limitation for use of entitlement
    ``(a) Time Limitation.--Except as provided in subsection (b), the 
period during which a person entitled to educational assistance under 
this subchapter may use such person's entitlement expires (1) at the 
end of the 14-year period beginning on the date on which such person 
becomes entitled to such assistance, or (2) on the date the person is 
separated from the Selected Reserve, whichever occurs first.
    ``(b) Exceptions.--(1) In the case of a person--
            ``(A) who is separated from the Selected Reserve because of 
        a disability which was not the result of the individual's own 
        willful misconduct incurred on or after the date on which such 
        person became entitled to educational assistance under this 
        subchapter; or
            ``(B) who, on or after the date on which such person became 
        entitled to educational assistance under this subchapter ceases 
        to be a member of the Selected Reserve during the period 
        beginning on October 1, 1991, and ending on December 31, 2001, 
        by reason of the inactivation of the person's unit of 
        assignment or by reason of involuntarily ceasing to be 
        designated as a member of the Selected Reserve pursuant to 
        section 10143(a) of title 10,
        the period for using entitlement prescribed by subsection (a) 
        shall be determined without regard to clause (2) of such 
        subsection.
    ``(2) The provisions of section 3031(f) of this title shall apply 
to the period of entitlement prescribed by subsection (a).
    ``(3) The provisions of section 3031(d) of this title shall apply 
to the period of entitlement prescribed by subsection (a) in the case 
of a disability incurred in or aggravated by service in the Selected 
Reserve.
    ``(4) In the case of a member of the Selected Reserve of the Ready 
Reserve who serves on active duty pursuant to an order to active duty 
issued under section 12301(a), 12301(d), 12301(g), 12302, or 12304 of 
title 10--
            ``(A) the period of such active duty service plus four 
        months shall not be considered in determining the expiration 
        date applicable to such member under subsection (a); and
            ``(B) the member may not be considered to have been 
        separated from the Selected Reserve for the purposes of clause 
        (2) of such subsection by reason of the commencement of such 
        active duty service.
``Sec. 3304. Termination of assistance
    ``Educational assistance may not be provided under this 
subchapter--
            ``(1) to a member receiving financial assistance under 
        section 2107 of title 10 as a member of the Senior Reserve 
        Officers' Training Corps program; or
            ``(2) to a member who fails to participate satisfactorily 
        in required training as a member of the Selected Reserve.
``Sec. 3305. Failure to participate satisfactorily; penalties
    ``(a) Penalties.--At the option of the Secretary of the military 
department concerned, in consultation with the Secretary of Veterans 
Affairs, a member of the Selected Reserve of an armed force who does 
not participate satisfactorily in required training as a member of the 
Selected Reserve during a term of enlistment or other period of 
obligated service that created entitlement of the member to educational 
assistance under this subchapter, and during which the member has 
received such assistance, may--
            ``(1) be ordered to active duty for a period of two years 
        or the period of obligated service the person has remaining 
        under section 3302 of this title, whichever is less; or
            ``(2) be subject to repayment requirements prescribed by 
        the Secretary of Veterans Affairs that are similar to the 
        repayment provisions under section 303a(e) of title 37.
    ``(b) Collection of Funds.--The Secretary of Veterans Affairs shall 
collect any amount required to be repaid under subsection (a)(2).
    ``(c) Effect of Repayment.--Any repayment under subsection (a)(2) 
shall not affect the period of obligation of a member to serve as a 
Reserve in the Selected Reserve.
``Sec. 3306. Administration of program
    ``(a) Payments.--(1) Except as provided under paragraph (2), 
payments for educational assistance under this subchapter shall be made 
from funds appropriated or otherwise made available to the Department 
of Veterans Affairs for fiscal year 2009 or any subsequent fiscal year 
for the payment of readjustment benefits.
    ``(2) Payments for increases in rates of educational assistance 
under section 3301(i) shall be made from amounts in the Department of 
Defense Education Benefits Fund under section 2006 of title 10. Amounts 
for such payments shall be made available to the Secretary in 
accordance with the provisions of section 2006(d) of title 10.
    ``(b) Program Management.--Except as otherwise provided in this 
subchapter, the provisions of sections 3470, 3471, 3474, 3476, 3482(g), 
3483, and 3485 of this title and the provisions of subchapters I and II 
of chapter 36 of this title (with the exception of sections 3686(a) and 
3687) shall be applicable to the provision of educational assistance 
under this subchapter. The term `eligible veteran' and the term 
`person', as used in those provisions, shall be deemed for the purpose 
of the application of those provisions to this subchapter to refer to a 
person eligible for educational assistance under this subchapter.
    ``(c) Application of Benefits.--The Secretary of Veterans Affairs 
may not make a distinction in the application of educational assistance 
benefits under this subchapter on the basis of whether a person who is 
eligible for educational assistance under this subchapter first became 
so eligible under former chapter 1606 of title 10, as in effect 
immediately on September 30, 2008.
``Sec. 3307. Biennial report to Congress
    ``The Secretary of Veterans Affairs, in coordination with the 
Secretary of Defense, shall submit to Congress a report not later than 
March 1 of each odd-numbered year concerning the operation of the 
educational assistance program established by this subchapter during 
the preceding two fiscal years. Each such report shall include the 
number of members of the Selected Reserve of the Ready Reserve of each 
armed force receiving, and the number entitled to receive, educational 
assistance under this subchapter during those fiscal years. The 
Secretary may submit the report more frequently and adjust the period 
covered by the report accordingly.

   ``SUBCHAPTER II--RESERVE COMPONENT MEMBERS SUPPORTING CONTINGENCY 
                OPERATIONS AND CERTAIN OTHER OPERATIONS

``Sec. 3321. Purpose
    ``The purpose of this subchapter is to provide educational 
assistance to members of the reserve components called or ordered to 
active service in response to a war or national emergency declared by 
the President or Congress, in recognition of the sacrifices that those 
members make in answering the call to duty.
``Sec. 3322. Educational assistance program
    ``(a) Program Establishment.--The Secretary of Veterans Affairs, 
shall establish and maintain a program as prescribed in this subchapter 
to provide educational assistance to members of the Ready Reserve of 
the Armed Forces. The Secretary of each military department shall, 
under regulations prescribed by the Secretary of Defense, provide to 
individuals who meet the eligibility requirements under section 3323 of 
this title the opportunity to receive educational assistance under this 
subchapter.
    ``(b) Authorized Education Programs.--Educational assistance may be 
provided under this subchapter for pursuit of any program of education 
that is an approved program of education for purposes of chapter 30 of 
this title.
    ``(c) Benefit Amount.--(1) The educational assistance program 
established under subsection (a) shall provide for payment by the 
Secretary of Veterans Affairs of an educational assistance allowance to 
each member entitled to educational assistance under this subchapter 
who is pursuing a program of education authorized under subsection (b).
    ``(2) The educational assistance allowance provided under this 
subchapter shall be based on the applicable percent under paragraph (4) 
to the applicable rate provided under section 3015 of this title for a 
member whose entitlement is based on completion of an obligated period 
of active duty of three years.
    ``(3) The educational assistance allowance provided under this 
section for a person who is undertaking a program for which a reduced 
rate is specified in chapter 30 of this title, that rate shall be 
further adjusted by the applicable percent specified in paragraph (4).
    ``(4) The adjusted educational assistance allowance under paragraph 
(2) or (3), as applicable, shall be--
            ``(A) 40 percent in the case of a member of a reserve 
        component who performed active service for 90 consecutive days 
        but less than one continuous year;
            ``(B) 60 percent in the case of a member of a reserve 
        component who performed active service for one continuous year 
        but less than two continuous years; or
            ``(C) 80 percent in the case of a member of a reserve 
        component who performed active service for two continuous years 
        or more.
    ``(d) Maximum Months of Assistance.--(1) Subject to section 3695 of 
this title, the maximum number of months of educational assistance that 
may be provided to any member under this subchapter is 36 (or the 
equivalent thereof in part-time educational assistance).
    ``(2)(A) Notwithstanding any other provision of this subchapter or 
chapter 36 of this title, any payment of an educational assistance 
allowance described in subparagraph (B) shall not--
            ``(i) be charged against the entitlement of any individual 
        under this subchapter; or
            ``(ii) be counted toward the aggregate period for which 
        section 3695 of this title limits an individual's receipt of 
        assistance.
    ``(B) The payment of the educational assistance allowance referred 
to in subparagraph (A) is the payment of such an allowance to the 
individual for pursuit of a course or courses under this subchapter if 
the Secretary of Veterans Affairs finds that the individual--
            ``(i) had to discontinue such course pursuit as a result of 
        being ordered to serve on active duty under section 12301(a), 
        12301(d), 12301(g), 12302, or 12304 of title 10; and
            ``(ii) failed to receive credit or training time toward 
        completion of the individual's approved educational, 
        professional, or vocational objective as a result of having to 
        discontinue, as described in clause (i), the individual's 
        course pursuit.
    ``(C) The period for which, by reason of this subsection, an 
educational assistance allowance is not charged against entitlement or 
counted toward the applicable aggregate period under section 3695 of 
this title shall not exceed the portion of the period of enrollment in 
the course or courses for which the individual failed to receive credit 
or with respect to which the individual lost training time, as 
determined under subparagraph (B)(ii).
    ``(e) Availability of Assistance for Licensing and Certification 
Tests.--The provisions of section 3301(j) of this title shall apply to 
the provision of educational assistance under this subchapter, except 
that, in applying such section under this subchapter, the reference to 
subsection (b) in paragraph (2) of such section is deemed to be a 
reference to subsection (c) of this section.
    ``(f) Flight Training.--The Secretary of Veterans Affairs may 
approve the pursuit of flight training (in addition to a course of 
flight training that may be approved under section 3680A(b) of this 
title) by an individual entitled to educational assistance under this 
subchapter if--
            ``(1) such training is generally accepted as necessary for 
        the attainment of a recognized vocational objective in the 
        field of aviation;
            ``(2) the individual possesses a valid private pilot 
        certificate and meets, on the day the member begins a course of 
        flight training, the medical requirements necessary for a 
        commercial pilot certificate; and
            ``(3) the flight school courses meet Federal Aviation 
        Administration standards for such courses and are approved by 
        the Federal Aviation Administration and the State approving 
        agency.
``Sec. 3323. Eligibility for educational assistance
    ``(a) Eligibility.--On or after September 11, 2001, a member of a 
reserve component is entitled to educational assistance under this 
subchapter if the member--
            ``(1) served on active duty in support of a contingency 
        operation for 90 consecutive days or more; or
            ``(2) in the case of a member of the Army National Guard of 
        the United States or Air National Guard of the United States, 
        performed full time National Guard duty under section 502(f) of 
        title 32 for 90 consecutive days or more when authorized by the 
        President or Secretary of Defense for the purpose of responding 
        to a national emergency declared by the President and supported 
        by Federal funds.
    ``(b) Disabled Members.--Notwithstanding the eligibility 
requirements in subsection (a), a member who was ordered to active 
service as prescribed under subsection (a)(1) or (a)(2) but is released 
from duty before completing 90 consecutive days because of an injury, 
illness or disease incurred or aggravated in the line of duty shall be 
entitled to educational assistance under this subchapter at the rate 
prescribed in section 3322(c)(4)(A) of this title.
    ``(c) Written Notification.--(1) Each member who becomes entitled 
to educational assistance under subsection (a) shall be given a 
statement in writing prior to release from active service that 
summarizes the provisions of this subchapter and stating clearly and 
prominently the substance of section 3325 of this title as such section 
may apply to the member.
    ``(2) At the request of the Secretary of Veterans Affairs, the 
Secretary of the military department concerned shall transmit a notice 
of entitlement for each such member to that Secretary.
    ``(d) Bar From Dual Eligibility.--A member who qualifies for 
educational assistance under this subchapter may not receive credit for 
such service under both the program established by chapter 30 of this 
title and the program established by this subchapter but shall make an 
irrevocable election (in such form and manner as the Secretary of 
Veterans Affairs may prescribe) as to the program to which such service 
is to be credited.
    ``(e) Bar From Duplication of Educational Assistance Allowance.--
(1) Except as provided in paragraph (2), an individual entitled to 
educational assistance under this subchapter who is also eligible for 
educational assistance under subchapter I of this chapter, chapter 30, 
31, 32, or 35 of this title, or under the Hostage Relief Act of 1980 
(Public Law 96-449; 5 U.S.C. 5561 note) may not receive assistance 
under more than one such programs and shall elect (in such form and 
manner as the Secretary of Veterans Affairs may prescribe) under which 
program the member elects to receive educational assistance.
    ``(2) The restriction on duplication of educational assistance 
under paragraph (1) does not apply to the entitlement of educational 
assistance under section 3301(i) of this title.
``Sec. 3324. Time limit for use of entitlement
    ``(a) Duration of Entitlement.--Except as provided in subsection 
(b), a member remains entitled to educational assistance under this 
subchapter while serving--
            ``(1) in the Selected Reserve of the Ready Reserve, in the 
        case of a member called or ordered to active service while 
        serving in the Selected Reserve; or
            ``(2) in the Ready Reserve, in the case of a member ordered 
        to active duty while serving in the Ready Reserve (other than 
        the Selected Reserve).
    ``(b) Duration of Entitlement for Disabled Members.--(1) In the 
case of a person who is separated from the Ready Reserve because of a 
disability which was not the result of the individual's own willful 
misconduct incurred on or after the date on which such person became 
entitled to educational assistance under this subchapter, such person's 
entitlement to educational assistance expires at the end of the 10-year 
period beginning on the date on which such person became entitled to 
such assistance.
    ``(2) The provisions of subsections (d) and (f) of section 3031 of 
this title shall apply to the period of entitlement prescribed by 
paragraph (1).
``Sec. 3325. Termination of assistance
    ``(a) In General.--Except as provided in subsection (b), 
educational assistance may not be provided under this subchapter, or if 
being provided under this subchapter, shall be terminated--
            ``(1) if the member is receiving financial assistance under 
        section 2107 of title 10 as a member of the Senior Reserve 
        Officers' Training Corps program; or
            ``(2) when the member separates from the Ready Reserve, as 
        provided for under section 3324(a)(1) or section 3324(a)(2), as 
        applicable, of this title.
    ``(b) Exception.--Under regulations prescribed by the Secretary of 
Defense, educational assistance may be provided under this subchapter 
to a member of the Selected Reserve of the Ready Reserve who incurs a 
break in service in the Selected Reserve of not more than 90 days if 
the member continues to serve in the Ready Reserve during and after 
such break in service.
``Sec. 3326. Administration of program
    ``(a) Payments.--Payments for educational assistance under this 
subchapter shall be made from funds appropriated or otherwise made 
available to the Department of Veterans Affairs for fiscal year 2009 or 
any subsequent fiscal year for the payment of readjustment benefits.
    ``(b) Program Management.--Except as otherwise provided in this 
subchapter, the provisions of sections 3470, 3471, 3474, 3476, 3482(g), 
3483, and 3485 of this title and the provisions of subchapters I and II 
of chapter 36 of this title (with the exception of sections 3686(a) and 
3687) shall be applicable to the provision of educational assistance 
under this subchapter. The term `eligible veteran' and the term 
`person', as used in those provisions, shall be deemed for the purpose 
of the application of those provisions to this subchapter to refer to a 
person eligible for educational assistance under this subchapter.
    ``(c) Application of Benefits.--The Secretary of Veterans Affairs 
may not make a distinction in the application of educational assistance 
benefits under this subchapter on the basis of whether a person who is 
eligible for educational assistance under this subchapter first became 
so eligible under former chapter 1607 of title 10, as in effect 
immediately on September 30, 2008.''.
    (b) Transfer of Amounts for Benefits Accrued Before October 1, 
2008.--
            (1) Fiscal year 2009.--By not later than October 1, 2008, 
        the Secretary of Defense shall transfer to the Secretary of 
        Veterans Affairs from the funds in the Department of Defense 
        Education Benefits Fund under section 2006 of title 10, United 
        States Code, that are attributable to armed forces education 
        liabilities under chapters 1606 and 1607 of such title (other 
        than such liabilities under section 16131(i) of such title) 
        that accrue before such date, such funds as may be required by 
        the Secretary of Veterans Affairs to make payments with respect 
        to such liabilities during fiscal year 2009. Such amounts shall 
        be deposited into the Readjustment Benefits Account of the 
        Department of Veterans Affairs and shall be used only by the 
        Secretary of Veterans Affairs to make payments of educational 
        assistance under chapter 33 of title 38, United States Code, as 
        added by subsection (a). Funds deposited in the Readjustment 
        Benefits Account under this paragraph may not be used to pay 
        any benefit that is payable from the Readjustment Benefits 
        Account other than a payment of educational assistance under 
        chapter 33 of title 38, United States Code, as added by 
        subsection (a).
            (2) Treatment of receipts.--Receipts that would otherwise 
        be credited to the account established for the payment of 
        benefits under the Department of Defense Education Benefits 
        Fund under section 2006 of title 10, United States Code, for 
        the payment of benefits under the chapters 1606 and 1607 of 
        such title (other than such benefits under section 16131(i) of 
        such title), shall be credited to the Readjustment Benefits 
        Account of the Department of Veterans Affairs and merged with 
        funds deposited in that account under paragraph (1), to be 
        available for the same purposes and subject to the same 
        limitations as such funds.
            (3) Agreement for subsequent fiscal years.--By not later 
        than October 1, 2008, the Secretary of Defense and the 
        Secretary of Veterans Affairs shall enter into an agreement 
        under which the Secretary of Defense shall transfer to the 
        Secretary of Veterans Affairs all remaining funds in the 
        Department of Defense Education Benefits Fund under section 
        2006 of title 10, United States Code, that are attributable to 
        armed forces liabilities under the former chapters 1606 and 
        1607 of such title (other than such liabilities under section 
        16131(i) of such title) that accrue before such date. Such 
        amounts shall be deposited into the education account of the 
        Readjustment Benefits Account of the Department of Veterans 
        Affairs and shall be available to the Secretary of Veterans 
        Affairs to make payments of educational assistance under 
        chapter 33 of title 38, United States Code, as added by 
        subsection (a).
            (4) Report.--By not later than October 1, 2008, the 
        Secretary of Defense shall submit to the congressional defense 
        committees, the Committee on Veterans Affairs of the Senate, 
        and the Committee on Veterans Affairs of the House of 
        Representatives a detailed report on the agreement between the 
        Secretary of Defense and the Secretary of Veterans Affairs and 
        the status of the transfer of funds described in paragraph (2). 
        Such report shall include the date on which the Secretary of 
        Defense has agreed to complete such transfer.
    (c) Clerical Amendments.--The tables of chapters at the beginning 
of title 38, United States Code, and at the beginning of part III of 
such title, are each amended by inserting after the item relating to 
chapter 32 the following new item:

``33. Educational Assistance for Members of the Reserve         3301''.
                            Components.
    (d) Technical and Conforming Amendments.--
            (1) Conforming amendments on bar on dual eligibility for 
        benefits.--
                    (A) Section 3033 of title 38, United States Code, 
                is amended--
                            (i) in subsection (a)(1), by striking 
                        ``chapter 106 or 107 of title 10'' and 
                        inserting ``under subchapter I or subchapter II 
                        of chapter 33 of this title, under chapter 107 
                        of title 10''; and
                            (ii) in subsection (c), by striking 
                        ``chapter 106 of title 10'' and inserting 
                        ``subchapter I of chapter 33 of this title''.
                    (B) Section 3221(f) of such title is amended by 
                striking ``chapter 106 of title 10'' and inserting 
                ``subchapter I of chapter 33 of this title''.
                    (C) Section 3681 of such title is amended--
                            (i) in subsection (a), by striking ``34, 
                        35, or 36 of this title or 106 or 107 of title 
                        10,'' and inserting ``33, 34, 35, or 36 of this 
                        title''; and
                            (ii) in subsection (b)--
                                    (I) in paragraph (1), by inserting 
                                before the period the following: ``, 
                                and subchapters I and II of chapter 33 
                                of this title''; and
                                    (II) in paragraph (2), by striking 
                                ``Chapters 106 and'' and inserting 
                                ``Chapter''.
            (2) Conforming amendments relating to department of defense 
        education benefits fund.--
                    (A) Definition of armed forces education 
                liabilities.--Paragraph (1) of section 2006(b) of title 
                10, United States Code, is amended to read as follows:
            ``(1) The term `armed forces education liabilities' means 
        liabilities of the armed forces for benefits under chapter 30 
        and section 3301(i) of title 38 and for Department of Defense 
        benefits under paragraphs (3) and (4) of section 510(e) of this 
        title, including funds provided by the Secretary of Homeland 
        Security for education liabilities for the Coast Guard when it 
        is not operating as a service in the Department of the Navy.''.
                    (B) Definition of normal cost.--Paragraph (2) of 
                such section is amended by striking subparagraph (C) 
                and inserting the following new subparagraph:
                    ``(C) The present value of the future Department of 
                Defense benefits payable from the Fund (including funds 
                from the Department in which the Coast Guard is 
                operating) for educational assistance under section 
                3301(i) of title 38 to persons who during such period 
                become entitled to such assistance.''.
            (3) Cross-reference amendments.--
                    (A) Chapter 106 of title 10, united states code.--
                            (i) Section 2131 of title 10, United States 
                        Code, is amended to read as follows:
``Sec. 2131. Reference to subchapter I of chapter 33 of title 38
    ``Provisions of law related to educational assistance for members 
of the Selected Reserve under the Montgomery GI Bill program, as 
formerly set forth in this chapter and chapter 1606 of this title, are 
set forth in subchapter I of chapter 33 of title 38 (beginning with 
section 3301 of title 38).''.
                            (ii) The table of sections at the beginning 
                        of chapter 106 of such title is amended by 
                        striking the item relating to section 2131 and 
                        inserting the following new item:

``2131. Reference to subchapter I of chapter 33 of title 38.''.
                    (B) Chapter 1606 of title 10, united states code.--
                Chapter 1606 of such title is amended by striking all 
                after the chapter heading and inserting the following:

``Sec.
``16131. Reference to subchapter I of chapter 33 of title 38.
``Sec. 16131. Reference to subchapter I of chapter 33 of title 38
    ``Provisions of law related to educational assistance for members 
of the Selected Reserve under the Montgomery GI Bill program, as 
formerly set forth in this chapter, are set forth in subchapter I of 
chapter 33 of title 38 (beginning with section 3301 of that title).''.
                    (C) Chapter 1607 of title 10, united states code.--
                Chapter 1607 of such title is amended by striking all 
                after the chapter heading and inserting the following:

``Sec.
``16161. Reference to subchapter II of chapter 33 of title 38.
``Sec. 16161. Reference to subchapter II of chapter 33 of title 38
    ``Provisions of law related to educational assistance for members 
of the reserve components of the Armed Forces supporting contingency 
operations and certain other operations, as formerly set forth in this 
chapter, are set forth in subchapter II of chapter 33 of title 38 
(beginning with section 3321 of that title).''.
            (4) Additional conforming amendments.--
                    (A) Title 38, united states code.--
                            (i) Section 3485 of title 38, United States 
                        Code, is amended--
                                    (I) in subsection (a)(4)(E), by 
                                striking ``chapter 1606 or 1607 of 
                                title 10'' and inserting ``chapter 33 
                                of this title'';
                                    (II) in subsection (b), by striking 
                                ``chapter 30, 31, 32, or 34 of this 
                                title or chapter 1606 or 1607 of title 
                                10,'' and inserting ``chapter 30, 31, 
                                32, 33, or 34 of this title''; and
                                    (III) in subsection (e)(1)--
                                            (aa) by striking ``, 
                                        chapter 30, 31, 32, 35, or 36 
                                        of this title, or chapter 1606 
                                        or 1607 of title 10'' and 
                                        inserting ``or chapter 30, 31, 
                                        32, 33, 35, or 36 of this 
                                        title''; and
                                            (bb) by striking ``section 
                                        2135 of such title'' and 
                                        inserting ``section 3305 of 
                                        this title''.
                            (ii) Section 3672(c) of such title is 
                        amended--
                                    (I) in paragraph (3)(A), by 
                                striking ``chapters 30 and 35 of this 
                                title and chapter 1606 of title 10'' 
                                and inserting ``chapters 30, 33, and 35 
                                of this title''; and
                                    (II) in paragraph (4), by striking 
                                ``chapter 30 or 35 of this title, or 
                                chapter 1606 of title 10, as the case 
                                may be'' and inserting ``chapter 30, 
                                33, or 35 of this title''.
                            (iii) Section 3674 of such title is 
                        amended--
                                    (I) in subsection (a)(1), by 
                                striking ``and chapter 106 of title 
                                10''; and
                                    (II) in subsection (c), by 
                                inserting ``33,'' after ``32,''.
                            (iv) Section 3680A(d)(1) of such title is 
                        amended--
                                    (I) by striking ``or under chapter 
                                106 of title 10'' the first place it 
                                appears; and
                                    (II) by striking ``or chapter 30, 
                                31, 32, or 35 of this title or under 
                                chapter 106 of title 10'' and inserting 
                                ``or chapter 30, 31, 32, 33, or 35 of 
                                this title''.
                            (v) Section 3684A(a)(1) of such title is 
                        amended by striking ``chapter 30 or 32 of this 
                        title or in chapter 106 of title 10'' and 
                        inserting ``chapter 30, 32, or 33 of this 
                        title''.
                            (vi) Section 3688(b) of such title is 
                        amended by striking ``, chapter 30, 32, or 35 
                        of this title, or chapter 106 of title 10'' and 
                        inserting ``or chapter 30, 32, 33, or 35 of 
                        this title''.
                            (vii) Section 3689 of such title is amended 
                        by inserting ``33,'' after ``32,'' each place 
                        it appears.
                            (viii) Section 3692 of such title is 
                        amended--
                                    (I) in subsection (a), by striking 
                                ``or 35 of this title and chapter 1606 
                                of title 10'' and inserting ``33, or 35 
                                of this title''; and
                                    (II) in subsection (b), by striking 
                                ``, chapters 30, 32, and 35 of this 
                                title, and chapter 1606 of title 10'' 
                                and inserting ``and chapters 30, 32, 
                                33, and 35 of this title''.
                            (ix) Section 3695(a) of such title is 
                        amended--
                                    (I) by striking paragraph (4) and 
                                inserting the following new paragraph 
                                (4):
            ``(4) Chapters 30, 32, 34, 35, and 36 of this title and 
        subchapters I and II of chapter 33 of this title.''; and
                                    (II) in paragraph (5), by striking 
                                ``, 1606, 1607,''.
                            (x) Section 3697(a) of such title is 
                        amended by striking ``chapter 30, 32, 34, or 35 
                        of this title, or chapter 106 of title 10,'' 
                        and inserting ``chapter 30, 32, 33, 34, or 35 
                        of this title''.
                            (xi) Section 3697A(b)(1) of such title is 
                        amended by striking ``or 32 of this title or 
                        chapter 106'' and inserting ``32, or 33 of this 
                        title or chapter''.
                    (B) Title 10, united states code.--Section 510(h) 
                of title 10, United States Code, is amended--
                            (i) in paragraph (1)--
                                    (I) in subparagraph (A), by 
                                striking ``additional educational 
                                assistance under chapter 1606 of this 
                                title or to basic educational 
                                assistance under subchapter II of 
                                chapter 30 of title 38'' and inserting 
                                ``basic educational assistance under 
                                subchapter II of chapter 30 of title 38 
                                or educational assistance under 
                                subchapter I of chapter 33 of that 
                                title''; and
                                    (II) in subparagraph (B)--
                                            (aa) by striking ``chapter 
                                        1606 of this title or chapter 
                                        30 of title 38'' and inserting 
                                        ``chapter 30 or subchapter I of 
                                        chapter 33 of title 38''; and
                                            (bb) by striking ``either 
                                        such chapter'' each place it 
                                        appears and inserting ``either 
                                        such provisions''; and
                            (ii) in paragraph (3)(A), by striking 
                        ``educational assistance under chapter 1606 of 
                        this title'' and all that follows through ``as 
                        the case may be'' and inserting ``basic 
                        educational assistance under chapter 30 of 
                        title 38 or educational assistance under 
                        subchapter I of chapter 33 of that title from 
                        an entitlement to such basic educational 
                        assistance under chapter 30 of that title or 
                        educational assistance under subchapter I of 
                        chapter 33 of that title, as the case may be''.
                    (C) Elementary and secondary education act of 
                1965.--Section 2304(g) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 6674(g)) is amended by 
                striking ``chapter 30 of title 38 or chapter 1606 of 
                title 10'' and inserting ``chapter 30 or 33 of title 
                38''.
                    (D) Internal revenue code of 1986.--Section 
                25A(g)(2)(B) of the Internal Revenue Code of 1986 is 
                amended by striking ``chapter 30, 31, 32, 34, or 35 of 
                title 38, United States Code, or under chapter 1606 of 
                title 10, United States Code'' and inserting ``chapter 
                30, 31, 32, 33, 34, or 35 of title 38, United States 
                Code''.
    (e) Effective Date.--This section and the amendments made by this 
section shall take effect on October 1, 2008.

SEC. 526. SECRETARY OF DEFENSE EVALUATION OF THE ADEQUACY OF THE 
              DEGREE-GRANTING AUTHORITIES OF CERTAIN MILITARY 
              UNIVERSITIES AND EDUCATIONAL INSTITUTIONS.

    (a) Evaluation Required.--The Secretary of Defense shall carry out 
an evaluation of the degree-granting authorities provided by title 10, 
United States Code, to the academic institutions specified in 
subsection (b). The evaluation shall assess whether the current 
process, under which each degree conferred by each institution must 
have a statutory authorization, remains adequate, appropriate, and 
responsive enough to meet emerging military service education 
requirements.
    (b) Specified Institutions.--The academic institutions covered by 
subsection (a) are the following:
            (1) The National Defense University.
            (2) The Army War College and the United States Army Command 
        and General Staff College.
            (3) The College of Naval Warfare and the College of Naval 
        Command and Staff.
            (4) The United States Naval Postgraduate School.
            (5) Air University and the United States Air Force 
        Institute of Technology.
            (6) The Marine Corps University.
    (c) Report.--Not later than April 1, 2008, the Secretary shall 
submit to the Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Representatives a report on 
the evaluation. The report shall include the results of the evaluation 
and any recommendations for changes to policy or law that the Secretary 
considers appropriate.

SEC. 527. NAVY JUNIOR RESERVE OFFICERS' TRAINING CORPS UNIT FOR 
              SOUTHOLD, MATTITUCK, AND GREENPORT HIGH SCHOOLS.

    For purposes of meeting the requirements of section 2031(b) of 
title 10, United States Code, the Secretary of the Navy may, and to the 
extent the schools request shall, treat any two or more of the 
following schools (all in Southold, Suffolk County, New York) as a 
single institution:
            (1) Southold High School.
            (2) Mattituck High School.
            (3) Greenport High School.

                Subtitle D--General Service Authorities

SEC. 531. AUTHORITY TO REDUCE REQUIRED SERVICE OBLIGATION FOR INITIAL 
              APPOINTMENT OF QUALIFIED HEALTH PROFESSIONALS AS OFFICERS 
              IN CRITICAL SPECIALTIES.

    Section 651 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(c) For the armed forces under the jurisdiction of the Secretary 
of Defense, the Secretary may reduce the total initial period of 
required service to less than the minimum otherwise established 
pursuant to subsection (a) in the case of the initial appointment of a 
commissioned officer in a critically short health professional 
specialty, as determined by the Secretary. The period of required 
service may not be reduced to less than two years.''.

SEC. 532. REENLISTMENT IN FORMER ENLISTED GRADE AFTER SERVICE AS AN 
              OFFICER.

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

       Subtitle E--Military Justice and Legal Assistance Matters

SEC. 541. AUTHORITY TO DESIGNATE CERTAIN CIVILIAN EMPLOYEES OF THE 
              FEDERAL GOVERNMENT AS ELIGIBLE FOR LEGAL ASSISTANCE FROM 
              DEPARTMENT OF DEFENSE LEGAL STAFF RESOURCES.

    Section 1044(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(6) Civilian employees of the Federal Government serving 
        with, or preparing to serve with, an armed force in support of 
        a contingency operation, as designated in regulations 
        prescribed by the Secretary concerned.''.

                   Subtitle F--Decorations and Awards

SEC. 551. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              LESLIE H. SABO, JR., FOR ACTS OF VALOR DURING THE VIETNAM 
              WAR.

    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the President is authorized and 
requested to award the Medal of Honor under section 3741 of such title 
to Leslie H. Sabo, Jr., for the acts of valor during the Vietnam War 
described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Leslie H. Sabo, Jr., on May 10, 1970, 
as a member of the United States Army serving in the grade of 
Specialist Four in the Republic of Vietnam with Company B of the 3d 
Battalion, 506th Infantry Regiment, 101st Airborne Division.

SEC. 552. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              HENRY SVEHLA FOR ACTS OF VALOR DURING THE KOREAN WAR.

    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the President is authorized and 
requested to award the Medal of Honor under section 3741 of such title 
to Henry Svehla for the acts of valor described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Henry Svehla on June 12, 1952, as a 
member of the United States Army serving in the grade of Private First 
Class in Korea with Company F of the 32d Infantry Regiment, 7th 
Infantry Division.

SEC. 553. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              WOODROW W. KEEBLE FOR ACTS OF VALOR DURING THE KOREAN 
              WAR.

    (a) Waiver of Time Limitations.--Notwithstanding the time 
limitations specified in section 3744 of title 10, United States Code, 
or any other time limitation with respect to the awarding of certain 
medals to persons who served in the Armed Forces, the President is 
authorized and requested to award the Medal of Honor under section 3741 
of such title to Woodrow W. Keeble for the acts of valor described in 
subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Woodrow W. Keeble of the United 
States Army as an acting platoon leader on October 20, 1950, during the 
Korean War.

SEC. 554. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              PRIVATE PHILIP G. SHADRACH FOR ACTS OF VALOR DURING THE 
              CIVIL WAR.

    (a) Authorization.--Notwithstanding the time limitations specified 
in section 3744 of title 10, United States Code, or any other time 
limitation with respect to the awarding of certain medals to persons 
who served in the Armed Forces, the President is authorized and 
requested to award the Medal of Honor under section 3741 of title 10, 
United States Code, posthumously to Private Philip G. Shadrach of 
Company K, 2nd Ohio Volunteer Infantry Regiment for the acts of valor 
described in subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of Philip G. Shadrach as one of Andrews 
Raiders during the Civil War on April 12, 1862.

SEC. 555. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF HONOR TO 
              PRIVATE GEORGE D. WILSON FOR ACTS OF VALOR AS ONE OF 
              ANDREWS RAIDERS DURING THE CIVIL WAR.

    (a) Authorization.--The President is authorized and requested to 
award the Medal of Honor under section 3741 of title 10, United States 
Code, posthumously to Private George D. Wilson of Company B, 2nd Ohio 
Volunteer Infantry Regiment for the acts of valor described in 
subsection (b).
    (b) Acts of Valor Described.--The acts of valor referred to in 
subsection (a) are the actions of George D. Wilson as one of Andrews 
Raiders during the Civil War on April 12, 1862.

SEC. 556. COLD WAR VICTORY MEDAL.

    (a) Authority.--Chapter 57 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1135. Cold War Victory Medal
    ``(a) Medal Authorized.--The Secretary concerned shall issue a 
service medal, to be known as the `Cold War Victory Medal', to persons 
eligible to receive the medal under subsection (b). The Cold War 
Victory Medal shall be of an appropriate design approved by the 
Secretary of Defense, with ribbons, lapel pins, and other 
appurtenances.
    ``(b) Eligible Persons.--The following persons are eligible to 
receive the Cold War Victory Medal:
            ``(1) A person who--
                    ``(A) performed active duty or inactive duty 
                training as an enlisted member during the Cold War;
                    ``(B) completed the person's initial term of 
                enlistment or, if discharged before completion of such 
                initial term of enlistment, was honorably discharged 
                after completion of not less than 180 days of service 
                on active duty; and
                    ``(C) has not received a discharge less favorable 
                than an honorable discharge or a release from active 
                duty with a characterization of service less favorable 
                than honorable.
            ``(2) A person who--
                    ``(A) performed active duty or inactive duty 
                training as a commissioned officer or warrant officer 
                during the Cold War;
                    ``(B) completed the person's initial service 
                obligation as an officer or, if discharged or separated 
                before completion of such initial service obligation, 
                was honorably discharged after completion of not less 
                than 180 days of service on active duty; and
                    ``(C) has not been released from active duty with a 
                characterization of service less favorable than 
                honorable and has not received a discharge or 
                separation less favorable than an honorable discharge.
    ``(c) One Award Authorized.--Not more than one Cold War Victory 
Medal may be issued to any person.
    ``(d) Issuance to Representative of Deceased.--If a person 
described in subsection (b) dies before being issued the Cold War 
Victory Medal, the medal shall be issued to the person's 
representative, as designated by the Secretary concerned.
    ``(e) Replacement.--Under regulations prescribed by the Secretary 
concerned, a Cold War Victory Medal that is lost, destroyed, or 
rendered unfit for use without fault or neglect on the part of the 
person to whom it was issued may be replaced without charge.
    ``(f) Application for Medal.--The Cold War Victory Medal shall be 
issued upon receipt by the Secretary concerned of an application for 
such medal, submitted in accordance with such regulations as the 
Secretary prescribes.
    ``(g) Uniform Regulations.--The Secretary of Defense shall ensure 
that regulations prescribed by the Secretaries of the military 
departments under this section are uniform so far as is practicable.
    ``(h) Definition.--In this section, the term `Cold War' means the 
period beginning on September 2, 1945, and ending at the end of 
December 26, 1991.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1135. Cold War Victory Medal.''.

     Subtitle G--Impact Aid and Defense Dependents Education System

SEC. 561. TUITION ASSISTANCE FOR MILITARY DEPENDENTS IN OVERSEAS AREAS 
              WHERE SCHOOLS OPERATED BY DEFENSE DEPENDENTS' EDUCATION 
              SYSTEM ARE NOT REASONABLY AVAILABLE.

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

SEC. 562. CONTINUATION OF AUTHORITY TO ASSIST LOCAL EDUCATIONAL 
              AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED 
              FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) Assistance to Schools With Significant Numbers of Military 
Dependent Students.--Of the amount authorized to be appropriated 
pursuant to section 301(5) for operation and maintenance for Defense-
wide activities, $50,000,000 shall be available only for the purpose of 
providing assistance to local educational agencies under subsection (a) 
of section 572 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b).
    (b) Assistance to Schools With Enrollment Changes Due to Base 
Closures, Force Structure Changes, or Force Relocations.--Of the amount 
authorized to be appropriated pursuant to section 301(5) for operation 
and maintenance for Defense-wide activities, $15,000,000 shall be 
available only for the purpose of providing assistance to local 
educational agencies under subsection (b) of such section 572.
    (c) Local Educational Agency Defined.--In this section, the term 
``local educational agency'' has the meaning given that term in section 
8013(9) of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7713(9)).

                       Subtitle H--Other Matters

SEC. 571. EXTENSION OF AUTHORITY TO ACCEPT GIFTS, DEVISES, OR BEQUESTS 
              TO BENEFIT MEMBERS OF THE ARMED FORCES, DEPENDENTS, AND 
              CIVILIAN EMPLOYEES OF THE DEPARTMENT OF DEFENSE.

    Section 2601(b)(4) of title 10, United States Code, is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2010''.

SEC. 572. UNIFORM PERFORMANCE POLICIES FOR MILITARY BANDS AND OTHER 
              MUSICAL UNITS.

    (a) In General.--
            (1) Consolidation of separate authorities.--Chapter 49 of 
        title 10, United States Code, is amended by inserting after 
        section 973 the following new section:
``Sec. 974. Uniform performance policies for military bands and other 
              musical units
    ``(a) Restrictions on Competition and Remuneration.--Bands, 
ensembles, choruses, or similar musical units of the armed forces, 
including individual members of such a unit performing in an official 
capacity, may not--
            ``(1) perform music in competition with local civilian 
        musicians; or
            ``(2) receive remuneration for official performances.
    ``(b) Members.--A member of a band, ensemble, chorus, or similar 
musical unit of the armed forces may perform music in the member's 
personal capacity, as an individual or part of a group, for 
remuneration or otherwise, if the member does not wear a military 
uniform for the performance, does not identify himself or herself as a 
member of the armed forces in connection with the performance, and 
complies with all applicable regulations and standards of conduct.
    ``(c) Recordings.--Bands, ensembles, choruses, or similar musical 
units of the armed forces, when authorized pursuant to Department of 
Defense regulations, may produce recordings for distribution to the 
public at a cost not to exceed production and distribution expenses. 
The proceeds from such recordings shall be credited to the 
appropriation used to cover production and distribution expenses.
    ``(d) Competition Defined.--(1) In this section, the term `perform 
music in competition with local civilian musicians' includes 
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.
    ``(2) The term 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, such as 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.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 973 the following new item:

``974. Uniform performance policies for military bands and other 
                            musical units.''.
    (b) Repeal of Separate Service Authorities.--
            (1) Repeal.--Sections 3634, 6223, and 8634 of such title 
        are repealed.
            (2) Table of sections.--(A) The table of sections at the 
        beginning of chapter 349 of such title is amended by striking 
        the item relating to section 3634.
            (B) The table of sections at the beginning of chapter 565 
        of such title is amended by striking the item relating to 
        section 6223.
            (C) The table of sections at the beginning of chapter 849 
        of such title is amended by striking the item relating to 
        section 8634.

SEC. 573. REPEAL OF LIMITATION ON NUMBER OF ACADEMIES OF DEPARTMENT OF 
              DEFENSE STARBASE PROGRAM IN A SINGLE STATE.

    Section 2193b(c) of title 10, United States Code, is amended by 
striking paragraph (3).

SEC. 574. COMBAT VETERANS MENTORING PROGRAM FOR CURRENT MEMBERS OF THE 
              ARMED FORCES.

    (a) Program Required.--The Secretary of Defense, in coordination 
with the Secretaries of the military departments, shall institute a 
program to give veterans of the Armed Forces who have served in combat 
the opportunity to meet on a regular basis with, to inform, to exchange 
ideas with, and to mentor current members of the Armed Forces.
    (b) Elements of Program.--The program may build on existing 
programs within the military departments, where they exist, and shall 
focus on providing members of the Armed Forces, particularly military 
personnel and leaders at the small unit level, varied perspectives on 
both the human and military aspects of war from those who have 
experienced it. In carrying out the program, the Secretary shall seek 
to provide opportunities for the combat veterans not only to meet with 
current members of the Armed Forces before and after their deployment 
to combat zones, but also during deployments.

SEC. 575. RECOGNITION OF MEMBERS OF THE MONUMENTS, FINE ARTS, AND 
              ARCHIVES PROGRAM OF THE CIVIL AFFAIRS AND MILITARY 
              GOVERNMENT SECTIONS OF THE ARMED FORCES DURING AND 
              FOLLOWING WORLD WAR II.

    Congress hereby--
            (1) recognizes the men and women who served in the 
        Monuments, Fine Arts, and Archives program (MFAA) under the 
        Civil Affairs and Military Government Sections of the United 
        States Armed Forces for their heroic role in the preservation, 
        protection, and restitution of monuments, works of art, and 
        other artifacts of inestimable cultural importance in Europe 
        and Asia during and following World War II;
            (2) recognizes that without their dedication and service, 
        many more of the world's artistic and historic treasures would 
        have been destroyed or lost forever amidst the chaos and 
        destruction of World War II;
            (3) acknowledges that the detailed catalogues, 
        documentation, inventories, and photographs developed and 
        compiled by MFAA personnel during and following World War II, 
        have made, and continue to make, possible the restitution of 
        stolen works of art to their rightful owners; and
            (4) commends and extols the members of the MFAA for 
        establishing a precedent for action to protect cultural 
        property in the event of armed conflict, and by their action 
        setting a standard not just for one country, but for people of 
        all nations to acknowledge and uphold.

SEC. 576. PROGRAM TO COMMEMORATE 50TH ANNIVERSARY OF THE VIETNAM WAR.

    (a) Commemorative Program.--The Secretary of Defense shall conduct 
a program to commemorate the 50th anniversary of the Vietnam War. In 
conducting the commemorative program, the Secretary shall coordinate, 
support, and facilitate other programs and activities of the Federal 
Government, State and local governments, and other persons and 
organizations in commemoration of the Vietnam War.
    (b) Commencement and Duration of Program.--The commemorative 
program shall commence not later than 180 days after the date of the 
enactment of this Act and continue through December 31, 2025. The 
Secretary of Defense shall determine the schedule of major events and 
priority of efforts during that period in order to ensure achievement 
of the objectives specified in subsection (c).
    (c) Commemorative Activities and Objectives.--The commemorative 
program may include activities and ceremonies to achieve the following 
objectives:
            (1) To thank and honor veterans of the Vietnam War, 
        including personnel who were held as prisoners of war or listed 
        as missing in action, for their service and sacrifice on behalf 
        of the United States and to thank and honor the families of 
        these veterans.
            (2) To highlight the service of the Armed Forces during the 
        Vietnam War and the contributions of Federal agencies and 
        governmental and non-governmental organizations that served 
        with, or in support of, the Armed Forces.
            (3) To pay tribute to the contributions made on the home 
        front by the people of the United States during the Vietnam 
        War.
            (4) To highlight the advances in technology, science, and 
        medicine related to military research conducted during the 
        Vietnam War.
            (5) To recognize the contributions and sacrifices made by 
        the allies of the United States during the Vietnam War.
    (d) Names and Symbols.--The Secretary of Defense shall have the 
sole and exclusive right to use the name ``The United States of America 
Vietnam War Commemoration'', and such seal, emblems, and badges 
incorporating such name as the Secretary may lawfully adopt. Nothing in 
this section may be construed to supersede rights that are established 
or vested before the date of the enactment of this Act.
    (e) Commemorative Fund.--
            (1) Establishment and administration.--There is established 
        in the Treasury of the United States an account to be known as 
        the ``Department of Defense Vietnam War Commemoration Fund'' 
        (in this section referred to as the ``Fund''). The Fund shall 
        be administered by the Secretary of Defense.
            (2) Use of fund.--The Secretary shall use the assets of the 
        Fund only for the purpose of conducting the commemorative 
        program and shall prescribe such regulations regarding the use 
        of the Fund as the Secretary considers to be necessary.
            (3) Deposits.--There shall be deposited into the Fund--
                    (A) amounts appropriated to the Fund;
                    (B) proceeds derived from the Secretary's use of 
                the exclusive rights described in subsection (d);
                    (C) donations made in support of the commemorative 
                program by private and corporate donors; and
                    (D) funds transferred to the Fund by the Secretary 
                from funds appropriated for fiscal year 2008 and 
                subsequent years for the Department of Defense.
            (4) Availability.--Subject to subsection (g)(2), amounts 
        deposited under paragraph (3) shall constitute the assets of 
        the Fund and remain available until expended.
            (5) Budget request.--Beginning with the budget 
        justification materials submitted by the Secretary in support 
        of the budget of the President for fiscal year 2009, the 
        Secretary shall establish a separate budget line for the 
        commemorative program. In the budget justification materials, 
        the Secretary shall--
                    (A) identify and explain the amounts expended for 
                the commemorative program in the year preceding the 
                budget request;
                    (B) identify and explain the amounts being 
                requested to support the commemorative program for the 
                fiscal year of the budget request and two subsequent 
                years; and
                    (C) present a summary of the fiscal status of the 
                Fund.
    (f) Acceptance of Voluntary Services.--
            (1) Authority to accept services.--Notwithstanding section 
        1342 of title 31, United States Code, the Secretary of Defense 
        may accept from any person voluntary services to be provided in 
        furtherance of the commemorative program.
            (2) Treatment of volunteers.--A person providing voluntary 
        services under this subsection shall be considered to be a 
        Federal employee for purposes of chapter 81 of title 5, United 
        States Code, relating to compensation for work-related 
        injuries. The person shall also be considered a special 
        governmental employee for purposes of standards of conduct and 
        sections 202, 203, 205, 207, 208, and 209 of title 18, United 
        States Code. A person who is not otherwise employed by the 
        Federal Government shall not be considered to be a Federal 
        employee for any other purpose by reason of the provision of 
        voluntary services under this subsection.
            (3) Reimbursement of incidental expenses.--The Secretary 
        may provide for reimbursement of incidental expenses incurred 
        by a person providing voluntary services under this subsection. 
        The Secretary shall determine which expenses are eligible for 
        reimbursement under this paragraph.
    (g) Final Report.--
            (1) Report required.--Not later than 60 days after the end 
        of the commemorative period specified in subsection (b), the 
        Secretary of Defense shall submit to Congress a report 
        containing an accounting of--
                    (A) all of the funds deposited into and expended 
                from the Fund;
                    (B) any other funds expended under this section; 
                and
                    (C) any unobligated funds remaining in the Fund.
            (2) Treatment of unobligated funds.--Unobligated amounts 
        remaining in the Fund as of the end of the commemorative period 
        specified in subsection (b) shall be held in the Fund until 
        transferred by law.
    (h) Limitation on Expenditures.--Total expenditures from the Fund, 
using amounts appropriated to the Department of Defense, may not exceed 
$5,000,000 for fiscal year 2008 or for any subsequent fiscal year to 
carry out the commemorative program.
    (i) Authorization of Appropriations.--There is authorized to be 
appropriated $3,000,000 to the Fund for fiscal year 2008.

          TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

                     Subtitle A--Pay and Allowances

Sec. 601. Fiscal year 2008 increase in military basic pay.
Sec. 602. Basic allowance for housing for reserve component members 
                            without dependents who attend accession 
                            training while maintaining a primary 
                            residence.
Sec. 603. Income replacement payments for reserve component members 
                            experiencing extended and frequent 
                            mobilization for active duty service.
Sec. 604. Participation of members of the uniformed services in Thrift 
                            Savings Plan.
Sec. 605. Enhancement of referral bonus to encourage service in the 
                            Army.
Sec. 606. Guaranteed pay increase for members of the Armed Forces of 
                            one-half of one percentage point higher 
                            than Employment Cost Index.

           Subtitle B--Bonuses and Special and Incentive Pays

Sec. 611. Extension of certain bonus and special pay authorities for 
                            reserve forces.
Sec. 612. Extension of certain bonus and special pay authorities for 
                            health care professionals.
Sec. 613. Extension of special pay and bonus authorities for nuclear 
                            officers.
Sec. 614. Extension of authorities relating to payment of other bonuses 
                            and special pays.
Sec. 615. Increase in incentive special pay and multiyear retention 
                            bonus for medical officers.
Sec. 616. Increase in dental officer additional special pay.
Sec. 617. Definition of sea duty for career sea pay to include multi-
                            crew ships.
Sec. 618. Reenlistment bonus for members of the Selected Reserve.
Sec. 619. Availability of Selected Reserve accession bonus for persons 
                            who previously served in the Armed Forces 
                            for a short period.
Sec. 620. Availability of nuclear officer continuation pay for officers 
                            with more than 26 years of commissioned 
                            service.
Sec. 621. Waiver of years-of-service limitation on receipt of critical 
                            skills retention bonus.
Sec. 622. Accession bonus for participants in the Armed Forces Health 
                            Professional Scholarship and Financial 
                            Assistance Program.
Sec. 623. Payment of assignment incentive pay for Reserve members 
                            serving in combat zone for more than 22 
                            months.
Sec. 624. Increase in maximum monthly rate of hardship duty pay.

            Subtitle C--Travel and Transportation Allowances

Sec. 631. Allowance for participation in Reserve screening conducted 
                            through electronic means.
Sec. 632. Allowance for civilian clothing for members of the Armed 
                            Forces traveling in connection with medical 
                            evacuation.
Sec. 633. Moving expenses for JROTC instructors who agree to serve in 
                            hard-to-fill positions.
Sec. 634. Transportation of additional motor vehicle of members on 
                            change of permanent station to or from 
                            nonforeign areas outside the continental 
                            United States.
Sec. 635. Payment of inactive duty training travel costs for certain 
                            Selected Reserve members.

             Subtitle D--Retired Pay and Survivor Benefits

Sec. 641. Disregarding periods of confinement of member in determining 
                            benefits for dependents who are victims of 
                            abuse by the member.
Sec. 642. Continuation of authority for members of the Armed Forces to 
                            designate a recipient for a portion of the 
                            death gratuity.
Sec. 643. Recoupment of annuity amounts previously paid, but subject to 
                            offset for dependency and indemnity 
                            compensation.
Sec. 644. Special survivor indemnity allowance for persons affected by 
                            required Survivor Benefit Plan annuity 
                            offset for dependency and indemnity 
                            compensation.
Sec. 645. Expansion of combat-related special compensation eligibility 
                            for chapter 61 military retirees with fewer 
                            than 20 years of creditable service.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

Sec. 651. Access to Defense Commissary and Exchange System by surviving 
                            spouse and dependents of certain disabled 
                            veterans.
Sec. 652. Authority to continue commissary and exchange benefits for 
                            certain involuntarily separated members of 
                            the Armed Forces.
Sec. 653. Authorization of installment deductions from pay of employees 
                            of executive branch instrumentalities to 
                            collect indebtedness to the United States.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

Sec. 661. Consolidation of special pay, incentive pay, and bonus 
                            authorities of the uniformed services.
Sec. 662. Transitional provisions.

                       Subtitle G--Other Matters

Sec. 671. Expansion of education loan repayment program for members of 
                            the Selected Reserve.
Sec. 672. Ensuring entry into United States after time abroad for 
                            permanent resident alien military spouses 
                            and children.
Sec. 673. Overseas naturalization for military spouses and children.

                     Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2008 INCREASE IN MILITARY BASIC PAY.

    (a) Waiver of Section 1009 Adjustment.--The adjustment to become 
effective during fiscal year 2008 required by section 1009 of title 37, 
United States Code, in the rates of monthly basic pay authorized 
members of the uniformed services shall not be made.
    (b) Increase in Basic Pay.--Effective on January 1, 2008, the rates 
of monthly basic pay for members of the uniformed services are 
increased by 3.5 percent.
    (c) Source of Funds for Portion of Fiscal Year 2008 Obligations.--
During fiscal year 2008, the funds necessary to satisfy the obligations 
incurred by the Department of Defense to provide the increase under 
subsection (b) in the rates of monthly basic pay for members of the 
Army, Navy, Air Force, and Marine Corps in excess of 3 percent shall be 
derived from amounts appropriated pursuant to the authorization of 
appropriations in section 1514 for military personnel accounts of the 
Department.

SEC. 602. BASIC ALLOWANCE FOR HOUSING FOR RESERVE COMPONENT MEMBERS 
              WITHOUT DEPENDENTS WHO ATTEND ACCESSION TRAINING WHILE 
              MAINTAINING A PRIMARY RESIDENCE.

    (a) Availability of Allowance.--Section 403(g)(1) of title 37, 
United States Code, is amended--
            (1) by inserting ``to attend accession training,'' after 
        ``active duty'' the first place it appears; and
            (2) by inserting a comma after ``contingency operation'' 
        the first place it appears.
    (b) Source of Funds for Portion of Fiscal Year 2008 Obligations.--
During fiscal year 2008, the funds necessary to satisfy the obligations 
incurred by the Department of Defense as a result of the amendment made 
by subsection (a)(1) to provide a basic allowance for housing for 
reserve component members without dependents who attend accession 
training while maintaining a primary residence shall be derived from 
amounts appropriated pursuant to the authorization of appropriations in 
section 1514 for military personnel accounts of the Department.
    (c) Effective Date.--The amendments made by subsection (a) shall 
apply with respect to months beginning on or after October 1, 2007.

SEC. 603. INCOME REPLACEMENT PAYMENTS FOR RESERVE COMPONENT MEMBERS 
              EXPERIENCING EXTENDED AND FREQUENT MOBILIZATION FOR 
              ACTIVE DUTY SERVICE.

    (a) Clarification Regarding When Payments Required.--Subsection (a) 
of section 910 of title 37, United States Code, is amended by inserting 
before the period at the end of the first sentence the following: ``, 
when the total monthly military compensation of the member is less than 
the average monthly civilian income of the member''.
    (b) Eligibility.--Subsection (b) of such section is amended to read 
as follows:
    ``(b) Eligibility.--(1) A member of a reserve component is entitled 
to a payment under this section for any full month of active duty of 
the member, when the total monthly military compensation of the member 
is less than the average monthly civilian income of the member, while 
the member is on active duty under an involuntary mobilization order, 
following the date on which the member--
            ``(A) completes 540 continuous days of service on active 
        duty under an involuntary mobilization order;
            ``(B) completes 720 cumulative days on active duty under an 
        involuntary mobilization order during the previous 1,800 days; 
        or
            ``(C) is involuntarily mobilized for service on active duty 
        for a period of 180 days or more within 180 days after the date 
        of the member's separation from a previous period of active 
        duty for a period of 180 days or more.
    ``(2) The entitlement of a member of a reserve component to a 
payment under this section also shall commence or, if previously 
commenced under paragraph (1), shall continue if the member--
            ``(A) satisfies the required number of days on active duty 
        specified in subparagraph (A) or (B) of paragraph (1) or was 
        involuntarily mobilized as provided in subparagraph (C) of such 
        paragraph; and
            ``(B) is retained on active duty under subparagraph (A) or 
        (B) of section 12301(h)(1) of title 10 because of an injury or 
        illness incurred or aggravated while the member was assigned to 
        duty in an area for which special pay under section 310 of this 
        title is available.''.
    (c) Termination of Authority.--Subsection (g) of such section is 
amended to read as follows:
    ``(g) Termination.--No payment shall be made to a member under this 
section for months beginning after December 31, 2008, unless the 
entitlement of the member to payments under this section commenced on 
or before that date.''.

SEC. 604. PARTICIPATION OF MEMBERS OF THE UNIFORMED SERVICES IN THRIFT 
              SAVINGS PLAN.

    (a) Semi-Monthly Deposit of Member's Contributions.--Section 1014 
of title 37, United States Code, is amended by adding at the end the 
following new subsection:
    ``(c) Notwithstanding subsection (a), in the case of a member of 
the uniformed services who has elected to participate in the Thrift 
Savings Plan under section 211 of this title, one-half of the monthly 
contribution of the member to the Plan shall be made in midmonth.''.
    (b) Semi-Monthly Repayment of Borrowed Amounts.--Section 211 of 
such title is amended by adding at the end the following new 
subsection:
    ``(e) Repayment of Amounts Borrowed From Member Account.--If a loan 
is issued to a member under section 8433(g) of title 5 from funds in 
the member's account in the Thrift Savings Plan, repayment of the loan 
shall be required on the same semi-monthly basis as authorized for 
contributions to the Fund under section 1014(c) of this title.''.

SEC. 605. ENHANCEMENT OF REFERRAL BONUS TO ENCOURAGE SERVICE IN THE 
              ARMY.

    (a) Individuals Eligible for Bonus.--Section 645 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3310) is amended--
            (1) in subsection (a)(1), by striking ``enlists'' and 
        inserting ``enlists, or is appointed as an officer to serve in 
        a health profession designated by the Secretary,''; and
            (2) in subsection (b), by inserting ``or appointment'' 
        after ``enlisting'' both places it appears.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to bonuses payable under section 645 of the National 
Defense Authorization Act for Fiscal Year 2006 on or after the date of 
the enactment of this Act.

SEC. 606. GUARANTEED PAY INCREASE FOR MEMBERS OF THE ARMED FORCES OF 
              ONE-HALF OF ONE PERCENTAGE POINT HIGHER THAN EMPLOYMENT 
              COST INDEX.

    (a) Increase.--Section 1009(c)(2) of title 37, United States Code, 
is amended ``fiscal years 2004, 2005, and 2006'' and inserting ``fiscal 
years 2009 through 2012''.
    (b) Applicability.--The amendment made by subsection (a) shall only 
apply with respect to the Army, Navy, Air Force and Marine Corps, 
including reserve components thereof.

           Subtitle B--Bonuses and Special and Incentive Pays

SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR 
              RESERVE FORCES.

    (a) Selected Reserve Reenlistment Bonus.--Section 308b(g) of title 
37, United States Code, is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2009''.
    (b) Selected Reserve Affiliation or Enlistment Bonus.--Section 
308c(i) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2009''.
    (c) 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, 2009''.
    (d) Ready Reserve Enlistment Bonus for Persons Without Prior 
Service.--Section 308g(f)(2) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2009''.
    (e) Ready Reserve Enlistment and Reenlistment Bonus for Persons 
With Prior Service.--Section 308h(e) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2009''.
    (f) Selected Reserve Enlistment Bonus for Persons With Prior 
Service.--Section 308i(f) of such title is amended by striking 
``December 31, 2007'' and inserting ``December 31, 2009''.

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

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2009''.
    (b) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of such title is 
amended by striking ``January 1, 2008'' and inserting ``January 1, 
2010''.
    (c) 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, 2009''.
    (d) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of such title is amended by striking ``December 31, 2007'' 
and inserting ``December 31, 2009''.
    (e) Special Pay for Selected Reserve Health Professionals in 
Critically Short Wartime Specialties.--Section 302g(e) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2009''.
    (f) Accession Bonus for Dental Officers.--Section 302h(a)(1) of 
such title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (g) Accession Bonus for Pharmacy Officers.--Section 302j(a) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (h) 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, 2009''.
    (i) 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, 2009''.

SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR 
              OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(f) of title 37, United States Code, is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2009''.
    (b) Nuclear Career Accession Bonus.--Section 312b(c) of such title 
is amended by striking ``December 31, 2007'' and inserting ``December 
31, 2009''.
    (c) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.

SEC. 614. EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES 
              AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2009''.
    (b) Assignment Incentive Pay.--Section 307a(g) of such title is 
amended by striking ``December 31, 2008'' and inserting ``December 31, 
2009''.
    (c) Reenlistment Bonus for Active Members.--Section 308(g) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (d) Enlistment Bonus.--Section 309(e) of such title is amended by 
striking ``December 31, 2007'' and inserting ``December 31, 2009''.
    (e) Retention Bonus for Members With Critical Military Skills or 
Assigned to High Priority Units.--Section 323(i) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2009''.
    (f) Accession Bonus for New Officers in Critical Skills.--Section 
324(g) of such title is amended by striking ``December 31, 2007'' and 
inserting ``December 31, 2009''.
    (g) Incentive Bonus for Conversion to Military Occupational 
Specialty to Ease Personnel Shortage.--Section 326(g) of such title is 
amended by striking ``December 31, 2007'' and inserting ``December 31, 
2009''.
    (h) Incentive Bonus for Transfer Between the Armed Forces.--Section 
327(h) of such title is amended by striking ``December 31, 2009'' and 
inserting ``December 31, 2010''.
    (i) Accession Bonus for Officer Candidates.--Section 330(f) of such 
title is amended by striking ``December 31, 2007'' and inserting 
``December 31, 2009''.
    (j) Army Referral Bonus.--Subsection (h) of section 645 of the 
National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163; 119 Stat. 3310), as redesignated by section 624(e) of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2258), is amended by striking ``December 31, 
2007'' and inserting ``December 31, 2009''.

SEC. 615. INCREASE IN INCENTIVE SPECIAL PAY AND MULTIYEAR RETENTION 
              BONUS FOR MEDICAL OFFICERS.

    (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. 616. INCREASE IN DENTAL OFFICER ADDITIONAL SPECIAL PAY.

    Section 302b(a)(4) of title 37, United States Code, is amended--
            (1) by striking ``shall be paid at the following rates'' in 
        the matter preceding subparagraph (A) and inserting ``shall not 
        exceed the following:'';
            (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. 617. 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. 618. REENLISTMENT BONUS FOR MEMBERS OF THE SELECTED RESERVE.

    (a) Minimum Term of Reenlistment or Enlistment Extension.--
Subsection (a)(2) of 308b of title 37, United States Code, is amended 
by striking ``his enlistment for a period of three years or for a 
period of six years'' and inserting ``an enlistment for a period of at 
least three years''.
    (b) Maximum Bonus Amount.--Subsection (b)(1) of such section is 
amended by striking ``may not exceed'' and all that follows through the 
end of the paragraph and inserting ``may not exceed $15,000.''.
    (c) Conforming Amendment Regarding Eligibility Requirements.--
Subsection (c) of such section is amended--
            (1) by striking the subsection heading and paragraph (1) 
        and inserting ``Waiver of Condition on Eligibility.--''; and
            (2) by striking ``paragraph (1)(B) or''.

SEC. 619. AVAILABILITY OF SELECTED RESERVE ACCESSION BONUS FOR PERSONS 
              WHO PREVIOUSLY SERVED IN THE ARMED FORCES FOR A SHORT 
              PERIOD.

    Section 308c(c)(1) of title 37, United States Code, is amended by 
inserting before the semicolon the following: ``or has served in the 
armed forces, but was released from such service before completing the 
basic training requirements of the armed force of which the person was 
a member and the service was characterized as either honorable or 
uncharacterized''.

SEC. 620. AVAILABILITY OF NUCLEAR OFFICER CONTINUATION PAY FOR OFFICERS 
              WITH MORE THAN 26 YEARS OF COMMISSIONED SERVICE.

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

SEC. 621. WAIVER OF YEARS-OF-SERVICE LIMITATION ON RECEIPT OF CRITICAL 
              SKILLS RETENTION BONUS.

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

SEC. 622. ACCESSION BONUS FOR PARTICIPANTS IN THE ARMED FORCES HEALTH 
              PROFESSIONAL SCHOLARSHIP AND FINANCIAL ASSISTANCE 
              PROGRAM.

    (a) Accession Bonus Authorized.--Subchapter I of chapter 105 of 
title 10, United States Code, is amended by adding at the end the 
following new section:
``Sec. 2128. Accession bonus for members of the program
    ``(a) Availability of Bonus.--The Secretary of Defense may offer a 
person who enters into an agreement under section 2122(a)(2) of this 
title an accession bonus of not more than $20,000 as part of the 
agreement.
    ``(b) Repayment.--A person who receives an accession bonus under 
this section, but fails to comply with the agreement under section 
2122(a)(2) of this title or to commence or complete the active duty 
obligation imposed by section 2123 of this title, shall be subject to 
the repayment provisions of section 303a(e) of title 37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such subchapter is amended by adding at the end the following new item:

``2128. Accession bonus for members of the program.''.

SEC. 623. PAYMENT OF ASSIGNMENT INCENTIVE PAY FOR RESERVE MEMBERS 
              SERVING IN COMBAT ZONE FOR MORE THAN 22 MONTHS.

    (a) Payment.--The Secretary of a military department may pay 
assignment incentive pay under section 307a of title 37, United States 
Code, to a member of a reserve component under the jurisdiction of the 
Secretary for each month during the eligibility period of the member 
determined under subsection (b) during which the member served for any 
portion of the month in a combat zone associated with Operating 
Enduring Freedom or Operation Iraqi Freedom in excess of 22 months of 
qualifying service.
    (b) Eligibility Period.--The eligibility period for a member 
extends from January 1, 2005, through the end of the active duty 
service of the member in a combat zone associated with Operating 
Enduring Freedom or Operation Iraqi Freedom if the service on active 
duty during the member's most recent period of mobilization to active 
duty began before January 19, 2007.
    (c) Amount of Payment.--The monthly rate of incentive pay payable 
to a member under this section is $1,000.
    (d) Qualifying Service.--For purposes of this section, qualifying 
service includes cumulative mobilized service on active duty under 
sections 12301(d), 12302, and 12304 of title 10, United States Code, 
during the period beginning on January 1, 2003, through the end of the 
member's active duty service during the member's most recent period of 
mobilization to active duty beginning before January 19, 2007.

SEC. 624. INCREASE IN MAXIMUM MONTHLY RATE OF HARDSHIP DUTY PAY.

    (a) Increase.--Effective October 1, 2007, section 305(a) of title 
37, United States Code, is amended by striking ``$750'' and inserting 
``$1,500''.
    (b) Funding Source.--Of the amounts authorized to be appropriated 
to the Department of Defense for military personnel accounts for fiscal 
year 2008, not more than $79,000,000 shall be available to cover the 
additional costs incurred to implement the amendment made by subsection 
(a).

            Subtitle C--Travel and Transportation Allowances

SEC. 631. ALLOWANCE FOR PARTICIPATION IN RESERVE SCREENING CONDUCTED 
              THROUGH ELECTRONIC MEANS.

    (a) Allowance for Electronic Reserve Screening.--Section 433 of 
title 37, United States Code, is amended--
            (1) in subsection (a), by inserting ``Allowance for Muster 
        Duty.--(1)'' before ``Under'';
            (2) by redesignating subsection (b) as paragraph (2) of 
        subsection (a), and in such paragraph, as so redesignated, by 
        striking ``this section'' and inserting ``paragraph (1)''; and
            (3) by inserting before subsection (c) the following new 
        subsection (b):
    ``(b) Allowance for Electronic Screening.--(1) Under uniform 
regulations prescribed by the Secretaries concerned, a member of the 
Individual Ready Reserve may be paid a stipend when the member 
participates, through electronic means, in the screening performed 
pursuant to section 10149 of title 10, in lieu of muster duty performed 
under section 12319 of such title.
    ``(2) The amount of the stipend paid to a member under paragraph 
(1) may not exceed $50 in any calendar year.''.
    (b) Payment Requirements.--Subsection (c) of such section is 
amended--
            (1) by inserting ``Payment Requirements.--'' before the 
        first sentence;
            (2) by striking ``allowance'' each place it appears and 
        inserting ``allowances'';
            (3) by inserting ``or screening'' after ``muster duty'' 
        both places it appears; and
            (4) by striking ``serving, as commutation'' and inserting 
        ``serving. The allowance under subsection (a) is provided as 
        commutation''.
    (c) Prohibitions.--Such section is further amended--
            (1) in subsection (d)--
                    (A) by inserting ``Bar to Inactive Duty 
                Compensation.--'' before ``A member''; and
                    (B) by inserting ``or screening through electronic 
                means'' after ``muster duty''; and
            (2) by adding at the end the following new subsection:
    ``(e) Bar to Retirement Credit.--The participation by a member in 
screening for which a stipend is paid under subsection (b) shall not be 
credited in determining entitlement to, or in computing, retired pay 
under chapter 1223 of title 10.''.
    (d) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 433. Allowance for muster duty or for participation in Reserve 
              screening''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 7 of title 37, United States Code, is 
        amended by striking the item relating to section 433 and 
        inserting the following new item:

``433. Allowance for muster duty or for participation in Reserve 
                            screening.''.
    (e) Conforming Amendments to Other Laws.--
            (1) Bar to dual compensation for inactive-duty training.--
        Section 206 of such title is amended by adding at the end the 
        following new subsection:
    ``(f) A member of the National Guard or of a reserve component of a 
uniformed service may not be paid under this section if the member 
receives a stipend under section 433(b) of this title for the same 
period.''.
            (2) Bar to retirement credit.--Section 12732(b) of title 
        10, United States Code, is amended by inserting after paragraph 
        (7) the following new paragraph:
            ``(8) Participation, through electronic means, in the 
        screening performed pursuant to section 10149 of this title, 
        regardless of whether or not a stipend is paid under section 
        433(b) of title 37 for such participation.''.

SEC. 632. ALLOWANCE FOR CIVILIAN CLOTHING FOR MEMBERS OF THE ARMED 
              FORCES TRAVELING IN CONNECTION WITH MEDICAL EVACUATION.

    Section 1047(a) of title 10, United States Code, is amended by 
inserting ``and luggage'' after ``civilian clothing'' both places it 
appears.

SEC. 633. MOVING EXPENSES FOR JROTC INSTRUCTORS WHO AGREE TO SERVE IN 
              HARD-TO-FILL POSITIONS.

    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) An individual so employed may, if the institution 
        concerned so agrees, be reimbursed by the institution for the 
        moving expenses incurred by the individual to fill the position 
        concerned, separate from any other amount paid to the 
        individual. Subject to subparagraph (B), the Secretary 
        concerned may enter into an agreement with such an institution 
        under which the Secretary reimburses the institution for the 
        amount the institution reimburses the individual. 
        Reimbursements by the Secretary concerned under this paragraph 
        shall be made from funds appropriated for that purpose.
            ``(B) Such a reimbursement by the Secretary concerned may 
        be made only if, as determined by the Secretary concerned--
                    ``(i) the position to be filled by the individual 
                is a hard-to-fill position, based on geographic or 
                economic factors;
                    ``(ii) the individual has entered into a written 
                agreement with the institution to serve in that 
                position for at least two years; and
                    ``(iii) making the reimbursement is in the national 
                interest.''.

SEC. 634. TRANSPORTATION OF ADDITIONAL MOTOR VEHICLE OF MEMBERS ON 
              CHANGE OF PERMANENT STATION TO OR FROM NONFOREIGN AREAS 
              OUTSIDE THE CONTINENTAL UNITED STATES.

    (a) Authority to Transport Additional Motor Vehicle.--Subsection 
(a) of section 2634 of title 10, United States Code, is amended--
            (1) by striking the sentence following paragraph (4);
            (2) by redesignating paragraphs (1), (2), (3), and (4) as 
        subparagraphs (A), (B), (C), and (D), respectively;
            (3) by inserting ``(1)'' after ``(a)''; and
            (4) by adding at the end the following new paragraph:
    ``(2) One additional motor vehicle of a member (or a dependent of 
the member) may be transported as provided in paragraph (1) if--
            ``(A) the member is ordered to make a change of permanent 
        station to or from a nonforeign area outside the continental 
        United States and the member has at least one dependent of 
        driving age who will use the motor vehicle; or
            ``(B) the Secretary concerned determines that a replacement 
        for the motor vehicle transported under paragraph (1) is 
        necessary for reasons beyond the control of the member and is 
        in the interest of the United States and the Secretary approves 
        the transportation in advance.''.
    (b) Technical and Conforming Amendments.--Such subsection is 
further amended--
            (1) by striking ``his dependents'' and inserting ``a 
        dependent of the member'';
            (2) by striking ``him'' and inserting ``the member'';
            (3) by striking ``his)'' and inserting ``the member)'';
            (4) by striking ``his new'' and inserting ``the member's 
        new''; and
            (5) in paragraph (1)(C), as redesignated by subsection (a), 
        by striking ``clauses (1) and (2)'' and inserting 
        ``subparagraphs (A) and (B)''.
    (c) Effective Date.--Paragraph (2)(A) of subsection (a) of section 
2634 of title 10, United States Code, as added by subsection (a)(4), 
shall apply with respect to orders issued on or after the date of the 
enactment of this Act for members of the Armed Forces to make a change 
of permanent station to or from nonforeign areas outside the 
continental United States.

SEC. 635. PAYMENT OF INACTIVE DUTY TRAINING TRAVEL COSTS FOR CERTAIN 
              SELECTED RESERVE MEMBERS.

    (a) Payment of Travel Costs Authorized.--Chapter 7 of title 37, 
United States Code, is amended by inserting after section 408 the 
following new section:
``Sec. 408a. Travel and transportation allowances: inactive duty 
              training or unit training assembly outside of commuting 
              distance of duty station
    ``(a) Allowance Authorized.--Under regulations prescribed by the 
Secretary concerned, if a member of the Selected Reserve who occupies a 
specialty designated by the Secretary for purposes of this section 
performs inactive duty training or attends a unit training assembly 
outside of the commuting limits of the member's station for the purpose 
of maintaining mission readiness, the Secretary may reimburse the 
member for travel expenses in an amount not to exceed $300 for the 
training or assembly.
    ``(b) Duration of Authority.--Reimbursement may not be provided 
under this section for travel costs incurred before October 1, 2008, or 
after December 31, 2014.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
408 the following new item:

``408a. Travel and transportation allowances: inactive duty training or 
                            unit training assembly outside of commuting 
                            distance of duty station.''.

             Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. DISREGARDING PERIODS OF CONFINEMENT OF MEMBER IN DETERMINING 
              BENEFITS FOR DEPENDENTS WHO ARE VICTIMS OF ABUSE BY THE 
              MEMBER.

    Section 1408(h)(10) of title 10, United States Code, is amended by 
adding at the end the following new subparagraph:
    ``(C) In determining under paragraph (2)(A) whether a member of the 
armed forces became eligible to be retired from the armed forces on the 
basis of years of service so that a spouse or dependent child of the 
member is eligible to receive payment under this subsection, the 
Secretary concerned shall consider as creditable service by the member 
any periods of confinement served by the member before convening 
authority action on the record of trial related to the misconduct that 
resulted in the termination of the eligibility of the member to receive 
retired pay.''.

SEC. 642. CONTINUATION OF AUTHORITY FOR MEMBERS OF THE ARMED FORCES TO 
              DESIGNATE A RECIPIENT FOR A PORTION OF THE DEATH 
              GRATUITY.

    Effective as of October 1, 2007, subsection (d) of section 1477 of 
title 10, United States Code, as amended by section 1316 of the U.S. 
Troop Readiness, Veterans' Care, Katrina Recovery, and Iraq 
Accountability Appropriations Act, 2007, is amended by striking 
``During the period beginning on the date of the enactment of this 
subsection and ending on September 30, 2007, a person'' and inserting 
``A person''.

SEC. 643. RECOUPMENT OF ANNUITY AMOUNTS PREVIOUSLY PAID, BUT SUBJECT TO 
              OFFSET FOR DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Limitation on Recoupment; Notification Requirements.--Section 
1450(c) of title 10, United States Code, is amended by adding at the 
end the following new paragraph:
            ``(3) Limitation on recoupment of offset amount.--Any 
        amount subject to offset under this subsection that was 
        previously paid to the surviving spouse or former spouse shall 
        be recouped only to the extent that the amount paid exceeds any 
        amount to be refunded under subsection (e). In notifying a 
        surviving spouse or former spouse of the recoupment 
        requirement, the Secretary shall provide the spouse or former 
        spouse--
                    ``(A) a single notice of the net amount to be 
                recouped or the net amount to be refunded, as 
                applicable, under this subsection or subsection (e);
                    ``(B) a written explanation of the statutory 
                requirements for recoupment of the offset amount and 
                for refund of any applicable amount deducted from 
                retired pay;
                    ``(C) a detailed accounting of how the offset 
                amount being recouped and retired pay deduction amount 
                being refunded were calculated; and
                    ``(D) contact information for a person who can 
                provide information about the offset recoupment and 
                retired pay deduction refund processes and answer 
                questions the surviving spouse or former spouse may 
                have about the requirements, processes, or amounts.''.
    (b) Application.--Paragraph (3) of subsection (c) of section 1450 
of title 10, United States Code, as added by subsection (a), shall 
apply with respect to the recoupment on or after April 1, 2008, of 
amounts subject to offset under such subsection.

SEC. 644. SPECIAL SURVIVOR INDEMNITY ALLOWANCE FOR PERSONS AFFECTED BY 
              REQUIRED SURVIVOR BENEFIT PLAN ANNUITY OFFSET FOR 
              DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) Provision of Allowance.--Section 1450 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(m) Special Survivor Indemnity Allowance.--
            ``(1) Provision of allowance.--The Secretary concerned 
        shall pay a monthly special survivor indemnity allowance under 
        this subsection to the surviving spouse or former spouse of a 
        member of the uniformed services to whom section 1448 of this 
        title applies if--
                    ``(A) the surviving spouse or former spouse is 
                entitled to dependency and indemnity compensation under 
                section 1311(a) of title 38; and
                    ``(B) the eligibility of the surviving spouse or 
                former spouse for an annuity under section 1448 of this 
                title is affected by subsection (c) of this section.
            ``(2) Amount of payment.--The amount of the allowance paid 
        to an eligible survivor under paragraph (1) for a month shall 
        be equal to the lesser of--
                    ``(A) $40; or
                    ``(B) the amount of the annuity for that month 
                subject to offset under subsection (c).
            ``(3) Status of payments.--An allowance paid under this 
        subsection does not constitute an annuity, and amounts so paid 
        are not subject to adjustment under any other provision of law.
            ``(4) Source of funds.--The special survivor indemnity 
        allowance shall be paid from amounts in the Department of 
        Defense Military Retirement Fund established under section 1461 
        of this title.''.
    (b) Effective Date.--Subsection (m) of section 1450 of title 10, 
United States Code, as added by subsection (a), shall take effect on 
October 1, 2008, and shall apply to the month beginning on that date 
and subsequent months through the month ending on February 28, 2016. 
Effective on March 1, 2016, such subsection shall terminate. No special 
survivor indemnity allowance may be paid to any person by reason of 
such subsection for any period before October 1, 2008.

SEC. 645. EXPANSION OF COMBAT-RELATED SPECIAL COMPENSATION ELIGIBILITY 
              FOR CHAPTER 61 MILITARY RETIREES WITH FEWER THAN 20 YEARS 
              OF CREDITABLE SERVICE.

    (a) Eligibility.--Subsection (c) of section 1413a of title 10, 
United States Code, is amended by striking ``entitled to retired pay 
who--'' and all that follows through the end of paragraph (1) and 
inserting the following: ``who--
            ``(1) is entitled to retired pay (other than by reason of 
        section 12731b of this title); and''.
    (b) Computation.--Subsection (b) of such section is amended--
            (1) in paragraph (1), by striking ``In the case of'' and 
        inserting ``Subject to paragraph (4), in the case of''; and
            (2) by adding at the end the following new paragraph:
            ``(4) Chapter 61 disability retirees with fewer than 20 
        years of service.--In the case of an eligible combat-related 
        disabled uniformed services retiree who is retired under 
        chapter 61 of this title with at least 15 years of creditable 
        service, but fewer than 20 years of creditable service, and who 
        receives veterans disability compensation for a disability 
        rated at least 60 percent, the amount of the payment under 
        paragraph (1) for any month shall be reduced by the amount (if 
        any) by which--
                    ``(A) the amount of the member's retired pay under 
                chapter 61 of this title; exceeds
                    ``(B) the amount equal to 2\1/2\ percent of the 
                member's years of creditable service multiplied by the 
                member's retired pay base under section 1406(b)(1) or 
                1407 of this title, whichever is applicable to the 
                member.''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 2008, and shall apply to payments for the month 
beginning on that date and subsequent months through the month ending 
on September 30, 2015. Effective on October 1, 2015, the amendments 
made by this section shall terminate and subsection (c) of section 
1413a of title 10, United States Code, shall be amended to appear as it 
did on September 30, 2008.

    Subtitle E--Commissary and Nonappropriated Fund Instrumentality 
                                Benefits

SEC. 651. ACCESS TO DEFENSE COMMISSARY AND EXCHANGE SYSTEM BY SURVIVING 
              SPOUSE AND DEPENDENTS OF CERTAIN DISABLED VETERANS.

    (a) Revision of Regulations and Instructions.--The Secretary of 
Defense shall revise the regulations and instructions described in 
subsection (b) as necessary to ensure access to the Defense Commissary 
and Exchange System by the surviving spouse and dependents of a veteran 
who had a service-connected disability rated at 100 percent (total), 
based on an application submitted by the veteran, although the 
disability rating was awarded posthumously. Such access shall be 
provided in the same manner and to the same extent as other surviving 
spouses and dependents covered by such regulations and instructions.
    (b) Covered Regulations and Instructions.--The regulations and 
instructions referred to in subsection (a) are the following:
            (1) Armed Services Commissary Regulations (DoD Regulations 
        1330.17-R, April 1987).
            (2) Armed Services Exchange Regulations (DoD Instruction 
        1330.21, July, 14, 2005).
            (3) The instruction pertaining to identification cards (ID) 
        cards for members of the uniformed services, their dependents, 
        and other eligible individuals (DoD Instruction 1000.13, 
        December 5, 1997).

SEC. 652. AUTHORITY TO CONTINUE COMMISSARY AND EXCHANGE BENEFITS FOR 
              CERTAIN INVOLUNTARILY SEPARATED MEMBERS OF THE ARMED 
              FORCES.

    (a) Resumption for Members Involuntarily Separated From Active 
Duty.--Section 1146 of title 10, United States Code, is amended--
            (1) by inserting ``(a) Members Involuntarily Separated From 
        Active Duty.--'' before ``The Secretary of Defense'';
            (2) in the first sentence, by striking ``October 1, 1990, 
        and ending on December 31, 2001'' and inserting ``October 1, 
        2007, and ending on December 31, 2012''; and
            (3) in the second sentence, by striking ``the period 
        beginning on October 1, 1994, and ending on December 31, 2001'' 
        and inserting ``the same period''.
    (b) Extension to Members Involuntarily Separated From Selected 
Reserve.--Such section is further amended by adding at the end the 
following new subsection:
    ``(b) Members Involuntarily Separated From Selected Reserve.--The 
Secretary of Defense shall prescribe regulations to allow a member of 
the Selected Reserve of the Ready Reserve who is involuntarily 
separated from the Selected Reserve as a result of the exercise of the 
force shaping authority of the Secretary concerned under section 647 of 
this title or other force shaping authority during the period beginning 
on October 1, 2007, and ending on December 31, 2012, to continue to use 
commissary and exchange stores during the two-year period beginning on 
the date of the involuntary separation of the member in the same manner 
as a member on active duty. The Secretary of Homeland Security shall 
implement this provision for Coast Guard members involuntarily 
separated during the same period.''.

SEC. 653. AUTHORIZATION OF INSTALLMENT DEDUCTIONS FROM PAY OF EMPLOYEES 
              OF EXECUTIVE BRANCH INSTRUMENTALITIES TO COLLECT 
              INDEBTEDNESS TO THE UNITED STATES.

    (a) Coverage of Executive Branch Instrumentalities.--Section 
5514(a)(5)(B) of title 5, United States Code, is amended by striking 
``judicial'' and inserting ``executive, judicial,''
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act and apply with 
respect to debt incurred before, on, or after that date.

  Subtitle F--Consolidation of Special Pay, Incentive Pay, and Bonus 
                              Authorities

SEC. 661. CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
              AUTHORITIES OF THE UNIFORMED SERVICES.

    (a) Consolidation.--Chapter 5 of title 37, United States Code, is 
amended--
            (1) by inserting before section 301 the following 
        subchapter heading:

    ``SUBCHAPTER I--EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                           AUTHORITIES''; and

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

``SUBCHAPTER II--CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND BONUS 
                              AUTHORITIES

``Sec. 331. General bonus authority for enlisted members
    ``(a) Authority to Provide Bonus.--The Secretary concerned may pay 
a bonus under this section to a person, including a member of the armed 
forces, who--
            ``(1) enlists in an armed force;
            ``(2) enlists in or affiliates with a reserve component of 
        an armed force;
            ``(3) reenlists, voluntarily extends an enlistment, or 
        otherwise agrees to serve--
                    ``(A) for a specified period in a designated career 
                field, skill, or unit of an armed force; or
                    ``(B) under other conditions of service in an armed 
                force;
            ``(4) transfers from a regular component of an armed force 
        to a reserve component of that same armed force or from a 
        reserve component of an armed force to the regular component of 
        that same armed force; or
            ``(5) transfers from a regular component or reserve 
        component of an armed force to a regular component or reserve 
        component of another armed force, subject to the approval of 
        the Secretary with jurisdiction over the armed force to which 
        the member is transferring.
    ``(b) Service Eligibility.--A bonus authorized by subsection (a) 
may be paid to a person or member only if the person or member agrees 
under subsection (d)--
            ``(1) to serve for a specified period in a designated 
        career field, skill, unit, or grade; or
            ``(2) to meet some other condition of service imposed by 
        the Secretary concerned.
    ``(c) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned shall 
        determine the amount of a bonus to be paid under this section, 
        except that--
                    ``(A) a bonus paid under paragraph (1) or (2) of 
                subsection (a) may not exceed $50,000 for a minimum 
                two-year period of obligated service agreed to under 
                subsection (d); and
                    ``(B) a bonus paid under paragraph (3), (4), or (5) 
                of subsection (a) may not exceed $40,000 for a minimum 
                one-year period of obligated service agreed to under 
                subsection (d).
            ``(2) Lump sum or installments.--A bonus under this section 
        may be paid in a lump sum or in periodic installments, as 
        determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required by 
        subsection (d), the total amount of the bonus to be paid under 
        the agreement shall be fixed.
    ``(d) Written Agreement.--To receive a bonus under this section, a 
person or member determined to be eligible for the bonus shall enter 
into a written agreement with the Secretary concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under subsection 
        (c)(2);
            ``(3) the period of obligated service; and
            ``(4) the type or conditions of the service.
    ``(e) Relationship to Other Pay and Allowances.--A bonus paid to a 
person or member under this section is in addition to any other pay and 
allowance to which a member is entitled.
    ``(f) Relationship to Prohibition on Bounties.--A bonus authorized 
under this section is not a bounty for purposes of section 514(a) of 
title 10.
    ``(g) Repayment.--A person or member who receives a bonus under 
this section and who fails to complete the period of service, or meet 
the conditions of service, for which the bonus is paid, as specified in 
the written agreement under subsection (d), shall be subject to the 
repayment provisions of section 373 of this title.
    ``(h) Regulations.--This section shall be administered under 
regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense; and
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy.
``Sec. 332. General bonus authority for officers
    ``(a) Authority to Provide Bonus.--The Secretary concerned may pay 
a bonus under this section to a person, including an officer in the 
uniformed services, who--
            ``(1) accepts a commission or appointment as an officer in 
        a uniformed service;
            ``(2) affiliates with a reserve component of a uniformed 
        service;
            ``(3) agrees to remain on active duty or to serve in an 
        active status for a specific period as an officer in a 
        uniformed service;
            ``(4) transfers from a regular component of a uniformed 
        service to a reserve component of that same uniformed service 
        or from a reserve component of a uniformed service to the 
        regular component of that same uniformed service; or
            ``(5) transfers from a regular component or reserve 
        component of a uniformed service to a regular component or 
        reserve component of another uniformed service, subject to the 
        approval of the Secretary with jurisdiction over the uniformed 
        service to which the member is transferring.
    ``(b) Service Eligibility.--A bonus authorized by subsection (a) 
may be paid to a person or officer only if the person or officer agrees 
under subsection (d)--
            ``(1) to serve for a specified period in a designated 
        career field, skill, unit, or grade; or
            ``(2) to meet some other condition of service imposed by 
        the Secretary concerned.
    ``(c) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned shall 
        determine the amount of a bonus to be paid under this section, 
        except that--
                    ``(A) a bonus paid under paragraph (1) or (2) of 
                subsection (a) may not exceed $60,000 for a minimum 
                three-year period of obligated service agreed to under 
                subsection (d); and
                    ``(B) a bonus paid under paragraph (3), (4), or (5) 
                of subsection (a) may not exceed $50,000 for each year 
                of obligated service agreed to under subsection (d).
            ``(2) Lump sum or installments.--A bonus under this section 
        may be paid in a lump sum or in periodic installments, as 
        determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required by 
        subsection (d), the total amount of the bonus to be paid under 
        the agreement shall be fixed.
    ``(d) Written Agreement.--To receive a bonus under this section, a 
person or officer determined to be eligible for the bonus shall enter 
into a written agreement with the Secretary concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under subsection 
        (c)(2);
            ``(3) the period of obligated service; and
            ``(4) the type or conditions of the service.
    ``(e) Relationship to Other Pay and Allowances.--The bonus paid to 
a person or officer under this section is in addition to any other pay 
and allowance to which an officer is entitled.
    ``(f) Repayment.--A person or officer who receives a bonus under 
this section who fails to complete the period of service, or meet the 
conditions of service, for which the bonus is paid, as specified in the 
written agreement under subsection (d), shall be subject to the 
repayment provisions of section 373 of this title.
    ``(g) Regulations.--This section shall be administered under 
regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense;
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy;
            ``(3) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            ``(4) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.
``Sec. 333. Special bonus and incentive pay authorities for nuclear 
              officers
    ``(a) Nuclear Officer Bonus.--The Secretary of the Navy may pay a 
nuclear officer bonus under this section to a person, including an 
officer in the Navy, who--
            ``(1) is selected for the officer naval nuclear power 
        training program in connection with the supervision, operation, 
        and maintenance of naval nuclear propulsion plants and agrees 
        to serve, upon completion of such training, on active duty in 
        connection with the supervision, operation, and maintenance of 
        naval nuclear propulsion plants; or
            ``(2) has the current technical and operational 
        qualification for duty in connection with the supervision, 
        operation, and maintenance of naval nuclear propulsion plants 
        and agrees to remain on active duty in connection with the 
        supervision, operation, and maintenance of naval nuclear 
        propulsion plants.
    ``(b) Nuclear Officer Incentive Pay.--The Secretary of the Navy may 
pay nuclear officer incentive pay under this section to an officer in 
the Navy who--
            ``(1) is entitled to basic pay under section 204 of this 
        title; and
            ``(2) remains on active duty for a specified period while 
        maintaining current technical and operational qualifications, 
        as approved by the Secretary, for duty in connection with the 
        supervision, operation, and maintenance of naval nuclear 
        propulsion plants.
    ``(c) Additional Eligibility Criteria.--The Secretary of the Navy 
may impose such additional criteria for the receipt of a nuclear 
officer bonus or nuclear officer incentive pay as the Secretary 
determines to be appropriate.
    ``(d) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary of the Navy shall 
        determine the amounts of a nuclear officer bonus or incentive 
        pay to be paid under this section, except that such payments 
        may not exceed $60,000 for each 12-month period of the 
        agreement or 12-month period of qualifying service.
            ``(2) Lump sum or installments.--A nuclear officer bonus or 
        incentive pay under this section may be paid in a lump sum or 
        in periodic installments.
    ``(e) Written Agreement for Bonus.--
            ``(1) Agreement required.--To receive a nuclear officer 
        bonus under this section, a person or officer determined to be 
        eligible for the bonus shall enter into a written agreement 
        with the Secretary of the Navy that specifies--
                    ``(A) the amount of the bonus;
                    ``(B) the method of payment of the bonus under 
                subsection (d)(2);
                    ``(C) the period of obligated service; and
                    ``(D) the type or conditions of the service.
            ``(2) Replacement agreement.--An officer who is performing 
        obligated service under an agreement for a nuclear officer 
        bonus may execute a new agreement to replace the existing 
        agreement, if the amount to be paid under the new agreement 
        will be higher than the amount to be paid under the existing 
        agreement. The period of the new agreement shall be equal to or 
        exceed the remaining term of the period of the officer's 
        existing agreement. If a new agreement is executed under this 
        paragraph, the existing agreement shall be cancelled, effective 
        on the day before an anniversary date of the existing agreement 
        occurring after the date on which the amount to be paid under 
        this paragraph is increased.
    ``(f) Relationship to Other Pay and Allowances.--A nuclear officer 
bonus or incentive pay paid to a person or officer under this section 
is in addition to any other pay and allowance to which an officer is 
entitled, except that an officer may not receive a payment under this 
section and section 332 or 353 of this title for the same skill and 
period of service.
    ``(g) Repayment.--The person or officer who receives a nuclear 
officer bonus or incentive pay under this section who fails to complete 
the officer naval nuclear power training program, maintain required 
technical and operational qualifications, complete the period of 
service, or meet the types or conditions of service, for which the 
bonus or incentive pay is paid, as specified in the written agreement 
under subsection (e) in the case of a bonus, shall be subject to the 
repayment provisions of section 373 of this title.
    ``(h) Regulations.--This section shall be administered under 
regulations prescribed by the Secretary of the Navy.
``Sec. 334. Special aviation incentive pay and bonus authorities for 
              officers
    ``(a) Aviation Incentive Pay.--The Secretary concerned may pay 
aviation incentive pay under this section to a regular or reserve 
component officer of a uniformed service who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or compensation under section 206 of this title;
            ``(2) maintains, or is in training leading to, an 
        aeronautical rating or designation that qualifies the officer 
        to engage in operational flying duty or proficiency flying 
        duty;
            ``(3) engages in, or is in training leading to, frequent 
        and regular performance of operational flying duty or 
        proficiency flying duty;
            ``(4) engages in or remains in aviation service for a 
        specified period; and
            ``(5) meets such other criteria as the Secretary concerned 
        determines appropriate.
    ``(b) Aviation Bonus.--The Secretary concerned may pay an aviation 
bonus under this section to a regular or reserve component officer of a 
uniformed service who--
            ``(1) is entitled to aviation incentive pay under 
        subsection (a);
            ``(2) has completed any active duty service commitment 
        incurred for undergraduate aviator training or is within one 
        year of completing such commitment;
            ``(3) executes a written agreement to remain on active duty 
        in a regular component or to serve in an active status in a 
        reserve component in aviation service for at least one year; 
        and
            ``(4) meets such other criteria as the Secretary concerned 
        determines appropriate.
    ``(c) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned shall 
        determine the amounts of a bonus or incentive pay to be paid 
        under this section, except that--
                    ``(A) aviation incentive pay shall be paid at a 
                monthly rate, not to exceed $850 per month; and
                    ``(B) an aviation bonus may not exceed $25,000 for 
                each 12-month period of obligated service agreed to 
                under subsection (d).
            ``(2) Lump sum or installments.--A bonus under this section 
        may be paid in a lump sum or in periodic installments, as 
        determined by the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required by 
        subsection (d), the total amount of the bonus to be paid under 
        the agreement shall be fixed.
    ``(d) Written Agreement for Bonus.--To receive an aviation officer 
bonus under this section, an officer determined to be eligible for the 
bonus shall enter into a written agreement with the Secretary concerned 
that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under subsection 
        (c)(2);
            ``(3) the period of obligated service; and
            ``(4) the type or conditions of the service.
    ``(e) Reserve Component Officers Performing Inactive Duty 
Training.--A reserve component officer who is entitled to compensation 
under section 206 of this title and who is authorized aviation 
incentive pay under this section may be paid an amount of incentive pay 
that is proportionate to the compensation received under section 206 
for inactive-duty training.
    ``(f) Relationship to Other Pay and Allowances.--
            ``(1) Aviation incentive pay.--Aviation incentive pay paid 
        to an officer under subsection (a) shall be in addition to any 
        other pay and allowance to which an officer is entitled, except 
        that an officer may not receive a payment under such subsection 
        and section 351(a)(4) or 353 of this title for the same skill 
        and period of service.
            ``(2) Aviation bonus.--An aviation bonus paid to an officer 
        under subsection (b) shall be in addition to any other pay and 
        allowance to which the officer is entitled, except that an 
        officer may not receive a payment under such subsection and 
        section 332 or 353 of this title for the same skill and period 
        of service.
    ``(g) Repayment.--An officer who receives aviation incentive pay or 
an aviation bonus under this section and who fails to fulfill the 
eligibility requirements for the receipt of the incentive pay or bonus 
or complete the period of service for which the incentive pay or bonus 
is paid, as specified in the written agreement under subsection (d) in 
the case of a bonus, shall be subject to the repayment provisions of 
section 373 of this title.
    ``(h) Definitions.--In this section:
            ``(1) The term `aviation service' means service performed 
        by a regular or reserve component officer (except a flight 
        surgeon or other medical officer) while holding an aeronautical 
        rating or designation or while in training to receive an 
        aeronautical rating or designation.
            ``(2) The term `operational flying duty' means flying 
        performed under competent orders by rated or designated regular 
        or reserve component officers while serving in assignments in 
        which basic flying skills normally are maintained in the 
        performance of assigned duties as determined by the Secretary 
        concerned, and flying performed by members in training that 
        leads to the award of an aeronautical rating or designation.
            ``(3) The term `proficiency flying duty' means flying 
        performed under competent orders by rated or designated regular 
        or reserve component officers while serving in assignments in 
        which such skills would normally not be maintained in the 
        performance of assigned duties.
            ``(4) The term `officer' includes an individual enlisted 
        and designated as an aviation cadet under section 6911 of title 
        10, United States Code.
    ``(i) Regulations.--This section shall be administered under 
regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense;
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy; and
            ``(3) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.
``Sec. 335. Special bonus and incentive pay authorities for officers in 
              health professions
    ``(a) Health Professions Bonus.--The Secretary concerned may pay a 
health professions bonus under this section to a person, including an 
officer in the uniformed services, who is a graduate of an accredited 
school in a health profession and who--
            ``(1) accepts a commission or appointment as a regular or 
        reserve component officer in a uniformed service, or affiliates 
        with a reserve component of a uniformed service, and agrees to 
        serve on active duty in a regular component or in an active 
        status in a reserve component in a health profession; or
            ``(2) agrees to remain on active duty or continue serving 
        in an active status in a reserve component in a health 
        profession.
    ``(b) Health Professions Incentive Pay.--The Secretary concerned 
may pay incentive pay under this section to an officer in a regular or 
reserve component of a uniformed service who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or compensation under section 206 of this title; and
            ``(2) is serving on active duty or in an active status in a 
        designated health profession specialty or skill.
    ``(c) Board Certification Incentive Pay.--The Secretary concerned 
may pay board certification incentive pay under this section to an 
officer in a regular or reserve component of a uniformed service who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or compensation under section 206 of this title; and
            ``(2) is board certified in a designated health profession 
        specialty or skill; and
            ``(3) is serving on active duty or in an active status in 
        such designated health profession specialty or skill.
    ``(d) Additional Eligibility Criteria.--The Secretary concerned may 
impose such additional criteria for the receipt of a bonus or incentive 
pay under this section as the Secretary determines to be appropriate.
    ``(e) Maximum Amount and Method of Payment.--
            ``(1) Maximum amount.--The Secretary concerned shall 
        determine the amounts of a bonus or incentive pay to be paid 
        under this section, except that--
                    ``(A) a health professions bonus may not exceed 
                $100,000 for each 12-month period of obligated service 
                agreed to under subsection (f);
                    ``(B) health professions incentive pay may not 
                exceed $100,000 in any 12-month period, and it may be 
                paid monthly; and
                    ``(C) board certification incentive pay may not 
                exceed $25,000 per 12-month period an officer remains 
                certified in the designated health profession specialty 
                or skill.
            ``(2) Lump sum or installments.--A bonus under subsection 
        (a) may be paid in a lump sum or in periodic installments, as 
        determined by the Secretary concerned. Board certification 
        incentive pay may be paid monthly, in a lump sum at the 
        beginning of the certification period, or in periodic 
        installments during the certification period, as determined by 
        the Secretary concerned.
            ``(3) Fixing bonus amount.--Upon acceptance by the 
        Secretary concerned of the written agreement required by 
        subsection (f), the total amount of the bonus to be paid under 
        the agreement shall be fixed.
    ``(f) Written Agreement for Bonus.--To receive a bonus under this 
section, an officer determined to be eligible for the bonus shall enter 
into a written agreement with the Secretary concerned that specifies--
            ``(1) the amount of the bonus;
            ``(2) the method of payment of the bonus under subsection 
        (e)(2);
            ``(3) the period of obligated service;
            ``(4) whether the service will be performed on active duty 
        or in an active status in a reserve component; and
            ``(5) the type or conditions of the service.
    ``(g) Reserve Component Officers.--An officer in a reserve 
component authorized incentive pay under subsection (b) or (c) who is 
not serving on continuous active duty and is entitled to compensation 
under sections 204 of this title or compensation under section 206 of 
this title may be paid a monthly amount of incentive pay that is 
proportionate to the basic pay or compensation received under this 
title.
    ``(h) Relationship to Other Pay and Allowances.--
            ``(1) Health professions bonus.--A bonus paid to a person 
        or officer under subsection (a) shall be in addition to any 
        other pay and allowance to which an officer is entitled, except 
        that an officer may not receive a payment under such subsection 
        and section 332 of this title for the same period of obligated 
        service.
            ``(2) Health professions incentive pay.--Incentive pay paid 
        to an officer under subsection (b) shall be in addition to any 
        other pay and allowance to which an officer is entitled, except 
        that an officer may not receive a payment under such subsection 
        and section 353 of this title for the same skill and period of 
        service.
            ``(3) Board certification incentive pay.--Incentive pay 
        paid to an officer under subsection (c) shall be in addition to 
        any other pay and allowance to which an officer is entitled, 
        except that an officer may not receive a payment under such 
        subsection and section 353(b) of this title for the same skill 
        and period of service covered by the certification.
    ``(i) Repayment.--An officer who receives a bonus or incentive pay 
under this section and who fails to fulfill the eligibility 
requirements for the receipt of the bonus or incentive pay or complete 
the period of service for which the bonus or incentive pay is paid, as 
specified in the written agreement under subsection (f) in the case of 
a bonus, shall be subject to the repayment provisions of section 373 of 
this title.
    ``(j) Health Profession Defined.--In this section, the term `health 
profession' means:
    ``(1) Any health profession performed by officers in the Medical 
Corps of a uniformed service or by officers designated as a medical 
officer.
    ``(2) Any health profession performed by officers in the Dental 
Corps of a uniformed service or by officers designated as a dental 
officer.
    ``(3) Any health profession performed by officers in the Medical 
Service Corps of a uniformed service or by officers designated as a 
medical service officer or biomedical sciences officer.
    ``(4) Any health profession performed by officers in the Medical 
Specialist Corps of a uniformed service or by officers designated as a 
medical specialist.
    ``(5) Any health profession performed by officers of the Nurse 
Corps of a uniformed service or by officers designated as a nurse.
    ``(6) Any health profession performed by officers in the Veterinary 
Corps of a uniformed service or by officers designated as a veterinary 
officer.
    ``(7) Any health profession performed by officers designated as a 
physician assistant.
    ``(8) Any health profession performed by officers in the regular or 
reserve corps of the Public Health Service.
    ``(k) Regulations.--This section shall be administered under 
regulations prescribed by--
    ``(1) the Secretary of Defense, with respect to the armed forces 
under the jurisdiction of the Secretary of Defense;
    ``(2) the Secretary of Homeland Security, with respect to the Coast 
Guard when it is not operating as a service in the Navy; and
    ``(3) the Secretary of Health and Human Services, with respect to 
the commissioned corps of the Public Health Service.
``Sec. 351. Hazardous duty pay
    ``(a) Hazardous Duty Pay.--The Secretary concerned may pay 
hazardous duty pay under this section to a member of a regular or 
reserve component of the uniformed services entitled to basic pay under 
section 204 of this title or compensation under section 206 of this 
title who--
            ``(1) performs duty in a hostile fire area designated by 
        the Secretary concerned;
            ``(2) is exposed to a hostile fire event, explosion of a 
        hostile explosive device, or any other hostile action;
            ``(3) is on duty during a month in an area in which an 
        event described in paragraph (2) occurred which placed the 
        member in grave danger of physical injury;
            ``(4) performs duty the Secretary concerned has designated 
        as hazardous duty based upon the inherent dangers of that duty 
        and risks of physical injury; or
            ``(5) performs duty in a foreign area designated by the 
        Secretary concerned as an area in which the member is subject 
        to imminent danger of physical injury due to threat conditions.
    ``(b) Maximum Amount.--The amount of hazardous duty pay paid to a 
member under subsection (a) shall be based on the type of duty and the 
area in which the duty is performed, as follows:
            ``(1) In the case of a member who performs duty in a 
        designated hostile fire area, as described in paragraph (1) of 
        such subsection, hazardous duty pay may not exceed $450 per 
        month.
            ``(2) In the case of a member who is exposed to a hostile 
        fire event or is on duty in an area in which such an event 
        occurred which placed the member in grave danger of physical 
        injury, as described in paragraph (2) or (3) of such 
        subsection, hazardous duty pay may not exceed $450 per month.
            ``(3) In the case of a member who performs a designated 
        hazardous duty, as described in paragraph (4) of such 
        subsection, hazardous duty pay may not exceed $250 per month.
            ``(4) In the case of a member who performs duty in a 
        foreign area designated as an imminent danger area, as 
        described in paragraph (5) of such subsection, hazardous duty 
        pay may not exceed $250 per month.
    ``(c) Method of Payment.--Hazardous duty pay shall be paid on a 
monthly basis. A member who is eligible for hazardous duty pay by 
reason of paragraph (1), (2), or (3) of subsection (a) shall receive 
the full monthly rate of hazardous duty pay authorized by the Secretary 
concerned under such paragraph, notwithstanding subsection (d).
    ``(d) Reserve Component Members Performing Inactive Duty 
Training.--A member of a reserve component entitled to compensation 
under section 206 of this title who is authorized hazardous duty pay 
under this section may be paid an amount of hazardous duty pay that is 
proportionate to the compensation received by the member under section 
206 of this title for inactive-duty training.
    ``(e) Administration and Retroactive Payments.--The effective date 
for a hostile fire area designation, as described in paragraph (1) of 
subsection (a), and for the designation of a foreign area as an 
imminent danger area, as described in paragraph (5) of such subsection, 
may be a date that occurs before, on, or after the actual date of the 
designation by the Secretary concerned.
    ``(f) Determination of Fact.--Any determination of fact that is 
made in administering paragraph (2) or (3) of subsection (a) is 
conclusive. The determination may not be reviewed by any other officer 
or agency of the United States unless there has been fraud or gross 
negligence. However, the Secretary concerned may change the 
determination on the basis of new evidence or for other good cause.
    ``(g) Relationship to Other Pay and Allowances.--A member may be 
paid hazardous duty pay under this section in addition to any other pay 
and allowances to which the member is entitled. The regulations 
prescribed under subsection (j) shall address dual compensation under 
this section for multiple circumstances involving performance of a 
designated hazardous duty, as described in paragraph (4) of subsection 
(a), or for duty in certain designated areas, as described in paragraph 
(1) or 5 of such subsection, that is performed by a member during a 
single month of service.
    ``(h) Prohibition on Variable Rates.--The regulations prescribed 
under subsection (j) may not include varied criteria or rates for 
payment of hazardous duty for officers and enlisted members.
    ``(i) Repayment.--A member who receives the hazardous duty pay 
authorized under this section and who fails to meet the eligibility 
requirements under subsection (a) shall be subject to the repayment 
provisions of section 373 of this title.
    ``(j) Regulations.--This section shall be administered under 
regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense;
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy;
            ``(3) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            ``(4) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.
``Sec. 352. Assignment pay or special duty pay
    ``(a) Assignment or Special Duty Pay Authorized.--The Secretary 
concerned may pay assignment or special duty pay under this section to 
a member of a regular or reserve component of the uniformed services 
who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or compensation under section 206 of this title; and
            ``(2) performs duties in an assignment, location, or unit 
        designated by, and under the conditions of service specified 
        by, the Secretary concerned.
    ``(b) Maximum Amount and Method of Payment.--
            ``(1) Lump sum or installments.--Assignment or special duty 
        pay under subsection (a) may be paid monthly, in a lump sum, or 
        in periodic installments other than monthly, as determined by 
        the Secretary concerned.
            ``(2) Maximum monthly amount.--The maximum monthly amount 
        of assignment or special duty pay may not exceed $5,000.
            ``(3) Maximum lump sum amount.--The amount of a lump sum 
        payment of assignment or special duty pay payable to a member 
        may not exceed the amount equal to the product of--
                    ``(A) the maximum monthly rate authorized under 
                paragraph (2) at the time the member enters into a 
                written agreement under subsection (c); and
                    ``(B) the number of continuous months in the period 
                for which assignment or special duty pay will be paid 
                pursuant to the agreement.
            ``(4) Maximum installment amount.--The amount of each 
        installment payment of assignment or special duty pay payable 
        to a member on an installment basis may not exceed the amount 
        equal to--
                    ``(A) the product of--
                            ``(i) a monthly rate specified in the 
                        written agreement entered into under subsection 
                        (c), which monthly rate may not exceed the 
                        maximum monthly rate authorized under paragraph 
                        (2) at the time the member enters into the 
                        agreement; and
                            ``(ii) the number of continuous months in 
                        the period for which the assignment or special 
                        duty pay will be paid; divided by
                    ``(B) the number of installments over such period.
            ``(5) Effect of extension.--If a member extends an 
        assignment or performance of duty specified in an agreement 
        with the Secretary concerned under subsection (c), assignment 
        or special duty pay for the period of the extension may be paid 
        on a monthly basis, in a lump sum, or in installments, 
        consistent with this subsection.
    ``(c) Written Agreement.--
            ``(1) Discretionary for monthly payments.--The Secretary 
        concerned may require a member to enter into a written 
        agreement with the Secretary in order to qualify for the 
        payment of assignment or special duty pay on a monthly basis. 
        The written agreement shall specify the period for which the 
        assignment or special duty pay will be paid to the member and 
        the monthly rate of the assignment or special duty pay.
            ``(2) Required for lump sum or installment payments.--The 
        Secretary concerned shall require a member to enter into a 
        written agreement with the Secretary in order to qualify for 
        payment of assignment or special duty pay on a lump sum or 
        installment basis. The written agreement shall specify the 
        period for which the assignment or special duty pay will be 
        paid to the member and the amount of the lump sum or each 
        periodic installment.
    ``(d) Reserve Component Members Performing Inactive Duty 
Training.--A member of a reserve component entitled to compensation 
under section 206 of this title who is authorized assignment or special 
duty pay under this section may be paid an amount of assignment or 
special duty pay that is proportionate to the compensation received by 
the member under section 206 of this title for inactive-duty training.
    ``(e) Relationship to Other Pay and Allowances.--Assignment or 
special duty pay paid to a member under this section is in addition to 
any other pay and allowances to which a member is entitled.
    ``(f) Repayment.--A member who receives assignment or special duty 
pay under this section and who fails to fulfill the eligibility 
requirements under subsection (a) shall be subject to the repayment 
provisions of section 373 of this title.
    ``(g) Regulations.--This section shall be administered under 
regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense;
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy;
            ``(3) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            ``(4) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.
``Sec. 353. Skill incentive pay or proficiency bonus
    ``(a) Skill Incentive Pay.--The Secretary concerned may pay a 
monthly skill incentive pay to a member of a regular or reserve 
component of the uniformed services who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or compensation under section 206 of this title; and
            ``(2) serves in a career field or skill designated as 
        critical by the Secretary concerned.
    ``(b) Skill Proficiency Bonus.--The Secretary concerned may pay a 
proficiency bonus to a member of a regular or reserve component of the 
uniformed services who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or compensation under section 206 of this title; and
            ``(2) is determined to have, and maintains, certified 
        proficiency under subsection (d) in a skill designated as 
        critical by the Secretary concerned.
    ``(c) Maximum Amounts and Methods of Payment.--
            ``(1) Skill incentive pay.--Skill incentive pay shall be in 
        paid monthly in an amount not exceed $1,000 per month.
            ``(2) Proficiency bonus.--A proficiency bonus may be paid 
        in a lump sum at the beginning of the proficiency certification 
        period or in periodic installments during the proficiency 
        certification period. The amount of the bonus may not exceed 
        $12,000 per 12-month period of certification. The Secretary 
        concerned may not vary the criteria or rates for the 
        proficiency bonus paid for officers and enlisted members.
    ``(d) Certified Proficiency for Proficiency Bonus.--
            ``(1) Certification required.--Proficiency in a designated 
        critical skill shall be subject to annual certification by the 
        Secretary concerned.
            ``(2) Duration of certification.--A certification period 
        shall expire at the end of the one-year period beginning on the 
        first day of the first month beginning on or after the 
        certification date.
            ``(3) Waiver.--Notwithstanding paragraphs (1) and (2), the 
        regulations prescribed under subsection (i) shall address the 
        circumstances under which the Secretary concerned may waive the 
        certification requirement under paragraph (1) or extend a 
        certification period under paragraph (2).
    ``(e) Written Agreement.--
            ``(1) Discretionary for skill incentive pay.--The Secretary 
        concerned may require a member to enter into a written 
        agreement with the Secretary in order to qualify for the 
        payment of skill incentive pay. The written agreement shall 
        specify the period for which the skill incentive pay will be 
        paid to the member and the monthly rate of the pay.
            ``(2) Required for proficiency bonus.--The Secretary 
        concerned shall require a member to enter into a written 
        agreement with the Secretary in order to qualify for payment of 
        a proficiency bonus. The written agreement shall specify the 
        amount of the proficiency bonus, the period for which the bonus 
        will be paid, and the initial certification or recertification 
        necessary for payment of the proficiency bonus.
    ``(f) Reserve Component Members Performing Inactive Duty 
Training.--
            ``(1) Proration.--A member of a reserve component entitled 
        to compensation under section 206 of this title who is 
        authorized skill incentive pay under subsection (a) may be paid 
        an amount of skill incentive pay that is proportionate to the 
        compensation received by the member under section 206 of this 
        title for inactive-duty training.
            ``(2) Exception for foreign language proficiency.--No 
        reduction in the amount of skill incentive pay may be made 
        under paragraph (1) in the case of a member of a reserve 
        component who is authorized skill incentive pay because of the 
        member's proficiency in a foreign language.
    ``(g) Repayment.--A member who receives skill incentive pay or a 
proficiency bonus under this section and who fails to fulfill the 
eligibility requirement for receipt of the pay or bonus shall be 
subject to the repayment provisions of section 373 of this title.
    ``(h) Relationship to Other Pays and Allowances.--A member may not 
be paid more than one pay under this section in any month for the same 
period of service and skill. A member may be paid skill incentive pay 
or the proficiency bonus under this section in addition to any other 
pay and allowances to which the member is entitled, except that the 
member may not be paid skill incentive pay or a proficiency bonus under 
this section and hazardous duty pay under section 351(a)(4) of this 
title for the same period of service in the same career field or skill.
    ``(i) Regulations.--This section shall be administered under 
regulations prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense;
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy;
            ``(3) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            ``(4) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.

                  ``SUBCHAPTER III--GENERAL PROVISIONS

``Sec. 371. Relationship to other incentives and pays
    ``(a) Treatment.--A bonus or incentive pay paid to a member of the 
uniformed services under subchapter II is in addition to any other pay 
and allowance to which a member is entitled, unless otherwise provided 
under this chapter.
    ``(b) Exception.--A member may not receive a bonus or incentive pay 
under both subchapter I and subchapter II for the same activity, skill, 
or period of service.
    ``(c) Relationship to Other Computations.--The amount of a bonus or 
incentive pay to which a member is entitled under subchapter II may not 
be included in computing the amount of--
            ``(1) any increase in pay authorized by any other provision 
        of this title; or
            ``(2) any retired pay, retainer pay, separation pay, or 
        disability severance pay.
``Sec. 372. Continuation of pays during hospitalization for wounds, 
              injury, or illness incurred while on duty in a hostile 
              fire area or exposed to an event of hostile fire or other 
              hostile action
    ``(a) Continuation of Pays.--Notwithstanding any other provision of 
law, the Secretary concerned may continue to pay all pay and allowances 
to a member of a regular or reserve component of a uniformed service, 
including any bonus, incentive pay, or similar benefit, if the member--
            ``(1) incurs a wound, injury, or illness in the line of 
        duty while serving in a combat operation or a combat zone, 
        while serving in a hostile fire area, or while exposed to a 
        hostile fire event, as described under section 351 of this 
        title; and
            ``(2) is hospitalized for treatment of such wound, injury, 
        or illness.
    ``(b) Duration.--The continuation of pay and allowances of a member 
under subsection (a) shall expire at the end of the first month during 
which the member is no longer hospitalized for treatment.
    ``(c) Definitions.--In this section:
            ``(1) The term `hospitalized for treatment', with respect 
        to a member, means the member--
                    ``(A) is admitted as an inpatient in a military 
                treatment facility; or
                    ``(B) is residing in quarters or in a facility 
                affiliated with the military health care system for the 
                purposes of receiving extensive outpatient 
                rehabilitation or other medical care.
            ``(2) The term `bonus, incentive pay, or similar benefit' 
        means a bonus, incentive pay, special pay, or similar payment, 
        or an educational benefit or stipend, paid to a member of the 
        uniformed services under this title or title 10.
``Sec. 373. Repayment of unearned portion of bonus, incentive pay, or 
              similar benefit when conditions of payment not met
    ``(a) Repayment.--Except as provided in subsection (b), a member of 
the uniformed services who is paid a bonus, incentive pay, or similar 
benefit, the receipt of which is contingent upon the member's 
satisfaction of certain service or eligibility requirements, shall 
repay to the United States any unearned portion of the bonus, incentive 
pay, or similar benefit if the member fails to satisfy any such service 
or eligibility requirement.
    ``(b) Exceptions.--The regulations prescribed to administer this 
section may specify procedures for determining the circumstances under 
which an exception to the required repayment may be granted.
    ``(c) Effect of Bankruptcy.--An obligation to repay the United 
States under this section is, for all purposes, a debt owed the United 
States. A discharge in bankruptcy under title 11 does not discharge a 
person from such debt if the discharge order is entered less than five 
years after--
            ``(1) the date of the termination of the agreement or 
        contract on which the debt is based; or
            ``(2) in the absence of such an agreement or contract, the 
        date of the termination of the service on which the debt is 
        based.
    ``(d) Definitions.--In this section:
            ``(1) The term `bonus, incentive pay, or similar benefit' 
        means a bonus, incentive pay, special pay, or similar payment, 
        or an educational benefit or stipend, paid to a member of the 
        uniformed services under a provision of law that refers to the 
        repayment requirements of this section or section 303a(e) of 
        this title.
            ``(2) The term `service' refers to an obligation willingly 
        undertaken by a member of the uniformed services, in exchange 
        for a bonus, incentive pay, or similar benefit offered by the 
        Secretary concerned--
                    ``(A) to a regular or reserve component member who 
                remains on active duty or in an active status;
                    ``(B) to perform duty in a specified skill, with or 
                without a specified qualification or credential;
                    ``(C) to perform duty in a specified assignment, 
                location or unit; or
                    ``(D) to perform duty for a specified period of 
                time.
``Sec. 374. Regulations
    ``This subchapter shall be administered under regulations 
prescribed by--
            ``(1) the Secretary of Defense, with respect to the armed 
        forces under the jurisdiction of the Secretary of Defense;
            ``(2) the Secretary of Homeland Security, with respect to 
        the Coast Guard when it is not operating as a service in the 
        Navy;
            ``(3) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            ``(4) the Secretary of Commerce, with respect to the 
        National Oceanic and Atmospheric Administration.''.
    (b) Transfer of 15-Year Career Status Bonus to Subchapter II.--
            (1) Transfer.--Section 322 of title 37, United States Code, 
        is transferred to appear after section 353 of subchapter II of 
        chapter 5 of such title, as added by subsection (a), and is 
        redesignated as section 354.
            (2) Conforming amendment.--Subsection (f) of such section, 
        as so transferred and redesignated, is amended by striking 
        ``section 303a(e)'' and inserting ``section 373''.
            (3) Cross references.--Sections 1401a, 1409(b)(2), and 1410 
        of title 10, United States Code, are amended by striking 
        ``section 322'' each place it appears and inserting ``section 
        322 or 354''.
    (c) Transfer of Retention Incentives for Members Qualified in 
Critical Military Skills or Assigned to High Priority Units.--
            (1) Transfer.--Section 323 of title 37, United States Code, 
        as amended by sections 614(e) and 621, is transferred to appear 
        after section 354 of subchapter II of chapter 5 of such title, 
        as transferred and redesignated by subsection (b)(1), and is 
        redesignated as section 355.
            (2) Conforming amendment.--Subsection (g) of such section, 
        as so transferred and redesignated, is amended by striking 
        ``section 303a(e)'' and inserting ``section 373''.
    (d) Clerical Amendments.--The table of sections at the beginning of 
chapter 5 of title 37, United States Code, is amended to read as 
follows:

     ``subchapter i--existing special pay, incentive pay, and bonus 
                              authorities

``Sec.
``301. Incentive pay: hazardous duty.
``301a. Incentive pay: aviation career.
``301b. Special pay: aviation career officers extending period of 
                            active duty.
``301c. Incentive pay: submarine duty.
``301d. Multiyear retention bonus: medical officers of the armed 
                            forces.
``301e. Multiyear retention bonus: dental officers of the armed forces.
``302. Special pay: medical officers of the armed forces.
``302a. Special pay: optometrists.
``302b. Special pay: dental officers of the armed forces.
``302c. Special pay: psychologists and nonphysician health care 
                            providers.
``302d. Special pay: accession bonus for registered nurses.
``302e. Special pay: nurse anesthetists.
``302f. Special pay: reserve, recalled, or retained health care 
                            officers.
``302g. Special pay: Selected Reserve health care professionals in 
                            critically short wartime specialties.
``302h. Special pay: accession bonus for dental officers.
``302i. Special pay: pharmacy officers.
``302j. Special pay: accession bonus for pharmacy officers.
``302k. Special pay: accession bonus for medical officers in critically 
                            short wartime specialties.
``302l. Special pay: accession bonus for dental specialist officers in 
                            critically short wartime specialties.
``303. Special pay: veterinarians.
``303a. Special pay: general provisions.
``303b. Waiver of board certification requirements.
``304. Special pay: diving duty.
``305. Special pay: hardship duty pay.
``305a. Special pay: career sea pay.
``305b. Special pay: service as member of Weapons of Mass Destruction 
                            Civil Support Team.
``306. Special pay: officers holding positions of unusual 
                            responsibility and of critical nature.
``306a. Special pay: members assigned to international military 
                            headquarters.
``307. Special pay: special duty assignment pay for enlisted members.
``307a. Special pay: assignment incentive pay.
``308. Special pay: reenlistment bonus.
``308b. Special pay: reenlistment bonus for members of the Selected 
                            Reserve.
``308c. Special pay: bonus for affiliation or enlistment in the 
                            Selected Reserve.
``308d. Special pay: members of the Selected Reserve assigned to 
                            certain high priority units.
``308g. Special pay: bonus for enlistment in elements of the Ready 
                            Reserve other than the Selected Reserve.
``308h. Special pay: bonus for reenlistment, enlistment, or voluntary 
                            extension of enlistment in elements of the 
                            Ready Reserve other than the Selected 
                            Reserve.
``308i. Special pay: prior service enlistment bonus.
``308j. Special pay: affiliation bonus for officers in the Selected 
                            Reserve.
``309. Special pay: enlistment bonus.
``310. Special pay: duty subject to hostile fire or imminent danger.
``312. Special pay: nuclear-qualified officers extending period of 
                            active duty.
``312b. Special pay: nuclear career accession bonus.
``312c. Special pay: nuclear career annual incentive bonus.
``314. Special pay or bonus: qualified members extending duty at 
                            designated locations overseas.
``315. Special pay: engineering and scientific career continuation pay.
``316. Special pay: bonus for members with foreign language 
                            proficiency.
``317. Special pay: officers in critical acquisition positions 
                            extending period of active duty.
``318. Special pay: special warfare officers extending period of active 
                            duty.
``319. Special pay: surface warfare officer continuation pay.
``320. Incentive pay: career enlisted flyers.
``321. Special pay: judge advocate continuation pay.
``324. Special pay: accession bonus for new officers in critical 
                            skills.
``325. Incentive bonus: savings plan for education expenses and other 
                            contingencies.
``326. Incentive bonus: conversion to military occupational specialty 
                            to ease personnel shortage.
``327. Incentive bonus: transfer between armed forces.
``328. Combat-related injury rehabilitation pay.
``329. Incentive bonus: retired members and reserve component members 
                            volunteering for high-demand, low-density 
                            assignments.
``330. Special pay: accession bonus for officer candidates.

   ``subchapter ii--consolidation of special pay, incentive pay, and 
                           bonus authorities

``331. General bonus authority for enlisted members.
``332. General bonus authority for officers.
``333. Special bonus and incentive pay authorities for nuclear 
                            officers.
``334. Special aviation incentive pay and bonus authorities for 
                            officers.
``335. Special bonus and incentive pay authorities for officers in 
                            health professions.
``351. Hazardous duty pay.
``352. Assignment pay or special duty pay.
``353. Skill incentive pay or proficiency bonus.
``354. Special pay: 15-year career status bonus for members entering 
                            service on or after August 1, 1986.
``355. Special pay: retention incentives for members qualified in 
                            critical military skills or assigned to 
                            high priority units.

                  ``subchapter iii--general provisions

``371. Relationship to other incentives and pays.
``372. Continuation of pays during hospitalization for wounds, injury, 
                            or illness incurred while on duty in a 
                            hostile fire area or exposed to an event of 
                            hostile fire or other hostile action.
``373. Repayment of unearned portion of bonus, incentive pay, or 
                            similar benefit when conditions of payment 
                            not met.
``374. Regulations.''.

SEC. 662. TRANSITIONAL PROVISIONS.

    (a) Implementation Plan.--
            (1) Development.--The Secretary of Defense shall develop a 
        plan to implement subchapters II and III of chapter 5 of title 
        37, United States Code, as added by section 661(a), and to 
        correspondingly transition all of the special and incentive pay 
        programs for members of the uniformed services solely to 
        provisions of such subchapters.
            (2) Submission.--Not later than one year after the date of 
        the enactment of this Act, the Secretary shall submit the 
        implementation plan to the congressional defense committees.
    (b) Transition Period.--During a transition period of not more than 
10 years beginning on the date of the enactment of this Act, the 
Secretary of Defense, the Secretary of a military department, and the 
Secretaries referred to in subsection (c) may continue to use the 
authorities in provisions in subchapter I of chapter 5 of title 37, 
United States Code, as designated by section 661(a), but subject to the 
terms of such provisions and such modifications as the Secretary of 
Defense may include in the implementation plan, to provide bonuses and 
special and incentive pays for members of the uniformed services.
    (c) Coordination.--The Secretary of Defense shall prepare the 
implementation plan in coordination with--
            (1) the Secretary of Homeland Security, with respect to the 
        Coast Guard;
            (2) the Secretary of Health and Human Services, with 
        respect to the commissioned corps of the Public Health Service; 
        and
            (3) the Secretary of Commerce, with respect to the National 
        Oceanic and Atmospheric Administration.
    (d) No Effect on Fiscal Year 2008 Obligations.--During fiscal year 
2008, obligations incurred under subchapters I, II, and III of chapter 
5 of title 37, United States Code, as amended by section 661, to 
provide bonuses, incentive pays, special pays, and similar payments to 
members of the uniformed services under such subchapters may not exceed 
the obligations that would be incurred in the absence of the amendments 
made by such section.

                       Subtitle G--Other Matters

SEC. 671. EXPANSION OF EDUCATION LOAN REPAYMENT PROGRAM FOR MEMBERS OF 
              THE SELECTED RESERVE.

    (a) Additional Educational Loans Eligible for Repayment.--Paragraph 
(1) of subsection (a) of section 16301 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 that State, and approved by the 
                Secretary for purposes of this section.''.
    (b) Participation of Officers in Program.--Such subsection is 
further amended--
            (1) in paragraph (2)--
                    (A) by striking ``Except as provided in paragraph 
                (3), the Secretary'' and inserting ``The Secretary''; 
                and
                    (B) 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 in an officer program or military specialty''; and
            (2) by striking paragraph (3).
    (c) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 16301. Education loan repayment program: members of Selected 
              Reserve''.
            (2) Table of sections.--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 Selected 
                            Reserve.''.

SEC. 672. ENSURING ENTRY INTO UNITED STATES AFTER TIME ABROAD FOR 
              PERMANENT RESIDENT ALIEN MILITARY SPOUSES AND CHILDREN.

    Section 284 of the Immigration and Nationality Act (8 U.S.C. 1354) 
is amended--
            (1) by striking ``Nothing'' and inserting ``(a) Nothing''; 
        and
            (2) by adding at the end the following new subsection:
    ``(b) In the case of a person lawfully admitted for permanent 
residence who is the spouse or child of a member of the Armed Forces of 
the United States, is authorized to accompany such member and reside 
abroad with the member pursuant to the member's official orders, and is 
so accompanying and residing with the member (in marital union if a 
spouse), such residence and physical presence abroad shall not be 
treated as--
            ``(1) an abandonment or relinquishment of lawful permanent 
        resident status for purposes of section 101(a)(13)(C)(i); or
            ``(2) an absence from the United States for purposes of 
        section 101(a)(13)(C)(ii).''.

SEC. 673. OVERSEAS NATURALIZATION FOR MILITARY SPOUSES AND CHILDREN.

    (a) Spouses.--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)(1) In the case of a person lawfully admitted for permanent 
residence in the United States who is the spouse of a member of the 
Armed Forces of the United States, is authorized to accompany such 
member and reside abroad with the member pursuant to the member's 
official orders, and is so accompanying and residing with the member in 
marital union, such residence and physical presence abroad shall be 
treated, for purposes of subsection (a) and section 316(a), as 
residence and physical presence in--
            ``(A) the United States; and
            ``(B) any State or district of the Department of Homeland 
        Security in the United States.
    ``(2) Notwithstanding any other provision of law, a spouse 
described in paragraph (1) shall be eligible for naturalization 
proceedings oversees pursuant to section 1701(d) of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 8 
U.S.C. 1443a).''.
    (b) Children.--Section 322 of the Immigration and Nationality Act 
(8 U.S.C. 1433) is amended by adding at the end the following new 
subsection:
    ``(d) In the case of a child of a member of the Armed Forces of the 
United States who is authorized to accompany such member and reside 
abroad with the member pursuant to the member's official orders, and is 
so accompanying and residing with the member--
            ``(1) any period of time during which the member of the 
        Armed Forces is residing abroad pursuant to official orders 
        shall be treated, for purposes of subsection (a)(2)(A), as 
        physical presence in the United States;
            ``(2) subsection (a)(5) shall not apply; and
            ``(3) the oath of allegiance described in subsection (b) 
        may be subscribed to abroad pursuant to section 1701(d) of the 
        National Defense Authorization Act for Fiscal Year 2004 (Public 
        Law 108-136; 8 U.S.C. 1443a).''.
    (c) 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--
            (1) in the subsection heading, by inserting ``and Their 
        Spouses and Children'' after ``Forces''; and
            (2) by inserting ``, and persons made eligible for 
        naturalization by section 319(e) or 322(d) of such Act,'' after 
        ``Armed Forces''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of enactment of this Act and apply to any 
application for naturalization or issuance of a certificate of 
citizenship pending on or after such date.

                   TITLE VII--HEALTH CARE PROVISIONS

Sec. 701. Extension of prohibition on increases in certain health care 
                            costs for members of the uniformed 
                            services.
Sec. 702. Temporary prohibition on increase in copayments under retail 
                            pharmacy system of pharmacy benefits 
                            program.
Sec. 703. Fair pricing under pharmacy benefits program.
Sec. 704. Prohibition on conversion of military medical and dental 
                            positions to civilian medical and dental 
                            positions.
Sec. 705. Establishment of Nurse Practitioner Program.
Sec. 706. Services of mental health counselors.
Sec. 707. Extension of pilot program for health care delivery.
Sec. 708. Stipend for members of Reserve Components for health care for 
                            certain dependents.
Sec. 709. Joint Pathology Center.
Sec. 710. Report on training in preservation of remains under combat or 
                            combat-related conditions.
Sec. 711. Pre- and post-deployment assessments for the purpose of 
                            determining the cognitive functioning and 
                            brain health of deployed members of the 
                            Armed Forces.
Sec. 712. Guaranteed funding for Walter Reed Army Medical Center.

SEC. 701. EXTENSION OF PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE 
              COSTS FOR MEMBERS OF THE UNIFORMED SERVICES.

    (a) Extension of Prohibition on Increase in Charges Under Contracts 
for Medical Care.--Section 1097(e) of title 10, United States Code, is 
amended by striking ``2007'' and inserting ``2008''.
    (b) Extension of Prohibition in Increase in Charges for Inpatient 
Care.--Section 1086(b)(3) of title 10, United States Code, is amended 
by striking ``2007.'' and inserting ``2008''.
    (c) Extension of Prohibition on Increase in Premiums Under TRICARE 
Coverage for Certain Members in the Selected Reserve.--Section 
1076d(d)(3) of title 10, United States Code, is amended by striking 
``2007'' and inserting ``2008''.
    (d) Extension of Prohibition on Increase in Premiums Under TRICARE 
Coverage for Members of the Ready Reserve.--Section 1076b(e)(3) of 
title 10, United States Code, is amended by striking ``2007'' and 
inserting ``2008''.

SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL 
              PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    During the period beginning on October 1, 2007, and ending on 
September 30, 2008, the cost sharing requirements established under 
paragraph (6) of section 1074g(a) of title 10, United States Code, for 
pharmaceutical agents available through retail pharmacies covered by 
paragraph (2)(E)(ii) of such section may not exceed amounts as follows:
            (1) In the case of generic agents, $3.
            (2) In the case of formulary agents, $9.
            (3) In the case of nonformulary agents, $22.

SEC. 703. FAIR PRICING UNDER PHARMACY BENEFITS PROGRAM.

    Section 1074g(a) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(9)(A) In carrying out this subsection, the Secretary 
        may, to the extent recommended by the Pharmacy and Therapeutics 
        Committee in the course of reviewing any therapeutic class of 
        pharmaceutical agents, exclude from the pharmacy benefits 
        program any pharmaceutical agent that is not provided to the 
        Secretary consistent with the pricing standard set forth 
        subparagraph (B).
            ``(B) The pricing standard referred to in subparagraph (A) 
        is that the price of any pharmaceutical agent made available to 
        beneficiaries through all the means described in paragraph 
        (2)(E) shall be the same as, or lower than, the price of the 
        agent under section 8126 of title 38, United States Code.''.

SEC. 704. PROHIBITION ON CONVERSION OF MILITARY MEDICAL AND DENTAL 
              POSITIONS TO CIVILIAN MEDICAL AND DENTAL POSITIONS.

    (a) Prohibition.--The Secretary of a military department may not 
convert any military medical or dental position to a civilian medical 
or dental position on or after October 1, 2007.
    (b) Report.--
            (1) Requirement.--The Secretary of Defense shall submit to 
        the congressional defense committees a report on conversions 
        made during fiscal year 2007 not later than 180 days after the 
        enactment of this Act.
            (2) Matters covered.--The report shall include the 
        following:
                    (A) The number of military medical or dental 
                positions, by grade or band and specialty, converted to 
                civilian medical or dental positions.
                    (B) The results of a market survey in each affected 
                area of the availability of civilian medical and dental 
                care providers in such area in order to determine 
                whether there were civilian medical and dental care 
                providers available in such area adequate to fill the 
                civilian positions created by the conversion of 
                military medical and dental positions to civilian 
                positions in such area.
                    (C) An analysis, by affected area, showing the 
                extent to which access to health care and cost of 
                health care was affected in both the direct care and 
                purchased care systems, including an assessment of the 
                effect of any increased shifts in patient load from the 
                direct care to the purchased care system, or any delays 
                in receipt of care in either the direct or purchased 
                care system because of the conversions.
                    (D) The extent to which military medical and dental 
                positions converted to civilian medical or dental 
                positions affected recruiting and retention of 
                uniformed medical and dental personnel.
                    (E) A comparison of the full costs for the military 
                medical and dental positions converted with the full 
                costs for civilian medical and dental positions, 
                including expenses such as recruiting, salary, 
                benefits, training, and any other costs the Department 
                identifies.
                    (F) An assessment showing that the military medical 
                or dental positions converted were in excess of the 
                military medical and dental positions needed to meet 
                medical and dental readiness requirements of the 
                uniformed services, as determined jointly by all the 
                uniformed services.
    (c) Definitions.--In this section:
            (1) The term ``military medical or dental position'' means 
        a position for the performance of health care functions within 
        the Armed Forces held by a member of the Armed Forces.
            (2) The term ``civilian medical or dental position'' means 
        a position for the performance of health care functions within 
        the Department of Defense held by an employee of the Department 
        or of a contractor of the Department.
            (3) The term ``uniformed services'' has the meaning given 
        that term in section 1072(1) of title 10, United States Code.
            (4) The term ``conversion,'' with respect to a military 
        medical or dental position, means a change of the position to a 
        civilian medical or dental position, effective as of the date 
        of the manning authorization document of the military 
        department making the change (through a change in designation 
        from military to civilian in the document, the elimination of 
        the listing of the position as a military position in the 
        document, or through any other means indicating the change in 
        the document or otherwise).
    (d) Repeal.--Section 742 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 
2306) is repealed.

SEC. 705. ESTABLISHMENT OF NURSE PRACTITIONER PROGRAM.

    The Secretary of Defense shall establish at the Uniformed Services 
University of the Health Sciences a graduate education program for 
advanced-practice nursing. The Secretary shall, in consultation with 
the Secretaries of the military departments, determine programs of 
instruction leading to designation as a Nurse Practitioner, which shall 
include, at a minimum, family practice and psychiatric or mental 
health. The program shall be designed to ensure that graduates of the 
program are fully eligible to meet credentialing requirements of the 
military departments and at least one State.

SEC. 706. SERVICES OF MENTAL HEALTH COUNSELORS.

    (a) Reimbursement of Mental Health Counselors Under TRICARE.--
            (1)  Reimbursement under tricare.--Section 1079(a)(8) of 
        title 10, United States Code, is amended--
                    (A) by inserting ``or licensed or certified mental 
                health counselors'' after ``certified marriage and 
                family therapists'' both places it appears; and
                    (B) by inserting ``or licensed or certified mental 
                health counselors'' after ``that the therapists.''
            (2) Authority to assess medical or psychological necessity 
        of service or supply.--Section 1079(a)(13) of such title is 
        amended by inserting ``, licensed or certified mental health 
        counselor,'' after ``certified marriage and family therapist''.
    (b) Services of Mental Health Counselors.--
            (1) Authority to enter into personal services contracts.--
        Section 704(c)(2) of the National Defense Authorization Act for 
        Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2799; 10 U.S.C. 
        1091 note) is amended by inserting ``mental health 
        counselors,'' after ``psychologists,''.
            (2) Applicability of licensure requirement for health-care 
        professionals.--Section 1094 (e)(2) of title 10, United States 
        Code, is amended by inserting ``mental health counselor,'' 
        after ``psychologist,''.

SEC. 707. EXTENSION OF PILOT PROGRAM FOR HEALTH CARE DELIVERY.

    (a) Extension of Duration of Pilot Program.--Section 721(e) of the 
Ronald W. Reagan National Defense Authorization Act for Fiscal Year 
2005 (Public Law 108-375; 10 U.S.C. 1092 note) is amended by striking 
``and 2007'' and inserting ``, 2007, 2008, 2009, and 2010''.
    (b) Extension of Report Deadline.--Section 721(f) of such Act is 
amended by striking ``July 1, 2007'' and inserting ``July 1, 2010''.
    (c) Revision in Selection Criteria.--Section 721(d)(2) of such Act 
is amended by striking ``expected to increase over the next five 
years'' and inserting ``has increased over the five years preceding 
2008''.
    (d) Addition to Requirements of Pilot Program.--Section 721(b) of 
such Act is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period and inserting ``; and'' at the 
        end of paragraph (4); and
            (3) by adding at the end the following:
            ``(5) collaborate with State and local authorities to 
        create an arrangement to share and exchange, between the 
        Department of Defense and non-military health care systems, 
        personal health information and data of military personnel and 
        their families.''.

SEC. 708. STIPEND FOR MEMBERS OF RESERVE COMPONENTS FOR HEALTH CARE FOR 
              CERTAIN DEPENDENTS.

    The Secretary of Defense may pay a stipend to a member of a reserve 
component who is called or ordered to active duty for a period of more 
than 30 days for purposes of maintaining civilian health care coverage 
for a dependant whom the Secretary determines to possess a special 
health care need that would be best met by remaining in the member's 
civilian health plan. In making such determination, the Secretary shall 
consider whether--
            (1) the dependent of the member was receiving treatment for 
        the special health care need before the call or order to active 
        duty of the member; and
            (2) the call or order to active duty would result in an 
        interruption in treatment or a change in health care provider 
        for such treatment.

SEC. 709. JOINT PATHOLOGY CENTER.

    (a) Establishment.--The Secretary of Defense shall establish a 
Joint Pathology Center located on the National Naval Medical Center in 
Bethesda, Maryland, that shall function as the reference center in 
pathology for the Department of Defense.
    (b) Services.--The Joint Pathology Center shall provide, at a 
minimum, the following services:
            (1) Diagnostic pathology consultation in medicine, 
        dentistry, and veterinary sciences.
            (2) Pathology education, to include graduate medical 
        education, including residency and fellowship programs, and 
        continuing medical education.
            (3) Diagnostic pathology research.

SEC. 710. REPORT ON TRAINING IN PRESERVATION OF REMAINS UNDER COMBAT OR 
              COMBAT-RELATED CONDITIONS.

    (a) Report Required.--The Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the requirements of section 567 of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 (Public 
Law 109-364; 120 Stat. 2224; 10 U.S.C. 1481 note).
    (b) Matters Covered.--The report shall include a detailed 
description of the implementation of such section, including--
            (1) where the training program is taking place;
            (2) who is providing the training;
            (3) the number of each type of military health care 
        professional trained to date; and
            (4) what the training covers.
    (c) Deadline.--The report required by this section shall be 
submitted not later than 180 days after the date of the enactment of 
this Act.

SEC. 711. PRE- AND POST-DEPLOYMENT ASSESSMENTS FOR THE PURPOSE OF 
              DETERMINING THE COGNITIVE FUNCTIONING AND BRAIN HEALTH OF 
              DEPLOYED MEMBERS OF THE ARMED FORCES.

    (a) Establishment.--The Secretary of Defense, in collaboration with 
the Secretaries of the military departments, shall establish a 
computer-based program that assesses the cognitive functioning, in a 
pre- and post-deployment environment, of all members of the armed 
forces who are deployed in support of the Global War on Terror, 
including Operation Iraqi Freedom and Operation Enduring Freedom.
    (b) Minimum Protocol Requirements.--
            (1) In general.--The program required by subsection (a) 
        shall include--
                    (A) administration of computer-based neurocognitive 
                assessments;
                    (B) pre-deployment assessments to establish a 
                neurocognitive baseline for members of the Armed Forces 
                for future treatment;
                    (C) a tool to assess mood states associated with 
                post-traumatic stress syndrome; and
                    (D) a standardized battery of tests to assess 
                traumatic brain injury.
    (c) Assessments.--
            (1) Frequency.--The predeployment assessment to baseline 
        neurocognitive functioning shall be administered within 90 days 
        prior to deployment. The post-deployment assessment shall be 
        administered within 45 days of return from theater.
            (2) Requirements of assessment.--The computer-based 
        neurocognitive assessments required by subsection (a) shall 
        include the capability to be archived and stored on Department 
        of Defense-based servers for future medical use.
    (d) Report.--Not later than 9 months after the date of enactment of 
this Act, the Secretary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives a report 
on the implementation of this section.

SEC. 712. GUARANTEED FUNDING FOR WALTER REED ARMY MEDICAL CENTER.

    The amount of funds available for the commander of Walter Reed Army 
Medical Center for a fiscal year shall be not less than the amount 
expended by the commander of Walter Reed Army Medical Center in fiscal 
year 2006 until the first fiscal year beginning after the date on which 
the Secretary of Defense certifies to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House of 
Representatives that the expanded facilities at the National Naval 
Medical Center, Bethesda, Maryland, and DeWitt Army Community Hospital, 
Fort Belvoir, Virginia, as described in section 304(a), are completed, 
equipped, and staffed with sufficient capacity to accept and provide at 
least the same level of care as patients received at Walter Reed Army 
Medical Center during fiscal year 2006.

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

             Subtitle A--Acquisition Policy and Management

Sec. 801. Definition of commercial services.
Sec. 802. Acquisition workforce provisions.
Sec. 803. Guidance on defense procurements made through contracts of 
                            other agencies.
Sec. 804. Prohibition on procurement from beneficiaries of foreign 
                            subsidies.
Sec. 805. Prohibition on procurement from companies in violation of the 
                            Iran and Syria Nonproliferation Act.
Sec. 806. Lead systems integrators.
Sec. 807. Procurement goal for Native Hawaiian-serving institutions and 
                            Alaska Native-serving institutions.
Sec. 808. Reinvestment in domestic sources of strategic materials.
Sec. 809. Clarification of the protection of strategic materials 
                            critical to national security.
Sec. 810. Debarment of contractors convicted of criminal violations of 
                            the Arms Export Control Act.

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

Sec. 811. Change to the Truth in Negotiations Act exception for the 
                            acquisition of a commercial item.
Sec. 812. Clarification of submission of cost or pricing data on 
                            noncommercial modifications of commercial 
                            items.
Sec. 813. Plan for restricting Government-unique contract clauses on 
                            commercial contracts.
Sec. 814. Extension of authority for use of simplified acquisition 
                            procedures for certain commercial items.
Sec. 815. Extension of authority to fill shortage category positions 
                            for certain federal acquisition positions.
Sec. 816. Extension of authority to carry out certain prototype 
                            projects.
Sec. 817. Clarification of limited acquisition authority for special 
                            operations command.
Sec. 818. Exemption of special operations command from certain 
                            requirements for contracts relating to 
                            vessels, aircraft, and combat vehicles.
Sec. 819. Provision of authority to maintain equipment to unified 
                            combatant command for joint warfighting.
Sec. 820. Market research.

               Subtitle C--Accountability in Contracting

Sec. 821. Limitation on length of noncompetitive contracts.
Sec. 822. Maximizing fixed-price procurement contracts.
Sec. 823. Public disclosure of justification and approval documents for 
                            noncompetitive contracts.
Sec. 824. Disclosure of Government contractor audit findings.
Sec. 825. Study of acquisition workforce.
Sec. 826. Report to Congress.

         Subtitle D--Contracts Relating to Iraq and Afghanistan

Sec. 831. Memorandum of understanding on matters relating to 
                            contracting.
Sec. 832. Comptroller General reviews and reports on contracting in 
                            Iraq and Afghanistan.
Sec. 833. Definitions.
Sec. 834. Competition for equipment supplied to Iraq and Afghanistan.

                       Subtitle E--Other Matters

Sec. 841. Rapid Commercial Information Technology Identification 
                            Demonstration Project.
Sec. 842. Report to Congress required on delays in major phases of 
                            acquisition process for major automated 
                            information system programs.
Sec. 843. Requirement for licensing of certain military designations 
                            and likenesses of weapons systems to toy 
                            and hobby manufacturers.
Sec. 844. Change in grounds for waiver of limitation on service 
                            contract to acquire military flight 
                            simulator.
Sec. 845. Evaluation of cost of compliance with requirement to buy 
                            certain articles from American sources.
Sec. 846. Requirements relating to waivers of certain domestic source 
                            limitations.
Sec. 847. Multiple cost threshold breaches.
Sec. 848. Phone cards.
Sec. 849. Jurisdiction under Contract Disputes Act of 1978 over claims, 
                            disputes, and appeals arising out of 
                            maritime contracts.
Sec. 850. Clarification of jurisdiction of the United States district 
                            courts to hear bid protest disputes 
                            involving maritime contracts.

             Subtitle A--Acquisition Policy and Management

SEC. 801. DEFINITION OF COMMERCIAL SERVICES.

    (a) Commercial Item Regulations to Be Used Only for Commercial 
Services Meeting Statutory Definition.--The Administrator for Federal 
Procurement Policy shall revise the Federal Acquisition Regulation to 
ensure that only commercial services as defined in section 4(12)(F) of 
the Office of Federal Procurement Policy Act (41 U.S.C. 403(12)(F)) are 
procured under procedures set forth in Part 12 of the Federal 
Acquisition Regulation. In carrying out the revision, the Administrator 
shall remove the words ``of a type'' from the definition of commercial 
services to be procured under such Part 12.
    (b) Requirement to Analyze Two Options for Procurement of Services 
Similar to Commercial Services.--The Administrator for Federal 
Procurement Policy shall analyze the two options described in 
subsection (c) to determine which regulations would be in the best 
interest of the Government for the procurement of services similar to 
commercial services. After completing the analysis, the Administrator 
shall revise the Federal Acquisition Regulation to include the option 
that the Administrator has determined to be in the best interest of the 
Government.
    (c) Options for Analysis.--The two options are as follows:
            (1) Option 1.--Part 12 of the Federal Acquisition, relating 
        to acquisition of commercial items, with the following 
        additional provisions:
                    (A) Subject to subparagraph (B), the contracting 
                officer may request the following information from the 
                offeror:
                            (i) Prices paid for the same or similar 
                        commercial items under comparable terms and 
                        conditions by both government and commercial 
                        customers.
                            (ii) Information regarding price or cost 
                        that may support the price offered, such as 
                        wages, subcontracts, or material costs.
                            (iii) Such other information as the 
                        Administrator considers appropriate.
                    (B) The contracting officer should not request more 
                information than is necessary to determine that an 
                offered price is reasonable.
            (2) Option 2.--Part 15 of the Federal Acquisition 
        Regulation, relating to contracting by negotiation, as in 
        effect on the date of the enactment of this Act.

SEC. 802. ACQUISITION WORKFORCE PROVISIONS.

    (a) Repeal of Sunset of Acquisition Workforce Training Fund.--
Section 37(h)(3) of the Office of Federal Procurement Policy Act (41 
U.S.C. 433(h)(3)) is amended by striking subparagraph (H).
    (b) Requirement for Section on Acquisition Workforce in Strategic 
Human Capital Plan.--
            (1) In general.--In the update of the strategic human 
        capital plan for 2008, and in each subsequent update, the 
        Secretary of Defense shall include a separate section focused 
        on the defense acquisition workforce, including both military 
        and civilian personnel.
            (2) Funding.--The section shall contain--
                    (A) an identification of the funding programmed for 
                acquisition workforce training in the future years 
                defense program;
                    (B) a determination by the Secretary of whether 
                such funding is adequate; and
                    (C) an evaluation of how such funding can be 
                protected from being diverted to other uses.
            (3) Areas of need.--The section also shall identify any 
        areas of need in the acquisition workforce, including--
                    (A) changes to the types of skills needed in the 
                acquisition workforce;
                    (B) incentives to retain in the acquisition 
                workforce qualified, experienced acquisition workforce 
                personnel; and
                    (C) incentives for attracting new, high-quality 
                personnel to the acquisition workforce.
    (c) Strategic Human Capital Plan Defined.--In this section, the 
term ``strategic human capital plan'' means the strategic human capital 
plan required under section 1122 of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3452; 10 U.S.C. 
prec. 1580 note).

SEC. 803. GUIDANCE ON DEFENSE PROCUREMENTS MADE THROUGH CONTRACTS OF 
              OTHER AGENCIES.

    (a) Guidance.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall issue guidance on the use of 
interagency contracting by the Department of Defense.
    (b) Matters Covered.--The guidance shall include, at a minimum, the 
following provisions:
            (1) Items unique to the Department of Defense may not be 
        acquired by interagency contracting.
            (2) Acquisition officials should make a good faith effort, 
        including through the conduct of market research, if 
        appropriate, to identify whether an item considered for 
        interagency contracting is already being provided under a 
        contract awarded by the Department of Defense.
            (3) Acquisition officials shall ensure that, with respect 
        to the outside agency involved in any procurement through 
        interagency contracting, any requirements related to the 
        procurement that are specific to the Department of Defense 
        shall be identified and communicated to the agency, including 
        relevant requirements of the following:
                    (A) The Federal Acquisition Regulation.
                    (B) The Department of Defense Supplement to the 
                Federal Acquisition Regulation.
                    (C) Appropriations laws.
                    (D) Provisions in law or regulation that are unique 
                to defense procurement and that apply to the specific 
                contract under consideration, but that may not be 
                included under subparagraph (A), (B), or (C).
    (c) Definitions.--In this section:
            (1) Interagency contracting.--The term ``interagency 
        contracting'' means the procurement of goods or services (under 
        section 1535 of title 31, United States Code) through a 
        contract entered into by an agency outside the Department of 
        Defense.
            (2) Acquisition official.--The term ``acquisition 
        official'' means--
                    (A) in the case of a direct acquisition, the 
                contracting officer for the acquisition; and
                    (B) in the case of an assisted acquisition, the 
                program manager coordinating the acquisition for the 
                Department of Defense.
            (3) Direct acquisition.--The term ``direct acquisition'' 
        means the type of interagency contracting through which the 
        Department of Defense orders an item or service from a 
        government-wide acquisition contract maintained by an agency 
        outside the Department.
            (4) Assisted acquisition.--The term ``assisted 
        acquisition'' means the type of interagency contracting through 
        which an agency outside the Department of Defense awards a 
        contract for the procurement of goods or services.

SEC. 804. PROHIBITION ON PROCUREMENT FROM BENEFICIARIES OF FOREIGN 
              SUBSIDIES.

    (a) Prohibition.--The Secretary of Defense may not enter into a 
contract for the procurement of goods or services from any foreign 
person to which the government of a foreign country that is a member of 
the World Trade Organization has provided a subsidy if--
            (1) the United States has requested consultations with that 
        foreign country under the Agreement on Subsidies and 
        Countervailing Measures on the basis that the subsidy is a 
        prohibited subsidy under that Agreement; and
            (2) either--
                    (A) the issue before the World Trade Organization 
                has not been resolved; or
                    (B) the World Trade Organization has ruled that the 
                subsidy provided by the foreign country is a prohibited 
                subsidy under the Agreement on Subsidies and 
                Countervailing Measures.
    (b) Joint Ventures.--The prohibition under subsection (a) with 
respect to a foreign person also applies to any joint venture, 
cooperative organization, partnership, or contracting team of which 
that foreign person is a member.
    (c) Subcontracts and Task Orders.--The prohibition under subsection 
(a) with respect to a contract also applies to any subcontracts at any 
tier entered into under the contract and any task orders at any tier 
issued under the contract.
    (d) Definitions.--In this section:
            (1) The term ``Agreement on Subsidies and Countervailing 
        Measures'' means the agreement described in section 101(d)(12) 
        of the Uruguay Round Agreements Act (19 U.S.C. 3501(d)(12)).
            (2) The term ``foreign person'' means--
                    (A) an individual who is not a United States person 
                or an alien lawfully admitted for permanent residence 
                into the United States; or
                    (B) a corporation, partnership, or other 
                nongovernmental entity which is not a United States 
                person.
            (3) The term ``United States person'' means--
                    (A) a natural person who is a citizen of the United 
                States or who owes permanent allegiance to the United 
                States; and
                    (B) a corporation or other legal entity which is 
                organized under the laws of the United States, any 
                State or territory thereof, or the District of 
                Columbia, if natural persons described in subparagraph 
                (A) own, directly or indirectly, more than 50 percent 
                of the outstanding capital stock or other beneficial 
                interest in such legal entity.
    (e) Applicability.--
            (1) Programs with milestone b approval not covered.--The 
        prohibition under subsection (a) shall not apply to any 
        contract under a major defense acquisition program that has 
        received Milestone B approval as of the date of the enactment 
        of this Act.
            (2) Definitions.--In this subsection:
                    (A) The term ``major defense acquisition program'' 
                means a Department of Defense acquisition program that 
                is a major defense acquisition program for purposes of 
                section 2430 of title 10, United States Code.
                    (B) The term ``Milestone B approval'' has the 
                meaning provided that term in section 2366(e)(7) of 
                such title.

SEC. 805. PROHIBITION ON PROCUREMENT FROM COMPANIES IN VIOLATION OF THE 
              IRAN AND SYRIA NONPROLIFERATION ACT.

    (a) Prohibition.--Except as provided in subsection (c), funds 
appropriated or otherwise available to the Department of Defense may 
not be used for the procurement of goods or services from a source 
subject to sanctions for violations of the Iran and Syria 
Nonproliferation Act (Public Law 106-178; 50 U.S.C. 1701 note) or from 
any source that is owned or controlled by a sanctioned entity.
    (b) Contracts Covered.--This section applies to prime contracts and 
subcontracts at any tier under such contracts.
    (c) Exception.--
            (1) In general.--Subsection (a) does not apply in any case 
        in which the Secretary of Defense determines that there is a 
        compelling reason to solicit an offer from, award a contract or 
        subcontract to, or extend a contract or subcontract with a 
        source described in that subsection. The exception in the 
        preceding sentence may not be used if the same or reasonably 
        equivalent products or services are available from a non-
        sanctioned source.
            (2) Notice to congress.--The Secretary shall transmit to 
        the Committees on Armed Services of the Senate and the House of 
        Representatives a notice of any determination made under 
        paragraph (1) at the time of the determination.

SEC. 806. LEAD SYSTEMS INTEGRATORS.

    (a) Prohibition on the Use of Lead Systems Integrators.--The 
Department of Defense may not award any new contracts for lead systems 
integrator functions in the acquisition of major systems, effective 
October 1, 2011.
    (b) Plan for Acquisition Workforce.--
            (1) Requirement.--The Secretary of Defense shall develop a 
        plan for establishing the appropriate size of the acquisition 
        workforce to accomplish inherently governmental functions 
        related to acquisition of major weapons systems. In developing 
        the plan, the Secretary shall, at a minimum--
                    (A) identify the positions and skills, due to their 
                inherently governmental nature, that should be supplied 
                by Department of Defense personnel versus contractor 
                personnel;
                    (B) identify the gaps in skills that exist within 
                the current defense workforce;
                    (C) create a plan for closing such skill gaps;
                    (D) create a plan for obtaining a proper match 
                between the level of acquisition expertise within each 
                acquisition program office and the level of risk 
                associated with the acquisition program that the 
                program office is expected to manage; and
                    (E) identify the additional personnel or hiring 
                authorities that may be required on an interim basis, 
                until such time as the Department of Defense has 
                sufficient government personnel to fill the positions 
                designated as inherently governmental.
            (2) Deadline.--The plan described in paragraph (1) shall be 
        submitted to the congressional defense committees no later than 
        October 1, 2008.
    (c) Exception for Contracts for Other Management Services.--The 
Department of Defense may continue to award contracts for the 
procurement of services the primary purpose of which is to perform 
acquisition support functions with respect to the development or 
production of a major system, if the following conditions are met:
            (1) The contractor may not perform inherently governmental 
        functions, as may be prescribed by the Secretary of Defense, 
        including--
                    (A) determining courses of action to be taken in 
                the best interest of the government; and
                    (B) determining best technical performance for the 
                warfighter; and
            (2) a prime contractor for such a contract may not award a 
        subcontract to an entity owned in whole or in part by the prime 
        contractor.
    (d) Definitions.--In this section:
            (1) Lead systems integrator.--The term ``lead systems 
        integrator'' means--
                    (A) a prime contractor for the development or 
                production of a major system, if the prime contractor 
                is not expected at the time of award to perform a 
                substantial portion of the work on the system and the 
                major subsystems; or
                    (B) a prime contractor under a contract for the 
                procurement of services the primary purpose of which is 
                to perform acquisition functions closely associated 
                with inherently governmental functions with respect to 
                the development or production of a major system.
            (2) Major system.--The term ``major system'' has the 
        meaning given such term in section 2302d of title 10, United 
        States Code.

SEC. 807. PROCUREMENT GOAL FOR NATIVE HAWAIIAN-SERVING INSTITUTIONS AND 
              ALASKA NATIVE-SERVING INSTITUTIONS.

    Section 2323 of title 10, United States Code, is amended--
            (1) in subsection (a)(1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (C);
                    (B) by striking the period at the end of 
                subparagraph (D) and inserting ``; and''; and
                    (C) by adding at the end the following new 
                subparagraph:
                    ``(E) Native Hawaiian-serving institutions and 
                Alaska Native-serving institutions (as defined in 
                section 317 of the Higher Education Act of 1965).'';
            (2) in subsection (a)(2) by inserting after ``Hispanic-
        serving institutions,'' the following: ``Native Hawaiian-
        serving institutions and Alaska Native-serving institutions,'';
            (3) in subsection (c)(1), by inserting after ``Hispanic-
        serving institutions,'' the following: ``Native Hawaiian-
        serving institutions and Alaska Native-serving institutions,''; 
        and
            (4) in subsection (c)(3), by inserting after ``Hispanic-
        serving institutions,'' the following: ``to Native Hawaiian-
        serving institutions and Alaska Native -serving 
        institutions,''.

SEC. 808. REINVESTMENT IN DOMESTIC SOURCES OF STRATEGIC MATERIALS.

    (a) Reinvestment Required.--
            (1) Proposal evaluation criteria.--The Under Secretary of 
        Defense for Acquisition, Technology, and Logistics shall issue 
        guidance requiring that all Department of Defense solicitations 
        for proposals for major systems that could contain strategic 
        materials clearly specify that an evaluation criteria for such 
        proposals will be the extent to which each prospective 
        strategic material supplier demonstrates a record of sustained 
        reinvestment in processes, infrastructure, workforce training, 
        and facilities for domestic production of such a material, as 
        well as a plan for continued reinvestment.
            (2) Flow down required.--Guidance issued under this 
        subsection shall require that the evaluation criteria be 
        incorporated by reference into any solicitation for sources of 
        strategic materials at any contractual tier.
    (b) Review and Report.--
            (1) Review Required.--The Strategic Materials Protection 
        Board, established under section 187 of title 10, United States 
        Code, shall, on an annual basis--
                    (A) review the number of proposals submitted for 
                major systems that could contain strategic materials; 
                and
                    (B) as part of the Board's duties under paragraph 
                (2) and (3) of section 187(b) of such title, determine 
                the following:
                            (i) The percentage of proposals that were 
                        found to be responsive to the reinvestment 
                        evaluation criteria required under subsection 
                        (a).
                            (ii) The percentage of responsive proposals 
                        that were awarded.
                            (iii) The percentage of non-responsive 
                        proposals that were awarded.
                            (iv) The long-term viability of strategic 
                        materials suppliers, based upon the past and 
                        future reinvestment planned by the suppliers.
    (2) Inclusion in Board Report.--The Strategic Materials Protection 
Board shall include its findings in the next report submitted to 
Congress under section 187(d) of title 10, United States Code, after 
the date of the enactment of this Act. The Board shall include the 
findings of subsequent annual reviews in subsequent reports submitted 
under such section.
    (c) Definitions.--In this section:
            (1) Strategic material.--The term ``strategic material'' 
        means--
                    (A) a material designated as critical to national 
                security by the Strategic Materials Protection Board in 
                accordance with the section 187 of title 10, United 
                States Code;
                    (B) a specialty metal as defined by section 2533b 
                of title 10, United States Code; or
                    (C) steel.
            (2) Major system.--The term ``major system'' has the 
        meaning provided in section 2302 of title 10, United States 
        Code.

SEC. 809. CLARIFICATION OF THE PROTECTION OF STRATEGIC MATERIALS 
              CRITICAL TO NATIONAL SECURITY.

    (a) Definition of Required Form.--Subsection (b) of section 2533b 
of title 10, United States Code, is amended by striking the period at 
the end and inserting the following: ``and the term `required form' 
means mill products, such as slab, plate and sheet, in the required 
form necessary. The term `required form' shall not apply to end items 
or to their components at any tier.''.
    (b) Applicability to Procurements of Commercial Items.--Subsection 
(h) of section 2533b of title 10, United States Code, is amended by 
inserting ``or 35'' after ``This section applies to procurements of 
commercial items notwithstanding section 34.''
    (c) Revision of Domestic Non-Availability Determinations.--Any 
Domestic Non-Availability Determination made by the Department of 
Defense between December 6, 2006 and the date 60 days after the date of 
the enactment of this Act shall be reviewed and amended, if necessary, 
to comply with subsection (a) and (b).
    (d) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to contracts entered into 60 days after the 
date of the enactment of this Act.

SEC. 810. DEBARMENT OF CONTRACTORS CONVICTED OF CRIMINAL VIOLATIONS OF 
              THE ARMS EXPORT CONTROL ACT.

    (a) Debarment.--Except as provided in subsection (b), if the 
Secretary of Defense determines that a contractor or prospective 
contractor has been convicted of a criminal violation of any provision 
of the Arms Export Control Act (22 U.S.C. 2751 et seq.), the Secretary 
shall debar such contractor or prospective contractor from contracting 
with the Department of Defense for a period not to exceed 5 years, not 
later than 90 days after determining that the contractor has been so 
convicted.
    (b) Exception.--
            (1) In general.--Subsection (a) does not apply in any case 
        in which the Secretary determines that there is a compelling 
        reason to solicit an offer from, award a contract to, extend a 
        contract with, or approve a subcontract with such contractor or 
        prospective contractor.
            (2) Public notice.--The Secretary shall transmit to the 
        Administrator of General Services a notice of any determination 
        made under paragraph (1) at the time of the determination. The 
        Administrator of General Services shall maintain each such 
        notice in a file available for public inspection.
    (c) Definition.--In this section, the term ``debar'' has the 
meaning given that term by section 2393(c) of title 10, United States 
Code.

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

SEC. 811. CHANGE TO THE TRUTH IN NEGOTIATIONS ACT EXCEPTION FOR THE 
              ACQUISITION OF A COMMERCIAL ITEM.

    Section 2306a(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(4) Certain sole source procurements.--The exception in 
        paragraph (1)(C) does not apply in the case of a contract, 
        subcontract, or modification of a contract or subcontract that 
        is for a commercial item to be procured using procedures other 
        than competitive procedures--
                    ``(A) if the contracting officer determines that 
                commercial sales data are insufficient to determine a 
                fair and reasonable price; and
                    ``(B) if the contractor's business segment has 
                submitted certified cost or pricing data in connection 
                with at least one contract award or contract 
                modification.''.

SEC. 812. CLARIFICATION OF SUBMISSION OF COST OR PRICING DATA ON 
              NONCOMMERCIAL MODIFICATIONS OF COMMERCIAL ITEMS.

    (a) Measurement of Percentage at Contract Award.--Section 
2306a(b)(3)(A) of title 10, United States Code, is amended by inserting 
after ``total price of the contract'' the following: ``(at the time of 
contract award)''.
    (b) Adjustment of Dollar Amount.--Section 2306a(b)(3)(A) of such 
title is amended by striking ``$500,000'' and inserting ``$650,000''.

SEC. 813. PLAN FOR RESTRICTING GOVERNMENT-UNIQUE CONTRACT CLAUSES ON 
              COMMERCIAL CONTRACTS.

    (a) Plan.--The Under Secretary of Defense for Acquisition, 
Technology, and Logistics shall develop and implement a plan to 
minimize the number of Government-unique contract clauses used in 
commercial contracts by restricting the clauses to the following:
            (1) Government-unique clauses authorized by law or 
        regulation.
            (2) Any additional clauses that are relevant and necessary 
        to a specific contract.
    (b) Commercial Contract.--In this section:
            (1) The term ``commercial contract'' means a contract 
        awarded by the Federal Government for the procurement of a 
        commercial item.
            (2) The term ``commercial item'' has the meaning provided 
        by section 4(12) of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403(12)).

SEC. 814. EXTENSION OF AUTHORITY FOR USE OF SIMPLIFIED ACQUISITION 
              PROCEDURES FOR CERTAIN COMMERCIAL ITEMS.

    Section 4202(e) of the Clinger-Cohen Act of 1996 (division D of 
Public Law 104-106; 110 Stat. 652; 10 U.S.C. 2304 note) is amended by 
striking ``January 1, 2008'' and inserting ``January 1, 2010''.

SEC. 815. EXTENSION OF AUTHORITY TO FILL 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. EXTENSION OF 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. 817. CLARIFICATION OF LIMITED ACQUISITION AUTHORITY FOR SPECIAL 
              OPERATIONS COMMAND.

    Section 167(e)(4) of title 10, United States Code, is amended--
            (1) by redesignating subparagraph (C) as subparagraph (D); 
        and
            (2) by inserting after subparagraph (B) the following new 
        subparagraph:
    ``(C)(i) The staff of the commander shall include an acquisition 
executive, who shall be responsible for the same functions and duties, 
and have the same authorities, as the service acquisition executives 
for the military departments.
    ``(ii) The staff of the commander shall include a senior 
procurement executive, who shall be responsible for providing 
management direction of the procurement system of the command, advising 
and assisting the commander and other officials of the combatant 
command to ensure that activities and missions of the command are 
achieved through the management of the procurement system of the 
command, and otherwise being responsible for the same functions and 
duties, and having the same authorities, as the senior procurement 
executive for the military departments.
    ``(iii) The commander of the special operations command may 
designate the same individual to the position of acquisition executive 
and the position of senior procurement executive.
    ``(iv) Any reference to service acquisition executive or senior 
procurement executive of a military department in any Federal law, 
Executive order, or regulation is deemed to include the acquisition 
executive or senior procurement executive of the special operations 
command unless such law, order, or regulation explicitly excludes such 
positions by reference to this section.''.

SEC. 818. EXEMPTION OF SPECIAL OPERATIONS COMMAND FROM CERTAIN 
              REQUIREMENTS FOR CONTRACTS RELATING TO VESSELS, AIRCRAFT, 
              AND COMBAT VEHICLES.

    Subsection (e) of section 167 of title 10, United States Code, is 
amended by adding at the end the following new paragraph:
    ``(5) The commander of the command, in carrying out his functions 
under this subsection, may carry out such functions with respect to a 
contract covered by section 2401 of this title without regard to 
subsection (b) of that section if--
            ``(A) the contract is for a term of not more than 5 years 
        (including all options to renew or extend the contract); and
            ``(B) funds are available and obligated for the full cost 
        of the contract (including termination costs) on or before the 
        date the contract is awarded.''.

SEC. 819. PROVISION OF AUTHORITY TO MAINTAIN EQUIPMENT TO UNIFIED 
              COMBATANT COMMAND FOR JOINT WARFIGHTING.

    Section 167a of title 10, United States Code, is amended--
            (1) in subsection (a), by striking ``and acquire'' and 
        inserting ``, acquire, and maintain'';
            (2) by redesignating subsection (f) as subsection (g); and
            (3) by inserting after subsection (e) the following new 
        subsection:
    ``(f) Limitation on Authority to Maintain Equipment.--The authority 
delegated under subsection (a) to maintain equipment is subject to the 
availability of funds authorized and appropriated specifically for that 
purpose.''.

SEC. 820. MARKET RESEARCH.

    (a) Market Research.--Subsection (c) of section 2377 of title 10, 
United States Code, is amended as follows:
            (1) The subsection heading is amended by striking 
        ``Preliminary''.
            (2) Paragraph (1) is amended--
                    (A) by striking ``research appropriate to the 
                circumstances--'' and inserting ``research--'';
                    (B) by striking ``and'' at the end of subparagraph 
                (A);
                    (C) by striking the period at the end of 
                subparagraph (B) and inserting ``; and''; and
                    (D) by adding at the end the following:
            ``(C) before awarding a task order in excess of the 
        simplified acquisition threshold.''.
            (3) The subsection is amended by adding at the end the 
        following new paragraphs:
            ``(4) The Secretary of Defense shall ensure that market 
        research under this subsection includes use of an appropriately 
        tailored search engine to access the world wide web in order to 
        identify readily available capabilities in the commercial 
        market place.
            ``(5) For programs with a value in excess of $1,000,000, 
        the contracting officer must certify that market research was 
        performed before award of the contract or task order.''.
    (b) Evaluation of Certain Incentives.--The Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall evaluate 
options for preferences or economic incentives for contractors that 
maximize the use of readily available and proven capabilities in the 
commercial market place.

               Subtitle C--Accountability in Contracting

SEC. 821. LIMITATION ON LENGTH OF NONCOMPETITIVE CONTRACTS.

    (a) Revision of FAR.--Not later than one year after the date of the 
enactment of this Act, the Federal Acquisition Regulation shall be 
revised to restrict the contract period of any contract described in 
subsection (c) to the minimum contract period necessary--
            (1) to meet the urgent and compelling requirements of the 
        work to be performed under the contract; and
            (2) to enter into another contract for the required goods 
        or services through the use of competitive procedures.
    (b) Contract Period.--The regulations promulgated under subsection 
(a) shall require the contract period to not exceed one year, unless 
the head of the executive agency concerned determines that the 
Government would be seriously injured by the limitation on the contract 
period.
    (c) Covered Contracts.--This section applies to any contract in an 
amount greater than $1,000,000 entered into by an executive agency 
using procedures other than competitive procedures pursuant to the 
exception provided in section 303(c)(2) of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 253(c)(2)) or section 
2304(c)(2) of title 10, United States Code.
    (d) Definitions.--In this section:
            (1) The term ``executive agency'' has the meaning provided 
        in section 4(1) of the Office of Federal Procurement Policy Act 
        (41 U.S.C. 403(1)).
            (2) The term ``head of the executive agency'' means the 
        head of an executive agency except that, in the case of the 
        Department of Defense, the term means--
                    (A) in the case of a military department, the 
                Secretary of the military department;
                    (B) in the case of a Defense Agency, the head of 
                the Defense Agency; and
                    (C) in the case of any part of the Department of 
                Defense other than a military department or Defense 
                Agency, the Under Secretary of Defense for Acquisition, 
                Technology, and Logistics.

SEC. 822. MAXIMIZING FIXED-PRICE PROCUREMENT CONTRACTS.

    (a) Plans Required.--Subject to subsection (c), the head of each 
executive agency covered by title III of the Federal Property and 
Administrative Services Act of 1949 (41 U.S.C. 251 et seq.) or, in the 
case of the Department of Defense, the Under Secretary of Defense for 
Acquisition, Technology, and Logistics, shall develop and implement a 
plan to maximize, to the fullest extent practicable, the use of fixed-
price type contracts for the procurement of goods and services by the 
agency or department concerned. The plan shall contain measurable goals 
and shall be completed and submitted to the Committee on Oversight and 
Government Reform of the House of Representatives, the Committee on 
Homeland Security and Governmental Affairs of the Senate, and the 
Committees on Appropriations of the House of Representatives and the 
Senate and, in the case of the Department of Defense and the Department 
of Energy, the Committees on Armed Services of the Senate and the House 
of Representatives, with a copy provided to the Comptroller General, 
not later than 1 year after the date of the enactment of this Act.
    (b) Comptroller General Review.--The Comptroller General shall 
review the plans provided under subsection (a) and submit a report to 
Congress on the plans not later than 18 months after the date of the 
enactment of this Act.
    (c) Requirement Limited to Certain Agencies.--The requirement of 
subsection (a) shall apply only to those agencies that awarded 
contracts in a total amount of at least $1,000,000,000 in the fiscal 
year preceding the fiscal year in which the report is submitted.

SEC. 823. PUBLIC DISCLOSURE OF JUSTIFICATION AND APPROVAL DOCUMENTS FOR 
              NONCOMPETITIVE CONTRACTS.

    (a) Civilian Agency Contracts.--
            (1) In general.--Section 303 of the Federal Property and 
        Administrative Services Act of 1949 (41 U.S.C. 253) is amended 
        by adding at the end the following new subsection:
    ``(j)(1)(A) Except as provided in subparagraph (B), in the case of 
a procurement permitted by subsection (c), the head of an executive 
agency shall make publicly available, within 14 days after the award of 
the contract, the documents containing the justification and approval 
required by subsection (f)(1) with respect to the procurement.
    ``(B) In the case of a procurement permitted by subsection (c)(2), 
subparagraph (A) shall be applied by substituting `30 days' for `14 
days'.
    ``(2) The documents shall be made available on the website of the 
agency and through the Federal Procurement Data System.
    ``(3) This subsection does not require the public availability of 
information that is exempt from public disclosure under section 552(b) 
of title 5, United States Code.''.
            (2) Conforming amendment.--Section 303(f) of such Act is 
        amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraph (5) as paragraph 
                (4).
    (b) Defense Agency Contracts.--
            (1) In general.--Section 2304 of title 10, United States 
        Code, is amended by adding at the end the following new 
        subsection:
    ``(l)(1)(A) Except as provided in subparagraph (B), in the case of 
a procurement permitted by subsection (c), the head of an agency shall 
make publicly available, within 14 days after the award of the 
contract, the documents containing the justification and approval 
required by subsection (f)(1) with respect to the procurement.
    ``(B) In the case of a procurement permitted by subsection (c)(2), 
subparagraph (A) shall be applied by substituting `30 days' for `14 
days'.
    ``(2) The documents shall be made available on the website of the 
agency and through the Federal Procurement Data System.
    ``(3) This subsection does not require the public availability of 
information that is exempt from public disclosure under section 552(b) 
of title 5.''.
            (2) Conforming amendment.--Section 2304(f) of such title is 
        amended--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5) and (6) as 
                paragraphs (4) and (5), respectively.

SEC. 824. DISCLOSURE OF GOVERNMENT CONTRACTOR AUDIT FINDINGS.

    (a) Quarterly Report to Congress.--
            (1) Requirement.--The head of each Federal agency or 
        department or, in the case of the Department of Defense, the 
        Under Secretary of Defense for Acquisition, Technology, and 
        Logistics, shall submit to the chairman and ranking member of 
        each committee specified in paragraph (2) on a quarterly basis 
        a report that includes the following:
                    (A) A list of completed audits performed by such 
                agency or department issued during the applicable 
                quarter that describe contractor costs in excess of 
                $10,000,000 that have been identified as unjustified, 
                unsupported, questioned, or unreasonable under any 
                contract, task or delivery order, or subcontract.
                    (B) The specific amounts of costs identified as 
                unjustified, unsupported, questioned, or unreasonable 
                and the percentage of their total value of the 
                contract, task or delivery order, or subcontract.
                    (C) A list of completed audits performed by such 
                agency or department issued during the applicable 
                quarter that identify material deficiencies in the 
                performance of any contractor or in any business system 
                of any contractor under any contract, task or delivery 
                order, or subcontract.
            (2) Committees.--The report described in paragraph (1) 
        shall be submitted to--
                    (A) the Committee on Oversight and Government 
                Reform of the House of Representatives;
                    (B) the Committee on Homeland Security and 
                Governmental Affairs of the Senate;
                    (C) the Committees on Appropriations of the House 
                of Representatives and the Senate;
                    (D) in the case of reports from the Department of 
                Defense or the Department of Energy, the Committees on 
                Armed Services of the Senate and the House of 
                Representatives; and
                    (E) the committees of primary jurisdiction over the 
                agency or department submitting the report.
            (3) Exception.--Paragraph (1) shall not apply to an agency 
        or department with respect to a calendar quarter if no audits 
        described in paragraph (1) were issued during that quarter.
    (b) Submission of Individual Audits.--
            (1) Requirement.--The head of each Federal agency or 
        department shall provide, within 14 days after a request in 
        writing by the chairman or ranking member of any committee 
        listed in paragraph (2), a full and unredacted copy of any 
        audit described in subsection (a)(1). Such copy shall include 
        an identification of information in the audit exempt from 
        public disclosure under section 552(b) of title 5, United 
        States Code.
            (2) Committees.--The committees listed in this paragraph 
        are the following:
                    (A) The Committee on Oversight and Government 
                Reform of the House of Representatives.
                    (B) The Committee on Homeland Security and 
                Governmental Affairs of the Senate.
                    (C) The Committees on Appropriations of the House 
                of Representatives and the Senate.
                    (D) In the case of the Department of Defense or the 
                Department of Energy, the Committees on Armed Services 
                of the Senate and House of Representatives.
                    (E) The committees of primary jurisdiction over the 
                agency or department to which the request is made.

SEC. 825. STUDY OF ACQUISITION WORKFORCE.

    (a) Requirement for Study.--The Administrator for Federal 
Procurement Policy shall conduct a study of the composition, scope, and 
functions of the Government-wide acquisition workforce and develop a 
comprehensive definition of, and method of measuring the size of, such 
workforce.
    (b) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Administrator shall submit to the relevant 
congressional committees a report on the results of the study required 
by subsection (a), with such findings and recommendations as the 
Administrator determines appropriate.

SEC. 826. REPORT TO CONGRESS.

    (a) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Director of the Office of Government Ethics 
shall submit a report to Congress that contains the Director's 
recommendations on requiring Government contractors that advise one or 
more Federal agencies on procurement policy, and requiring federally 
funded research and development centers, to comply with restrictions 
relating to personal financial interests, such as those that apply to 
Federal employees.
    (b) Definition.--In this section:
            (1) Government contractor.--The term ``Government 
        contractor'' means any person (other than a Federal agency) 
        with which a Federal agency has entered into a contract to 
        acquire goods or services.
            (2) Federal agency.--The term ``Federal agency'' means--
                    (A) any executive department or independent 
                establishment in the executive branch of the 
                Government, including any wholly owned Government 
                corporation; and
                    (B) any establishment in the legislative or 
                judicial branch of the Government (except the Senate, 
                the House of Representatives, and the Architect of the 
                Capitol and any activities under the Architect's 
                direction).
            (3) Federally funded research and development center.--The 
        term ``federally funded research and development center'' means 
        a federally funded research and development center as 
        identified by the National Science Foundation in accordance 
        with the Federal Acquisition Regulation.

         Subtitle D--Contracts Relating to Iraq and Afghanistan

SEC. 831. MEMORANDUM OF UNDERSTANDING ON MATTERS RELATING TO 
              CONTRACTING.

    (a) Memorandum of Understanding Required.--The Secretary of 
Defense, the Secretary of State, and the Administrator of the United 
States Agency for International Development shall enter into a 
memorandum of understanding regarding matters relating to contracting 
for contracts in Iraq or Afghanistan.
    (b) Restrictions on Contracting Until Memorandum Signed.--
            (1) Restriction.--Except as provided in paragraph (2), on 
        and after January 1, 2008, no contracts in Iraq or Afghanistan 
        may be awarded by the Department of Defense, the Department of 
        State, or the United States Agency for International 
        Development (A) unless the memorandum required by subsection 
        (a) has been signed by the Secretary of Defense, the Secretary 
        of State, or the Administrator of the United States Agency for 
        International Development, respectively; and (B) the department 
        or agency concerned has initiated use of the common database 
        identified in such memorandum to track contracts in Iraq or 
        Afghanistan.
            (2) Waiver.--
                    (A) The restriction in paragraph (1) may be waived 
                by the President for a period of 30 days if the 
                President submits to the relevant committees of 
                Congress a notification of the waiver and the reasons 
                for the waiver at least 15 days before issuing the 
                waiver.
                    (B) Such waiver may be renewed for any number of 
                additional 30-day periods if the President submits to 
                the relevant committees of Congress a notification of 
                the renewal of the waiver and the reasons for renewing 
                the waiver at least 15 days before issuing the renewal 
                of the waiver.
    (c) Matters Covered.--The memorandum of understanding required by 
subsection (a) shall address, at a minimum, the following:
            (1) Identification of the major categories of contracts in 
        Iraq or Afghanistan being awarded by the Department of Defense, 
        the Department of State, or the United States Agency for 
        International Development.
            (2) Identification of the roles and responsibilities of 
        each department or agency for matters relating to contracting 
        for contracts in Iraq or Afghanistan.
            (3) Responsibility for authorizing the carrying of weapons 
        in performance of such contracts.
            (4) Responsibility for establishing minimum qualifications, 
        including background checks, for personnel carrying weapons in 
        performance of such contracts.
            (5) Responsibility for setting rules of engagement for 
        personnel carrying weapons in performance of such contracts.
            (6) Responsibility for establishing procedures for, and the 
        coordination of, movement of contractor personnel in Iraq or 
        Afghanistan.
            (7) Identification of a common database that will serve as 
        a repository of information on all contracts in Iraq or 
        Afghanistan, and agreement on the elements to be included in 
        the database, including, at a minimum, with respect to each 
        contract--
                    (A) a brief description of the contract;
                    (B) the value of the contract;
                    (C) the amount of cost ascribed to overhead for the 
                contract;
                    (D) the amount of cost ascribed to security for the 
                contract;
                    (E) the total number of personnel employed on the 
                contract; and
                    (F) the total number of personnel employed on the 
                contract who provide security in Iraq or Afghanistan.
            (8) Responsibility for maintaining and updating information 
        in the common database identified under paragraph (7).
            (9) Responsibility for the collection and referral to the 
        appropriate Government agency of any information relating to 
        offenses under chapter 47 of title 10, United States Code (the 
        Uniform Code of Military Justice), or chapter 212 of title 18, 
        United States Code (commonly referred to as the Military 
        Extraterritorial Jurisdiction Act).
    (d) Copies Provided to Congress.--Copies of the memorandum of 
understanding required by subsection (a) shall be provided to the 
relevant committees of Congress within 30 days after the memorandum is 
signed.

SEC. 832. COMPTROLLER GENERAL REVIEWS AND REPORTS ON CONTRACTING IN 
              IRAQ AND AFGHANISTAN.

    (a) Reviews and Reports Required.--
            (1) In general.--Every six months, the Comptroller General 
        shall review contracts in Iraq or Afghanistan and submit to the 
        relevant committees of Congress a report on such review.
            (2) Matters covered.--A report under this subsection shall 
        cover the following with respect to the contracts in Iraq or 
        Afghanistan reviewed for the report:
                    (A) Total number of contracts awarded during the 
                period covered by the report.
                    (B) Total number of active contracts.
                    (C) Total value of all contracts awarded during the 
                reporting period.
                    (D) Total value of active contracts.
                    (E) Total number of contractor personnel working on 
                contracts during the reporting period.
                    (F) Total number of contractor personnel who have 
                provided security in Iraq or Afghanistan for contracts 
                during the reporting period.
                    (G) Categories of activities undertaken in reviewed 
                contracts.
                    (H) The extent to which such contracts have used 
                competitive procedures.
                    (I) The extent to which such contracts have 
                achieved the initial scope of requirements included in 
                the contracts.
                    (J) The effect of costs for security on such 
                contracts and whether contracting for security on such 
                contracts rather than government-provided security is 
                more effective, efficient, and consistent with the 
                United States policy goals.
                    (K) Information on any specific contract or class 
                of contracts that the Comptroller General determines 
                raises issues of significant concern.
            (3) Submission of reports.--The Comptroller General shall 
        submit an initial report under this subsection not later than 
        March 1, 2008, and shall submit an updated report every six 
        months thereafter until March 1, 2010.
    (b) Access to Database on Contracts.--The Secretary of Defense and 
the Secretary of State shall provide full access to the database 
described in section 831(c)(7) to the Comptroller General for purposes 
of the reviews carried out under this section.

SEC. 833. DEFINITIONS.

    In this subtitle:
            (1) Matters relating to contracting.--The term ``matters 
        relating to contracting'', with respect to contracts in Iraq 
        and Afghanistan, means all matters relating to awarding, 
        funding, managing, tracking, monitoring, and providing 
        oversight to contracts and contractor personnel.
            (2) Contracts in iraq or afghanistan.--The term ``contracts 
        in Iraq and Afghanistan'' means a contract with the Department 
        of Defense, the Department of State, or the United States 
        Agency for International Development, a subcontract at any tier 
        issued under such a contract, or a task order at any tier 
        issued under such a contract (including a contract, 
        subcontract, or task order issued by another Government agency 
        for the Department of Defense, the Department of State, or the 
        United States Agency for International Development), if the 
        contract, subcontract, or task order involves worked performed 
        in Iraq or Afghanistan for a period longer than 14 days.
            (3) Relevant committees of congress.--The term ``relevant 
        committees of Congress'' means each of the following 
        committees:
                    (A) The Committees on Armed Services of the Senate 
                and the House of Representatives.
                    (B) The Committee on Homeland Security and 
                Governmental Affairs of the Senate and the Committee on 
                Oversight and Government Reform of the House of 
                Representatives.
                    (C) The Committee on Foreign Relations of the 
                Senate and the Committee on Foreign Affairs of the 
                House of Representatives.

SEC. 834. COMPETITION FOR EQUIPMENT SUPPLIED TO IRAQ AND AFGHANISTAN.

    (a) Competition Requirement.--For the procurement of pistols and 
other weapons described in subsection (b), the Secretary of Defense 
shall ensure, consistent with the provisions of section 2304 of title 
10, United States Code, that--
            (1) full and open competition is obtained to the maximum 
        extent practicable;
            (2) no responsible United States manufacturer is excluded 
        from competing for such procurements; and
            (3) products manufactured in the United States are not 
        excluded from the competition.
    (b) Procurements Covered.--This section applies to the procurement 
of the following:
            (1) Pistols and other weapons less than 0.50 caliber for 
        assistance to the Army of Iraq, the Iraqi Police Forces, and 
        other Iraqi security organizations.
            (2) Pistols and other weapons less than 0.50 caliber for 
        assistance to the Army of Afghanistan, the Afghani Police 
        Forces, and other Afghani security organizations.

                       Subtitle E--Other Matters

SEC. 841. RAPID COMMERCIAL INFORMATION TECHNOLOGY IDENTIFICATION 
              DEMONSTRATION PROJECT.

    (a) Demonstration Project.--The Secretary of Defense, acting 
through the Assistant Secretary of Defense for Networks and Information 
Integration, shall establish a demonstration project to develop, 
implement, and assess the effectiveness of a comprehensive approach to 
identifying, assessing, stimulating investment in, rapidly acquiring, 
and coordinating the use of commercial information technologies (with 
an emphasis on commercial off-the-shelf information technologies). The 
demonstration project shall be known as the ``Rapid Commercial 
Information Technology Identification Demonstration Pilot.''
    (b) Matters Covered.--The demonstration project shall include the 
following:
            (1) Developing a process to rapidly assess and set 
        priorities for significant needs of the Department of Defense 
        that could be met by commercial information technology, 
        including a process for--
                    (A) aligning needs with the requirements of the 
                combatant commanders; and
                    (B) evaluating commercial products of interest 
                against those needs.
            (2) Providing for the hiring and support of employees 
        (including the ability to request detailees from other military 
        or Federal organizations) who can identify and assess promising 
        commercial information technologies and serve as intermediaries 
        to the Department.
            (3) Enhancing internal Department data and communications 
        about promising or existing commercial information technology 
        or federally funded information technologies projects.
            (4) Identifying key commercial information technologies and 
        using existing mechanisms to make them available to the Armed 
        Forces.
            (5) Developing and operating a suitable Web portal or other 
        significant virtual environment to facilitate communications 
        with industry.
            (6) Providing for acquisition guides for small information 
        technology companies with promising technologies, to help them 
        understand and navigate the funding and acquisition processes 
        of the Department of Defense.
            (7) Developing methods to measure program performance and 
        collecting data on an ongoing basis to assess the effects of 
        the process being used by the demonstration program.
    (c) Period of Demonstration Project.--The demonstration project 
shall be conducted for a period of three years.
    (d) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Defense $10,000,000 for fiscal year 
2008 to carry out the demonstration project under this section, to be 
derived from amounts provided in section 201(4) for research, 
development, test, and evaluation, Defense-wide activities.
    (e) Report to Congress.--Not later than 12 months after the date of 
the enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the implementation of the 
demonstration project required under this section.

SEC. 842. REPORT TO CONGRESS REQUIRED ON DELAYS IN MAJOR PHASES OF 
              ACQUISITION PROCESS FOR MAJOR AUTOMATED INFORMATION 
              SYSTEM PROGRAMS.

    (a) Report Required for Certain Delays.--In the case of any major 
automated information system program, if there is a delay in meeting 
any deadline for a phase of the acquisition process for the program 
specified in subsection (b), the Secretary of Defense, acting through 
the Under Secretary of Defense for Acquisition, Technology, and 
Logistics, shall submit to the congressional defense committees a 
report on the delay. The report shall be submitted not later than 30 
days after the delay occurs.
    (b) Deadlines.--The deadlines for a phase of the acquisition 
process referred to in subsection (a) are the following:
            (1) With respect to approval of any analysis of 
        alternatives, within one year from the date each analysis 
        began.
            (2) With respect to achieving Milestone B in accordance 
        with section 2366a of title 10, United States Code, within 18 
        months after the date of Milestone A approval.
            (3) With respect to completion of any capability 
        development document, within six months from the time of 
        determined need to the time of approval.
    (c) Matters Covered by Report.--The report required by subsection 
(a)--
            (1) shall set forth the reason or reasons the Department of 
        Defense was unable to complete the delayed process or processes 
        on time; and
            (2) shall include a written certification with a supporting 
        explanation stating that--
                    (A) the program is necessary for the efficient 
                management of the Department; and
                    (B) the most current estimates of the costs, 
                schedule, and performance parameters with respect to 
                the program and system are reasonable; and the 
                management structure for the program is adequate to 
                manage and control program costs.

SEC. 843. REQUIREMENT FOR LICENSING OF CERTAIN MILITARY DESIGNATIONS 
              AND LIKENESSES OF WEAPONS SYSTEMS TO TOY AND HOBBY 
              MANUFACTURERS.

    (a) Requirement to License Certain Items.--Section 2260 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 adding after subsection (b) the following new 
        subsection:
    ``(c) Required Licenses.--(1) The Secretary concerned shall license 
trademarks, service marks, certification marks, and collective marks 
relating to military designations and likenesses of military weapons 
systems to any qualifying company upon receipt of a request from the 
company.
    ``(2) For purposes of paragraph (1), a qualifying company is any 
United States company that is a small business concern and that--
            ``(A) is a toy or hobby manufacturer, distributor, or 
        merchant; and
            ``(B) is determined by the Secretary concerned to be 
        qualified in accordance with such criteria as may be prescribed 
        by the Secretary of Defense.
    ``(3) The fee for a license under this subsection shall be 
determined under regulations prescribed by the Secretary of Defense. 
Any such fee shall be nominal and shall be an amount not less than an 
amount needed to recover all costs of the Department of Defense in 
processing the request for the license and supplying the license.
    ``(4) A license under this subsection shall not be an exclusive 
license.''.
    (b) Effective Date.--The Secretary of Defense shall prescribe 
regulations to implement the amendment made by this section not later 
than 180 days after the date of the enactment of this Act.

SEC. 844. CHANGE IN GROUNDS FOR WAIVER OF LIMITATION ON SERVICE 
              CONTRACT TO ACQUIRE MILITARY FLIGHT SIMULATOR.

    Section 832(b)(1) of the John Warner National Defense Authorization 
Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2331) is 
amended by striking ``necessary for national security purposes'' and 
inserting ``in the national interest''.

SEC. 845. EVALUATION OF COST OF COMPLIANCE WITH REQUIREMENT TO BUY 
              CERTAIN ARTICLES FROM AMERICAN SOURCES.

    (a) Exclusion From Price or Cost Comparison .--For all Department 
of Defense prime contract awards and subcontract awards at any tier, in 
the event that a price or cost comparison is made as part of an 
evaluation of offers for goods or services provided by a United States 
firm and by a foreign source benefitting from the exception provided in 
section 2533a(e)(1)(B) or 2533b(d)(1)(B) of title 10, United States 
Code, the cost of compliance described in subsection (c) shall not be 
considered in such an evaluation.
    (b) Inclusion in Evaluation of Offers.--The cost of compliance 
shall be considered in the evaluation of offers provided by United 
States firms and by foreign sources submitting compliant offers.
    (c) Cost of Compliance.--The cost of compliance described in this 
subsection is the cost of compliance for a United States firm to 
procure items grown, reprocessed, reused, or produced in the United 
States, in accordance with section 2533a of title 10, United States 
Code, or to procure specialty metals melted or produced in the United 
States, in accordance with section 2533b of such title 10.

SEC. 846. REQUIREMENTS RELATING TO WAIVERS OF CERTAIN DOMESTIC SOURCE 
              LIMITATIONS.

     (a) Multi-Contract and Class Waivers.--A domestic non-availability 
determination pursuant to section 2533b(b) of title 10, United States 
Code, that would apply to more than one prime contract of the 
Department of Defense shall be made only if the determination--
            (1) has been proposed and finalized under a formal 
        rulemaking;
            (2) specifies that the determination will expire 30 days 
        after the Secretary concerned finds that the determination is 
        no longer justified; and
            (3) requires an accounting of all end items, components, or 
        specialty metals that do not comply with the requirement in 
        section 2533b(a) of such title.
    (b) Single Contract Waivers.--In making a domestic non-availability 
determination pursuant to 2533b(b) of such title that applies to a 
single prime contract of the Department of Defense, the Secretary 
concerned shall ensure, after making the determination, that--
            (1) the information used as justification in making the 
        determination is made publicly available to the maximum extent 
        practicable; and
            (2) the contracting officer for the contract concerned 
        receives an accounting of all end items, components, or 
        specialty metals that do not comply with the requirement in 
        section 2533b (a) of such title.
    (c) Specialty Metal Defined.--In this section, the term ``specialty 
metal'' has the meaning provided in section 2533b(I) of title 10, 
United States Code.
    (d) Effective Date.--This section shall be effective as of February 
1, 2007.

SEC. 847. MULTIPLE COST THRESHOLD BREACHES.

    (a) Evaluation of Cost Threshold Breaches.--Within 30 days 
following the end of a fiscal year, each component of the Department of 
Defense shall evaluate, for the preceding fiscal year--
            (1) the number of acquisition programs within the component 
        that experienced significant and critical cost threshold 
        breaches, as defined in section 2433 of title 10, United States 
        Code; and
            (2) the number of technology development programs within 
        the component that, prior to a Milestone B decision, required 
        recertification by the Joint Requirements Oversight Council.
    (b) Identification and Report on Systemic Deficiencies.--Within 90 
days following the end of a fiscal year, each component of the 
Department of Defense that has identified more than two such programs 
under subsection (a), shall identify systemic deficiencies in its 
acquisition policies or practices that may have contributed to the cost 
growth in such programs and provide a report to the Secretary of 
Defense outlining corrective actions to be taken.
    (c) Assessment of Corrective Actions.--Within 120 days following 
the end of a fiscal year, the Secretary of Defense shall provide an 
assessment of the adequacy of such corrective actions, along with the 
details of the deficiencies leading to such cost growth, to the 
congressional defense committees.
    (d) Definition of Component.--In this section, the term 
``component'' means a military department, a combatant command, a 
Defense Agency, and any part of the Office of the Secretary of Defense 
that manages a major defense acquisition program.

SEC. 848. PHONE CARDS.

    (a) Competitive Procedures Required.--When the Secretary of Defense 
considers it necessary to provide morale, welfare, and recreation 
telephone services for military personnel serving in combat zones, he 
shall use competitive procedures when entering into a contract to 
provide those services. In evaluating contract proposals for such 
services, the Secretary shall require bid proposals to include options 
that minimize the cost of the phone services to individual users while 
providing individual users the flexibility of using phone cards from 
other than the bidding entity.
    (b) Effective Date.--This section shall apply to any new contract 
to provide morale welfare and recreation phone services in a combat 
theater that is entered into after the date of enactment of this Act. 
With regard to the extension of any contract to provide such services 
that is in existence on such date of enactment, the Secretary shall 
examine with the contractor whether it is possible to further reduce 
the cost of the services to the soldier by allowing the use of phone 
cards other than the contractor's. The Secretary shall submit the 
results of his review to the Committees on Armed Services of the Senate 
and the House of Representatives.

SEC. 849. JURISDICTION UNDER CONTRACT DISPUTES ACT OF 1978 OVER 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 by striking ``of maritime contracts,'' and all that follows 
through the end of the section and inserting ``of maritime contracts, 
shall be governed exclusively by this Act.''

SEC. 850. 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:
    ``(d) Jurisdiction over any actions described under subsection 
(b)(1) of this section arising out of a maritime contract (as that term 
is used in the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.)) 
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 chapter 309 of title 46, popularly known as the 
Suits in Admiralty Act, or chapter 311 of title 46, popularly known as 
the Public Vessels Act.''.

      TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

              Subtitle A--Department of Defense Management

Sec. 901. Additional requirements relating to limitation on major 
                            Department of Defense headquarters 
                            activities personnel.
Sec. 902. Flexibility to adjust the number of deputy chiefs and 
                            assistant chiefs.
Sec. 903. Change in eligibility requirements for appointment to 
                            Department of Defense leadership positions.
Sec. 904. Revisions in functions and activities of special operations 
                            command.
Sec. 905. Redesignation of the Department of the Navy as the Department 
                            of the Navy and Marine Corps.
Sec. 906. Management system of the Department of Defense.
Sec. 907. Acquisition parity for Special Operations Command.
Sec. 908. Department of Defense Board of Actuaries.

                      Subtitle B--Space Activities

Sec. 911. Space protection policy and strategy.
Sec. 912. Biennial report on management of space cadre within the 
                            Department of Defense.

             Subtitle C--Chemical Demilitarization Program

Sec. 921. Chemical demilitarization citizens advisory commissions.
Sec. 922. Sense of Congress on completion of destruction of United 
                            States chemical weapons stockpile.

                Subtitle D--Intelligence-Related Matters

Sec. 931. Reports on foreign language proficiency.
Sec. 932. Technical amendments to title 10, United States Code, arising 
                            from enactment of the Intelligence Reform 
                            and Terrorism Prevention Act of 2004.

                Subtitle E--Roles and Missions Analysis

Sec. 941. Analysis and organization of roles and missions of Department 
                            of Defense.
Sec. 942. Identification of core competencies of the military 
                            departments and other entities within the 
                            Department of Defense.
Sec. 943. Review of capabilities of the military departments and other 
                            entities.
Sec. 944. Joint Requirements Oversight Council additional duties 
                            relating to core mission areas.
Sec. 945. Requirement for certification of major systems prior to 
                            technology development.
Sec. 946. Presentation of future-years mission budget by core mission 
                            area.
Sec. 947. Future capability planning by Joint Requirements Oversight 
                            Council.

                       Subtitle F--Other Matters

Sec. 951. Department of Defense consideration of effect of climate 
                            change on Department facilities, 
                            capabilities, and missions.
Sec. 952. Interagency policy coordination.
Sec. 953. Expansion of employment creditable under service agreements 
                            under National Security Education Program.
Sec. 954. Study of national security interagency system.

              Subtitle A--Department of Defense Management

SEC. 901. ADDITIONAL REQUIREMENTS RELATING TO 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 ``may not be changed 
        except as provided by law.'' and inserting ``may be changed 
        only if the Secretary of Defense submits proposed changes to 
        Congress with the defense budget materials. Any such submitted 
        changes shall take effect on the January 1 following the 
        submission.''; and
            (2) by adding at the end the following new subsections:
    ``(e) Flexibility in Order to Achieve Cost Savings or Eliminate 
Contracts Associated With Inherently Governmental Functions.--(1) 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 is expected to 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.
    ``(2) The Secretary of Defense shall include a report, with the 
defense budget materials for a fiscal year, outlining the uses of the 
waiver or reallocation authority provided in paragraph (1) during the 
preceding fiscal year, including the number of times the waiver or 
reallocation authority was used, the purposes for which it was used, 
expected cost savings, if any, and the number of personnel affected.
    ``(f) Defense Budget Materials.--In this section, the term `defense 
budget materials', with respect to a fiscal year, means the materials 
submitted to Congress by the Secretary of Defense in support of the 
budget for that fiscal year that is submitted to Congress by the 
President under section 1105(a) of title 31.''.

SEC. 902. FLEXIBILITY TO ADJUST THE NUMBER OF DEPUTY CHIEFS AND 
              ASSISTANT CHIEFS.

    (a) Army.--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.''.
    (b) Navy.--
            (1) Deputy chiefs of naval operations.--Section 5036(a) of 
        title 10, United States Code, is amended--
                    (A) by striking ``There are in the Office of the 
                Chief of Naval Operations not more than five Deputy 
                Chiefs of Naval Operations,'' and inserting ``There are 
                Deputy Chiefs of Naval Operations in the Office of the 
                Chief of Naval Operations,'' ; and
                    (B) by adding at the end the following: ``The 
                Secretary of the Navy shall prescribe the number of 
                Deputy Chiefs of Naval Operations under this section 
                and Assistant Chiefs of Naval Operations under section 
                5037 of this title, for a total of not more than eight 
                positions.''.
            (2) Assistant chiefs of naval operations.--Section 5037(a) 
        of such title is amended--
                    (A) by striking ``There are in the Office of the 
                Chief of Naval Operations not more than three Assistant 
                Chiefs of Naval Operations,'' and inserting ``There are 
                Assistant Chiefs of Naval Operations in the Office of 
                the Chief of Naval Operations,''; and
                    (B) by adding at the end the following: ``The 
                Secretary of the Navy shall prescribe the number of 
                Assistant Chiefs of Naval Operations in accordance with 
                section 5036(a) of this title.''.
    (c) Air Force.--Section 8035(b) of title 10, United States Code, is 
amended to read as follows:
    ``(b) The Secretary of the Air Force shall prescribe the number of 
Deputy Chiefs of Staff and Assistant Chiefs of Staff, for a total of 
not more than eight positions.''.

SEC. 903. CHANGE IN ELIGIBILITY REQUIREMENTS FOR APPOINTMENT TO 
              DEPARTMENT OF DEFENSE LEADERSHIP POSITIONS.

    (a) Secretary of Defense.--Section 113(a) of title 10, United 
States Code, is amended by striking ``10'' and inserting ``five''.
    (b) Deputy Secretary of Defense.--Section 132(a) of such title is 
amended by striking ``ten'' and inserting ``five''.
    (c) Under Secretary of Defense for Policy.--Section 134(a) of such 
title is amended by striking ``10'' and inserting ``five''.

SEC. 904. REVISIONS IN FUNCTIONS AND ACTIVITIES OF SPECIAL OPERATIONS 
              COMMAND.

    (a) Additional Principal Function.--Section 167(a) of title 10, 
United States Code, is amended--
            (1) by inserting ``(1)'' before ``With the advice''; and
            (2) by striking the sentence beginning with ``The principal 
        function'' and inserting the following new paragraph:
    ``(2) The principal functions of the command are--
            ``(A) to prepare special operations forces to carry out 
        assigned missions; and
            ``(B) if directed by the President or the Secretary of 
        Defense, to plan, synchronize, and carry out global missions 
        against terrorists.''.
    (b) Report Requirements.--
            (1) Report on unconventional warfare.--Not later than March 
        1, 2008, the Secretary of Defense shall submit to the 
        congressional defense committees a report containing a plan to 
        meet the future requirements of unconventional warfare.
            (2) Annual report on personnel management.--Not later than 
        March 1, 2008, and not later than September 1 each year 
        thereafter, the Secretary of Defense shall submit to the 
        congressional defense committees a report on the adequacy of 
        Department of Defense personnel management programs to meet the 
        needs of the special operations command.
    (c) Additional Special Operations Activities.--Subsection (j) of 
section 167 of such title is amended to read as follows:
    ``(j) Special Operations Activities.--For purposes of this section, 
special operations activities include each of the following insofar as 
it relates to special operations:
            ``(1) Unconventional warfare.
            ``(2) Counterterrorism.
            ``(3) Counterinsurgency.
            ``(4) Counterproliferation of weapons of mass destruction.
            ``(5) Direct action.
            ``(6) Strategic reconnaissance.
            ``(7) Foreign internal defense.
            ``(8) Civil-military operations.
            ``(9) Psychological and information operations.
            ``(10) Humanitarian assistance.
            ``(11) Theater search and rescue.
            ``(12) Such other activities as may be specified by the 
        President or the Secretary of Defense.''.

SEC. 905. REDESIGNATION OF THE DEPARTMENT OF THE NAVY AS THE DEPARTMENT 
              OF THE NAVY AND MARINE CORPS.

    (a) Redesignation of Military Department.--The military department 
designated as the Department of the Navy is redesignated as the 
Department of the Navy and Marine Corps.
    (b) Redesignation of Secretary and Other Statutory Offices.--
            (1) Secretary.--The position of the Secretary of the Navy 
        is redesignated as the Secretary of the Navy and Marine Corps.
            (2) Other statutory offices.--The positions of the Under 
        Secretary of the Navy, the four Assistant Secretaries of the 
        Navy, and the General Counsel of the Department of the Navy are 
        redesignated as the Under Secretary of the Navy and Marine 
        Corps, the Assistant Secretaries of the Navy and Marine Corps, 
        and the General Counsel of the Department of the Navy and 
        Marine Corps, respectively.
    (c) Conforming Amendments to Title 10, United States Code.--
            (1) Definition of ``military department''.--Paragraph (8) 
        of section 101(a) of title 10, United States Code, is amended 
        to read as follows:
            ``(8) The term `military department' means the Department 
        of the Army, the Department of the Navy and Marine Corps, and 
        the Department of the Air Force.''.
            (2) Organization of department.--The text of section 5011 
        of such title is amended to read as follows: ``The Department 
        of the Navy and Marine Corps is separately organized under the 
        Secretary of the Navy and Marine Corps.''.
            (3) Position of secretary.--Section 5013(a)(1) of such 
        title is amended by striking ``There is a Secretary of the 
        Navy'' and inserting ``There is a Secretary of the Navy and 
        Marine Corps''.
            (4) Chapter headings.--
                    (A) The heading of chapter 503 of such title is 
                amended to read as follows:

       ``CHAPTER 503--DEPARTMENT OF THE NAVY AND MARINE CORPS''.

                    (B) The heading of chapter 507 of such title is 
                amended to read as follows:

  ``CHAPTER 507--COMPOSITION OF THE DEPARTMENT OF THE NAVY AND MARINE 
                                CORPS''.

            (5) Other amendments.--
                    (A) Title 10, United States Code, is amended by 
                striking ``Department of the Navy'' and ``Secretary of 
                the Navy'' each place they appear other than as 
                specified in paragraphs (1), (2), (3), and (4) 
                (including in section headings, subsection captions, 
                tables of chapters, and tables of sections) and 
                inserting ``Department of the Navy and Marine Corps'' 
                and ``Secretary of the Navy and Marine Corps'', 
                respectively, in each case with the matter inserted to 
                be in the same typeface and typestyle as the matter 
                stricken.
                    (B)(i) Sections 5013(f), 5014(b)(2), 5016(a), 
                5017(2), 5032(a), and 5042(a) of such title are amended 
                by striking ``Assistant Secretaries of the Navy'' and 
                inserting ``Assistant Secretaries of the Navy and 
                Marine Corps''.
                    (ii) The heading of section 5016 of such title, and 
                the item relating to such section in the table of 
                sections at the beginning of chapter 503 of such title, 
                are each amended by inserting ``and Marine Corps'' 
                after ``of the Navy'', with the matter inserted in each 
                case to be in the same typeface and typestyle as the 
                matter amended.
    (d) Title 37, United States Code.--Title 37, United States Code, is 
amended by striking ``Department of the Navy'' and ``Secretary of the 
Navy'' each place they appear and inserting ``Department of the Navy 
and Marine Corps'' and ``Secretary of the Navy and Marine Corps'', 
respectively.
    (e) Other References.--Any reference in any law other than in title 
10 or title 37, United States Code, or in any regulation, document, 
record, or other paper of the United States, to the Department of the 
Navy shall be considered to be a reference to the Department of the 
Navy and Marine Corps. Any such reference to an office specified in 
subsection (b)(2) shall be considered to be a reference to that office 
as redesignated by that subsection.
    (f) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first month beginning 
more than 60 days after the date of the enactment of this Act.

SEC. 906. MANAGEMENT SYSTEM OF THE DEPARTMENT OF DEFENSE.

    (a) Duties Relating to Management of the Department of Defense.--
The Secretary of Defense shall assign duties relating to strategic 
level oversight of all significant management issues of the Department 
of Defense to a senior official of a rank not lower than an Under 
Secretary of Defense.
    (b) Management System.--The Secretary of Defense shall adopt a 
management structure for the Department of Defense, including business 
support areas, which shall define roles, processes, and accountability 
for achieving the essential management goals of the Department of 
Defense
    (c) Essential Management Goals.--The Secretary of Defense shall 
establish essential management goals of the Department of Defense, 
including at a minimum, the following:
            (1) A comprehensive business transformation plan, with 
        measurable performance goals and objectives, to achieve an 
        integrated management system for business support areas of the 
        Department of Defense.
            (2) A well-defined enterprise-wide business systems 
        architecture capable of providing accurate and timely 
        information in support of major investment decisions.
            (3) Financial statements for all elements of the Department 
        of Defense that receive clean audit opinions during independent 
        financial audits.
    (d) Report.--Not later than 90 days after the date of the enactment 
of this Act, the Secretary of Defense shall provide to the Committee on 
Armed Services of the Senate and the Committee on Armed Services of the 
House of Representatives a report on the implementation of this 
section. Matters covered in the report shall include the following:
            (1) The assignment of duties relating to management as 
        required by subsection (a).
            (2) Progress toward implementing a management structure for 
        the Department of Defense as required by subsection (b).
            (3) A description of the essential management goals of the 
        Department of Defense established pursuant to subsection (c).
            (4) A description of Department of Defense efforts to 
        achieve its essential management goals as described pursuant to 
        paragraph (3).

SEC. 907. ACQUISITION PARITY FOR SPECIAL OPERATIONS COMMAND.

    (a) Revision in Guidance Regarding Exercise of Acquisition 
Authority by Commanders of Combatant Commands.--Subparagraph (B) of 
section 905(b)(1) of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2353) is amended by 
striking ``and mutually supportive of'' .
    (b) Revision in Consultation Requirement.--Section 905(c) of such 
Act is amended by striking ``and the heads of Defense agencies referred 
to in that subsection'' and inserting the following: ``, and ensure 
that the use of the acquisition authority by the heads of Defense 
Agencies referred to in that subsection is mutually supportive of 
acquisition programs of the military departments''.

SEC. 908. DEPARTMENT OF DEFENSE BOARD OF ACTUARIES.

    (a) 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'').
    (b) Membership.--
            (1) In general.--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) Terms.--(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 serve only 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.
    (c) 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.
    (d) Records.--The Secretary shall keep, or cause to be kept, such 
records as necessary for determining the actuarial status of the Funds.
    (e) 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 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.
    (f) 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 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.
    (g) Repeal of Superseded Provisions.--(1) Section 1464 of title 10, 
United States Code, is repealed.
    (2) Section 2006 of title 10 is amended by striking subsection (e).
    (h) 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''.

                      Subtitle B--Space Activities

SEC. 911. SPACE PROTECTION POLICY AND STRATEGY.

    (a) Policy.--It is the policy of the United States that the 
Secretary of Defense accord, after the date of the enactment of this 
Act, a greater priority within the Nation's space programs to the 
protection of national security space systems than the Secretary has 
accorded before the date of the enactment of this Act.
    (b) Strategy.--The Secretary of Defense shall develop a strategy, 
to be known as the Space Protection Strategy, for the development and 
fielding by the United States of the space capabilities that are 
necessary to ensure freedom of action in space for the United States.
    (c) Matters Included.--The strategy required by subsection (b) 
shall include each of the following:
            (1) An identification of the threats to, and the 
        vulnerabilities of, the national security space systems of the 
        United States.
            (2) A description of the systems currently contained in the 
        program of record of the Department of Defense that provide 
        space capabilities.
            (3) For each period covered by the strategy, a description 
        of the space capabilities that are needed for the period, and 
        the space capabilities that are desired for the period, 
        including--
                    (A) the hardware, software, and other materials or 
                services to be developed or procured;
                    (B) the management and organizational changes to be 
                achieved; and
                    (C) concepts of operations, tactics, techniques, 
                and procedures to be employed.
            (4) For each period covered by the strategy, an assessment 
        of the gaps and shortfalls between the space capabilities that 
        are needed for the period (and the space capabilities that are 
        desired for the period) and the space capabilities currently 
        contained in the program of record.
            (5) For each period covered by the strategy, a 
        comprehensive plan for investment in space capabilities that 
        identifies specific program and technology investments to be 
        made in that period.
            (6) A description of the current processes by which the 
        requirements of the Department of Defense for space systems 
        protection are addressed in space acquisition programs and 
        during key milestone decisions, an assessment of the adequacy 
        of those processes, and an identification of the actions of the 
        Department for addressing any inadequacies in those processes.
            (7) A description of the current processes by which the 
        Department of Defense program and budget for space systems 
        protection capabilities (including capabilities that are 
        incorporated into single programs and capabilities that span 
        multiple programs), an assessment of the adequacy of those 
        processes, and an identification of the actions of the 
        Department for addressing any inadequacies in those processes.
            (8) A description of the organizational and management 
        structure of the Department of Defense for addressing policy, 
        planning, acquisition, and operations with respect to space 
        capabilities, a description of the roles and responsibilities 
        of each organization, and an identification of the actions of 
        the Department for addressing any inadequacies in that 
        structure.
    (d) Periods Covered.--The strategy required by subsection (b) shall 
cover the following periods:
            (1) Fiscal years 2008 through 2013.
            (2) Fiscal years 2014 through 2019.
            (3) Fiscal years 2020 through 2025.
    (e) Space Capabilities Defined.--In this section, the term ``space 
capabilities'' means capabilities, consistent with international law 
and treaties, for space situational awareness and for space systems 
protection.
    (f) Report; Biennial Update.--
            (1) Report.--Not later than March 15, 2008, the Secretary 
        of Defense shall submit to the congressional defense committees 
        a report on the strategy required by subsection (b), including 
        each of the matters required by subsection (c).
            (2) Biennial update.--Not later than March 15 of each even-
        numbered year after 2008, the Secretary shall submit to the 
        committees referred to in paragraph (1) an update to the report 
        required by paragraph (1).
            (3) Classification.--The report required by paragraph (1), 
        and each update required by paragraph (2), shall be in 
        unclassified form, but may include a classified annex.
    (g) Conforming Repeal.--Section 911 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3405; 10 U.S.C. 2271 note) is repealed.

SEC. 912. BIENNIAL REPORT ON MANAGEMENT OF SPACE CADRE WITHIN THE 
              DEPARTMENT OF DEFENSE.

    (a) In General.--Chapter 23 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 490. Space cadre management: biennial report
    ``(a) Requirement.--The Secretary of Defense and each Secretary of 
a military department shall develop metrics and use these metrics to 
identify, track, and manage space cadre personnel within the Department 
of Defense to ensure the Department has sufficient numbers of personnel 
with the expertise, training, and experience to meet current and future 
national security space needs.
    ``(b) Biennial Report Required.--
            ``(1) In general.--Not later than 180 days after the date 
        of the enactment of this section, and every even-numbered year 
        thereafter, the Secretary of Defense shall submit to the 
        congressional defense committees a report on the management of 
        the space cadre.
            ``(2) Matters included.--The report required by paragraph 
        (1) shall include--
                    ``(A) the number of active duty, reserve duty, and 
                government civilian space-coded billets that--
                            ``(i) are authorized or permitted to be 
                        maintained for each military department and 
                        defense agency;
                            ``(ii) are needed or required for each 
                        military department and defense agency for the 
                        year in which the submission of the report is 
                        required; and
                            ``(iii) are needed or required for each 
                        military department and defense agency for each 
                        of the five years following the date of the 
                        submission of the report;
                    ``(B) the actual number of active duty, reserve 
                duty, and government civilian personnel that are coded 
                or classified as space cadre personnel within the 
                Department of Defense, including the military 
                departments and defense agencies;
                    ``(C) the number of personnel recruited or hired as 
                accessions to serve in billets coded or classified as 
                space cadre personnel for each military department and 
                defense agency;
                    ``(D) the number of personnel serving in billets 
                coded or classified as space cadre personnel that 
                discontinued serving each military department and 
                defense agency during the preceding calendar year, 
                categorized by rationale provided for discontinuing 
                service;
                    ``(E) for each of the reporting requirements in 
                subparagraphs (A) through (D), further classification 
                of the number of personnel by--
                            ``(i) space operators, acquisition 
                        personnel, engineers, scientists, program 
                        managers, and other space-related areas 
                        identified by the Department;
                            ``(ii) expertise or technical 
                        specialization area--
                                    ``(I) such as communications, 
                                missile warning, spacelift, and any 
                                other space-related specialties 
                                identified by the Department or 
                                classifications used by the Department; 
                                and
                                    ``(II) consistent with section 1721 
                                of this title for acquisition 
                                personnel;
                            ``(iii) rank for active duty and reserve 
                        duty personnel and grade for government 
                        civilian personnel;
                            ``(iv) qualification, expertise, or 
                        proficiency level consistent with service and 
                        agency-defined qualification, expertise, or 
                        proficiency levels; and
                            ``(v) any other such space-related 
                        classification categories used by the 
                        Department or military departments; and
                    ``(F) any other metrics identified by the 
                Department to improve the identification, tracking, 
                training, and management of space cadre personnel.
            ``(3) Assessments.--The report required by paragraph (1) 
        shall also include the Secretary's assessment of the state of 
        the Department's space cadre, the Secretary's assessment of the 
        space cadres of the military departments, and a description of 
        efforts to ensure the Department has a space cadre sufficient 
        to meet current and future national security space needs.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``490. Space cadre management: biennial report.''.

             Subtitle C--Chemical Demilitarization Program

SEC. 921. CHEMICAL DEMILITARIZATION CITIZENS ADVISORY COMMISSIONS.

    (a) Functions.--Section 172 of the National Defense Authorization 
Act for Fiscal Year 1993 (50 U.S.C. 1521 note) is amended--
            (1) in each of subsections (b) and (f), 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 (g), by striking ``Assistant Secretary of 
        the Army (Research, Development, and Acquisition)'' and 
        inserting ``Assistant Secretary of the Army (Acquisition, 
        Logistics, and Technology)''.
    (b) Termination.--Such section is further amended in subsection (h) 
by striking ``after the stockpile located in that commission's State 
has been destroyed'' and inserting ``after the 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''.

SEC. 922. SENSE OF CONGRESS ON COMPLETION OF DESTRUCTION OF UNITED 
              STATES CHEMICAL WEAPONS STOCKPILE.

    (a) Findings.--Congress makes the following findings:
            (1) The Convention on the Prohibition of the Development, 
        Production, Stockpiling and Use of Chemical Weapons and on 
        Their Destruction, done at Paris on January 13, 1993 (commonly 
        referred to as the ``Chemical Weapons Convention''), originally 
        required that destruction of the entire United States chemical 
        weapons stockpile be completed by April 29, 2007, and then 
        subsequently extended five years to April 29, 2012.
            (2) Destroying existing chemical weapons is a homeland 
        security imperative and an arms control priority and is 
        required by United States law.
            (3) The program met its one percent and 20 percent 
        destruction deadlines early, and is working towards its 45 
        percent destruction milestone date of December 31, 2007, as 
        extended.
            (4) The mission of the Assembled Chemical Weapons 
        Alternatives (ACWA) program, established in the Department of 
        Defense by Congress in 1997, is to safely destroy the chemical 
        weapons stockpiles located at Pueblo Chemical Depot, Colorado, 
        and Blue Grass Army Depot, Kentucky, through the demonstration 
        of systems employing alternative technologies to the 
        incineration process.
            (5) Current ACWA plans call for the use of neutralization 
        followed by on-site biotreatment of aqueous secondary wastes to 
        destroy the Pueblo stockpile, and the use of neutralization 
        followed by on-site supercritical water oxidation treatment of 
        aqueous secondary wastes to destroy the Blue Grass stockpile.
            (6) Affected communities in Colorado and Kentucky, 
        represented respectively by the Colorado Chemical 
        Demilitarization Citizens' Advisory Commission (CO CAC) and the 
        Chemical Destruction Community Advisory Board (CDCAB), have 
        made clear their preference for on-site treatment of aqueous 
        secondary wastes over off-site treatment.
            (7) Section 921(b)(3) of the John Warner National Defense 
        Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 
        Stat. 2359) contained a Sense of Congress urging the Secretary 
        of Defense to ensure the elimination of the United States 
        chemical weapons stockpile in the shortest time possible, 
        consistent with the requirement to protect public health, 
        safety, and the environment.
            (8) Section 921(b)(4) of that Act contained a Sense of 
        Congress urging the Secretary of Defense to propose a credible 
        treatment and disposal process with the support of affected 
        communities.
    (b) Sense of Congress.--It is the sense of Congress the Department 
of Defense should--
            (1) continue with its plan for on-site disposal of the 
        ACWA-managed stockpiles located at Pueblo Chemical Depot, 
        Colorado, and Blue Grass Army Depot, Kentucky; and
            (2) ensure that extensive consultation and notification 
        processes exist between representatives of the Department of 
        Defense and representatives of the relevant States and local 
        communities.

                Subtitle D--Intelligence-Related Matters

SEC. 931. REPORTS ON FOREIGN LANGUAGE PROFICIENCY.

    (a) In General.--
            (1) Foreign language proficiency reports.--Chapter 23 of 
        title 10, United States Code, as amended by this Act, is 
        further amended by adding at the end the following new section:
``Sec. 491. Foreign language proficiency: annual reports
    ``(a) In General.--The Secretary of each military department shall 
annually submit to the Secretary of Defense a report on the foreign 
language proficiency of the personnel of the military department 
concerned.
    ``(b) Contents.--Each report submitted under subsection (a) shall 
include, for each foreign language and, where appropriate, dialect of a 
foreign language--
            ``(1) the number of positions of the military department 
        concerned that require proficiency in the foreign language or 
        dialect;
            ``(2) the number of personnel of the military department 
        that are serving in a position that--
                    ``(A) requires proficiency in the foreign language 
                or dialect to perform the primary duty of the position; 
                and
                    ``(B) does not require proficiency in the foreign 
                language or dialect to perform the primary duty of the 
                position;
            ``(3) the number of personnel that are proficient in the 
        foreign language or dialect that--
                    ``(A) are authorized for the military department 
                for which the report is submitted; and
                    ``(B) the Secretary of the military department 
                concerned considers necessary for the military 
                department concerned for each of the five years 
                following the date of the submission of the report;
            ``(4) the number of personnel of the military department 
        concerned rated at each level of proficiency of the Interagency 
        Language Roundtable;
            ``(5) whether the number of personnel at each level of 
        proficiency of the Interagency Language Roundtable meets the 
        requirements of the military department concerned;
            ``(6) the number of personnel serving or hired to serve as 
        linguists for the military department concerned that are not 
        qualified as linguists under the standards of the Interagency 
        Language Roundtable;
            ``(7) the number of personnel hired to serve as linguists 
        for the military department concerned during the preceding 
        calendar year;
            ``(8) the number of personnel serving as linguists that 
        discontinued serving the military department concerned during 
        the preceding calendar year;
            ``(9) the percentage of work requiring linguistic skills 
        that is fulfilled by an ally of the United States;
            ``(10) the percentage of work requiring linguistic skills 
        that is fulfilled by contractors; and
            ``(11) the percentage of work requiring linguistic skills 
        that is fulfilled by personnel of the intelligence community 
        (as such term is defined in section 3(4) of the National 
        Security Act of 1947 (50 U.S.C. 401a(4))) that are not members 
        of the armed forces on active duty assigned to the military 
        department for which the report is submitted.
    ``(c) Secretary of Defense Report to Congress.--The Secretary of 
Defense shall annually submit to the congressional defense committees a 
report containing--
            ``(1) each report submitted to the Secretary of Defense for 
        a year under subsection (a);
            ``(2) for each foreign language and, where appropriate, 
        dialect of a foreign language--
                    ``(A) the number of positions of the Department of 
                Defense that are not under the jurisdiction of the 
                Secretary of a military department that require 
                proficiency in the foreign language or dialect;
                    ``(B) the number of personnel of the Department of 
                Defense that are not under the jurisdiction of the 
                Secretary of a military department that are serving in 
                a position that--
                            ``(i) requires proficiency in the foreign 
                        language or dialect to perform the primary duty 
                        of the position; and
                            ``(ii) does not require proficiency in the 
                        foreign language or dialect to perform the 
                        primary duty of the position;
                    ``(C) the number of personnel of the Department of 
                Defense that are not under the jurisdiction of the 
                Secretary of a military department that are proficient 
                in the foreign language or dialect that--
                            ``(i) are authorized for the Department of 
                        Defense, but not under the jurisdiction of the 
                        Secretary of a military department; and
                            ``(ii) the Secretary of Defense considers 
                        necessary for the Department of Defense 
                        (excluding personnel under the jurisdiction of 
                        the Secretary of a military department) for 
                        each of the five years following the date of 
                        the submission of the report;
                    ``(D) the number of personnel of the Department of 
                Defense that are not under the jurisdiction of the 
                Secretary of a military department rated at each level 
                of proficiency of the Interagency Language Roundtable;
                    ``(E) whether the number of personnel at each level 
                of proficiency of the Interagency Language Roundtable 
                meets the requirements of the Department of Defense;
                    ``(F) the number of personnel serving or hired to 
                serve as linguists for the Department of Defense that 
                are not under the jurisdiction of the Secretary of a 
                military department that are not qualified as linguists 
                under the standards of the Interagency Language 
                Roundtable;
                    ``(G) the number of personnel hired during the 
                preceding calendar year to serve as linguists for the 
                Department of Defense that are not under the 
                jurisdiction of the Secretary of a military department;
                    ``(H) the number of personnel not under the 
                jurisdiction of the Secretary of a military department 
                serving as linguists that discontinued serving the 
                Department of Defense during the preceding calendar 
                year;
                    ``(I) the percentage of work requiring linguistic 
                skills that is fulfilled by an ally of the United 
                States;
                    ``(J) the percentage of work requiring linguistic 
                skills that is fulfilled by contractors; and
                    ``(K) the percentage of work requiring linguistic 
                skills that is fulfilled by personnel of the 
                intelligence community (as such term is defined in 
                section 3(4) of the National Security Act of 1947 (50 
                U.S.C. 401a(4))) that are not members of the armed 
                forces on active duty assigned to the military 
                department for which the report is submitted; and
            ``(3) an assessment of the foreign language capacity and 
        capabilities of the Department of Defense as a whole.
    ``(d) Non-Military Personnel.--
            ``(1) Secretary of military department reports.--Except as 
        provided in subsection (a)(11), a report submitted under 
        subsection (a) shall cover only members of the armed forces on 
        active duty assigned to the military department concerned.
            ``(2) Secretary of defense reports.--Except as provided in 
        subsection (c)(2)(K), a report submitted under subsection (c) 
        shall cover only members of the armed forces on active duty 
        assigned to the Department of Defense.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``491. Foreign language proficiency: annual reports.''.
    (b) Effective Date.--
            (1) Initial report by secretary of each military 
        department.--The first report required to be submitted by the 
        Secretary of each military department under section 491(a) of 
        title 10, United States Code, as added by subsection (a), shall 
        be submitted not later than 180 days after the date of the 
        enactment of this Act.
            (2) Initial report by secretary of defense.--The first 
        report required to be submitted by the Secretary of Defense 
        under section 491(c) of title 10, United States Code, as added 
        by subsection (a), shall be submitted not later than 240 days 
        after the date of the enactment of this Act.

SEC. 932. 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(c)(1).
            (6) Section 425(a).
            (7) Section 426(a)(3).
            (8) Section 426(b)(2).
            (9) Section 441(c).
            (10) Section 441(d).
            (11) Section 443(d).
            (12) Section 2273(b)(1).
            (13) 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.
            (3) Section 1089(g).
    (c) Other Amendments.--
            (1) Subsection headings.--
                    (A) Section 441(c).--The heading of subsection (c) 
                of section 441 of such title is amended by striking 
                ``Director of Central Intelligence'' and inserting 
                ``Director of National Intelligence''.
                    (B) Section 443(d).--The heading of subsection (d) 
                of section 443 of such title is amended by striking 
                ``Director of Central Intelligence'' and inserting 
                ``Director of National Intelligence''.
            (2) Section 201.--Section 201 of such title is further 
        amended--
                    (A) in subsection (b)(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
                    (B) in subsection (c)(1), by striking ``National 
                Foreign Intelligence Program'' and inserting ``National 
                Intelligence Program''.

                Subtitle E--Roles and Missions Analysis

SEC. 941. ANALYSIS AND ORGANIZATION OF ROLES AND MISSIONS OF DEPARTMENT 
              OF DEFENSE.

    (a) Requirement for Quadrennial Roles and Missions Review.--
            (1) In general.--Chapter 2 of title 10, United States Code, 
        is amended by inserting after section 118a the following new 
        section:
``Sec. 118b. Quadrennial roles and missions review
    ``(a) Review Required.--(1) The Secretary of Defense shall every 
four years conduct a comprehensive assessment (to be known as the 
`quadrennial roles and missions review') of the roles and missions of 
the Department of Defense. Each such quadrennial roles and missions 
review shall be conducted in consultation with the Chairman of the 
Joint Chiefs of Staff.
    ``(b) Conduct of Review.--Each quadrennial roles and missions 
review shall be conducted so as--
            ``(1) to organize the significant missions of the 
        Department of Defense into core mission areas that cover broad 
        areas of military activity, such as dominance of ground, air, 
        maritime, and space environments; expeditionary warfare; 
        mobility; homeland defense; and cyberoperations; and
            ``(2) to ensure that the core mission areas are defined so 
        that the areas are mutually supportive but with as little 
        overlap in functions as is necessary.
    ``(c) Submission to Congressional Committees.--(1) The Secretary 
shall submit a report on each quadrennial roles and missions review to 
the Committee on Armed Services of the Senate and the Committee on 
Armed Services of the House of Representatives.
    ``(2) The report shall be submitted in the year following the year 
in which the review is conducted, but not later than the date on which 
the President submits the budget for the next fiscal year to Congress 
under section 1105(a) of title 31.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 118a the following new item:

``118b. Quadrennial roles and missions review.''.
    (b) Repeal of Superseded Provision.--Section 118(e) of title 10, 
United States Code, is amended--
            (1) by striking paragraph (2); and
            (2) by redesignating paragraph (3) as paragraph (2).
    (c) Deadline for First Roles and Missions Review.--The first roles 
and missions review under section 118b of title 10, United States Code, 
as added by subsection (a), shall be performed and completed during 
2008.

SEC. 942. IDENTIFICATION OF CORE COMPETENCIES OF THE MILITARY 
              DEPARTMENTS AND OTHER ENTITIES WITHIN THE DEPARTMENT OF 
              DEFENSE.

    (a) In General.--
            (1) Requirement.--Chapter 3 of title 10, United States 
        Code, is amended by inserting after section 125 the following 
        new section:
``Sec. 125a. Core competencies
    ``(a) Requirement to Identify Core Competencies.--The Secretary of 
Defense, in consultation with the Chairman of the Joint Chiefs of Staff 
and the Secretaries of the military departments, shall identify core 
competencies for each of the following:
            ``(1) Each military department.
            ``(2) The Office of the Secretary of Defense.
            ``(3) Each Defense Agency.
            ``(4) Each Department of Defense Field Activity.
            ``(5) Each combatant command with acquisition authority.
    ``(b) Basis of Competencies.--In identifying the core competencies 
of an entity listed in subsection (a), the Secretary of Defense shall--
            ``(1) ensure that each core competency is clearly 
        associated with a core mission area of the Department of 
        Defense (as identified pursuant to the quadrennial roles and 
        missions review under section 118b of this title); and
            ``(2) base such identification on the ability of an entity 
        to provide doctrinal, organizational, training, materiel, 
        leadership, personnel, and facilities solutions to meet 
        requirements within a core mission area of the Department of 
        Defense.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``125a. Core competencies.''.
    (b) Report on Core Competencies.--The Secretary of Defense shall 
submit to the Committees on Armed Services of the Senate and the House 
of Representatives a report on the core competencies identified under 
section 125a of title 10, United States Code, as added by subsection 
(a), not later than the date on which the budget for fiscal year 2009 
is submitted to Congress by the President under section 1105(a) of 
title 31, United States Code.

SEC. 943. REVIEW OF CAPABILITIES OF THE MILITARY DEPARTMENTS AND OTHER 
              ENTITIES.

    (a) Review Required.--The Secretary of Defense shall conduct a 
review of the capabilities that each of the following entities is 
performing or developing:
            (1) Each military department.
            (2) The Office of the Secretary of Defense.
            (3) Each Defense Agency.
            (4) Each Department of Defense Field Activity.
            (5) Each combatant command with acquisition authority.
    (b) Matters Covered.--In conducting the review, the Secretary of 
Defense--
            (1) shall determine whether any such capabilities are 
        outside the entity's core competencies (as identified under 
        section 125a of this title) or outside a core mission area of 
        the Department of Defense (as identified pursuant to the 
        quadrennial roles and missions review under section 118b of 
        this title);
            (2) shall determine whether any core competencies required 
        to effectively perform the core mission areas of the Department 
        of Defense are not being performed or developed in any entity 
        listed in subsection (a); and
            (3) shall determine whether there is any duplication of a 
        capability within a core mission area, and provide a 
        justification for such duplication.
    (c) Report to Congress; Limitation.--Not later than June 1, 2009, 
the Secretary shall submit to the Committees on Armed Services of the 
Senate and the House of Representatives a report on the review. No new 
major defense acquisition programs may be started in the Department of 
Defense after June 1, 2009, until the report has been submitted to such 
committees.

SEC. 944. JOINT REQUIREMENTS OVERSIGHT COUNCIL ADDITIONAL DUTIES 
              RELATING TO CORE MISSION AREAS.

    (a) Revisions in Mission.--
            (1) Revisions.--Subsection (b) of section 181 of title 10, 
        United States Code, is amended to read as follows:
    ``(b) Mission.--In addition to other matters assigned to it by the 
President or Secretary of Defense, the Joint Requirements Oversight 
Council shall--
            ``(1) assist the Chairman of the Joint Chiefs of Staff--
                    ``(A) in identifying, assessing, and approving 
                joint military requirements (including existing systems 
                and equipment) to meet the national military strategy; 
                and
                    ``(B) in identifying the core mission area 
                associated with each such requirement;
            ``(2) assist the Chairman in establishing and assigning 
        priority levels for joint military requirements;
            ``(3) assist the Chairman in estimating the level of 
        resources required in the fulfillment of each joint military 
        requirement and in ensuring that such resource level is 
        consistent with the level of priority assigned to such 
        requirement; and
            ``(4) assist the Chairman in considering alternatives to 
        any acquisition program that has been identified to meet joint 
        military requirements by evaluating the cost, schedule, and 
        performance criteria of each alternative and of the identified 
        program.''.
            (2) Definitions.--Section 181 of such title is amended by 
        adding at the end the following new subsection:
    ``(e) Definitions.--In this section:
            ``(1) The term `joint military requirement' means a 
        capability necessary to fulfill a gap in a core mission area of 
        the Department of Defense.
            ``(2) The term `core mission area' means a core mission 
        area of the Department of Defense identified under the most 
        recent quadrennial roles and missions review pursuant to 
        section 118b of this title.''.
    (b) Additional Members of Joint Requirements Oversight Council.--
Section 181(c) of title 10, United States Code, is amended--
            (1) by redesignating subparagraphs (B), (C), (D), and (E) 
        as subparagraphs (D), (E), (F), and (G), respectively; and
            (2) by inserting after subparagraph (A) the following new 
        subparagraphs:
            ``(B) the Under Secretary of Defense for Acquisition, 
        Technology, and Logistics;
            ``(C) the Under Secretary of Defense (Comptroller);''.
    (c) Organization.--Section 181 of such title is amended--
            (1) by redesignating subsections (d) and (e) (as added by 
        subsection (a)) as subsections (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection (d):
    ``(d) Organization.--The Joint Requirements Oversight Council shall 
organize its activities according to the core missions areas of the 
Department of Defense. In any review of a core mission area, the 
officer or official assigned to lead the review shall have a deputy 
from a different military department.''.
    (d) Deadlines.--Effective June 1, 2009, all joint military 
requirements documents of the Joint Requirements Oversight Council 
produced to carry out its mission under section 181(b)(1) of title 10, 
United States Code, shall conform to the core mission areas organized 
and defined under section 118b of such title. Not later than October 1, 
2009, all such documents produced before June 1, 2009, shall conform to 
such structure.
    (e) Revised Function of Chairman of Joint Chiefs of Staff.--Section 
153(a)(4)(F) of title 10, United States Code, is amended by striking 
``Assessing military requirements for defense acquisition programs.'' 
and inserting ``Advising the Secretary on the effective and efficient 
coordination of all military requirements for defense acquisition 
programs.''.

SEC. 945. REQUIREMENT FOR CERTIFICATION OF MAJOR SYSTEMS PRIOR TO 
              TECHNOLOGY DEVELOPMENT.

    (a) Requirement for Certification.--
            (1) In general.--Chapter 139 of title 10, United States 
        Code, is amended by inserting after section 2366a the following 
        new section:
``Sec. 2366b. Major systems: requirement for Joint Requirements 
              Oversight Council certification
    ``(a) Certification.--Before the start of technology development 
for a major system, the Joint Requirements Oversight Council shall 
certify--
            ``(1) that the system fulfills an approved initial 
        capabilities document;
            ``(2) that the system is being executed by an entity with a 
        relevant core competency as identified by the Secretary of 
        Defense under section 125a of this title;
            ``(3) if the system duplicates a capability already 
        provided by an existing system, the duplication provided by 
        such system is necessary and appropriate; and
            ``(4) that a cost estimate for the system has been 
        submitted and that the level of resources required to develop 
        and procure the system is consistent with the level of 
        resources estimated by the Joint Requirements Oversight Council 
        for the initial capabilities document identified under 
        paragraph (1).
    ``(b) Notification.--With respect to a major system certified by 
the Joint Requirements Oversight Council under subsection (a), if the 
projected cost of the system, at any time prior to Milestone B 
approval, exceeds the cost estimate for the system submitted to the 
Council at the time of the certification by at least 25 percent, the 
Secretary of the military department concerned, or in the case of 
Office of the Secretary of Defense, a Defense Agency, or a Department 
of Defense Field Activity, the Secretary of Defense, shall notify the 
Joint Requirements Oversight Council. Upon receipt of such 
notification, the Council shall consider whether to recommend that the 
program be continued or that the program be terminated.
    `` (c) Definitions.--In this section:
            ``(1) The term `major system' has the meaning provided in 
        section 2302(5) of this title.
            ``(2) The term `initial capabilities document' means any 
        capabilities requirement document approved by the Joint 
        Requirements Oversight Council that establishes the need for a 
        materiel approach to resolve a capability gap.
            ``(3) The term `technology development program' means a 
        coordinated effort to assess technologies and refine user 
        performance parameters to fulfill a capability gap identified 
        in an initial capabilities document.
            ``(4) The term `entity' means an entity listed in section 
        125a(a) of this title.
            ``(5) The term `Milestone B approval' has the meaning 
        provided that term in section 2366(e)(7) of this title.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``2366b. Major systems: requirement for Joint Requirements Oversight 
                            Council certification.''.
    (b) Effective Date.--Section 2366b of title 10, United States Code, 
as added by subsection (a), shall apply to major systems on and after 
March 1, 2008.

SEC. 946. PRESENTATION OF FUTURE-YEARS MISSION BUDGET BY CORE MISSION 
              AREA.

    (a) Time of Submission of Future-Years Mission Budget.--The second 
sentence of section 222(a) of title 10, United States Code, is amended 
to read as follows: ``That budget shall be submitted for any fiscal 
year with the future-years defense program submitted under section 221 
of this title.''.
    (b) Organization of Future-Years Mission Budget.--The second 
sentence of section 222(b) of such title is amended by striking ``on 
the basis'' and all that follows through the end of the sentence and 
inserting the following: ``on the basis of both major force programs 
and the core mission areas identified under the most recent quadrennial 
roles and missions review pursuant to section 118b of this title.''
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to the future-years mission budget for fiscal year 
2010 and each fiscal year thereafter.

SEC. 947. FUTURE CAPABILITY PLANNING BY JOINT REQUIREMENTS OVERSIGHT 
              COUNCIL.

    (a) Requirement for Extended Planning Annexes.--Section 181 of 
title 10, United States Code, as amended by this subtitle, is further 
amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following new 
        subsection (f):
    ``(f) Future Capability Planning.--(1)(A) The Secretary of Defense 
shall direct the commanders of combatant commands to prepare extended 
planning annexes to all operational and contingency plans. Each 
extended planning annex shall--
            ``(i) include the commander's assessment of the 
        capabilities needed to successfully accomplish the missions for 
        which the operational and contingency plans were created;
            ``(ii) use a 15-year planning horizon and take into account 
        expected changes in threats, the geopolitical environment, and 
        doctrine, training, and operational concepts; and
            ``(iii) provide capability assessments for the year in 
        which the annex is submitted and for the 5th, 10th, and 15th 
        years after such year.
    ``(B) The extended planning annexes shall be submitted to the 
Secretary of Defense and the Chairman of the Joint Chiefs of Staff 
biannually.
    ``(2) The Joint Requirements Oversight Council shall--
            ``(A) in consultation with the office responsible for 
        program analysis and evaluation within the Office of the 
        Secretary of Defense and the Office of the Under Secretary of 
        Defense for Acquisition, Technology, and Logistics, match--
                    ``(i) the capabilities that are expected to be 
                provided by the acquisition programs in existence 
                during the period covered by the most recent extended 
                planning annexes, including classified and 
                compartmentalized programs, and the science and 
                technology programs in existence during that period, 
                with
                    ``(ii) capability needs identified in the extended 
                planning annexes prepared under paragraph (1);
            ``(B) in coordination with the commanders of the combatant 
        commands, and within 30 days after submission of the extended 
        planning annexes, identify gaps in capabilities not likely to 
        be closed by existing acquisition programs and science and 
        technology programs described in subparagraph (A)(i), assign 
        priorities for addressing such gaps, and identify areas where 
        such programs are expected to provide capability beyond that 
        which is required; and
            ``(C) develop a plan for the Department of Defense to 
        acquire needed joint capabilities and divest itself of unneeded 
        capabilities, based on the extended planning annexes prepared 
        under paragraph (1).
    ``(3) In this subsection, the term `operational and contingency 
plans' means plans prepared by a commander of a combatant command to 
carry out missions assigned to the command under section 164 of this 
title.''.
    (b) Deadline for First Extended Planning Annexes.--The first 
extended planning annexes under section 181(f) of title 10, United 
States Code, as added by subsection (a), shall be submitted under that 
section not later than 90 days after the date of the enactment of this 
Act.

                       Subtitle F--Other Matters

SEC. 951. DEPARTMENT OF DEFENSE CONSIDERATION OF EFFECT OF CLIMATE 
              CHANGE ON DEPARTMENT FACILITIES, CAPABILITIES, AND 
              MISSIONS.

    Section 118 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(g) Consideration of Effect of Climate Change on Department 
Facilities, Capabilities, and Missions.--(1) The first national 
security strategy and national defense strategy prepared after the date 
of the enactment of this subsection shall include guidance for military 
planners--
            ``(A) to assess the risks of projected climate change to 
        current and future missions of the armed forces;
            ``(B) to update defense plans based on these assessments, 
        including working with allies and partners to incorporate 
        climate mitigation strategies, capacity building, and relevant 
        research and development; and
            ``(C) to develop the capabilities needed to reduce future 
        impacts.
    ``(2) The first quadrennial defense review prepared after the date 
of the enactment of this subsection shall also examine the capabilities 
of the armed forces to respond to the consequences of climate change, 
in particular, preparedness for natural disasters from extreme weather 
events and other missions the armed forces may be asked to support 
inside the United States and overseas.
    ``(3) For planning purposes to comply with the requirements of this 
subsection, the Secretary of Defense shall use--
            ``(A) the mid-range projections of the fourth assessment 
        report of the Intergovernmental Panel on Climate Change;
            ``(B) subsequent mid-range consensus climate projections if 
        more recent information is available when the next national 
        security strategy, national defense strategy, or quadrennial 
        defense review, as the case may be, is conducted; and
            ``(C) findings of appropriate and available estimations or 
        studies of the anticipated strategic, social, political, and 
        economic effects of global climate change and the implications 
        of such effects on the national security of the United States.
    ``(4) In this subsection, the term `national security strategy' 
means the annual national security strategy report of the President 
under section 108 of the National Security Act of 1947 (50 U.S.C. 
404a).''.

SEC. 952. INTERAGENCY POLICY COORDINATION.

    (a) Plan Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall develop and 
submit to Congress a plan to to improve and reform the interagency 
coordination process on national security issues.
    (b) Elements.--The elements of the plan shall include the 
following:
            (1) Assigning either the Under Secretary of Defense for 
        Policy or another official to be the lead policy official for 
        improving and reforming the interagency coordination process on 
        national security issues for the Department of Defense, with an 
        explanation of any decision to name an official other than the 
        Under Secretary and the relative advantages and disadvantages 
        of such decision.
            (2) Giving the official assigned under paragraph (1) the 
        following responsibilities:
                    (A) To be the lead person at the Department of 
                Defense for the development of policy affecting the 
                national security interagency process.
                    (B) To serve, or designate a person to serve, as 
                the representative of the Department of Defense in 
                Federal Government forums established to address 
                interagency policy, planning, or reforms.
                    (C) To advocate, on behalf of the Secretary, for 
                greater interagency coordination and contributions in 
                the execution of the National Security Strategy and 
                particularly specific operational objectives undertaken 
                pursuant to that strategy.
                    (D) To make recommendations to the Secretary of 
                Defense on changes to existing Department of Defense 
                regulations or laws to improve the interagency process.
                    (E) To serve as the coordinator for all planning 
                and training assistance that is--
                            (i) designed to improve the interagency 
                        process or the capabilities of other agencies 
                        to work with the Department of Defense; and
                            (ii) provided by the Department of Defense 
                        at the request of other agencies.
                    (F) To serve as the lead official in Department of 
                Defense for the development of deployable joint 
                interagency task forces.
    (c) Factors to Be Considered.--In drafting the plan, the Secretary 
of Defense shall also consider the following factors:
            (1) How the official assigned under subsection (b)(1) shall 
        provide input to the Secretary of Defense on an ongoing basis 
        on how to incorporate the need to coordinate with other 
        agencies into the establishment and reform of combatant 
        commands.
            (2) How such official shall develop and make 
        recommendations to the Secretary of Defense on a regular or an 
        ongoing basis on changes to military and civilian personnel to 
        improve interagency coordination.
            (3) How such official shall work with the combatant command 
        that has the mission for joint warfighting experimentation and 
        other interested agencies to develop exercises to test and 
        validate interagency planning and capabilities.
            (4) How such official shall lead, coordinate, or 
        participate in after-action reviews of operations, tests, and 
        exercises to capture lessons learned regarding the functioning 
        of the interagency process and how those lessons learned will 
        be disseminated.
            (5) The role of such official in ensuring that future 
        defense planning guidance takes into account the capabilities 
        and needs of other agencies.
    (d) Recommendation on Changes in Law.--The Secretary of Defense may 
submit with the plan or with any future budget submissions 
recommendations for any changes to law that are required to enhance the 
ability of the official assigned under subsection (b)(1) in the 
Department of Defense to coordinate defense interagency efforts or to 
improve the ability of the Department of Defense to work with other 
agencies.
    (e) Annual Report.--If an official is named by the Secretary of 
Defense under subsection (b)(1), the official shall annually submit to 
Congress a report, beginning in the fiscal year following the naming of 
the official, on those actions taken by the Department of Defense to 
enhance national security interagency coordination, the views of the 
Department of Defense on efforts and challenges in improving the 
ability of agencies to work together, and suggestions on changes needed 
to laws or regulations that would enhance the coordination of efforts 
of agencies.
    (f) Definition.--In this section, the term ``interagency 
coordination'', within the context of Department of Defense 
involvement, means the coordination that occurs between elements of the 
Department of Defense and engaged Federal Government agencies for the 
purpose of achieving an objective.
    (g) Construction.--Nothing in this provision shall be construed as 
preventing the Secretary of Defense from naming an official with the 
responsibilities listed in subsection (b) before the submission of the 
report required under this section.

SEC. 953. EXPANSION OF EMPLOYMENT CREDITABLE UNDER SERVICE AGREEMENTS 
              UNDER NATIONAL SECURITY EDUCATION PROGRAM.

    Paragraph (2) of subsection (b) of section 802 of the David L. 
Boren National Security Education Act of 1991 (50 U.S.C. 1902), as most 
recently amended by section 945 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 
2367), is amended--
            (1) in subparagraph (A)--
                    (A) in clause (i) by striking ``or'' at the end; 
                and
                    (B) by adding at the end the following:
                            ``(iii) for not less than one academic year 
                        in a position in the field of education in a 
                        discipline related to the study supported by 
                        the program if the recipient demonstrates to 
                        the Secretary of Defense that no position is 
                        available in the departments, agencies, and 
                        offices covered by clauses (i) and (ii); or''; 
                        and
            (2) in subparagraph (B)--
                    (A) in clause (i) by striking ``or'' at the end;
                    (B) in clause (ii) by striking ``and'' at the end 
                and inserting ``or''; and
                    (C) by adding at the end the following:
                            ``(iii) for not less than one academic year 
                        in a position in the field of education in a 
                        discipline related to the study supported by 
                        the program if the recipient demonstrates to 
                        the Secretary of Defense that no position is 
                        available in the departments, agencies, and 
                        offices covered by clauses (i) and (ii); and''.

SEC. 954. STUDY OF NATIONAL SECURITY INTERAGENCY SYSTEM.

    (a) Study Required.--The Secretary of Defense may enter into an 
agreement with an independent, nonprofit, nonpartisan organization to 
conduct a study on the national security interagency system.
    (b) Report.--The agreement entered into under subsection (a) shall 
require the organization to submit to Congress and the President a 
report containing the results of the study conducted pursuant to such 
agreement and any recommendations for changes to the national security 
interagency system (including legislative or regulatory changes).
    (c) Submission Date.--The agreement entered into under subsection 
(a) shall require the organization to submit the report required under 
subsection (b) not later than 180 days after the date on which the 
Secretary makes funds appropriated pursuant to section 301(5) available 
to the organization.
    (d) National Security Interagency System Defined.--In this section, 
the term ``national security interagency system'' means the structures, 
mechanisms, and processes by which the departments, agencies, and 
elements of the Federal Government that have national security missions 
integrate their policies, capabilities, expertise, and activities to 
accomplish such missions.
    (e) Funding.--Of the amounts authorized to be appropriated by 
section 301(5), not more than $4,000,000 shall be available to carry 
out this section.

                      TITLE X--GENERAL PROVISIONS

                     Subtitle A--Financial Matters

Sec. 1001. General transfer authority.
Sec. 1002. United States contribution to NATO common-funded budgets in 
                            fiscal year 2008.

          Subtitle B--Policy Relating to Vessels and Shipyards

Sec. 1011. Limitation on leasing of foreign-built vessels.
Sec. 1012. Policy relating to major combatant vessels of the strike 
                            forces of the United States Navy.

                  Subtitle C--Counter-Drug Activities

Sec. 1021. Extension of authority for joint task forces to provide 
                            support to law enforcement agencies 
                            conducting counter-terrorism activities.

                          Subtitle D--Reports

Sec. 1031. Extension and modification of report relating to hardened 
                            and deeply buried targets.
Sec. 1032. Comptroller General review of the Joint Improvised Explosive 
                            Device Defeat Organization.
Sec. 1033. Report on a national joint modeling and simulation 
                            development strategy.

                       Subtitle E--Other Matters

Sec. 1041. Enhancement of corrosion control and prevention functions 
                            within Department of Defense.
Sec. 1042. Support by National Guard for national special security 
                            events and other critical national security 
                            activities.
Sec. 1043. Improved authority to provide rewards for assistance in 
                            combating terrorism.
Sec. 1044. Revision of proficiency flying definition.
Sec. 1045. Support for non-Federal development and testing of material 
                            for chemical agent defense.
Sec. 1046. Congressional Commission on the Strategic Posture of the 
                            United States.
Sec. 1047. Technical and clerical amendments.
Sec. 1048. Repeal of certification requirement.
Sec. 1049. Prohibition on sale by Department of Defense of parts for F-
                            14 fighter aircraft.
Sec. 1050. Maintenance of capability for space-based nuclear detection.
Sec. 1051. Additional weapons of mass destruction civil support teams.
Sec. 1052. Sense of Congress regarding need to replace Army M109 155mm 
                            self-propelled howitzer.
Sec. 1053. Sense of Congress regarding detainees at Naval Station, 
                            Guantanamo Bay, Cuba.
Sec. 1054. Repeal of provisions in section 1076 of Public Law 109-364 
                            relating to use of Armed Forces in major 
                            public emergencies.

                     Subtitle A--Financial Matters

SEC. 1001. GENERAL TRANSFER AUTHORITY.

    (a) Authority to Transfer Authorizations.--
            (1) Authority.--Upon determination by the Secretary of 
        Defense that such action is necessary in the national interest, 
        the Secretary may transfer amounts of authorizations made 
        available to the Department of Defense in this division for 
        fiscal year 2008 between any such authorizations for that 
        fiscal year (or any subdivisions thereof). Amounts of 
        authorizations so transferred shall be merged with and be 
        available for the same purposes as the authorization to which 
        transferred.
            (2) Limitation.--The total amount of authorizations that 
        the Secretary may transfer under the authority of this section 
        may not exceed $4,500,000,000.
    (b) Limitations.--The authority provided by this section to 
transfer authorizations--
            (1) may only be used to provide authority for items that 
        have a higher priority than the items from which authority is 
        transferred; and
            (2) may not be used to provide authority for an item that 
        has been denied authorization by Congress.
    (c) Effect on Authorization Amounts.--A transfer made from one 
account to another under the authority of this section shall be deemed 
to increase the amount authorized for the account to which the amount 
is transferred by an amount equal to the amount transferred.
    (d) Notice to Congress.--The Secretary shall promptly notify 
Congress of each transfer made under subsection (a).
    (e) Prohibition on Transfers From Guard and Reserve Accounts.--
Funds authorized in this division for an account of the National Guard 
or other reserve components of the Armed Forces may not be a source of 
funds for transfer to a different account other than another account of 
the National Guard or other reserve component.

SEC. 1002. UNITED STATES CONTRIBUTION TO NATO COMMON-FUNDED BUDGETS IN 
              FISCAL YEAR 2008.

    (a) Fiscal Year 2008 Limitation.--The total amount contributed by 
the Secretary of Defense in fiscal year 2008 for the common-funded 
budgets of NATO may be any amount up to, but not in excess of, the 
amount specified in subsection (b) (rather than the maximum amount that 
would otherwise be applicable to those contributions under the fiscal 
year 1998 baseline limitation).
    (b) Total Amount.--The amount of the limitation applicable under 
subsection (a) is the sum of the following:
            (1) The amounts of unexpended balances, as of the end of 
        fiscal year 2007, of funds appropriated for fiscal years before 
        fiscal year 2008 for payments for those budgets.
            (2) The amount specified in subsection (c)(1).
            (3) The amount specified in subsection (c)(2).
            (4) The total amount of the contributions authorized to be 
        made under section 2501.
    (c) Authorized Amounts.--Amounts authorized to be appropriated by 
titles II and III of this Act are available for contributions for the 
common-funded budgets of NATO as follows:
            (1) Of the amount provided in section 201(1), $1,031,000 
        for the Civil Budget.
            (2) Of the amount provided in section 301(1), $362,159,000 
        for the Military Budget.
    (d) Definitions.--For purposes of this section:
            (1) Common-funded budgets of nato.--The term ``common-
        funded budgets of NATO'' means the Military Budget, the 
        Security Investment Program, and the Civil Budget of the North 
        Atlantic Treaty Organization (and any successor or additional 
        account or program of NATO).
            (2) Fiscal year 1998 baseline limitation.--The term 
        ``fiscal year 1998 baseline limitation'' means the maximum 
        annual amount of Department of Defense contributions for 
        common-funded budgets of NATO that is set forth as the annual 
        limitation in section 3(2)(C)(ii) of the resolution of the 
        Senate giving the advice and consent of the Senate to the 
        ratification of the Protocols to the North Atlantic Treaty of 
        1949 on the Accession of Poland, Hungary, and the Czech 
        Republic (as defined in section 4(7) of that resolution), 
        approved by the Senate on April 30, 1998.

          Subtitle B--Policy Relating to Vessels and Shipyards

SEC. 1011. LIMITATION ON LEASING OF FOREIGN-BUILT VESSELS.

    (a) In General.--
            (1) Contracts for leases for more than 24 months.--Chapter 
        141 of title 10, United States Code, is amended by inserting 
        after section 2401a the following new section:
``Sec. 2401b. Limitation on lease of foreign-built vessels
    ``(a) Limitation.--The Secretary of a military department may not 
make a contract for a lease or charter of a vessel for a term of more 
than 24 months (including all options to renew or extend the contract) 
if the hull, or a component of the hull and superstructure of the 
vessel, is constructed in a foreign shipyard.
    ``(b) Presidential Waiver for National Security Interest.--(1) The 
President may authorize exceptions to the limitation in subsection (a) 
when the President determines that it is in the national security 
interest of the United States to do so.
    ``(2) The President shall transmit notice to Congress of any such 
determination, and no contract may be made pursuant to the exception 
authorized until the end of the 30-day period beginning on the date on 
which the notice of the determination is received by Congress.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 2401a the following new item:

``2401b. Limitation on lease of foreign-built vessels.''.
    (b) Effective Date.--Section 2401b of title 10, United States Code, 
as added by subsection (a), shall apply with respect to contracts 
entered into after the date of the enactment of this Act.

SEC. 1012. POLICY RELATING TO MAJOR COMBATANT VESSELS OF THE STRIKE 
              FORCES OF THE UNITED STATES NAVY.

    (a) Integrated Nuclear Power Systems.--It is the policy of the 
United States to construct the major combatant vessels of the strike 
forces of the United States Navy, including all new classes of such 
vessels, with integrated nuclear power systems.
    (b) Requirement to Request Nuclear Vessels.--If a request is 
submitted to Congress in the budget for a fiscal year for construction 
of a new class of major combatant vessel for the strike forces of the 
United States, the request shall be for such a vessel with an 
integrated nuclear power system, unless the Secretary of Defense 
submits with the request a notification to Congress that the inclusion 
of an integrated nuclear power system in such vessel is not in the 
national interest.
    (c) Definitions.--In this section:
            (1) Major combatant vessels of the strike forces of the 
        united states navy.--The term ``major combatant vessels of the 
        strike forces of the United States Navy'' means the following:
                    (A) Submarines.
                    (B) Aircraft carriers.
                    (C) Cruisers, battleships, or other large surface 
                combatants whose primary mission includes protection of 
                carrier strike groups, expeditionary strike groups, and 
                vessels comprising a sea base.
            (2) Integrated nuclear power system.--The term ``integrated 
        nuclear power system'' means a ship engineering system that 
        uses a naval nuclear reactor as its energy source and generates 
        sufficient electric energy to provide power to the ship's 
        electrical loads, including its combat systems and propulsion 
        motors.
            (3) Budget.--The term ``budget'' means the budget that is 
        submitted to Congress by the President under section 1105(a) of 
        title 31, United States Code.

                  Subtitle C--Counter-Drug Activities

SEC. 1021. EXTENSION OF AUTHORITY FOR JOINT TASK FORCES TO PROVIDE 
              SUPPORT TO LAW ENFORCEMENT AGENCIES CONDUCTING COUNTER-
              TERRORISM ACTIVITIES.

    Section 1022(b) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108-136; 10 U.S.C. 371 note) is amended by 
striking ``and 2007'' and inserting ``through 2008''.

                          Subtitle D--Reports

SEC. 1031. EXTENSION AND MODIFICATION OF REPORT RELATING TO HARDENED 
              AND DEEPLY BURIED TARGETS.

    Section 1032 of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2643; 10 U.S.C. 
2358 note) is amended--
            (1) in the heading, by striking ``annual report on 
        weapons'' and inserting ``report on capabilities'';
            (2) in subsection (a)--
                    (A) in the heading, by striking ``Annual'';
                    (B) by striking ``April 1 of each year'' and 
                inserting ``March 1, 2009, and every two years 
                thereafter,'';
                    (C) by striking ``Director of Central 
                Intelligence'' and inserting ``Director of National 
                Intelligence'';
                    (D) by striking ``the preceding fiscal year'' and 
                inserting ``the preceding two fiscal years and planned 
                for the current fiscal year and the next fiscal year''; 
                and
                    (E) by striking ``to develop weapons'' and 
                inserting ``to develop capabilities'';
            (3) in subsection (b)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``The report for a fiscal year'' and inserting 
                ``A report submitted'';
                    (B) in paragraph (1), by striking ``were undertaken 
                during that fiscal year'' and inserting ``were or will 
                be undertaken during the four-fiscal-year period 
                covered by the report''; and
                    (C) in paragraph (2) in the matter preceding 
                subparagraph (A), by striking ``were undertaken during 
                such fiscal year'' and inserting ``were or will be 
                undertaken during the four-fiscal-year period covered 
                by the report''; and
            (4) in subsection (d), by striking ``April 1, 2007'' and 
        inserting ``March 1, 2013''.

SEC. 1032. COMPTROLLER GENERAL REVIEW OF THE JOINT IMPROVISED EXPLOSIVE 
              DEVICE DEFEAT ORGANIZATION.

    (a) Evaluation Required.--The Comptroller General of the United 
States shall conduct a review of the Joint Improvised Explosive Device 
Defeat Organization and its activities.
    (b) Analyses Required.--The review required by subsection (a) shall 
include an analysis of each of the following:
            (1) The appropriateness and efficacy of the efforts of the 
        Organization to achieve its mission, including strategy, plans, 
        technologies developed, and programs funded.
            (2) The process used by the Organization to select 
        appropriate and effective technologies and other solutions to 
        achieve its mission.
            (3) The ability of the Organization to respond to rapidly 
        changing threats and to anticipate future threats.
            (4) The performance of the Organization in leading, 
        advocating, and coordinating all of the activities of the 
        Department of Defense to defeat improvised explosive devices 
        and an assessment of the Organization's authority to do so.
            (5) The appropriateness of the staff of the Organization, 
        including the number, qualifications, and functions of the 
        personnel of the Organization and the use of contractors in the 
        Organization.
            (6) The efforts of the Organization to target enemy 
        networks and how the Organization is leveraging and 
        coordinating such efforts with the efforts of other elements of 
        the Department, and other elements of the United States 
        Government, that are also targeting enemy networks.
            (7) The feedback from the warfighter with respect to the 
        efforts of the Organization.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Comptroller General shall submit to the 
congressional defense committees a report on the results of the review 
required by subsection (a). The report shall contain a summary of the 
findings of the review.

SEC. 1033. REPORT ON A NATIONAL JOINT MODELING AND SIMULATION 
              DEVELOPMENT STRATEGY.

    (a) Report Required.--The Secretary of Defense shall submit to the 
congressional defense committees a report that would provide for the 
development and implementation of a joint modeling and simulation 
concept to support the full spectrum of Department of Defense modeling 
and simulation requirements and that outlines a plan that details the 
Department's modeling and simulation coordination efforts. Such a plan 
shall--
            (1) identify the unique modeling and simulation 
        capabilities of the components of the Department and the 
        Combatant Commands;
            (2) identify incentives to reduce duplicative modeling and 
        simulation capabilities of the components of the Department and 
        the Combatant Commands and recommend capabilities to be 
        divested where such duplication is not necessary;
            (3) recommend capabilities to be leveraged from within 
        other Federal agencies, national laboratories, State and local 
        governments, academia, private industry, and United States and 
        international standards organizations; and
            (4) be capable of supporting joint training, 
        experimentation, systems acquisition, test and evaluation, 
        assessment, and planning.
    (b) Submission of Report.--Not later than nine months after the 
date of the enactment of this Act, the Secretary shall submit the 
report under subsection (a).
    (c) Matters to Be Included.--The report under subsection (a) shall 
include the following:
            (1) An identification and description of the types of joint 
        training, experimentation, systems acquisition, test and 
        evaluation, assessment, and planning that would be conducted 
        using such a joint capability, together with a description of 
        how such a joint capability would enhance accomplishment of the 
        four priorities as focus of the 2006 Quadrennial Defense Review 
        (QDR) Report of the Secretary of Defense issued on February 6, 
        2006.
            (2) A discussion of how establishment of such a joint 
        capability would promote modeling and simulation innovation and 
        transformation throughout the Department of Defense to improve 
        operational capabilities and enhance national security.
            (3) A methodology, framework, and options that include 
        consideration of leveraging existing capabilities that would 
        accommodate requirements among all the Armed Forces, including 
        common infrastructure and data.
            (4) A management plan for coordinating between functional 
        and organizational stakeholders, as well as a plan to 
        continuously introduce new modeling and simulation technologies 
        and divest outdated capabilities.
            (5) Options to allow non-defense users to access such a 
        modeling and simulation capability, as appropriate, for 
        homeland security and consequence management for Federal, 
        State, and local requirements.
            (6) Cost estimates and resource requirements to establish 
        and maintain such a strategy, including estimates of costs and 
        resource requirements for the use of government civilian and 
        military, and contract personnel for the performance of 
        management, operational, and logistics activities for such a 
        capability.
            (7) An explanation of the relationship between and among 
        such a capability and the Office of the Secretary of Defense, 
        the Joint Staff, the military departments, commanders of 
        combatant commands, Federal agencies, national laboratories, 
        State and local governments, academia, private industry, United 
        States and international standards organizations, and 
        international partners with responsibility to use modeling and 
        simulation to meet their mission.
            (8) A timeline for the establishment of such a capability 
        and for such a capability to achieve--
                    (A) initial operational capability; and
                    (B) full operational capability.
            (9) At least two alternative modeling and simulation 
        coordination plans, including a Joint Modeling and Simulation 
        Development Strategy, provided that such plans include the 
        required matters in subsection (a) and subsection (c), 
        excluding subsection (c)(8), and provided that such reports 
        were submitted to the Secretary by a commander of a Unified 
        Combatant Command or Service Chief.

                       Subtitle E--Other Matters

SEC. 1041. ENHANCEMENT OF CORROSION CONTROL AND PREVENTION FUNCTIONS 
              WITHIN DEPARTMENT OF DEFENSE.

    (a) Office of Corrosion Policy and Oversight.--(1) Section 2228 of 
title 10, United States Code, is amended by striking the section 
heading and subsection (a) and inserting the following:
``Sec. 2228. Office of Corrosion Policy and Oversight
    ``(a) Office and Director.--(1) There is an Office of Corrosion 
Policy and Oversight within the Office of the Under Secretary of 
Defense for Acquisition, Technology, and Logistics.
    ``(2) The Office shall be headed by a Director of Corrosion Policy 
and Oversight, who shall be assigned to such position by the Under 
Secretary from among civilian employees of the Department of Defense 
with the qualifications described in paragraph (3). The Director is 
responsible in the Department of Defense to the Secretary of Defense 
(after the Under Secretary of Defense for Acquisition, Technology, and 
Logistics) for the prevention and mitigation of corrosion of the 
military equipment and infrastructure of the Department of Defense. The 
Director shall report directly to the Under Secretary.
    ``(3) In order to qualify to be assigned to the position of 
Director, an individual shall--
            ``(A) have management expertise in, and professional 
        experience with, corrosion project and policy implementation, 
        including an understanding of the effects of corrosion policies 
        on infrastructure; research, development, test, and evaluation; 
        and maintenance; and
            ``(B) have an understanding of Department of Defense budget 
        formulation and execution, policy formulation, and planning and 
        program requirements.
    ``(4) The Secretary of Defense shall designate the position of 
Director as a critical acquisition position under section 1733(b)(1)(C) 
of this title.''.
    (2) Section 2228(b) of such title is amended--
            (A) in paragraph (1), by striking ``official or 
        organization designated under subsection (a)'' and inserting 
        ``Director of Corrosion Policy and Oversight (in this section 
        referred to as the `Director')''; and
            (B) in paragraphs (2), (3), (4), and (5), by striking 
        ``designated official or organization'' and inserting 
        ``Director''.
    (b) Additional Authority for Director of Office.--Section 2228 of 
such title is further amended--
            (1) by redesignating subsections (c) and (d) as subsections 
        (d) and (f), respectively; and
            (2) by inserting after subsection (b) the following new 
        subsection:
    ``(c) Additional Authorities for Director.--The Director is 
authorized to--
            ``(1) develop, update, and coordinate corrosion training 
        with the Defense Acquisition University;
            ``(2) participate in the process within the Department of 
        Defense for the development of relevant directives and 
        instructions; and
            ``(3) interact directly with the corrosion prevention 
        industry, trade associations, and scientific organizations 
        engaged in corrosion prevention, including the National Academy 
        of Sciences.''.
    (c) Report Requirement.--Section 2228 of such title is further 
amended by inserting after subsection (d) (as redesignated by 
subsection (b)) the following new subsection:
    ``(e) Report.--(1) For each budget for a fiscal year, beginning 
with the budget for fiscal year 2009, the Secretary of Defense shall 
submit, with the defense budget materials, a report on the following:
            ``(A) Funding requirements for the long-term strategy 
        developed under subsection (d).
            ``(B) The return on investment that would be achieved by 
        implementing the strategy.
            ``(C) The funds requested in the budget compared to the 
        funding requirements.
            ``(D) A justification if the funding requirements are not 
        fully funded in the budget.
    ``(2) Within 60 days after submission of the budget for a fiscal 
year, the Comptroller General shall provide to the congressional 
defense committees--
    ``(A) an analysis of the budget submission for corrosion control 
and prevention by the Department of Defense; and
    ``(B) an analysis of the report required under paragraph (1).''.
    (d) Definitions.--Subsection (f) of section 2228 of such title, as 
redesignated by subsection (b), is amended by adding at the end the 
following new paragraphs:
            ``(4) The term `budget', with respect to a fiscal year, 
        means the budget for that fiscal year that is submitted to 
        Congress by the President under section 1105(a) of title 31.
            ``(5) The term `defense budget materials', with respect to 
        a fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for that fiscal 
        year.''.

SEC. 1042. SUPPORT BY NATIONAL GUARD FOR 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 in accordance with this section, 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.
    ``(b) Activities Included in Defense Support of Civil 
Authorities.--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, 
including--
            ``(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.
    ``(c) Reimbursement.--(1) Subject to the exceptions in paragraph 
(3), 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 is provided. The 
reimbursement shall include the costs of--
            ``(A) the pay, allowances, clothing, subsistence, 
        gratuities, travel, and related expenses of personnel of the 
        National Guard of that State;
            ``(B) the operation and maintenance of the equipment and 
        facilities of the National Guard of that State; and
            ``(C) the procurement of services and equipment, and the 
        leasing of equipment, for the National Guard of that State.
    ``(2) 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--
            ``(A) the appropriation, fund, or account from which funds 
        were expended for the support; or
            ``(B) the appropriate appropriation, fund, or account 
        currently available for such purpose.
    ``(3) A Federal department or agency to which support is provided 
under this section 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--
            ``(A) the support is provided in the normal course of 
        military training or operations; or
            ``(B) 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.
    ``(d) 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 State 
        concerned that the requested support will be provided at a time 
        when the personnel involved are not in Federal service.
    ``(e) 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.
    ``(f) Duration of Support.--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 concerned, extend the period of time for an 
additional 90 days to meet extraordinary circumstances.
    ``(g) Training and Benefits.--(1) 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 section. 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.
    ``(2) To ensure that the use of units and personnel of the National 
Guard of a State for activities specified in subsection (b) 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:
            ``(A) The performance of the activities may not 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.
            ``(B) The performance of the activities may not degrade the 
        military skills of the members of the National Guard performing 
        those activities.
    ``(h) Limitation on Provision of Support Activities.--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.
    ``(i) Relationship to Other Authorities.--Nothing in this section 
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.
    ``(j) 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, or a 
        territory or possession of the United States.
            ``(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(i)(13) of title 10, United States Code, is 
        amended by inserting ``or defense support of civil authorities 
        under section 116 of such title'' after ``title 32''.

SEC. 1043. IMPROVED AUTHORITY TO PROVIDE REWARDS FOR ASSISTANCE IN 
              COMBATING TERRORISM.

    (a) Increased Amounts.--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''.
    (b) Involvement of Allied Forces.--Such section is further 
amended--
            (1) in subsection (a)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``United States Government personnel'' 
                the following: ``, or government personnel of allied 
                forces participating in a combined operation with the 
                armed forces,'';
                    (B) in paragraph (1), by inserting after ``armed 
                forces'' the following: ``, or of allied forces 
                participating in a combined operation with the armed 
                forces,''; and
                    (C) in paragraph (2), by inserting after ``armed 
                forces'' the following: ``, or of allied forces 
                participating in a combined operation with the armed 
                forces''; and
            (2) in subsection (c), by adding at the end the following:
    ``(3)(A) Subject to subparagraphs (B) and (C), an official who has 
authority delegated under paragraph (1) or (2) may use that authority, 
acting through government personnel of allied forces, to offer and make 
rewards.
    ``(B) The Secretary of Defense shall prescribe policies and 
procedures for making rewards in the manner described in subparagraph 
(A), which shall include guidance for the accountability of funds used 
for making rewards in that manner. The policies and procedures shall 
not take effect until 30 days after the date on which the Secretary 
submits the policies and procedures to the congressional defense 
committees. Rewards may not be made in the manner described in 
subparagraph (A) except under policies and procedures that have taken 
effect.
    ``(C) Rewards may not be made in the manner described in 
subparagraph (A) after September 30, 2010.
    ``(D) Not later than April 1, 2008, the Secretary of Defense shall 
submit to the congressional defense committees a report on the 
implementation of this paragraph. The report shall identify each reward 
made in the manner described in subparagraph (A) and, for each such 
reward--
            ``(i) identify the type, amount, and recipient of the 
        reward;
            ``(ii) explain the reason for making the reward; and
            ``(iii) assess the success of the reward in advancing the 
        effort to combat terrorism.''.
    (c) Annual Report to Include Specific Information on Additional 
Authority.--Section 127b of title 10, United States Code, is further 
amended in subsection (f)(2) by adding at the end the following new 
subparagraph:
            ``(D) Information on the implementation of paragraph (3) of 
        subsection (c).''.

SEC. 1044. REVISION OF PROFICIENCY FLYING DEFINITION.

    Subsection (c) of section 2245 of title 10, United States Code, is 
amended to read as follows:
    ``(c) In this section, the term `proficiency flying' means flying 
performed under competent orders by a rated or designated member of the 
armed forces while serving in a non-aviation assignment or in an 
assignment in which skills would normally not be maintained in the 
performance of assigned duties.''.

SEC. 1045. SUPPORT FOR NON-FEDERAL DEVELOPMENT AND TESTING OF MATERIAL 
              FOR CHEMICAL AGENT DEFENSE.

    (a) Authority to Provide Toxic Chemicals or Precursors.--
            (1) In general.--The Secretary of Defense, in coordination 
        with the heads of other elements of the Federal Government, may 
        make available, to a State, a unit of local government, or a 
        private entity incorporated in the United States, small 
        quantities of a toxic chemical or precursor for the development 
        or testing, in the United States, of material that is designed 
        to be used for protective purposes.
            (2) Terms and conditions.--Any use of the authority under 
        paragraph (1) shall be subject to such terms and conditions as 
        the Secretary considers appropriate.
    (b) Payment of Costs and Disposition of Funds.--
            (1) In general.--The Secretary shall ensure, through the 
        advance payment required by paragraph (2) and through any other 
        payments that may be required, that a recipient of toxic 
        chemicals or precursors under subsection (a) pays for all 
        actual costs, including direct and indirect costs, associated 
        with providing the toxic chemicals or precursors.
            (2) Advance payment.--In carrying out paragraph (1), the 
        Secretary shall require each recipient to make an advance 
        payment in an amount that the Secretary determines will equal 
        all such actual costs.
            (3) Credits.--A payment received under this subsection 
        shall be credited to the account that was used to cover the 
        costs for which the payment was provided. Amounts so credited 
        shall be merged with amounts in that account, and shall be 
        available for the same purposes, and subject to the same 
        conditions and limitations, as other amounts in that account.
    (c) Chemical Weapons Convention.--The Secretary shall ensure that 
toxic chemicals and precursors are made available under this section 
for uses and in quantities that comply with the Convention on the 
Prohibition of the Development, Production, Stockpiling and Use of 
Chemical Weapons and on Their Destruction, signed at Paris on January 
13, 1993, and entered into force with respect to the United States on 
April 29, 1997.
    (d) Definitions.--In this section, the terms ``precursor'', 
``protective purposes'', and ``toxic chemical'' have the meanings given 
those terms in the convention referred to in subsection (c), in 
paragraph 2, paragraph 9(b), and paragraph 1, respectively, of article 
II of that convention.

SEC. 1046. CONGRESSIONAL COMMISSION ON THE STRATEGIC POSTURE OF THE 
              UNITED STATES.

    (a) Establishment.--There is hereby established a commission to be 
known as the ``Congressional Commission on the Strategic Posture of the 
United States''. The purpose of the commission is to examine and make 
recommendations with respect to the long-term strategic posture of the 
United States.
    (b) Composition.--
            (1) Membership.--The commission shall be composed of 12 
        members appointed as follows:
                    (A) Three by the chairman of the Committee on Armed 
                Services of the House of Representatives.
                    (B) Three by the ranking minority member of the 
                Committee on Armed Services of the House of 
                Representatives.
                    (C) Three by the chairman of the Committee on Armed 
                Services of the Senate.
                    (D) Three by the ranking minority member of the 
                Committee on Armed Services of the Senate.
            (2) Chairman; vice chairman.--
                    (A) In general.--The chairman of the Committee on 
                Armed Services of the House of Representatives and the 
                chairman of the Committee on Armed Services of the 
                Senate shall jointly designate one member of the 
                commission to serve as chairman of the commission and 
                one member to serve as vice chairman.
                    (B) Consultation.--The designations under 
                subparagraph (A) shall be made in consultation with the 
                ranking minority members of the committees described in 
                that subparagraph.
            (3) Period of appointment; vacancies.--Members shall be 
        appointed for the life of the commission. Any vacancy in the 
        commission shall be filled in the same manner as the original 
        appointment.
    (c) Duties.--
            (1) Review.--The commission shall conduct a review of the 
        strategic posture of the United States, including a strategic 
        threat assessment and a detailed review of nuclear weapons 
        policy, strategy, and force structure.
            (2) Assessment and recommendations.--
                    (A) Assessment.--The commission shall assess the 
                benefits and risks associated with the current 
                strategic posture and nuclear weapons policies of the 
                United States.
                    (B) Recommendations.--The commission shall make 
                recommendations as to the most appropriate strategic 
                posture and most effective nuclear weapons strategy.
    (d) Cooperation From Government.--
            (1) Cooperation.--In carrying out its duties, the 
        commission shall receive the full and timely cooperation of the 
        Secretary of Defense, the Secretary of Energy, the Secretary of 
        State, the Director of National Intelligence, and any other 
        United States Government official in providing the commission 
        with analyses, briefings, and other information necessary for 
        the fulfillment of its responsibilities.
            (2) Liaison.--The Secretary of Defense, the Secretary of 
        Energy, the Secretary of State, and the Director of National 
        Intelligence shall each designate at least one officer or 
        employee of the Department of Defense, the Department of 
        Energy, the Department of State, and the intelligence 
        community, respectively, to serve as a liaison officer between 
        the department (or the intelligence community, as the case may 
        be) and the commission.
    (e) Report.--Not later than December 1, 2008, the commission shall 
submit to the President, the Secretary of Defense, the Secretary of 
Energy, the Secretary of State, the Committee on Armed Services of the 
Senate, and the Committee on Armed Services of the House of 
Representatives a report on the commission's findings, conclusions, and 
recommendations. The report shall identify the strategic posture and 
nuclear weapons strategy recommended under subsection (c)(2)(B) and 
shall include--
            (1) the military capabilities and force structure necessary 
        to support the strategy, including conventional means of 
        providing global strike capabilities;
            (2) the number of nuclear weapons required to support the 
        strategy, including the number of replacement warheads 
        required, if any;
            (3) the appropriate qualitative analysis, including force-
        on-force exchange modeling, to calculate the effectiveness of 
        the strategy under various scenarios;
            (4) the nuclear infrastructure (that is, the size of the 
        nuclear complex) required to support the strategy;
            (5) an assessment of the role of missile defenses in the 
        strategy;
            (6) an assessment of the role of nonproliferation programs 
        in the strategy;
            (7) the political and military implications of the strategy 
        for the United States and its allies; and
            (8) any other information or recommendations relating to 
        the strategy (or to the strategic posture) that the commission 
        considers appropriate.
    (f) Funding.--Of the amounts appropriated or otherwise made 
available pursuant to this Act to the Department of Defense, $5,000,000 
is available to fund the activities of the commission.
    (g) Termination.--The commission shall terminate on June 1, 2009.
    (h) Conforming Repeal.--Section 1051 of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 
3431) is repealed.

SEC. 1047. TECHNICAL AND CLERICAL AMENDMENTS.

    (a) Title 10, United States Code.--Title 10, United States Code, is 
amended as follows:
            (1) Chapter 3 is amended--
                    (A) by redesignating the section 127c added by 
                section 1201(a) of the John Warner National Defense 
                Authorization Act for Fiscal Year 2007 (Public Law 109-
                364; 120 Stat. 2410) as section 127d and transferring 
                that section so as to appear immediately after the 
                section 127c added by section 1231(a) of the National 
                Defense Authorization Act for Fiscal Year 2006 (Public 
                Law 109-163; 119 Stat. 3467); and
                    (B) by revising the table of sections at the 
                beginning of such chapter to reflect the redesignation 
                and transfer made by paragraph (1).
            (2) Section 629(d)(1) is amended by inserting a comma after 
        ``(a)''.
            (3) Section 637(b)(3) is amended by striking ``section 
        1251(b)'' and inserting ``section 1253''.
            (4) Section 662(b) is amended by striking ``paragraphs (1), 
        (2), and (3) of subsection (a)'' and inserting ``paragraphs (1) 
        and (2) of subsection (a)''.
            (5) Section 1034(b)(2) is amended by inserting 
        ``unfavorable'' before ``action'' the second place it appears.
            (6) Section 1076b(j) is amended--
                    (A) by striking ``section 205(9)'' and inserting 
                ``205(10)''; and
                    (B) by striking ``1970)'' and inserting ``1970 
                (title II of Public Law 91-373; 26 U.S.C. 3304 
                note))''.
            (7) The table of sections at the beginning of chapter 137 
        is amended by striking the item relating to section 2333 and 
        inserting the following new item:

``2333. Joint policies on requirements definition, contingency program 
                            management, and contingency contracting.''.
            (8) The table of sections at the beginning of chapter 141 
        is amended by inserting a period at the end of the item 
        relating to section 2410p.
            (9) The table of sections at the beginning of chapter 152 
        is amended by inserting a period at the end of the item 
        relating to section 2567.
            (10) Section 2583(e) is amended by striking ``Dogs'' and 
        inserting ``Animals''.
            (11) Section 2668(e) is amended by striking ``and (d)'' and 
        inserting ``and (e)''.
            (12) Section 12304(a) is amended by striking the second 
        period at the end.
            (13) Section 14310(d)(1) is amended by inserting a comma 
        after ``(a)''.
    (b) Title 37, United States Code.--Section 302c(d)(1) of title 37, 
United States Code, is amended by striking ``Services Corps'' and 
inserting ``Service Corps''.
    (c) John Warner National Defense Authorization Act for Fiscal Year 
2007.--Effective as of October 17, 2006, and as if included therein as 
enacted, the John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109-364) is amended as follows:
            (1) Section 333(a) (120 Stat. 2150) is amended--
                    (A) by striking ``Section 332(c)'' and inserting 
                ``Section 332''; and
                    (B) in paragraph (1), by inserting ``in subsection 
                (c),'' after ``(1)''.
            (2) Section 348(2) (120 Stat. 2159) is amended by striking 
        ``60 days of'' and inserting ``60 days after''.
            (3) Section 511(a)(2)(D)(i) (120 Stat. 2182) is amended by 
        inserting a comma after ``title''.
            (4) Section 591(b)(1) (120 Stat. 2233) is amended by 
        inserting a period after ``this title''.
            (5) Section 606(b)(1)(A) (120 Stat. 2246) is amended by 
        striking ``in'' and inserting ``In''.
            (6) Section 670(b) (120 Stat. 2269) is amended by striking 
        ``such title'' and inserting ``such chapter''.
            (7) Section 673 (120 Stat. 2271) is amended--
                    (A) in subsection (a)(1), by inserting ``the second 
                place it appears'' before ``and inserting'';
                    (B) in subsection (b)(1)--
                            (i) by striking ``Section'' and inserting 
                        ``Subsection (a) of section''; and
                            (ii) by inserting ``the second place it 
                        appears'' before ``and inserting''; and
                    (C) in subsection (c)(1), by inserting ``the second 
                place it appears'' before ``and inserting''.
            (8) Section 842(a)(2) (120 Stat. 2337) is amended by 
        striking ``adding at the end'' and inserting ``inserting after 
        the item relating to section 2533a''.
            (9) Section 1017(b)(2) (120 Stat. 2379; 10 U.S.C. 2631 
        note) is amended by striking ``section 27'' and all that 
        follows through the period at the end and inserting ``sections 
        12112 and 50501 and chapter 551 of title 46, United States 
        Code.''.
            (10) Section 1071(f) (120 Stat. 2402) is amended by 
        striking ``identical'' both places it appears.
            (11) Section 1231(d) (120 Stat. 2430; 22 U.S.C. 2776a(d)) 
        is amended by striking ``note''.
            (12) Section 2404(b)(2)(A)(ii) (120 Stat. 2459) is amended 
        by striking ``2906 of such Act'' and inserting ``2906A of such 
        Act''.
            (13) Section 2831 (120 Stat. 2480) is amended--
                    (A) by striking ``Section 2667(d)'' and inserting 
                ``Section 2667(e)''; and
                    (B) by inserting ``as redesignated by section 
                662(b)(1) of this Act,'' after ``Code,''.
    (d) Public Law 109-366.--Effective as of October 17, 2006, and as 
if included therein as enacted, Public Law 109-366 is amended as 
follows:
            (1) Section 8(a)(3) (120 Stat. 2636) is amended by 
        inserting a semicolon after ``subsection''.
            (2) Section 9(1) (120 Stat. 2636) is amended by striking 
        ``No. 1.'' and inserting ``No. 1,''.
    (e) National Defense Authorization Act for Fiscal Year 2006.--
Effective as of January 6, 2006, and as if included therein as enacted, 
the National Defense Authorization Act for Fiscal Year 2006 (Public Law 
109-163) is amended as follows:
            (1) Section 571 (119 Stat. 3270) is amended by striking 
        ``931 et seq.)'' and inserting ``921 et seq.)''.
            (2) Section 1052(j) (119 Stat. 3435) is amended by striking 
        ``Section 1049'' and inserting ``Section 1409''.
    (f) National Defense Authorization Act for Fiscal Year 2004.--The 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136) is amended as follows:
            (1) Section 706(a) (117 Stat. 1529; 10 U.S.C. 1076b note) 
        is amended by striking ``those program'' and inserting ``those 
        programs''.
            (2) Section 1413(a) (117 Stat. 1665; 41 U.S.C. 433 note) is 
        amended by striking ``(A))'' and inserting ``(A)))''.
            (3) Section 1602(e)(3) (117 Stat. 1683; 10 U.S.C. 2302 
        note) is amended by inserting ``Security'' after ``Health''.
    (g) National Defense Authorization Act for Fiscal Year 1994.--
Section 845(a) of the National Defense Authorization Act for Fiscal 
Year 1994 (10 U.S.C. 2371 note) is amended--
            (1) in paragraph (2)(A), by inserting ``Research'' after 
        ``Defense Advanced''; and
            (2) in paragraph (3), by inserting ``Research'' after 
        ``Defense Advanced''.
    (h) National Defense Authorization Act for Fiscal Year 1993.--
Section 722(a)(1) of the National Defense Authorization Act for Fiscal 
Year 1993 (Public Law 102-484; 10 U.S.C. 1073 note) is amended by 
striking ``155 Stat.'' and inserting ``115 Stat.''.

SEC. 1048. REPEAL OF CERTIFICATION REQUIREMENT.

    Section 1063 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109-163; 119 Stat. 3445) is repealed.

SEC. 1049. PROHIBITION ON SALE BY DEPARTMENT OF DEFENSE OF PARTS FOR F-
              14 FIGHTER AIRCRAFT.

    (a) Findings.--Congress makes the following findings:
            (1) The Department of Defense is responsible for 
        demilitarizing and auctioning off sensitive surplus United 
        States military equipment.
            (2) F-14 ``Tomcat'' fighter aircraft have recently been 
        retired, and their parts are being made available by auction in 
        large quantities.
            (3) Iran is the only country, besides the United States, 
        flying F-14 fighter aircraft and is purchasing surplus parts 
        for such aircraft from brokers.
            (4) The Government Accountability Office has, as a result 
        of undercover investigative work, declared the acquisition of 
        the surplus United States military equipment, including parts 
        for F-14 fighter aircraft, to be disturbingly effortless.
            (5) Upon the seizure of such sensitive surplus military 
        equipment being sold to Iran, United States customs agents have 
        discovered these same items, having been resold by the 
        Department of Defense, being brokered illegally to Iran again.
            (6) Iran is pursuing a nuclear weapons capability, and the 
        Department of State has identified Iran as the most active 
        state sponsor of terrorism.
            (7) Iran continues to provide funding, safe haven, 
        training, and weapons to known terrorist groups, including 
        Hizballah, HAMAS, the Palestine Islamic Jihad, and the Popular 
        Front for the Liberation of Palestine.
            (8) The sale of spare parts for F-14 fighter aircraft could 
        make it more difficult to confront the nuclear weapons 
        capability of Iran and would strengthen the ground war 
        capability of Iran. To prevent these threats to regional and 
        global security, the sale of spare parts for F-14 fighter 
        aircraft should be prohibited.
    (b) Prohibition on Sale by Department of Defense.--
            (1) In general.--Notwithstanding any other provision of law 
        and except as provided in paragraph (2), the Department of 
        Defense may not sell (whether directly or indirectly) any parts 
        for F-14 fighter aircraft, whether through the Defense 
        Reutilization and Marketing Service or through another agency 
        or element of the Department.
            (2) Exception.--Paragraph (1) shall not apply with respect 
        to the sale of parts for F-14 fighter aircraft to a museum or 
        similar organization located in the United States that is 
        involved in the preservation of F-14 fighter aircraft for 
        historical purposes.
    (c) Prohibition on Export License.--No license for the export of 
parts for F-14 fighter aircraft to a non-United States person or entity 
may be issued by the United States Government.

SEC. 1050. MAINTENANCE OF CAPABILITY FOR SPACE-BASED NUCLEAR DETECTION.

    The Secretary of Defense shall maintain the capability for space-
based nuclear detection at a level that meets or exceeds the level of 
capability as of the date of the enactment of this Act.

SEC. 1051. ADDITIONAL WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

    Section 1403(a) of the Bob Stump National Defense Authorization Act 
for Fiscal Year 2003 (10 U.S.C. 12310 note) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``23'' and inserting ``25''; and
                    (B) by striking ``55'' and inserting ``57''; and
            (2) in paragraph (2), by striking ``55'' and inserting 
        ``57''.

SEC. 1052. SENSE OF CONGRESS REGARDING NEED TO REPLACE ARMY M109 155MM 
              SELF-PROPELLED HOWITZER.

    (a) Findings.--Congress finds the following:
            (1) Military historians recognize the M109 155mm self-
        propelled howitzer as a pioneer of the configuration of modern 
        mechanized artillery.
            (2) The M109 was first used by the Army in combat during 
        the Vietnam War.
            (3) The Marine Corps also made use of the M109 during the 
        Vietnam War, primarily in defensive ways similar to the Army.
            (4) The Army adapted the M109 for use during the Gulf War, 
        adding capability for more lethal DPICM rounds.
            (5) The M109 has most recently demonstrated its usefulness 
        in Operation Iraqi Freedom, dependably placing rounds downrange 
        about two minutes after obtaining its mission.
    (b) Sense of Congress.--It is the sense of Congress that, while the 
M109 155mm self-propelled howitzer has been a dependable military 
weapon for 40 years and recognizing the budgeting challenges facing the 
Armed Forces, the Army--
            (1) has not been timely in procuring a replacement for the 
        M109; and
            (2) should transition to the NLOS-C as the replacement for 
        the M109.

SEC. 1053. SENSE OF CONGRESS REGARDING DETAINEES AT NAVAL STATION, 
              GUANTANAMO BAY, CUBA.

    It is the sense of Congress that--
            (1) the Nation extends its gratitude to the military 
        personnel who guard and interrogate some of the world's most 
        dangerous men every day at Naval Station, Guantanamo Bay, Cuba;
            (2) the international community, in general, and in 
        particular, the home countries of the detainees who remain in 
        detention despite having been ordered released by a Department 
        of Defense administrative review board, should work with the 
        Department of Defense to facilitate and expedite the 
        repatriation of such detainees;
            (3) detainees at Guantanamo Bay, to the maximum extent 
        possible, should be charged and expeditiously prosecuted for 
        crimes committed against the United States; and
            (4) operations at Guantanamo Bay should be carried out in a 
        way that upholds the national interest and core values of the 
        American people.

SEC. 1054. REPEAL OF PROVISIONS IN SECTION 1076 OF PUBLIC LAW 109-364 
              RELATING TO USE OF ARMED FORCES IN MAJOR PUBLIC 
              EMERGENCIES.

    (a) Interference With State and Federal Laws.--
            (1) In general.--Section 333 of title 10, United States 
        Code, is amended to read as follows:
``Sec. 333. Interference with State and Federal law
    ``The President, by using the militia or the armed forces, or both, 
or by any other means, shall take such measures as he considers 
necessary to suppress, in a State, any insurrection, domestic violence, 
unlawful combination, or conspiracy, if it--
            ``(1) so hinders the execution of the laws of that State, 
        and of the United States within the State, that any part or 
        class of its people is deprived of a right, privilege, 
        immunity, or protection named in the Constitution and secured 
        by law, and the constituted authorities of that State are 
        unable, fail, or refuse to protect that right, privilege, or 
        immunity, or to give that protection; or
            ``(2) opposes or obstructs the execution of the laws of the 
        United States or impedes the course of justice under those 
        laws.
In any situation covered by clause (1), the State shall be considered 
to have denied the equal protection of the laws secured by the 
Constitution.''.
            (2) Proclamation to disperse.--Section 334 of such title is 
        amended by striking ``or those obstructing the enforcement of 
        the laws'' after ``insurgents''.
            (3) Heading amendment.--The heading of chapter 15 of such 
        title is amended to read as follows:

                     ``CHAPTER 15--INSURRECTION''.

            (4) Clerical amendments.--
                    (A) The table of sections at the beginning of 
                chapter 15 of such title is amended by striking the 
                item relating to section 333 and inserting the 
                following new item:

``333. Interference with State and Federal law.''.
                    (B) The tables of chapters at the beginning of 
                subtitle A of title 10, United States Code, and at the 
                beginning of part I of such subtitle, are each amended 
                by striking the item relating to chapter 15 and 
                inserting the following new item:

``15. Insurrection..........................................     331''.
    (b) Repeal of Section Relating to Provision of Supplies, Services, 
and Equipment.--
            (1) In general.--Section 2567 of title 10, United States 
        Code, is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 152 of such title is amended by striking 
        the item relating to section 2567.
    (c) Conforming Amendment.--Section 12304(c) of such title is 
amended by striking ``Except to perform'' and all that follows through 
``this section'' and inserting ``No unit or member of a reserve 
component may be ordered to active duty under this section to perform 
any of the functions authorized by chapter 15 or section 12406 of this 
title or, except as provided in subsection (b),''.
    (d) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act.

                  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. Accumulation of annual leave by senior level employees.
Sec. 1104. Travel compensation for wage grade personnel.
Sec. 1105. Death gratuity authorized for Federal employees.
Sec. 1106. Modifications to the National Security Personnel System.
Sec. 1107. Annuity commencing dates.
Sec. 1108. Flexibility in setting pay for employees who move from a 
                            Department of Defense or Coast Guard 
                            nonappropriated fund instrumentality 
                            position to a position in the General 
                            Schedule pay system.
Sec. 1109. Transportation of dependents, household effects, and 
                            personal property to former home following 
                            death of Federal employee where death 
                            resulted from disease or injury incurred in 
                            a combat zone.
Sec. 1110. Use of leave transfer program by wounded veterans who are 
                            Federal employees.
Sec. 1111. Requirement for full implementation of personnel 
                            demonstration project.

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

    Clause (iv) of section 5544(a) of title 5, United States Code, is 
amended by striking ``administratively.'' and inserting 
``administratively (including travel by such employee to such event and 
the return of such employee from such event to his or her official duty 
station).''.

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:
``Sec. 5737a. Employees temporarily deployed in contingency operations
    ``(a) Definitions.--For purposes of this section--
            ``(1) the term `covered employee' means an individual who--
                    ``(A) is an employee of an Executive agency or a 
                military department, excluding a Government controlled 
                corporation; and
                    ``(B) is assigned on a temporary change of station 
                in support of a contingency operation;
            ``(2) the term `temporary change of station', as used with 
        respect to an employee, means an assignment--
                    ``(A) from the employee's official duty station to 
                a temporary duty station; and
                    ``(B) for which such employee is eligible for 
                expenses under section 5737; and
            ``(3) the term `contingency operation' has the meaning 
        given such term by section 1482a(c) of title 10.
    ``(b) Quarters and Rations.--The head of an agency may provide 
quarters and rations, without charge, to any covered employee of such 
agency during the period of such employee's temporary assignment (as 
described in subsection (a)(1)(B)).
    ``(c) Storage of Motor Vehicle.--The head of an agency may provide 
for the storage, without charge, or for the reimbursement of the cost 
of storage, of a motor vehicle that is owned or leased by a covered 
employee of such agency (or by a dependent of such an employee) and 
that is for the personal use of the covered employee. This subsection 
shall apply--
            ``(1) with respect to storage during the period of the 
        employee's temporary assignment (as described in subsection 
        (a)(1)(B)) and, notwithstanding section 5737(b), for such 
        additional period of time as the agency head may determine; and
            ``(2) in the case of a covered employee, with respect to 
        not more than one motor vehicle as of any given time.
    ``(d) Relationship to Other Benefits.--Any benefits under this 
section shall be in addition to (and not in lieu of) any other benefits 
for which the covered employee is otherwise eligible.''.
    (b) Clerical Amendment.--The table of sections for chapter 57 of 
such title is amended by inserting after the item relating to section 
5737 the following:

``5737a. Employees temporarily deployed in contingency operations.''.

SEC. 1103. ACCUMULATION OF ANNUAL LEAVE BY SENIOR LEVEL EMPLOYEES.

    Section 6304(f)(1) of title 5, United States Code, is amended--
            (1) in the matter before subparagraph (A), by striking ``in 
        a position in--'' and inserting ``in--'';
            (2) in subparagraphs (A) through (E), by inserting ``a 
        position in'' before ``the'';
            (3) in subparagraph (D), by striking ``or'' at the end;
            (4) in subparagraph (E), by striking the period at the end 
        and inserting a semicolon; and
            (5) by adding after subparagraph (E) the following:
                    ``(F) a position to which section 5376 applies; or
                    ``(G) a position designated under section 1607(a) 
                of title 10 as an Intelligence Senior Level 
                position.''.

SEC. 1104. TRAVEL COMPENSATION FOR WAGE GRADE PERSONNEL.

    (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 ``any provision of section 
5542(b)(2) or 5544(a),''.
    (b) Conforming Amendment.--Section 5541(2)(xi) of such title is 
amended by striking ``section 5544'' and inserting ``section 5544 or 
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. 1105. DEATH GRATUITY AUTHORIZED FOR FEDERAL EMPLOYEES.

    (a) Death Gratuity Authorized.--Chapter 81 of title 5, United 
States Code, is amended by inserting after section 8102 the following 
new section:
``Sec. 8102a. Death gratuity for injuries incurred in connection with 
              employee's service with an Armed Force
    ``(a) Death Gratuity Authorized.--The United States shall pay a 
death gratuity of $100,000 to or for the survivor prescribed by 
subsection (d) immediately upon receiving official notification of the 
death of an employee who dies of injuries incurred in connection with 
the employee's service with an Armed Force in a contingency operation, 
or who dies of injuries incurred in connection with a terrorist 
incident occurring during the employee's service with an Armed Force.
    ``(b) Retroactive Payment in Certain Cases.--Subsection (a) applies 
in the case of an employee who dies on or after October 7, 2001, as a 
result of injuries incurred in connection with the employee's service 
with an Armed Force in the theater of operations of Operation Enduring 
Freedom or Operation Iraqi Freedom.
    ``(c) Other Benefits.--The death gratuity payable under this 
section is in addition to any death benefits otherwise provided for in 
law.
    ``(d) Eligible Survivors.--
            ``(1) Subject to paragraph (5), a death gratuity payable 
        upon the death of a person covered by subsection (a) shall be 
        paid to or for the living survivor highest on the following 
        list:
                    ``(A) The employee's surviving spouse.
                    ``(B) The employee's children, as prescribed by 
                paragraph (2), in equal shares.
                    ``(C) If designated by the employee, any one or 
                more of the following persons:
                            ``(I) The employee's parents or persons in 
                        loco parentis, as prescribed by paragraph (3).
                            ``(ii) The employee's brothers.
                            ``(iii) The employee's sisters.
                    ``(D) The employee's parents or persons in loco 
                parentis, as prescribed by paragraph (3), in equal 
                shares.
                    ``(E) The employee's brothers and sisters in equal 
                shares.
        Subparagraphs (C) and (E) of this paragraph include brothers 
        and sisters of the half blood and those through adoption.
            ``(2) Paragraph (1)(B) applies, without regard to age or 
        marital status, to--
                    ``(A) legitimate children;
                    ``(B) adopted children;
                    ``(C) stepchildren who were a part of the 
                decedent's household at the time of death;
                    ``(D) illegitimate children of a female decedent; 
                and
                    ``(E) illegitimate children of a male decedent--
                            ``(I) who have been acknowledged in writing 
                        signed by the decedent;
                            ``(ii) who have been judicially determined, 
                        before the decedent's death, to be his 
                        children;
                            ``(iii) who have been otherwise proved, by 
                        evidence satisfactory to the employing agency, 
                        to be children of the decedent; or
                            ``(iv) to whose support the decedent had 
                        been judicially ordered to contribute.
            ``(3) Subparagraphs (C) and (D) of paragraph (1), so far as 
        they apply to parents and persons in loco parentis, include 
        fathers and mothers through adoption, and persons who stood in 
        loco parentis to the decedent for a period of not less than one 
        year at any time before the decedent became an employee. 
        However, only one father and one mother, or their counterparts 
        in loco parentis, may be recognized in any case, and preference 
        shall be given to those who exercised a parental relationship 
        on the date, or most nearly before the date, on which the 
        decedent became an employee.
            ``(4) Beginning on the date of the enactment of this 
        paragraph, a person covered by this section may designate 
        another person to receive not more than 50 percent of the 
        amount payable under this section. The designation shall 
        indicate the percentage of the amount, to be specified only in 
        10 percent increments up to the maximum of 50 percent, that the 
        designated person may receive. The balance of the amount of the 
        death gratuity shall be paid to or for the living survivors of 
        the person concerned in accordance with subparagraphs (A) 
        through (E) of paragraph (1).
            ``(5) If a person entitled to all or a portion of a death 
        gratuity under paragraph (1) or (4) dies before the person 
        receives the death gratuity, it shall be paid to the living 
        survivor next in the order prescribed by paragraph (1).
    ``(e) Definitions.--(1) The term `contingency operation' has the 
meaning given to that term in section 1482a(c) of title 10, United 
States Code.
    ``(2) The term `employee' has the meaning provided in section 8101 
of this title, but also includes a nonappropriated fund instrumentality 
employee, as defined in section 1587(a)(1) of title 10.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 81 of such title is amended by inserting after the item 
relating to section 8102 the following new item:

``8102a. Death gratuity for injuries incurred in connection with 
                            employee's service with an Armed Force.''.

SEC. 1106. MODIFICATIONS TO THE NATIONAL SECURITY PERSONNEL SYSTEM.

    (a) In General.--Section 9902 of title 5, United States Code, is 
amended--
            (1) in subsection (a), by striking ``Notwithstanding any 
        other provision of this part, the'' and inserting ``The'';
            (2) in subsection (b)(4)--
                    (A) by striking ``collectively as provided for in 
                this chapter,'' and inserting ``collectively,''; and
                    (B) by striking ``the provisions of this chapter 
                and'';
            (3) in subsection (b)(6), by striking subparagraph (I) and 
        inserting the following:
                    ``(I) A pay-for-performance evaluation system to 
                reward individual or group performance. Any such 
                system--
                            ``(i) shall be based on an equitable method 
                        for appraising and compensating employees;
                            ``(ii) shall ensure that rates of pay 
                        (including those described in subchapter IV of 
                        chapter 53 and those payable to employees paid 
                        from nonappropriated funds) are adjusted at the 
                        same time and by the same percentages as would 
                        be required under sections 5303 through 5304a 
                        for rates subject to those sections, except 
                        that no such adjustment may be made if or to 
                        the extent that the resulting rate would exceed 
                        the maximum rate allowable under such system;
                            ``(iii) may not be implemented before the 
                        requirements described in section 4703(b) have 
                        been met by the Secretary and the Director 
                        jointly with respect to such system;
                            ``(iv) may not provide for any waiver with 
                        respect to such system that would not be 
                        allowable under any paragraph of section 
                        4703(c); and
                            ``(v) shall be subject to the provisions of 
                        subsections (f) and (g) of section 4703.'';
            (4) in subsection (c)(1), by striking ``October 1, 2008'' 
        each place it appears and inserting ``October 1, 2011'';
            (5) in subsection (d)--
                    (A) in the matter before paragraph (1), by striking 
                ``are (to the extent not otherwise specified in this 
                title)--'' and inserting ``are--''; and
                    (B) in paragraph (2), by inserting ``43,'' after 
                ``41,'' and by inserting ``75, 77,'' after ``73,'';
            (6) in subsection (e)(3), by striking the period at the end 
        and inserting ``, except as provided in subsection 
        (b)(6)(I)(ii).'';
            (7) in subsection (f)(4), strike ``The'' and insert 
        ``Subject to subsection (d)(2), the'';
            (8) in subsection (g)--
                    (A) by striking paragraph (2) and inserting the 
                following:
    ``(2) The decision to bargain at a level above the level of 
exclusive recognition shall be mutually agreed to by the Secretary and 
the labor organization at an organizational level above the level of 
exclusive recognition.'';
                    (B) in paragraph (3), by striking ``are excluded 
                from'' and inserting ``may be included in''; and
                    (C) by striking paragraph (4); and
            (9) by striking subsections (h), (k), and (m) and 
        redesignating subsections (i), (j), and (l) as subsections (h), 
        (i), and (j), respectively.
    (b) Savings Provision.--Any rate of pay which is in effect with 
respect to an employee immediately before this section takes effect, 
and which was determined under a performance management system 
established under section 9902(b)(6) of title 5, United States Code, 
shall remain in effect until--
            (1) such rate is modified, superseded, or rendered 
        inapplicable--
                    (A) in accordance with such system, as last in 
                effect before this section takes effect; or
                    (B) in accordance with a system established under 
                such section 9902(b)(6), as amended by this section 
                (hereinafter referred to as a ``successor system''); or
            (2) such employee otherwise ceases to be covered by such 
        system (as described in paragraph (1)(A)), whether by 
        transferring to a position not covered by the system (as so 
        described) or otherwise.
The performance management system (as described in paragraph (1)(A)) 
shall remain in effect, in accordance with its terms, until all 
employees who, immediately before this section takes effect, are 
subject to the system (as so described) have either become subject to a 
successor system or have otherwise ceased to be covered by the system 
(as so described). Such system (as so described) shall not apply in the 
case of any employee, or during any period of time, not described in 
the preceding sentence.

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

    The first sentence of section 5334(f) of title 5, United States 
Code, is amended by striking ``any step of such grade that does not 
exceed the highest previous rate of basic pay received by that employee 
during the employee's service described in section 2105(c).'' and 
inserting ``any step of such grade that does not exceed--
            ``(1) if the highest previous rate of basic pay received by 
        that employee during the employee's service described in 
        section 2105(c) is equal to a rate of the appropriate grade, 
        such rate of the appropriate grade;
            ``(2) if the employee's highest previous rate of basic pay 
        (as described in paragraph (1)) is between two rates of the 
        appropriate grade, the higher of those two rates; or
            ``(3) if the employee's highest previous rate of basic pay 
        (as described in paragraph (1)) exceeds the maximum rate of the 
        appropriate grade, the maximum rate of the appropriate 
        grade.''.

SEC. 1109. TRANSPORTATION OF DEPENDENTS, HOUSEHOLD EFFECTS, AND 
              PERSONAL PROPERTY TO FORMER HOME FOLLOWING DEATH OF 
              FEDERAL EMPLOYEE WHERE DEATH RESULTED FROM DISEASE OR 
              INJURY INCURRED IN A COMBAT ZONE.

    (a) In General.--Section 5742 of title 5, United States Code, is 
amended by adding at the end the following:
    ``(f)(1) The benefits of subsection (b)(2) may not be denied, 
solely because the dependents were residing within the continental 
United States when the employee died, if such employee died as a result 
of disease or injury incurred while holding a position or performing 
one or more functions in support of military operations of the United 
States in a combat zone.
    ``(2) For purposes of paragraph (1)--
            ``(A) the term `continental United States' has the meaning 
        given such term by section 5721(3); and
            ``(B) the term `combat zone' has the meaning given such 
        term by section 1580 of title 10.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply with respect to deaths occurring on or after the date of the 
enactment of this Act.

SEC. 1110. USE OF LEAVE TRANSFER PROGRAM BY WOUNDED VETERANS WHO ARE 
              FEDERAL EMPLOYEES.

    (a) In General.--Section 6333(b) of title 5, United States Code, is 
amended--
            (1) by striking ``A leave'' and inserting ``(1) Except as 
        provided in paragraph (2), a leave''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The requirement to exhaust annual leave and sick leave under 
paragraph (1) shall not apply in the case of a leave recipient who, 
while a member of the Armed Forces, including a member of the National 
Guard or a Reserve, sustained a combat-related disability (as defined 
in section 1413a(e) of title 10) and is undergoing medical treatment 
(as defined by the Office of Personnel Management) for that combat-
related disability. The preceding sentence shall apply to a member 
described in that sentence only so long as the member continues to 
undergo medical treatment for the disability, but in no case for more 
than five years.''.

SEC. 1111. REQUIREMENT FOR FULL IMPLEMENTATION OF PERSONNEL 
              DEMONSTRATION PROJECT.

    (a) Requirement.--The Secretary of Defense shall take all necessary 
actions to fully implement and use the authorities provided to the 
Secretary under section 342(b) of the National Defense Authorization 
Act for Fiscal Year 1995 (Public Law 103-337; 108 Stat. 2721), as 
amended by section 1114 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (as enacted into law by Public 
Law 106-398; 114 Stat. 1654A-315), to carry out personnel management 
demonstration projects at Department of Defense laboratories that are 
exempted by section 9902(c) of title 5, United States Code, from 
inclusion in the Department of Defense National Security Personnel 
System.
    (b) Expanded Authority for Directors.--The Secretary of Defense 
shall also implement a process and implementation plan to expand the 
authorities provided to the laboratories described in subsection (a) to 
provide the research laboratory directors enhanced ability to make 
program, funding, personnel, and other decisions that are necessary to 
carry out the mission of the laboratory.
    (c) Other Laboratories.--Any flexibility available to any 
demonstration laboratory shall be available for use at any other 
laboratory as enumerated in section 9902(c)(2) of title 5, United 
States Code.
    (d) Submission of List and Description.--Not later than March 1 of 
each year, beginning with March 1, 2008, the Secretary of Defense shall 
submit to Congress a list and description of the demonstration project 
notices, amendments, and changes requested by the laboratories during 
the preceding calendar year. The list shall include all approved and 
disapproved notices, amendments, and changes, and the reasons for 
disapproval or delay in approval.

             TITLE XII--MATTERS RELATING TO FOREIGN NATIONS

                  Subtitle A--Assistance and Training

Sec. 1201. Military-to-military contacts and comparable activities.
Sec. 1202. Authority for support of military operations to combat 
                            terrorism.
Sec. 1203. Medical care and temporary duty travel expenses for liaison 
                            officers of certain foreign nations.
Sec. 1204. Extension and expansion of Department of Defense authority 
                            to participate in multinational military 
                            centers of excellence.
Sec. 1205. Reauthorization of Commanders' Emergency Response Program.
Sec. 1206. Expansion of program to build the capacity of foreign 
                            military forces to include Pakistan's other 
                            security forces.
Sec. 1207. Authority to provide assistance to foreign nations to assist 
                            in recovery and accounting activities for 
                            missing United States Government personnel.
Sec. 1208. Authority to provide automatic identification system data on 
                            maritime shipping to foreign countries and 
                            international organizations.
Sec. 1209. Report on foreign assistance-related programs, projects, and 
                            activities carried out by the Department of 
                            Defense.

                  Subtitle B--Matters Relating to Iraq

Sec. 1221. Modification of authorities relating to the Special 
                            Inspector General for Iraq Reconstruction.
Sec. 1222. Continuation of prohibition on establishment of permanent 
                            military installations in Iraq or United 
                            States control over oil resources of Iraq.
Sec. 1223. Report on Department of Defense efforts to build the 
                            capacity of the Government of Iraq to carry 
                            out reconstruction activities in Iraq.
Sec. 1224. Report on implementation of Multi-National Forces-Iraq/
                            United States Embassy Baghdad Joint 
                            Campaign Plan and efforts to achieve 
                            political reform in Iraq.
Sec. 1225. Report on training of the Iraqi Security Forces.
Sec. 1226. Sense of Congress on responsibilities of the Iraqi Council 
                            of Representatives to enact laws to achieve 
                            political reform and diminish support for 
                            the insurgency in Iraq.

              Subtitle C--Matters Relating to Afghanistan

Sec. 1231. Special Inspector General for Afghanistan Reconstruction.
Sec. 1232. Report on progress toward security and stability in 
                            Afghanistan.
Sec. 1233. Report on progress of the Department of Defense's counter-
                            narcotics program for Afghanistan.
Sec. 1234. United States plan for sustaining the Afghanistan National 
                            Security Forces.

                       Subtitle D--Other Matters

Sec. 1241. Cooperative research and development agreements: NATO 
                            organizations; allied and friendly foreign 
                            countries.
Sec. 1242. Extension of Counterproliferation Program Review Committee.
Sec. 1243. Sense of Congress concerning the Western Hemisphere 
                            Institute for Security Cooperation.
Sec. 1244. Sense of Congress concerning the strategic military 
                            capabilities and intentions of the People's 
                            Republic of China.

                  Subtitle A--Assistance and Training

SEC. 1201. MILITARY-TO-MILITARY CONTACTS AND COMPARABLE ACTIVITIES.

    Section 168(c) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
            ``(9) The assignment of personnel described in paragraph 
        (3) or (4) on a non-reciprocal basis if the Secretary of 
        Defense determines that such an assignment, rather than an 
        exchange of personnel, is in the interests of the United 
        States.''.

SEC. 1202. AUTHORITY FOR SUPPORT OF MILITARY OPERATIONS TO COMBAT 
              TERRORISM.

    (a) Modification of Reporting Requirement.--Subsection (f) of 
section 1208 of the Ronald W. Reagan National Defense Authorization Act 
for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 2086-2087) is 
amended to read as follows:
    ``(f) Annual Report.--
            ``(1) Report required.--Not later than 120 days after the 
        close of each fiscal year during which subsection (a) is in 
        effect, the Secretary of Defense shall submit to the 
        congressional defense committees a report on support provided 
        under that subsection during that fiscal year.
            ``(2) Matters to be included.--Each report required by 
        paragraph (1) shall describe the support provided, including--
                    ``(A) the country involved in the activity, the 
                individual or force receiving the support, and, to the 
                maximum extent practicable, the specific region of each 
                country involved in the activity;
                    ``(B) the respective dates and a summary of 
                congressional notifications for each activity;
                    ``(C) the unified commander for each activity, as 
                well as the related objectives, as established by that 
                commander;
                    ``(D) the total amount obligated to provide the 
                support;
                    ``(E) for each activity that amounts to more than 
                $500,000, specific budget details that explain the 
                overall funding level for that activity; and
                    ``(F) a statement providing a brief assessment of 
                the outcome of the support, including specific 
                indications of how the support furthered the mission 
                objective of special operations forces and the types of 
                follow-on support, if any, that may be necessary.''.
    (b) Annual Limitation.--Subsection (g) of such section is amended--
            (1) in the heading, by striking ``Fiscal Year 2005'' and 
        inserting ``Annual''; and
            (2) by striking ``fiscal year 2005'' and inserting ``each 
        fiscal year during which subsection (a) is in effect''.
    (c) Extension of Period of Authority.--Subsection (h) of such 
section is amended by striking ``2007'' and inserting ``2010''.

SEC. 1203. MEDICAL CARE AND TEMPORARY DUTY TRAVEL EXPENSES FOR LIAISON 
              OFFICERS OF CERTAIN FOREIGN NATIONS.

    (a) Authority.--Subsection (a) of section 1051a of title 10, United 
States Code, is amended--
            (1) by striking ``involved in a coalition'' and inserting 
        ``involved in a military operation''; and
            (2) by striking ``coalition operation'' and inserting 
        ``military operation''.
    (b) Medical Care and Temporary Duty Travel Expenses.--Subsection 
(b) of such section is amended--
            (1) in the heading, by striking ``and Subsistence'' 
        inserting ``, Subsistence, and Medical Care'';
            (2) in paragraph (2), by adding at the end the following:
            ``(C) Expenses for medical care at a civilian medical 
        facility if--
                    ``(i) adequate medical care is not available to the 
                liaison officer at a local military medical treatment 
                facility;
                    ``(ii) the Secretary determines that payment of 
                such medical expenses is necessary and in the best 
                interests of the United States; and
                    ``(iii) medical care is not otherwise available to 
                the liaison officer pursuant to any treaty or other 
                international agreement.''; and
            (3) by adding at the end the following:
            ``(3) The Secretary may pay the mission-related travel 
        expenses of a liaison officer described in subsection (a) if 
        such travel is in support of the national interests of the 
        United States and the commander of the headquarters to which 
        the liaison officer is temporarily assigned directs round-trip 
        travel from the assigned headquarters to one or more 
        locations.''.
    (c) Definition.--Subsection (d) of such section is amended--
            (1) by striking ``(d) Definitions.--'' and all that follows 
        through ``(1) The term'' and inserting ``(d) Definition.--In 
        this section, the term''; and
            (2) by striking paragraph (2).
    (d) Expiration of Authority.--Such section is further amended by 
striking subsection (e).
    (e) Conforming and Clerical Amendments.--(1) The heading for such 
section is amended to read as follows:
``Sec. 1051a. Liaison officers of certain foreign nations; 
              administrative services and support; travel, subsistence, 
              medical care, and other personal expenses''.
    (2) The table of sections at the beginning of chapter 53 of title 
10, United States Code, is amended by striking the item relating to 
section 1051a and inserting the following:

``1051a. Liaison officers of certain foreign nations; administrative 
                            services and support; travel, subsistence, 
                            medical care, and other personal 
                            expenses.''.

SEC. 1204. EXTENSION AND EXPANSION OF DEPARTMENT OF DEFENSE AUTHORITY 
              TO PARTICIPATE IN MULTINATIONAL MILITARY CENTERS OF 
              EXCELLENCE.

    (a) Extension of Authority.--Subsection (a) of section 1205 of the 
John Warner National Defense Authorization Act for Fiscal Year 2007 
(Public Law 109-364; 1202 Stat. 2416) is amended by striking ``fiscal 
year 2007'' and inserting ``fiscal years 2007 and 2008''.
    (b) Approval of Centers.--Subsection (c)(1) of such section is 
amended--
            (1) by striking ``the Military Committee of the North 
        Atlantic Treaty Organization (NATO)'' and inserting ``the 
        Department of Defense''; and
            (2) by striking ``for the benefit of NATO''.
    (c) Limitation on Amounts Available for Participation.--Subsection 
(e) of such section is amended by striking paragraph (2) and inserting 
the following new paragraph:
            ``(2) Limitation on amount.--The amount available under 
        paragraph (1)(A) for the expenses referred to in that paragraph 
        may not exceed--
                    ``(A) in fiscal year 2007, $3,000,000; and
                    ``(B) in fiscal year 2008, $5,000,000.''.
    (d) Reports.--Subsection (g) of such section is amended--
            (1) in paragraph (1)--
                    (A) by inserting ``and October 31, 2008,'' after 
                ``October 31, 2007,''; and
                    (B) by striking ``fiscal year 2007'' and inserting 
                ``fiscal years 2007 and 2008''; and
            (2) in paragraph (2)(A), by striking ``during fiscal year 
        2007'' and inserting ``during the preceding fiscal year''.

SEC. 1205. REAUTHORIZATION OF COMMANDERS' EMERGENCY RESPONSE PROGRAM.

    (a) Authority.--Subsection (a) of section 1202 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3455-3456) is amended--
            (1) in the heading, by striking ``Fiscal Years 2006 and 
        2007'' and inserting ``Fiscal Years 2008 and 2009''; and
            (2) by striking ``fiscal years 2006 and 2007'' and 
        inserting ``fiscal years 2008 and 2009''.
    (b) Quarterly Reports.--Subsection (b) of such section is amended 
by striking ``fiscal years 2006 and 2007'' and inserting ``fiscal years 
2008 and 2009''.
    (c) Effective Date.--The amendments made by this section take 
effect on October 1, 2007.

SEC. 1206. EXPANSION OF PROGRAM TO BUILD THE CAPACITY OF FOREIGN 
              MILITARY FORCES TO INCLUDE PAKISTAN'S OTHER SECURITY 
              FORCES.

    (a) Authority.--Subsection (a) of section 1206 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3456-3458), as amended by section 1206 of the John Warner 
National Defense Authorization Act of Fiscal Year 2007 (Public Law 109-
364; 120 Stat. 2418), is amended--
            (1) by striking ``The Secretary of Defense'' and inserting 
        the following:
            ``(1) In general.--The Secretary of Defense'';
            (2) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively; and
            (3) by adding at the end the following:
            ``(2) Additional authority to build the capacity of 
        pakistan's other security forces.--The Secretary of Defense, 
        with the concurrence of the Secretary of State, may use the 
        authority in paragraph (1) to provide assistance to build the 
        capacity of a Pakistan's other security forces that are 
        critical to the success of counterterrorist operations, such as 
        forces responsible for border protection and interdiction 
        (including forces that guard coastal waters) and internal 
        security forces specifically responsible for counterterrorism 
        operations, in order for Pakistan to conduct the operations 
        described in paragraph (1)(A).''.
    (b) Congressional Notification; Specified Congressional 
Committees.--Subsection (e) of such section is amended--
            (1) in paragraph (1)--
                    (A) by striking ``Whenever'' and inserting the 
                following:
                    ``(A) In general.--Whenever''; and
                    (B) by adding at the end the following new 
                subparagraph:
                    ``(B) Notification relating to authority to build 
                the capacity of pakistan's other security forces.--Not 
                less than 30 days prior to the obligation or 
                expenditure of funds to carry out any activities under 
                subsection (a)(2), the Secretary of Defense shall 
                notify the congressional committees specified in 
                paragraph (3) of such proposed obligation or 
                expenditure.''; and
            (2) in paragraph (3)(B), by striking ``Committee on 
        International Relations'' and inserting ``Committee on Foreign 
        Affairs''.
    (c) Report.--Paragraphs (1), (2), and (3) of subsection (f) of such 
section are each amended by inserting ``or Pakistan's other security 
forces'' after ``foreign military forces''.
    (d) Conforming and Clerical Amendments.--(1) The heading for such 
section is amended by adding at the end before the period the 
following: ``and pakistan's other security forces''.
    (2) The table of contents in section 2(b) of the National Defense 
Authorization Act for Fiscal Year 2006 and the table of sections at the 
beginning of title XII of such Act are each amended by striking the 
item relating to section 1206 and inserting the following:

``Sec. 1206. Authority to build the capacity of foreign military forces 
                            and Pakistan's other security forces.''.

SEC. 1207. AUTHORITY TO PROVIDE ASSISTANCE TO FOREIGN NATIONS TO ASSIST 
              IN RECOVERY AND ACCOUNTING ACTIVITIES FOR MISSING UNITED 
              STATES GOVERNMENT PERSONNEL.

    (a) Assistance Authorized.--The Secretary of Defense, with the 
concurrence of the Secretary of State, is authorized to provide 
assistance to foreign nations to assist the Department of Defense in 
recovery and accounting activities for missing United States Government 
personnel.
    (b) Types of Assistance.--Assistance authorized under subsection 
(a) may include the provision of equipment, supplies, services, 
training, and funding to foreign nations to assist in recovery and 
accounting activities described in such subsection. The authority to 
provide assistance under subsection (a) is in addition to any other 
authority to provide assistance to foreign nations for such purposes.
    (c) Limitation.--Assistance authorized under subsection (a) may not 
exceed $1,000,000 in any fiscal year.

SEC. 1208. AUTHORITY TO PROVIDE AUTOMATIC IDENTIFICATION SYSTEM DATA ON 
              MARITIME SHIPPING TO FOREIGN COUNTRIES AND INTERNATIONAL 
              ORGANIZATIONS.

    (a) Authority to Provide Data.--The Secretary of Defense, with the 
concurrence of the Secretary of State, may authorize the Secretary of a 
military department or a commander of a combatant command to exchange 
or furnish automatic identification system data broadcast by merchant 
or private ships and collected by the United States to a foreign 
country or international organization pursuant to an agreement for the 
exchange or production of such data. Such data may be transferred 
pursuant to this section without cost to the recipient country or 
international organization.
    (b) Definitions.--In this section:
            (1) Automatic identification system.--The term ``automatic 
        identification system'' means a system that is used to satisfy 
        the requirements of the Automatic Identification System under 
        the International Convention for the Safety of Life at Sea, 
        signed at London on November 1, 1974 (TIAS 9700).
            (2) Geographic combatant commander.--The term ``commander 
        of a combatant command'' means a commander of a combatant 
        command (as such term is defined in section 161(c) of title 10, 
        United States Code) with a geographic area of responsibility.

SEC. 1209. REPORT ON FOREIGN ASSISTANCE-RELATED PROGRAMS, PROJECTS, AND 
              ACTIVITIES CARRIED OUT BY THE DEPARTMENT OF DEFENSE.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
appropriate congressional committees a report that contains a 
description of all foreign assistance-related programs, projects, and 
activities carried out by the Department of Defense during the prior 
fiscal year pursuant to any provision of law that authorizes or 
appropriates funds for such programs, projects, and activities.
    (b) Matters to Be Included.--The report required by subsection (a) 
shall include information on a country-by-country basis of each foreign 
assistance-related program, project, or activity of the Department of 
Defense and each foreign-assistance related program, project, or 
activity that the Department of Defense undertakes or implements on 
behalf of any other department or agency of the United States 
Government, such as a program, project, or activity under the Foreign 
Assistance Act of 1961 (22 U.S.C. 2151 et seq.) or the Arms Export 
Control Act (22 U.S.C. 2751 et seq.).
    (c) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Appropriations, the Committee on Armed 
        Services, and the Committee on Foreign Affairs of the House of 
        Representatives; and
            (2) the Committee on Appropriations, the Committee on Armed 
        Services, and the Committee on Foreign Relations of the Senate.

                  Subtitle B--Matters Relating to Iraq

SEC. 1221. MODIFICATION OF AUTHORITIES RELATING TO THE SPECIAL 
              INSPECTOR GENERAL FOR IRAQ RECONSTRUCTION.

    (a) Purposes.--Subsection (a)(1) of section 3001 of the Emergency 
Supplemental Appropriations Act for Defense and for the Reconstruction 
of Iraq and Afghanistan, 2004 (Public Law 108-106; 117 Stat. 1234-1238; 
5 U.S.C. App., note to section 8G of Public Law 95-452) is amended by 
striking ``to the Iraq Relief and Reconstruction Fund'' and inserting 
``for the reconstruction of Iraq''.
    (b) Assistant Inspectors General.--Subsection (d)(1) of such 
section is amended by striking ``the Iraq Relief and Reconstruction 
Fund'' and inserting ``amounts appropriated or otherwise made available 
for the reconstruction of Iraq''.
    (c) Supervision.--Subsection (e)(2) of such section is amended by 
striking ``the Iraq Relief and Reconstruction Fund'' and inserting 
``amounts appropriated or otherwise made available for the 
reconstruction of Iraq''.
    (d) Duties.--Subsection (f)(1) of such section is amended by 
striking ``to the Iraq Relief and Reconstruction Fund'' and inserting 
``for the reconstruction of Iraq''.
    (e) Personnel, Facilities, and Other Resources.--Subsection (h)(3) 
of such section is amended by striking ``my enter'' and inserting ``may 
enter''.
    (f) Reports.--Subsection (i) of such section is amended by striking 
``to the Iraq Relief and Reconstruction Fund'' each place it appears 
and inserting ``for the reconstruction of Iraq''.
    (g) Definitions.--Subsection (m) of such section is amended--
            (1) in the heading, by striking ``Appropriate Committees of 
        Congress Defined'' and inserting ``Definitions'';
            (2) by striking ``In this section, the term'' and inserting 
        the following: ``In this section--
            ``(1) the term'';
            (3) by redesignating paragraphs (1) and (2) as 
        subparagraphs (A) and (B), respectively;
            (4) by striking the period at the end and inserting ``; 
        and''; and
            (5) by adding at the end the following:
            ``(2) the term `amounts appropriated or otherwise made 
        available for the reconstruction of Iraq' means amounts 
        appropriated or otherwise made available for any fiscal year--
                    ``(A) to the Iraq Relief and Reconstruction Fund, 
                the Iraq Security Forces Fund, and the Commanders' 
                Emergency Response Program authorized under section 
                1202 of the National Defense Authorization for Fiscal 
                Year 2006 (Public Law 109-163; 119 Stat. 3455-3456); or
                    ``(B) for assistance for the reconstruction of Iraq 
                under--
                            ``(i) the Economic Support Fund authorized 
                        under chapter 4 of part II of the Foreign 
                        Assistance Act of 1961 (22 U.S.C. 2346 et 
                        seq.);
                            ``(ii) the International Narcotics Control 
                        and Law Enforcement account authorized under 
                        section 481 of the Foreign Assistance Act of 
                        1961 (22 U.S.C. 2291); or
                            ``(iii) any other provision of law.''.
    (h) Termination.--Subsection (o) of such section is amended--
            (1) in paragraph (1)--
                    (A) by striking ``(A)'';
                    (B) by striking ``to the Iraq Relief and 
                Reconstruction Fund'' the first place it appears and 
                inserting ``for the reconstruction of Iraq''; and
                    (C) by striking subparagraph (B); and
            (2) in paragraph (2)--
                    (A) by striking ``funds deemed to be''; and
                    (B) by striking ``to the Iraq Relief and 
                Reconstruction Fund'' and inserting ``for the 
                reconstruction of Iraq''.

SEC. 1222. CONTINUATION OF PROHIBITION ON ESTABLISHMENT OF PERMANENT 
              MILITARY INSTALLATIONS IN IRAQ OR UNITED STATES CONTROL 
              OVER OIL RESOURCES OF IRAQ.

    Section 1519 of the John Warner National Defense Authorization Act 
for Fiscal Year 2007 (Public Law 109-364; 120 Stat. 2444) is amended by 
inserting after ``this Act'' the following: ``or any other Act for any 
fiscal year''.

SEC. 1223. REPORT ON DEPARTMENT OF DEFENSE EFFORTS TO BUILD THE 
              CAPACITY OF THE GOVERNMENT OF IRAQ TO CARRY OUT 
              RECONSTRUCTION ACTIVITIES IN IRAQ.

    (a) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, and every six months thereafter, the Secretary 
of Defense shall submit to Congress a report on efforts of the 
Department of Defense to build the capacity of the Government of Iraq 
to carry out reconstruction activities in Iraq.
    (b) Matters to Be Included.--The report required by subsection (a) 
shall include a description of the following:
            (1) Efforts to improve the ability of the Government of 
        Iraq--
                    (A) to assess the needs for the reconstruction of 
                Iraq;
                    (B) to assess the sustainability of reconstruction 
                projects carried out by the Government of Iraq, on all 
                levels; and
                    (C) to effectively budget and carry out the design 
                and implementation of reconstruction projects.
            (2) Efforts to improve the ability of the Government of 
        Iraq--
                    (A) to enter into competitively-awarded contracts 
                for the reconstruction of Iraq; and
                    (B) to oversee that such contracts are properly and 
                effectively carried out in a cost-efficient manner.
            (3) Such other matters as the Secretary of Defense 
        considers appropriate.

SEC. 1224. REPORT ON IMPLEMENTATION OF MULTI-NATIONAL FORCES-IRAQ/
              UNITED STATES EMBASSY BAGHDAD JOINT CAMPAIGN PLAN AND 
              EFFORTS TO ACHIEVE POLITICAL REFORM IN IRAQ.

    (a) Report Required.--Not later than September 30, 2007, the 
Secretary of Defense, in coordination with the Secretary of State, 
shall submit to the appropriate congressional committees a report 
detailing the status of implementation of the Multi-National Forces-
Iraq/United States Embassy Baghdad Joint Campaign Plan (hereinafter in 
this section referred to as the ``Joint Campaign Plan'') since January 
1, 2007, and efforts by the Government of Iraq to achieve political 
reform in Iraq.
    (b) Assessment Required.--The Commander, Multi-National Forces-Iraq 
and the United States Ambassador to Iraq shall jointly submit to the 
Secretary of Defense and the Secretary of State an assessment of the 
situation in Iraq. The assessment shall be submitted in time to be 
included in the report required by subsection (a), and shall be 
included in the report, together with any comments thereon by the 
Secretary of Defense or the Secretary of State.
    (c) Elements.--The assessment required by subsection (b) shall 
include the following elements:
            (1) A detailed description of the Joint Campaign Plan, or 
        any subsequent revisions, updates, or documents that replace or 
        supersede the Joint Campaign Plan, including goals, phases, or 
        other milestones contained in the Joint Campaign Plan. 
        Specifically, the description shall include the following:
                    (A) An explanation of conditions required to move 
                though phases of the Joint Campaign Plan and the 
                measurements used to determine progress.
                    (B) An assessment of what conditions in the Joint 
                Campaign Plan have been achieved and what conditions 
                have not been achieved. The assessment of those 
                conditions that have not been achieved shall include a 
                discussion of the factors that have precluded such 
                progress.
                    (C) A description of any companion or equivalent 
                plan of the Government of Iraq used to measure progress 
                for Iraqi Security Forces undertaking joint operations 
                with Coalition forces.
            (2) Efforts by the Government of Iraq in taking the 
        following actions:
                    (A) Enacting a broadly-accepted hydrocarbon law 
                that equitably shares revenue among all Iraqis.
                    (B) Adopting laws necessary for the conduct of 
                provincial and local elections, taking steps to 
                implement such laws, and setting a schedule to conduct 
                provincial and local elections.
                    (C) Reforming current laws governing the de-
                Baathification process in a manner that encourages 
                national reconciliation.
                    (D) Amending the Constitution of Iraq in a manner 
                that encourages national reconciliation.
                    (E) Allocating and beginning expenditure of $10 
                billion in Iraqi revenues for reconstruction projects, 
                including delivery of essential services, and 
                implementing such reconstruction projects on an 
                equitable basis.
                    (F) Making significant efforts to plan and 
                implement disarmament, demobilization, and 
                reintegration programs relating to Iraqi militias.
            (3) An assessment of security in each region of Iraq and an 
        overall assessment of security for the country, to include the 
        following:
                    (A) Trends in casualties among Coalition forces, 
                Iraqi Security Forces, and civilians.
                    (B) Trends in weekly attacks on Coalition forces, 
                Iraqi Security Forces, and civilians.
                    (C) Trends in sectarian violence, including both 
                the number of incidents and the casualties that have 
                resulted.
                    (D) Trends in high-profile attacks, including 
                attacks utilizing suicide bombings and vehicle-borne 
                improvised explosive devices.
            (4) An assessment of the effectiveness of Iraqi Security 
        Forces, to include the following:
                    (A) The number of battalions in the Iraqi Army 
                currently conducting operations against insurgents, the 
                level of personnel strength of such battalions, and 
                efforts by the Iraqi or Coalition authorities to 
                increase the number of such battalions.
                    (B) The number of Iraqi Security Force units, at 
                the battalion level and above, that are operating 
                independently of Coalition forces or with only support 
                of Coalition forces.
                    (C) The anticipated period of time remaining until 
                the Iraqi Security Forces are fully trained and capable 
                of providing security in Iraq without support of 
                Coalition forces.
    (d) Further Assessment Required.--Based on the information provided 
in subsection (c), the Secretary of Defense shall include in the report 
required by subsection (a)--
            (1) an assessment of the levels of United States Armed 
        Forces required in Iraq for the six-month period beginning on 
        October 1, 2007, the missions to be undertaken by the Armed 
        Forces, and the incremental costs of any proposed changes to 
        such levels or missions; and
            (2) a description of the range of contingency plans under 
        consideration for changes to levels of United States Armed 
        Forces or missions during such period.
    (e) Update of Report.--
            (1) Update required.--Not later than 180 days after the 
        submission of the report required by subsection (a), and every 
        180 days thereafter until United States combat forces have been 
        redeployed from Iraq, the Secretary of Defense shall submit to 
        the appropriate congressional committees an update of the 
        report required by subsection (a).
            (2) Matters to be included.--Each update of the report 
        required by subsection (a) shall include an update of the 
        assessment and any comments thereon required by subsection (b), 
        an update of the elements described in subsection (c), and an 
        update of the further assessment required by paragraph (1) of 
        subsection (d) for the six-month period beginning on the date 
        of the submission of the update and an update of the 
        contingency plans required by paragraph (2) of subsection (d) 
        for such six-month period.
    (f) Form.--The report required by subsection (a) and each update of 
the report required by subsection (e), including assessments contained 
therein, shall be submitted in unclassified form, to the maximum extent 
practicable, but may contain a classified annex.
    (g) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Affairs of the 
        House of Representatives; and
            (2) the Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Relations of the 
        Senate.

SEC. 1225. REPORT ON TRAINING OF THE IRAQI SECURITY FORCES.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, and every three months thereafter, the Secretary 
of Defense shall submit to the appropriate congressional committees an 
assessment of the Iraqi Security Forces.
    (b) Matters to Be Included.--The report required by subsection (a) 
shall address the following matters:
            (1) The level of training, readiness, operational 
        proficiency, and any other measures used to assess the 
        effectiveness of each battalion or larger formation or 
        equivalent of the Iraqi Army, Iraqi National Police, Iraqi 
        Police Service, and all other security and intelligence forces 
        under the control of the Ministry of Defense or the Ministry of 
        the Interior of Iraq.
            (2) The number of battalions in the Iraqi Army currently 
        conducting operations, the type of operations conducted, and 
        efforts by Iraqi or Coalition authorities to increase the 
        number of such operations.
            (3) The number of Iraqi Army battalions and Iraqi National 
        Police units that can operate without support from Coalition 
        forces.
            (4) The amount and type of support from Coalition forces 
        required by the Iraqi Security Forces at each Transition 
        Readiness Assessment (TRA) level.
            (5) The level of readiness and effectiveness of units of 
        the Iraqi Security Forces in provinces where the United States 
        has formally transferred responsibility for the security of the 
        province to the Iraqi Security Forces under the Provincial 
        Iraqi Control (PIC) process.
            (6) The contribution each battalion or larger formation or 
        equivalent of the Iraqi Army, Iraqi National Police, Iraqi 
        Police Service, and all other security and intelligence forces 
        under the control of the Ministry of Defense or the Ministry of 
        the Interior of Iraq are making to overall stability in their 
        area of operation.
            (7) Other measurements used by Iraqi and Coalition 
        authorities to assess the capability of the Iraqi Security 
        Forces.
    (c) Form.--The report required by subsection (a) shall be submitted 
in unclassified form, to the maximum extent practicable, but may 
include a classified annex, as appropriate.
    (d) Definition.--In this section, the term ``appropriate 
congressional committees'' means--
            (1) the Committee on Armed Services and the Committee on 
        Foreign Affairs of the House of Representatives; and
            (2) the Committee on Armed Services and the Committee on 
        Foreign Relations of the Senate.

SEC. 1226. SENSE OF CONGRESS ON RESPONSIBILITIES OF THE IRAQI COUNCIL 
              OF REPRESENTATIVES TO ENACT LAWS TO ACHIEVE POLITICAL 
              REFORM AND DIMINISH SUPPORT FOR THE INSURGENCY IN IRAQ.

    It is the sense of Congress that the Iraqi Council of 
Representatives should not recess for an extended period of time 
without first making substantial progress toward--
            (1) enacting a broadly-accepted hydrocarbon law that 
        equitably shares revenue among all Iraqis;
            (2) adopting laws necessary for the conduct of provincial 
        and local elections, taking steps to implement such laws, and 
        setting a schedule to conduct provincial and local elections;
            (3) reforming current laws governing the de-Baathification 
        process in a manner that encourages national reconciliation;
            (4) amending the Constitution of Iraq in a manner that 
        encourages national reconciliation; and
            (5) enacting other legislation that helps to begin the 
        process of political reconciliation and reduce the support for 
        the insurgency in Iraq.

              Subtitle C--Matters Relating to Afghanistan

SEC. 1231. SPECIAL INSPECTOR GENERAL FOR AFGHANISTAN RECONSTRUCTION.

    (a) Purposes.--The purposes of this section are as follows:
            (1) To provide for the independent and objective conduct 
        and supervision of audits and investigations relating to the 
        programs and operations funded with amounts appropriated or 
        otherwise made available to the Department of Defense for the 
        reconstruction of Afghanistan.
            (2) To provide for the independent and objective leadership 
        and coordination of, and recommendations on, policies designed 
        to--
                    (A) promote economy efficiency, and effectiveness 
                in the administration of the programs and operations 
                described in paragraph (1); and
                    (B) prevent and detect waste, fraud, and abuse in 
                such programs and operations.
            (3) To provide for an independent and objective means of 
        keeping the Secretary of Defense fully and currently informed 
        about problems and deficiencies relating to the administration 
        of such programs and operations and the necessity for and 
        progress for corrective action.
    (b) Office of Inspector General.--There is hereby established the 
Office of the Special Inspector General for Afghanistan Reconstruction 
to carry out the purposes of subsection (a).
    (c) Appointment of Inspector General; Removal.--(1) The head of the 
Office of the Special Inspector General for Afghanistan Reconstruction 
is the Special Inspector General for Afghanistan Reconstruction (in 
this section referred to as the ``Inspector General''), who shall be 
appointed by the President.
    (2) The appointment of Inspector General shall be made solely on 
the basis of integrity and demonstrated ability in accounting, 
auditing, financial analysis, law, management analysis, public 
administration, or investigations.
    (3) The nomination of an individual as Inspector General shall be 
made not later than 30 days after the date of the enactment of this 
Act.
    (4) The annual rate of basic pay of the Inspector General shall be 
the annual rate of basic pay provided for positions at level IV of the 
Executive Schedule under section 5315 of title 5, United States Code.
    (5) The requirements described in paragraphs (4) and (5) of section 
3001(c) of the Emergency Supplemental Appropriations Act for Defense 
and for the Reconstruction of Iraq and Afghanistan, 2004 (Public Law 
108-106; 117 Stat. 1234-1238; 5 U.S.C. App., note to section 8G of 
Public Law 95-452) shall apply to the Inspector General in the same 
manner and to the same extent as such requirements apply to the Special 
Inspector General for Iraq Reconstruction.
    (d) Assistant Inspectors General.--The Inspector General shall, in 
accordance with applicable laws and regulations governing the civil 
service--
            (1) appoint an Assistant Inspector General for Auditing who 
        shall have the responsibility for supervising the performance 
        of auditing activities relating to programs and operations 
        supported by amounts appropriated or otherwise made available 
        to the Department of Defense for the reconstruction of 
        Afghanistan; and
            (2) appoint an Assistant Inspector General for 
        Investigations who shall have the responsibility for 
        supervising the performance of investigative activities 
        relating to such programs and operations.
    (e) Supervision.--(1) Except as provided in paragraph (2), the 
Inspector General shall report directly to, and be under the general 
supervision of, the Secretary of Defense.
    (2) No officer of the Department of Defense shall prevent or 
prohibit the Inspector General from initiating, carrying out, or 
completing any audit or investigation related to amounts appropriated 
or otherwise made available to the Department of Defense for the 
reconstruction of Afghanistan or from issuing any subpoena during the 
course of any such audit or investigation.
    (f) Duties.--(1) It shall be the duty of the Inspector General to 
conduct, supervise, and coordinate audits and investigations of the 
treatment, handling, and expenditure of amounts appropriated or 
otherwise made available to the Department of Defense for the 
reconstruction of Afghanistan, and of the programs, operations, and 
contracts carried out utilizing such funds, including--
                    (A) the oversight and accounting of the obligation 
                and expenditure of such funds;
                    (B) the monitoring and review of reconstruction 
                activities funded by such funds;
                    (C) the monitoring and review of contracts funded 
                by such funds;
                    (D) the monitoring and review of the transfer of 
                such funds and associated information between and among 
                departments, agencies, and entities of the United 
                States and private and nongovernmental entities; and
                    (E) the maintenance of records on the use of such 
                funds to facilitate future audits and investigations of 
                the use of such funds.
    (2) The Inspector General shall establish, maintain, and oversee 
such systems, procedures, and controls as the Inspector General 
considers appropriate to discharge the duty under paragraph (1).
    (3) In addition to the duties specified in paragraphs (1) and (2), 
the Inspector General shall also have the duties and responsibilities 
of inspectors general under the Inspector General Act of 1978.
    (4) In carrying out the duties, responsibilities, and authorities 
of the Inspector General under this section, the Inspector General 
shall coordinate with, and receive the cooperation of, the Inspector 
General of the Department of Defense.
    (g) Powers and Authorities.--(1) In carrying out the duties 
specified in subsection (f), the Inspector General shall have the 
authorities provided in section 6 of the Inspector General Act of 1978, 
including the authorities under subsection (e) of such section.
    (2) The Inspector General shall carry out the duty specified in 
subsection (f)(1) in accordance with section 4(b)(1) of the Inspector 
General Act of 1978.
    (h) Personnel, Facilities, and Other Resources.--(1) The powers and 
authorities described in paragraphs (1) through (3) of section 3001(h) 
of the Emergency Supplemental Appropriations Act for Defense and for 
the Reconstruction of Iraq and Afghanistan, 2004 shall apply to the 
Inspector General in the same manner and to the same extent as such 
requirements apply to the Special Inspector General for Iraq 
Reconstruction.
    (2) Whenever information or assistance requested by the Inspector 
General is, in the judgment of the Inspector General, unreasonably 
refused or not provided from any department, agency, or other entity of 
the Federal Government, the Inspector General shall report the 
circumstances to the Secretary of Defense and to the congressional 
defense committees.
    (3) The Secretary of Defense shall provide the Inspector General 
with appropriate and adequate office space at appropriate locations of 
the Department of Defense in Afghanistan, together with such equipment, 
office supplies, and communications facilities and services as may be 
necessary for the operation of such offices, and shall provide 
necessary maintenance services for such offices and the equipment and 
facilities located therein.
    (i) Reports.--(1) Not later than 30 days after the end of each 
fiscal-year quarter, the Inspector General shall submit to the 
congressional defense committees a report summarizing, for the period 
of that quarter and, to the extent possible, the period from the end of 
such quarter to the time of the submission of the report, the 
activities during such period of the Inspector General and the 
activities under programs and operations funded with amounts 
appropriated or otherwise made available to the Department of Defense 
for the reconstruction of Afghanistan. Each report shall include, for 
the period covered by such report, a detailed statement of all 
obligations, expenditures, and revenues of the Department of Defense 
associated with reconstruction and rehabilitation activities in 
Afghanistan, including the following:
                    (A) Obligations and expenditures of appropriated 
                funds by the Department of Defense.
                    (B) A project-by-project and program-by-program 
                accounting of the costs incurred to date by the 
                Department of Defense for the reconstruction of 
                Afghanistan, together with the estimate of the 
                Department of Defense of the costs to complete each 
                project and each program.
                    (C) Revenues attributable to or consisting of funds 
                provided by foreign nations or international 
                organizations to programs and projects funded by the 
                Department of Defense, and any obligations or 
                expenditures of such revenues.
                    (D) Revenues attributable to or consisting of 
                foreign assets seized or frozen that contribute to 
                programs and projects funded by the Department of 
                Defense, and any obligations or expenditures of such 
                revenues.
                    (E) Operating expenses of agencies or entities 
                receiving amounts appropriated or otherwise made 
                available to the Department of Defense for the 
                reconstruction of Afghanistan.
                    (F) In the case of any contract described in 
                paragraph (2)--
                            (i) the amount of the contract or other 
                        agreement;
                            (ii) a brief discussion of the scope of the 
                        contract or other agreement;
                            (iii) a discussion of how the Department of 
                        Defense identified, and solicited offers from, 
                        potential contractors to perform the contract, 
                        together with a list of the potential 
                        contractors that were issued solicitations for 
                        the offers; and
                            (iv) the justification and approval 
                        documents on which was based the determination 
                        to use procedures other than procedures that 
                        provide for full and open competition.
    (2) A contract described in this paragraph is any major contract or 
other agreement that is entered into by the Department of Defense that 
involves the use of amounts appropriated or otherwise made available to 
the Department of Defense for the reconstruction of Afghanistan with 
any public or private sector entity for any of the following purposes:
            (A) To build or rebuild physical infrastructure of 
        Afghanistan.
            (B) To establish or reestablish a political or societal 
        institution of Afghanistan.
            (C) To provide products or services to the people of 
        Afghanistan.
    (3) The Inspector General shall submit to the congressional defense 
committees semiannual reports meeting the requirements of section 5 of 
the Inspector General Act of 1978. The first such report for a year, 
covering the first six months of the year, shall be submitted not later 
than July 31 of that year, and the second such report, covering the 
second six months of the year, shall be submitted not later than 
January 31 of the following year.
    (4) The Inspector General shall publish each report under this 
subsection in both English and other languages, which the Inspector 
General determines are widely used and understood in Afghanistan, on 
the Internet website of the Department of Defense.
    (5) Each report under this subsection may include a classified 
annex if the Inspector General considers it necessary.
    (6) Nothing in this subsection shall be construed to authorize the 
public disclosure of information that is--
            (A) specifically prohibited from disclosure by any other 
        provision of law;
            (B) specifically required by Executive order to be 
        protected from disclosure in the interest of national defense 
        or national security or in the conduct of foreign affairs; or
            (C) a part of an ongoing criminal investigation.
    (j) Report Coordination.--(1) The Inspector General shall also 
submit each report under subsection (i) to the Secretary of Defense.
    (2)(A) Not later than 30 days after receipt of a report under 
paragraph (1), the Secretary of Defense may submit to the congressional 
defense committees any comments on the matters covered by the report as 
the Secretary of Defense considers appropriate.
    (B) A report under this paragraph may include a classified annex if 
the Secretary of Defense considers it necessary.
    (k) Transparency.--(1) Not later than 60 days after the date of the 
submittal to Congress of a report under subsection (i), the Secretary 
of Defense shall make copies of such report available to the public 
upon request, and at a reasonable cost.
    (2) Not later than 60 days after the date of the submittal to 
Congress under subsection (j)(2) of comments on a report under 
subsection (i), the Secretary of Defense shall make copies of such 
comments available to the public upon request, and at a reasonable 
cost.
    (l) Waiver.--(1) The President may waive the requirement under 
paragraph (1) or (2) of subsection (k) with respect to availability to 
the public of any element in a report under subsection (i), or any 
comment under subsection (j)(2), if the President determines that the 
waiver is justified for national security reasons.
    (2) The President shall publish a notice of each waiver made under 
this subsection in the Federal Register no later than the date on which 
a report required under paragraph (1) or (3) of subsection (i), or any 
comment under subsection (j)(2), is submitted to Congress. The reports 
required under paragraph (1) or (3) of subsection (i), and the comments 
required under subsection (j)(2), shall specify whether waivers under 
this subsection were made and with respect to which elements in the 
reports or which comments, as appropriate.
    (m) Definition.--In this section, the term ``amounts appropriated 
or otherwise made available to the Department of Defense for the 
reconstruction of Afghanistan'' means amounts appropriated or otherwise 
made available for any fiscal year--
            (1) to the Afghanistan Security Forces Fund;
            (2) to the program to assist the people of Afghanistan 
        established under subsection (a)(2) of section 1202 of the 
        National Defense Authorization for Fiscal Year 2006 (Public Law 
        109-163; 119 Stat. 3455-3456); or
            (3) to the Department of Defense for assistance for the 
        reconstruction of Afghanistan under any other provision of law.
    (n) Funding.--(1) Of the amounts appropriated for fiscal year 2008 
to the Afghanistan Security Forces Fund, such sums as may be necessary 
shall be available to carry out this section.
    (2) The amount available under paragraph (1) shall remain available 
until expended.
    (o) Termination.--(1) The Office of the Inspector General shall 
terminate 10 months after 80 percent of the funds appropriated or 
otherwise made available to the Department of Defense for the 
reconstruction of Afghanistan have been expended.
    (2) The Special Inspector General for Afghanistan Reconstruction 
shall, prior to the termination of the Office of the Special Inspector 
General under paragraph (1), prepare and submit to the congressional 
defense committees a final forensic audit report on all funds deemed to 
be amounts appropriated or otherwise made available to the Department 
of Defense for the reconstruction of Afghanistan.

SEC. 1232. REPORT ON PROGRESS TOWARD SECURITY AND STABILITY IN 
              AFGHANISTAN.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
appropriate congressional committees a report on progress toward 
security and stability in Afghanistan.
    (b) Coordination.--The report required by subsection (a) shall be 
prepared in coordination with the Secretary of State, the Attorney 
General, the Administrator of the Drug Enforcement Administration, the 
Administrator of the United States Agency for International 
Development, the Secretary of Agriculture, and the head of any other 
department or agency of the Government of the United States involved 
with activities relating to security and stability in Afghanistan.
    (c) Matters to Be Included: Strategic Direction of United States 
Activities Relating to Security and Stability in Afghanistan.--The 
report required by subsection (a) shall include a description of the 
strategic direction of activities of the United States relating to 
security and stability in Afghanistan. Such description shall include a 
general overview followed by a separate detailed section for each of 
the following:
            (1) Afghanistan national security forces capacity-
        building.--A description of the following:
                    (A) A clear, comprehensive and effective long-term 
                strategy and budget, with defined objectives, for 
                activities relating to strengthening the resources, 
                capabilities, and effectiveness of the Afghanistan 
                National Army (ANA) and the Afghanistan National Police 
                (ANP) of the Afghanistan National Security Forces 
                (ANSF), which ensure that a strong and fully-capable 
                ANSF is able to independently and effectively conduct 
                operations and maintain security and stability in 
                Afghanistan (hereinafter in this section referred to as 
                ``ANSF capacity-building'').
                    (B) Any actions to achieve the following goals with 
                respect to ANSF capacity-building, and the results of 
                such actions:
                            (i) Improve coordination with all relevant 
                        departments and agencies of the United States 
                        Government, as well as countries participating 
                        in the North Atlantic Treaty Organization 
                        International Assistance Force (NATO-ISAF) and 
                        other international partners.
                            (ii) Improve ANSF recruitment and 
                        retention, including through improved vetting 
                        and salaries for ANSF.
                            (iii) Increase and improve ANSF training 
                        and mentoring.
                            (iv) Strengthen the partnership between the 
                        Governments of the United States and 
                        Afghanistan.
            (2) Provincial reconstruction teams and other 
        reconstruction and development activities.--A description of 
        the following:
                    (A) A clear, comprehensive and effective long-term 
                strategy and budget, with defined objectives, for 
                activities relating to reconstruction and development 
                in Afghanistan.
                    (B) Any actions to achieve the following goals with 
                respect to activities relating to reconstruction and 
                development in Afghanistan, and the results of such 
                actions:
                            (i) Improve coordination with all relevant 
                        departments and agencies of the United States 
                        Government, as well as NATO-ISAF countries and 
                        other international partners.
                            (ii) Clarify a single chain of command and 
                        operations plans for provincial reconstruction 
                        teams (PRTs) in Afghanistan.
                            (iii) Increase staffing, particularly 
                        staffing of civilian specialists, and increase 
                        staff training for PRTs.
                            (iv) Expand the National Solidarity Program 
                        and other efforts to develop the ability of the 
                        Afghan people to assume greater responsibility 
                        for their own reconstruction and development 
                        projects.
                            (v) Strengthen the partnership between the 
                        Governments of the United States and 
                        Afghanistan.
                            (vi) Strengthen reconstruction and 
                        development oversight activities, including 
                        implementation of any recommendations of the 
                        Special Inspector General for Afghanistan 
                        Reconstruction.
            (3) Regional considerations.--A description of any actions 
        and the results of such actions to increase cooperation with 
        countries geographically located around Afghanistan's border, 
        with a particular focus on improving security and stability in 
        the Afghanistan-Pakistan border areas.
    (d) Matters to Be Included: Performance Indicators and Measures of 
Progress Toward Sustainable Long-Term Security and Stability in 
Afghanistan.--
            (1) In general.--The report required by subsection (a) 
        shall set forth, in a section separate from any other section 
        of the report, a comprehensive set of performance indicators 
        and measures of progress toward sustainable long-term security 
        and stability in Afghanistan, as specified in paragraph (2), 
        and shall include performance standards and progress goals, 
        together with a notional timetable for achieving such goals.
            (2) Performance indicators and measures of progress 
        specified.--The performance indicators and measures of progress 
        specified in this paragraph shall include, at a minimum, the 
        following:
                    (A) Key measures of political stability relating to 
                both central and local Afghan governance.
                    (B) An assessment of military operations of NATO-
                ISAF and NATO-ISAF countries, and an assessment of 
                separate military operations by United States forces. 
                Such assessments shall include number of engagements 
                per day, trends relating to the numbers and types of 
                hostile encounters, equipment used, effect of national 
                caveats that limit operations, geographic location of 
                operations, and number of civilian casualties.
                    (C) For the Afghanistan National Army (ANA), and 
                separately for the Afghanistan National Police (ANP), 
                of the Afghanistan National Security Forces (ANSF) an 
                assessment of the following:
                            (i) Recruitment and retention numbers; 
                        rates of absenteeism; vetting procedures and 
                        mechanisms; salaries; numbers trained and 
                        mentored; type of training and mentoring, 
                        including training and mentoring providers and 
                        numbers receiving classroom or field training; 
                        organizational force structure; equipment used; 
                        operational performance, including ANA and ANP 
                        that are (I) capable of conducting operations 
                        independently, (II) capable of conducting 
                        operations with the support of the United 
                        States, NATO-ISAF forces, or other Coalition 
                        forces, or (III) not ready to conduct 
                        operations.
                            (ii) Effectiveness of ANA or ANP officers 
                        and the ANA and ANP chain of command.
                            (iii) Extent to which insurgents have 
                        infiltrated the ANA and ANP.
                            (iv) Number of United States and Coalition 
                        trainers, mentors, and advisors needed to 
                        support the ANA and ANP and associated 
                        ministries.
                            (v) Estimated number and capability level 
                        of ANA and ANP needed to perform duties now 
                        undertaken by the United States, NATO-ISAF 
                        forces, and other Coalition forces, including 
                        securing Afghanistan's border with Pakistan and 
                        providing adequate levels of law and order 
                        throughout Afghanistan.
                    (D) An assessment of the estimated strength of the 
                insurgency in Afghanistan and the extent to which it is 
                composed of non-Afghan fighters and utilizing weapons 
                or weapons-related materials from counties other than 
                Afghanistan.
                    (E) A description of all terrorist and insurgent 
                groups operating in Afghanistan, including the number, 
                size, equipment, strength, military effectiveness, 
                sources of support, legal status, and any efforts to 
                disarm or reintegrate each insurgent group.
                    (F) An assessment of security and stability, 
                including terrorist and insurgent activity, in 
                Afghanistan-Pakistan border areas and in Pakistan's 
                Federally Administered Tribal Areas (FATA).
                    (G) An assessment of United States military 
                requirements, including planned force rotations, 
                through the end of calendar year 2008.
    (e) Update of Report.--Not later than 90 days after the submission 
of the report required by subsection (a), and every 90 days thereafter, 
the Secretary of Defense shall submit to the appropriate congressional 
committees an update of the report.
    (f) Form.--The report required by subsection (a) and updates of the 
report required by subsection (e) shall be submitted in unclassified 
form, but may include a classified annex, if necessary.
    (g) Congressional Briefings.--The Secretary of Defense shall 
supplement the report required by subsection (a) and updates of the 
report required by subsection (e) with regular briefings to the 
appropriate congressional committees on the subject matter of the 
report or updates of the report.
    (h) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Affairs of the 
        House of Representatives; and
            (2) the Committee on Armed Services, the Committee on 
        Appropriations, and the Committee on Foreign Relations of the 
        Senate.

SEC. 1233. REPORT ON PROGRESS OF THE DEPARTMENT OF DEFENSE'S COUNTER-
              NARCOTICS PROGRAM FOR AFGHANISTAN.

    (a) Report Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to 
Congress a report on--
            (1) the counter-narcotics objectives of the Department of 
        Defense for Afghanistan; and
            (2) the strategy for implementing such objectives.
    (b) Matters to Be Included.--The report required by subsection (a) 
shall--
            (1) identify the role and responsibilities of the 
        Department of Defense in addressing any of the applicable five 
        pillars that comprise the counter-narcotics strategy and 
        implementation plan for Afghanistan: public information, rural 
        development (alternative livelihoods), elimination and 
        eradication activities, law enforcement and interdiction, and 
        law enforcement and justice reform;
            (2) describe the strategic direction of activities of the 
        Department of Defense relating to counter-narcotics efforts in 
        Afghanistan, and specifically include a description of--
                    (A) a clear, comprehensive and effective long-term 
                strategy and any planned budget, with defined 
                objectives; and
                    (B) actions that the Department of Defense has 
                undertaken and has planned, to--
                            (i) improve coordination with all relevant 
                        departments and agencies of the United States 
                        Government;
                            (ii) strengthen significantly the 
                        Afghanistan National Counter-Narcotics Police;
                            (iii) build the capacity of the Afghan 
                        Government to assume greater responsibility for 
                        counter-narcotics related-activities;
                            (iv) improve counter-narcotics intelligence 
                        capabilities;
                            (v) strengthen capabilities in support of 
                        narcotics-related interdiction activities;
                            (vi) effectively address problems with any 
                        counter-narcotics strategies involving the 
                        Department of Defense; and
                            (vii) address other elements of the 
                        applicable five pillars that comprise the 
                        counter-narcotics strategy and implementation 
                        plan for Afghanistan as described in paragraph 
                        (1); and
            (3) set forth, in a section separate from any other section 
        of the report, a comprehensive set of performance indicators 
        and measures of progress for the Department of Defense's 
        programs relating to counter-narcotics efforts in Afghanistan, 
        which shall include performance standards and progress goals, 
        together with a notional timetable for achieving such goals.
    (c) Update of Report.--Not later than 90 days after the submission 
of the report required by subsection (a), and every 90 days thereafter, 
the Secretary of Defense shall submit to Congress an update of the 
report.
    (d) Concurrent Submission of Report.--The report required by 
subsection (a) and updates of the report required by subsection (c) 
shall be submitted concurrently with the report required by section 
1232 of this Act (relating to progress toward security and stability in 
Afghanistan).
    (e) Form.--The report required by subsection (a) and updates of the 
report required by subsection (c) shall be submitted in unclassified 
form, but may include a classified annex, if necessary.

SEC. 1234. UNITED STATES PLAN FOR SUSTAINING THE AFGHANISTAN NATIONAL 
              SECURITY FORCES.

    (a) Plan Required.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
appropriate congressional committees a long-term detailed plan for 
sustaining the Afghanistan National Army and the Afghanistan National 
Police of the Afghanistan National Security Forces (ANSF). The plan 
required by this subsection shall ensure that a strong and fully-
capable ANSF will be able to independently and effectively conduct 
operations and maintain long-term security and stability in 
Afghanistan.
    (b) Coordination.--The plan required by subsection (a) shall be 
prepared in coordination with the Secretary of State and the Attorney 
General.
    (c) Matters to Be Included.--The plan required by subsection (a) 
shall include a description of the following matters relating to 
sustainability of the ANSF:
            (1) A clear, comprehensive and effective long-term strategy 
        and budget, with defined objectives.
            (2) A mechanism for tracking funding, including obligations 
        and expenditures, as well as equipment, training, and services 
        provided for the ANSF by the United States, countries 
        participating in the North Atlantic Treaty Organization 
        International Security Assistance Force (NATO-ISAF countries), 
        and other international partners.
            (3) A comprehensive set of performance indicators and 
        measures of progress related to sustaining the ANSF, which 
        shall include performance standards and progress goals, 
        together with a notional timetable for achieving such goals.
            (4) Actions to achieve the following goals:
                    (A) Effective Afghan security institutions with 
                fully-capable leadership and staff, including a 
                reformed Ministry of Interior, a fully-established 
                Ministry of Defense, and logistics, intelligence, 
                medical, and recruiting units (ANSF-sustaining 
                institutions).
                    (B) Fully-trained, equipped and capable ANSF in 
                sufficient numbers.
                    (C) Strong ANSF-readiness assessment tools and 
                metrics.
                    (D) A strong core of senior-level ANSF officers.
                    (E) Strong ANSF communication and control between 
                central command and regions, provinces, and districts.
                    (F) A robust mentoring and advising program for the 
                ANSF.
                    (G) A strong professional military training and 
                education program for all junior, mid-level, and senior 
                ANSF officials.
                    (H) Effective merit-based salary, rank, promotion, 
                and incentive structures for the ANSF.
                    (I) An established code of professional standards 
                for the ANSF.
                    (J) A mechanism for incorporating lessons learned 
                and best practices into ANSF operations.
                    (K) An ANSF personnel accountability system with 
                effective internal discipline procedures and 
                mechanisms.
                    (L) A system for addressing ANSF personnel 
                complaints.
                    (M) A strong record-keeping system to track ANSF 
                equipment and personnel issues, and other ANSF 
                oversight mechanisms.
            (5) Coordination with all relevant United States Government 
        departments and agencies, as well as NATO-ISAF countries and 
        other international partners, including on--
                    (A) funding;
                    (B) reform and establishment of ANSF-sustaining 
                institutions; and
                    (C) efforts to ensure that progress on sustaining 
                the ANSF is reinforced with progress in other pillars 
                of the Afghan security sector, particularly progress on 
                building an effective judiciary, curbing production and 
                trafficking of illicit narcotics, and demobilizing, 
                disarming, and reintegrating militia fighters.
    (d) Update of Plan.--Not later than 90 days after the submission of 
the plan required by subsection (a), and every 90 days thereafter, the 
Secretary of Defense, in coordination with the Secretary of State and 
the Attorney General, shall submit to the appropriate congressional 
committees an update of the plan required by subsection (a), as 
necessary.
    (e) Concurrent Submission of Plan.--The plan required by subsection 
(a), and any update of the plan required by subsection (d), shall be 
submitted concurrently with the report required by section 1232 of this 
Act (relating to progress toward security and stability in 
Afghanistan).
    (f) Appropriate Congressional Committees Defined.--In this section, 
the term ``appropriate congressional committees'' means--
            (1) the Committee on Armed Services, the Committee on 
        Appropriations, the Committee on Foreign Affairs, and the 
        Committee on the Judiciary of the House of Representatives; and
            (2) the Committee on Armed Services, the Committee on 
        Appropriations, the Committee on Foreign Relations, and the 
        Committee on the Judiciary of the Senate.

                       Subtitle D--Other Matters

SEC. 1241. 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'' each place it appears and inserting ``a 
                cooperative opportunities document''; and
                    (B) in subparagraph (B), by striking ``a Mission 
                Need Statement'' 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. 1242. EXTENSION OF COUNTERPROLIFERATION PROGRAM REVIEW COMMITTEE.

    (a) Members.--Section 1605 of the National Defense Authorization 
Act for Fiscal Year 1994 (22 U.S.C. 2751 note) is amended in subsection 
(a)(1)--
            (1) in subparagraph (C) by striking ``Director of Central 
        Intelligence'' and inserting ``Director of National 
        Intelligence''; and
            (2) by adding at the end the following:
                    ``(E) The Secretary of State.
                    ``(F) The Secretary of Homeland Security.
                    ``(G) The Secretary of Health and Human Services.
                    ``(H) The Administrator of the Environmental 
                Protection Agency.''.
    (b) Access to Information.--Subsection (d) of such section is 
amended by inserting after ``Department of Energy,'' the following: 
``the Department of State, the Department of Homeland Security, the 
Department of Health and Human Services, the Environmental Protection 
Agency,''.
    (c) Termination.--Subsection (f) of such section is amended by 
striking ``2008'' and inserting ``2013''.
    (d) Submission of Report.--Section 1503 of the National Defense 
Authorization Act for Fiscal Year 1995 (22 U.S.C. 2751 note) is 
amended--
            (1) in subsection (a)--
                    (A) by striking ``Annual'' and inserting 
                ``Biennial''; and
                    (B) by striking ``May 1 each year'' and inserting 
                ``March 1 each odd-numbered year''; and
            (2) in subsection (b)(5)--
                    (A) by striking ``fiscal year preceding'' and 
                inserting ``two fiscal years preceding''; and
                    (B) by striking ``preceding fiscal year'' and 
                inserting ``preceding fiscal years''.

SEC. 1243. SENSE OF CONGRESS CONCERNING THE WESTERN HEMISPHERE 
              INSTITUTE FOR SECURITY COOPERATION.

    It is the sense of Congress that--
            (1) the education and training facility of the Department 
        of Defense known as the Western Hemisphere Institute for 
        Security Cooperation is succeeding in meeting its stated 
        mission of providing professional education and training to 
        eligible military personnel, law enforcement officials, and 
        civilians of nations of the Western Hemisphere that support the 
        democratic principles set forth in the Charter of the 
        Organization of American States, while fostering mutual 
        knowledge, transparency, confidence, and cooperation among the 
        participating nations and promoting democratic values and 
        respect for human rights; and
            (2) therefore, the Institute is an invaluable education and 
        training facility which the Department of Defense should 
        continue to utilize in order to help foster a spirit of 
        partnership and interoperability among the United States 
        military and the militaries of participating nations.

SEC. 1244. SENSE OF CONGRESS CONCERNING THE STRATEGIC MILITARY 
              CAPABILITIES AND INTENTIONS OF THE PEOPLE'S REPUBLIC OF 
              CHINA.

    It is the sense of Congress that--
            (1) United States military war-fighting capabilities are 
        potentially threatened by the strategic military capabilities 
        and intentions of the People's Republic of China, as 
        demonstrated by--
                    (A) the October 2006 undetected broach of a Chinese 
                SONG-class diesel-electric submarine in close proximity 
                of the USS Kitty Hawk in international waters; and
                    (B) the January 2007 test of a direct ascent anti-
                satellite (ASAT) weapon, posing a potential threat to 
                United States military assets in space;
            (2) it is in the national security interests of the United 
        States to make every effort to understand China's strategic 
        military capabilities and intentions; and
            (3) as part of such an effort, the Secretary of Defense 
        should expand efforts to develop an accurate assessment of 
        China's strategic military modernization, particularly with 
        regard to its sea- and space-based strategic capabilities.

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

Sec. 1301. Specification of Cooperative Threat Reduction programs and 
                            funds.
Sec. 1302. Funding allocations.
Sec. 1303. New initiatives for the Cooperative Threat Reduction 
                            Program.
Sec. 1304. Requirements relating to chemical weapons destruction at 
                            Shchuch'ye, Russia.
Sec. 1305. Repeal of restrictions on Cooperative Threat Reduction 
                            Program.
Sec. 1306. Authority to use Cooperative Threat Reduction funds outside 
                            the former Soviet Union.

SEC. 1301. SPECIFICATION OF COOPERATIVE THREAT REDUCTION PROGRAMS AND 
              FUNDS.

    (a) Specification of CTR Programs.--For purposes of section 301 and 
other provisions of this Act, Cooperative Threat Reduction programs are 
the programs specified in section 1501(b) of the National Defense 
Authorization Act for Fiscal Year 1997 (Public Law 104-201; 110 Stat. 
2731; 50 U.S.C. 2362 note).
    (b) Fiscal Year 2008 Cooperative Threat Reduction Funds Defined.--
As used in this title, the term ``fiscal year 2008 Cooperative Threat 
Reduction funds'' means the funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs.
    (c) Availability of Funds.--Funds appropriated pursuant to the 
authorization of appropriations in section 301 for Cooperative Threat 
Reduction programs shall be available for obligation for three fiscal 
years.

SEC. 1302. FUNDING ALLOCATIONS.

    (a) Funding for Specific Purposes.--Of the $398,000,000 authorized 
to be appropriated to the Department of Defense for fiscal year 2008 in 
section 301(19) for Cooperative Threat Reduction programs, the 
following amounts may be obligated for the purposes specified:
            (1) For strategic offensive arms elimination in the Russian 
        Federation, $77,900,000.
            (2) For nuclear weapons storage security in Russia, 
        $23,000,000.
            (3) For nuclear weapons transportation security in Russia, 
        $37,700,000.
            (4) For weapons of mass destruction proliferation 
        prevention in the states of the former Soviet Union, 
        $38,000,000.
            (5) For biological weapons proliferation prevention in the 
        former Soviet Union, $144,400,000.
            (6) For chemical weapons destruction in Russia, 
        $42,700,000.
            (7) For defense and military contacts, $8,000,000.
            (8) For new Cooperative Threat Reduction initiatives that 
        are outside the scope of existing Cooperative Threat Reduction 
        programs and projects, $7,000,000.
            (9) For activities designated as Other Assessments/
        Administration costs, $19,300,000, of which $300,000 is to 
        expand staff capacity, capabilities, and resources necessary 
        for activities related to new Cooperative Threat Reduction 
        initiatives authorized under paragraph (8).
    (b) Report on Obligation or Expenditure of Funds for Other 
Purposes.--No fiscal year 2008 Cooperative Threat Reduction funds may 
be obligated or expended for a purpose other than a purpose listed in 
paragraphs (1) through (9) of subsection (a) until 30 days after the 
date that the Secretary of Defense submits to Congress a report on the 
purpose for which the funds will be obligated or expended and the 
amount of funds to be obligated or expended. Nothing in the preceding 
sentence shall be construed as authorizing the obligation or 
expenditure of fiscal year 2008 Cooperative Threat Reduction funds for 
a purpose for which the obligation or expenditure of such funds is 
specifically prohibited under this title or any other provision of law.
    (c) Limited Authority to Vary Individual Amounts.--
            (1) In general.--Subject to paragraphs (2) and (3), in any 
        case in which the Secretary of Defense determines that it is 
        necessary to do so in the national interest, the Secretary may 
        obligate amounts appropriated for fiscal year 2008 for a 
        purpose listed in any of the paragraphs in subsection (a) in 
        excess of the specific amount authorized for that purpose.
            (2) Notice-and-wait required.--An obligation of funds for a 
        purpose stated in any of the paragraphs in subsection (a) in 
        excess of the specific amount authorized for such purpose may 
        be made using the authority provided in paragraph (1) only 
        after--
                    (A) the Secretary submits to Congress notification 
                of the intent to do so together with a complete 
                discussion of the justification for doing so; and
                    (B) 15 days have elapsed following the date of the 
                notification.
            (3) Restriction.--The Secretary may not, under the 
        authority provided in paragraph (1), obligate amounts for a 
        purpose stated in any of paragraphs (6) through (9) of 
        subsection (a) in excess of 125 percent of the specific amount 
        authorized for such purpose.

SEC. 1303. NEW INITIATIVES FOR THE COOPERATIVE THREAT REDUCTION 
              PROGRAM.

    (a) Sense of Congress.--It is the sense of Congress that--
            (1) the Department of Defense Cooperative Threat Reduction 
        (CTR) Program should be strengthened and expanded, in part by 
        developing new CTR initiatives;
            (2) such new initiatives should--
                    (A) increase international security and threat 
                reduction cooperation, capacity building, and security 
                and elimination of nuclear, chemical, and biological 
                weapons and weapons-related materials that pose a 
                threat to United States national security interests;
                    (B) be well-coordinated with the Department of 
                Energy, the Department of State, and any other relevant 
                United States Government agency or department;
                    (C) include robust transparency, accountability, 
                verification measures and mechanisms, and legal 
                frameworks between the United States and CTR partner 
                countries;
                    (D) reflect engagement with non-governmental 
                experts, including the National Academy of Sciences, on 
                possible options for strengthening and expanding the 
                CTR Program;
                    (E) include active work with the Russian Federation 
                and other countries to establish strong CTR 
                partnerships that, among other things--
                            (i) increase the role of scientists and 
                        government officials from Russia and other 
                        partner countries in designing CTR programs and 
                        projects; and
                            (ii) increase financial contributions and 
                        additional commitments to CTR programs and 
                        projects from Russia and other partner 
                        countries, as evidence that the programs and 
                        projects reflect national priorities and will 
                        be sustainable;
                    (F) benefit from broad efforts to increase 
                international contributions, in addition to 
                contributions from CTR partner countries, for CTR 
                programs and projects;
                    (G) incorporate a strong focus on national programs 
                and sustainability, which includes actions to address 
                concerns raised and recommendations made by the 
                Government Accountability Office, in its report of 
                February 2007 titled ``Progress Made in Improving 
                Security at Russian Nuclear Sites, but the Long-Term 
                Sustainability of U.S. Funded Security Upgrades is 
                Uncertain'', regarding safeguarding nuclear warheads 
                and materials;
                    (H) demonstrate an increased focus on and 
                development of CTR programs and projects that eliminate 
                and secure nuclear, chemical, and biological weapons 
                and weapons-related materials at the source; and
                    (I) include active efforts to expand the scope of 
                existing CTR programs and projects and develop new CTR 
                programs and projects in Russia and the former Soviet 
                Union, and in countries and regions outside the former 
                Soviet Union, where appropriate and in the interest of 
                United States national security; and
            (3) such new initiatives could include--
                    (A) new CTR programs and projects in Asia and the 
                Middle East;
                    (B) activities relating to the denuclearization of 
                the Democratic People's Republic on Korea and security 
                of the Korean peninsula; and
                    (C) development of rapid-response and short-term 
                capabilities to respond to unforeseen contingencies or 
                pursue quickly emergent opportunities.
    (b) National Academy of Sciences Study.--
            (1) Study.--Not later than 30 days after the date of the 
        enactment of this Act, the Secretary of Defense shall enter 
        into an arrangement with the National Academy of Sciences under 
        which the Academy shall carry out a study to analyze options 
        for strengthening and expanding the CTR Program.
            (2) Matters to be included in study.--The Secretary shall 
        provide for the study under paragraph (1) to include--
                    (A) an assessment of each new CTR initiative 
                described in subsection (a); and
                    (B) an identification of options and formulation of 
                recommendations for strengthening and expanding the CTR 
                Program.
    (c) Secretary of Defense Report.--
            (1) In general.--Not later than March 31, 2008, the 
        Secretary of Defense shall submit to the congressional defense 
        committees, and to the Committee on Foreign Relations of the 
        Senate and the Committee on Foreign Affairs of the House of 
        Representatives, a report on new CTR initiatives. The report 
        shall include--
                    (A) the results of the study carried out under 
                subsection (b), including any report or other document 
                received from the National Academy of Sciences with 
                respect to such study;
                    (B) the Secretary's assessment of the study; and
                    (C) a specific action plan for the development and 
                implementation of new CTR initiatives and the use of 
                any funds authorized and appropriated for fiscal year 
                2008 for such initiatives, which shall include a 
                discussion of each new CTR initiative described in 
                subsection (a) and the action plan for implementing the 
                recommendations, if any, of the study carried out under 
                subsection (b) that the Secretary has decided to 
                pursue.
            (2) Classification.--The report shall be in unclassified 
        form but may include a classified annex if necessary.
    (d) Funding.--Of the amounts made available pursuant to the 
authorization of appropriations in section 301(19) for new CTR 
initiatives under the CTR Program, $1,000,000 shall be available to 
carry out this section.

SEC. 1304. REQUIREMENTS RELATING TO CHEMICAL WEAPONS DESTRUCTION AT 
              SHCHUCH'YE, RUSSIA.

    (a) Notice of Agreement Required.--
            (1) In general.--Not later than 30 days after the 
        commencement of negotiations for, or the signing and 
        finalization of, an agreement described in paragraph (2), the 
        Secretary of Defense shall provide the congressional defense 
        committees with formal written notice of the commencement of 
        negotiations for that agreement or the signing or finalization 
        of that agreement, as the case may be.
            (2) Agreement.--Paragraph (1) applies to any agreement with 
        the Russian Federation, the implementation of which would have 
        the effect of--
                    (A) transferring to Russia any responsibilities 
                relating to the scope of work for the Shchuch'ye 
                project that are, as of the date of the enactment of 
                this Act, responsibilities of the Department of 
                Defense; or
                    (B) otherwise changing the implementation of the 
                project in any manner inconsistent with the purpose and 
                intent of the amounts authorized and appropriated for 
                the project.
    (b) Report Required.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
congressional defense committees a report on the Shchuch'ye project. 
The report shall include--
            (1) a current and detailed cost estimate for completion of 
        the project; and
            (2) a specific strategic and operating plan for completion 
        of the project, which includes--
                    (A) active engagement with Russia on securing 
                appropriate contractors and other matters relating to 
                project completion;
                    (B) a comprehensive assessment of alternative 
                contracting options;
                    (C) robust Department project management and 
                oversight, including management and oversight with 
                respect to the performance of any contractors;
                    (D) project quality assurance and sustainability 
                measures, including measures to ensure security of the 
                chemical weapons stockpile at the project site;
                    (E) metrics for measuring project progress with a 
                timetable for achieving goals;
                    (F) coordination of the Department's efforts 
                relating to the project with the Department of Energy 
                and other departments or agencies of the United States 
                Government, international partners, and non-
                governmental experts who may be helpful in facilitating 
                the project; and
                    (G) a project completion date.
    (c) Submissions Required Before Implementation of Agreement.--The 
Secretary of Defense may not implement any agreement described in 
subsection (a)(2) until 90 days after the date on which the Secretary 
has submitted to the congressional defense committees all of the 
following:
            (1) The report required by subsection (b).
            (2) A copy of the signed and finalized agreement.
            (3) The Secretary's certification that the signed and 
        finalized agreement accomplishes each of the following:
                    (A) Describes the respective responsibilities of 
                the Department and Russia relating to completion of the 
                Shchuch'ye project, including in the areas of 
                management, oversight, implementation, security, 
                quality assurance, and sustainability.
                    (B) Specifies the date of project completion.
                    (C) Provides the safeguards needed to ensure timely 
                and effective project completion.
                    (D) Ensures that the chemical weapons stockpile at 
                the project site is secure.
    (d) Congressional Briefings.--The Secretary of Defense shall 
supplement the report required by subsection (b) with regular briefings 
to the congressional defense committees on the subject matter of the 
report.
    (e) Definition.--In this section, the terms ``Shchuch'ye project'' 
and ``project'' mean the Cooperative Threat Reduction (CTR) Program 
chemical weapons destruction project located in the area of Shchuch'ye 
in Russia.

SEC. 1305. REPEAL OF RESTRICTIONS ON COOPERATIVE THREAT REDUCTION 
              PROGRAM.

    (a) Soviet Nuclear Threat Reduction Act of 1991.--Section 211(b) of 
the Soviet Nuclear Threat Reduction Act of 1991 (title II of Public Law 
102-228; 22 U.S.C. 2551 note) is repealed.
    (b) Cooperative Threat Reduction Act of 1993.--Section 1203(d) of 
the Cooperative Threat Reduction Act of 1993 (title XII of Public Law 
103-160; 22 U.S.C. 5952(d)) is repealed.
    (c) Russian Chemical Weapons Destruction Facilities.--Section 1305 
of the National Defense Authorization Act for Fiscal Year 2000 (Public 
Law 106-65; 22 U.S.C. 5952 note) is repealed.

SEC. 1306. AUTHORITY TO USE COOPERATIVE THREAT REDUCTION FUNDS OUTSIDE 
              THE FORMER SOVIET UNION.

    (a) Modification of Certification Requirement.--Section 1308 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136; 22 U.S.C. 5963) is amended in subsection (a)--
            (1) by striking ``the President may'' and inserting ``the 
        Secretary of Defense may''; and
            (2) by striking ``if the President'' and inserting ``if the 
        Secretary of Defense, with the concurrence of the Secretary of 
        State,''.
    (b) Repeal of Funding Limitation.--Section 1308 of that Act is 
further amended by striking subsection (c).
    (c) Congressional Notice Requirement.--Section 1308 of that Act is 
further amended in subsection (d)--
            (1) in paragraph (1)--
                    (A) by striking ``The President may not'' and 
                inserting ``The Secretary of Defense may not''; and
                    (B) by striking ``until the President'' and 
                inserting ``until the Secretary of Defense'';
            (2) in paragraph (2)--
                    (A) by striking ``Not later than 10 days after'' 
                and inserting ``Not later than 15 days prior to'';
                    (B) by striking ``the President shall'' and 
                inserting ``the Secretary of Defense shall''; and
                    (C) by striking ``Congress'' and inserting ``the 
                Committee on Armed Services and the Committee on 
                Foreign Affairs of the House of Representatives and the 
                Committee on Armed Services and Committee on Foreign 
                Relations of the Senate''; and
            (3) by adding at the end the following:
    ``(3) In the case of a situation that threatens human life or 
safety or where a delay would severely undermine the national security 
of the United States, notification under paragraph (2) shall be made 
not later than 10 days after obligating funds under the authority in 
subsection (a) for a project or activity.''.

                 TITLE XIV--WOUNDED WARRIOR ASSISTANCE

Sec. 1401. Definitions.

          Subtitle A--Improved Assistance for Wounded Warriors

Sec. 1411. Improvements to medical and dental care for members of the 
                            Armed Forces assigned to hospitals in an 
                            outpatient status.
Sec. 1412. Establishment of a Department of Defense-wide Ombudsman 
                            Office.
Sec. 1413. Establishment of toll-free hot line for reporting 
                            deficiencies in medical-related support 
                            facilities and expedited response to 
                            reports of deficiencies.
Sec. 1414. Notification to Congress of hospitalization of combat 
                            wounded service members.
Sec. 1415. Independent medical advocate for members before medical 
                            evaluation boards.
Sec. 1416. Training and workload for physical evaluation board liaison 
                            officers.
Sec. 1417. Standardized training program and curriculum for Department 
                            of Defense disability evaluation system.
Sec. 1418. Improved training for health care professionals, medical 
                            care case managers, and service member 
                            advocates on particular conditions of 
                            recovering service members.
Sec. 1419. Pilot program to establish an Army Wounded Warrior Battalion 
                            at an appropriate active duty base.
Sec. 1420. Criteria for removal of member from temporary disability 
                            retired list.
Sec. 1421. Improved transition of members of the Armed Forces to 
                            Department of Veterans Affairs upon 
                            retirement or separation.
Sec. 1422. Establishment of Medical Support Fund for support of members 
                            of the Armed Forces returning to military 
                            service or civilian life.
Sec. 1423. Oversight Board for Wounded Warriors.
Sec. 1424. Option for members of reserve components to use military 
                            medical treatment facilities closest to 
                            home for certain injuries.
Sec. 1425. Plans and research for reducing post traumatic stress 
                            disorder.

                    Subtitle B--Studies and Reports

Sec. 1431. Annual report on military medical facilities.
Sec. 1432. Access of recovering service members to adequate outpatient 
                            residential facilities.
Sec. 1433. Evaluation and report on Department of Defense and 
                            Department of Veterans Affairs disability 
                            evaluation systems.
Sec. 1434. Study and report on support services for families of 
                            recovering service members.
Sec. 1435. Report on traumatic brain injury classifications.
Sec. 1436. Evaluation of the Polytrauma Liaison Officer/Non-
                            Commissioned Officer Program.
Sec. 1437. Study and report on standard soldier patient tracking 
                            system.
Sec. 1438. Study and report on waiting periods for appointments at 
                            Department of Veterans Affairs medical 
                            facilities.

                     Subtitle C--General Provisions

Sec. 1451. Moratorium on conversion to contractor performance of 
                            Department of Defense functions at military 
                            medical facilities.
Sec. 1452. Prohibition on transfer of resources from medical care.
Sec. 1453. Increase in physicians at hospitals of the Department of 
                            Veterans Affairs.

SEC. 1401. DEFINITIONS.

    In this title:
            (1) Congressional defense committees.--The term 
        ``congressional defense committees'' has the meaning given that 
        term in section 101(a)(16) of title 10, United States Code.
            (2) Disability evaluation system.--The term ``disability 
        evaluation system'' means the Department of Defense system or 
        process for evaluating the nature of and extent of disabilities 
        affecting members of the armed forces (other than the Coast 
        Guard) and comprised of medical evaluation boards, physical 
        evaluation boards, counseling of members, and final disposition 
        by appropriate personnel authorities, as operated by the 
        Secretaries of the military departments, and, in the case of 
        the Coast Guard, a similar system or process operated by the 
        Secretary of Homeland Security.
            (3) Family member.--The term ``family member'', with 
        respect to a recovering service member, has the meaning given 
        that term in section 411h(b) of title 37, United States Code.
            (4) Recovering service member.--The term ``recovering 
        service member'' means a member of the Armed Forces, including 
        a member of the National Guard or a Reserve, who is undergoing 
        medical treatment, recuperation, or therapy, or is otherwise in 
        medical hold or holdover status, for an injury, illness, or 
        disease incurred or aggravated while on active duty in the 
        Armed Forces.
            (5) Medical care.--The term ``medical care'' includes 
        mental health care.

          Subtitle A--Improved Assistance for Wounded Warriors

SEC. 1411. IMPROVEMENTS TO MEDICAL AND DENTAL CARE FOR MEMBERS OF THE 
              ARMED FORCES ASSIGNED TO HOSPITALS IN AN OUTPATIENT 
              STATUS.

    (a) Medical and Dental Care of Members Assigned to Hospitals in an 
Outpatient Status.--
            (1) In general.--Chapter 55 of title 10, United States 
        Code, is amended by inserting after section 1074k the following 
        new section:
``Sec. 1074l. Management of medical and dental care: members assigned 
              to receive care in an outpatient status
    ``(a) Medical Care Case Managers.--(1) A member in an outpatient 
status at a military medical treatment facility shall be assigned a 
medical care case manager.
    ``(2)(A) The duties of the medical care case manager shall include 
the following with respect to the member (or the member's immediate 
family if the member is incapable of making judgments about personal 
medical care):
            ``(i) To assist in understanding the member's medical 
        status.
            ``(ii) To assist in receiving prescribed medical care.
            ``(iii) To conduct a review, at least once a week, of the 
        member's medical status.
    ``(B) The weekly medical status review described in subparagraph 
(A)(iii) shall be conducted in person with the member. If such a review 
is not practicable, the medical care case manager shall provide a 
written statement to the case manager's supervisor indicating why an 
in-person medical status review was not possible.
    ``(3)(A) Except as provided in subparagraph (B), each medical care 
case manager shall be assigned to manage not more than 17 members in an 
outpatient status.
    ``(B) The Secretary concerned may waive for up to 120 days the 
requirement of subparagraph (A) if required due to unforeseen 
circumstances.
    ``(4)(A) The medical care case manager office at each facility 
shall be headed by a commissioned officer of appropriate rank and 
appropriate military occupation specialty, designator, or specialty 
code.
    ``(B) For purposes of subparagraph (A), an appropriate military 
occupation specialty, designator, or specialty code includes membership 
in the Army Medical Corps, Army Medical Service Corps, Army Nurse 
Corps, Navy Medical Corps, Navy Medical Service Corps, Navy Nurse 
Corps, Air Force Medical Service, or other corps comprised of health 
care professionals at the discretion of the Secretary of Defense.
    ``(5) The Secretary of Defense shall establish a standard training 
program and curriculum for medical care case managers. Successful 
completion of the training program is required before a person may 
assume the duties of a medical care case manager.
    ``(6) The Secretary concerned shall ensure that medical care case 
managers have the resources necessary to ensure that they expeditiously 
carry out the responsibilities and duties of their position.
    ``(b) Service Member Advocate.--(1) A member in an outpatient 
status shall be assigned a service member advocate.
    ``(2) The duties of the service member advocate shall include--
            ``(A) communicating with the member and with the member's 
        family or other individuals designated by the member;
            ``(B) assisting with oversight of the member's welfare and 
        quality of life; and
            ``(C) assisting the member in resolving problems involving 
        financial, administrative, personnel, transitional, and other 
        matters.
    ``(3)(A) Except as provided in subparagraph (B), each service 
member advocate shall be assigned to not more than 30 members in an 
outpatient status.
    ``(B) The Secretary concerned may waive for up to 120 days the 
requirement of subparagraph (A) if required due to unforeseen 
circumstances.
    ``(4) The service member advocate office at each facility shall be 
headed by a commissioned officer of appropriate rank and appropriate 
military occupation specialty, designator, or specialty code in order 
to handle service-specific personnel and financial issues.
    ``(5) The Secretary of Defense shall establish a standard training 
program and curriculum for service member advocates. Successful 
completion of the training program is required before a person may 
assume the duties of a service member advocate.
    ``(6) A service member advocate shall continue to perform the 
duties described in paragraph (2) with respect to a member until the 
member is returned to duty or separated or retired from the armed 
forces.
    ``(7) The Secretary concerned shall ensure that service member 
advocates have the resources necessary to ensure that they 
expeditiously carry out the responsibilities and duties of their 
position.
    ``(c) Outreach.--The Secretary of Defense shall make available to 
each member in an outpatient status at a military medical treatment 
facility, and to the family members of all such members, information on 
the availability of services provided by the medical care case managers 
and service member advocates, including information on how to contact 
such managers and advocates and how to use their services.
    ``(d) Semiannual Surveys by Secretaries Concerned.--The Secretary 
concerned shall conduct a semiannual survey of members in an outpatient 
status at installations under the Secretary's supervision. The survey 
shall include, at a minimum, the members' assessment of the quality of 
medical care at the facility, the timeliness of medical care at the 
facility, the adequacy of living facilities and other quality of life 
programs, the adequacy of case management support, and the fairness and 
timeliness of the physical disability evaluation system. The survey 
shall be conducted in coordination with installation medical commanders 
and authorities, and shall be coordinated with such commanders and 
authorities before submission to the Secretary.
    ``(e) Definitions.--In this section:
            ``(1) The term `member in an outpatient status' means a 
        member of the armed forces assigned to a military medical 
        treatment facility as an outpatient or to a unit established 
        for the purpose of providing command and control of members 
        receiving medical care as outpatients.
            ``(2) The term `disability evaluation system' means the 
        Department of Defense system or process for evaluating the 
        nature of and extent of disabilities affecting members of the 
        armed forces (other than the Coast Guard) and comprised of 
        medical evaluation boards, physical evaluation boards, 
        counseling of members, and final disposition by appropriate 
        personnel authorities, as operated by the Secretaries of the 
        military departments, and, in the case of the Coast Guard, a 
        similar system or process operated by the Secretary of Homeland 
        Security.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``1074l. Management of medical and dental care: members assigned to 
                            receive care in an outpatient status.''.
    (b) Effective Date.--Section 1074l of title 10, United States Code, 
as added by subsection (a), shall take effect 180 days after the date 
of the enactment of this Act.

SEC. 1412. ESTABLISHMENT OF A DEPARTMENT OF DEFENSE-WIDE OMBUDSMAN 
              OFFICE.

    (a) Establishment.--The Secretary of Defense shall establish a 
Department of Defense-wide Ombudsman Office (in this section referred 
to as the ``Ombudsman Office'') within the Office of the Secretary of 
Defense.
    (b) Functions.--
            (1) In general.--The functions of the Ombudsman Office are 
        to provide policy guidance to, and oversight of, the ombudsman 
        offices in the military departments.
            (2) Policy guidance.--The Ombudsman Office shall develop 
        policy guidance with respect to the following:
                    (A) Providing assistance to and answering questions 
                from recovering service members and their families 
                regarding--
                            (i) administrative processes, financial 
                        matters, and non-military related services 
                        available to the members and their families 
                        throughout the member's evaluation, treatment, 
                        and recovery;
                            (ii) transfer to the care of the Department 
                        of Veterans Affairs; and
                            (iii) support services available upon the 
                        member's return home.
                    (B) Accountability standards, including--
                            (i) creating and maintaining case files for 
                        individual specific questions received, and 
                        initiating inquiries and tracking responses for 
                        all such questions;
                            (ii) setting standards for timeliness of 
                        responses; and
                            (iii) setting standards for accountability 
                        to recovering service members and their 
                        families, including requirements for daily 
                        updates to the members and their families about 
                        steps being taken to alleviate problems and 
                        concerns until problems are addressed.
    (c) Status Reports.--The ombudsman office in each military 
department shall submit status reports of actions taken to address 
individual concerns to the Ombudsman Office, at such times as the 
Ombudsman Office considers appropriate.
    (d) Responses From Other Offices.--The Secretary of Defense shall 
ensure that all other offices within the Department of Defense and the 
military departments respond in a timely manner to resolve questions 
and requests from the Ombudsman Office on behalf of recovering service 
members and their families, including offices responsible for medical 
matters (including medical holdover processes), financial and 
accounting matters, legal matters, human resources matters, reserve 
component matters, installation and management matters, and physical 
disability matters.
    (e) Staff of the Office.--The staff of the Ombudsman Office shall 
include representatives from each military department, including 
persons with experience in medical holdover processes and other medical 
matters.

SEC. 1413. ESTABLISHMENT OF TOLL-FREE HOT LINE FOR REPORTING 
              DEFICIENCIES IN MEDICAL-RELATED SUPPORT FACILITIES AND 
              EXPEDITED RESPONSE TO REPORTS OF DEFICIENCIES.

    (a) Establishment.--Chapter 80 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1567. Identification and investigation of deficiencies in 
              adequacy, quality, and state of repair of medical-related 
              support facilities
    ``(a) Toll-Free Hot Line.--The Secretary of Defense shall establish 
and maintain a toll-free telephone number (commonly referred to as a 
`hot line') at which personnel are accessible at all times to collect, 
maintain, and update information regarding possible deficiencies in the 
adequacy, quality, and state of repair of medical-related support 
facilities. The Secretary shall widely disseminate information 
regarding the existence and availability of the toll-free telephone 
number to members of the armed forces and their dependents.
    ``(b) Confidentiality.--(1) Individuals who seek to provide 
information through use of the toll-free telephone number under 
subsection (a) shall be notified, immediately before they provide such 
information, of their option to elect, at their discretion, to have 
their identity remain confidential.
    ``(2) In the case of information provided through use of the toll-
free telephone number by an individual who elects to maintain the 
confidentiality of his or her identity, any individual who, by 
necessity, has had access to such information for purposes of 
conducting the investigation or executing the response plan required by 
subsection (c) may not disclose the identity of the individual who 
provided the information.
    ``(c) Investigation and Response Plan.--Not later than 96 hours 
after a report of deficiencies in the adequacy, quality, or state of 
repair of a medical-related support facility is received by way of the 
toll-free telephone number or other source, the Secretary of Defense 
shall ensure that--
            ``(1) the deficiencies referred to in the report are 
        investigated; and
            ``(2) if substantiated, a plan of action for remediation of 
        the deficiencies is developed and implemented.
    ``(d) Relocation.--If the Secretary of Defense determines, on the 
basis of the investigation conducted in response to a report of 
deficiencies at a medical-related support facility, that conditions at 
the facility violate health and safety standards, the Secretary shall 
relocate the occupants of the facility while the violations are 
corrected.
    ``(e) Medical-Related Support Facility Defined.--In this section, 
the term `medical-related support facility' means any facility of the 
Department of Defense that provides support to any of the following:
            ``(1) Members of the armed forces admitted for treatment to 
        a military medical treatment facility.
            ``(2) Members of the armed forces assigned to a military 
        medical treatment facility as an outpatient.
            ``(3) Family members accompanying any member described in 
        paragraph (1) or (2) as a nonmedical attendant.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1567. Identification and investigation of deficiencies in adequacy, 
                            quality, and state of repair of medical-
                            related support facilities.''.
    (c) Effective Date.--The toll-free telephone number required to be 
established by section 1567 of title 10, United States Code, as added 
by subsection (a), shall be fully operational not later than 180 days 
after the date of the enactment of this Act.

SEC. 1414. NOTIFICATION TO CONGRESS OF HOSPITALIZATION OF COMBAT 
              WOUNDED SERVICE MEMBERS.

    (a) Notification Required.--Chapter 55 of title 10, United States 
Code, is further amended by inserting after section 1074l the following 
new section:
``Sec. 1074m. Notification to Congress of hospitalization of combat 
              wounded members
    ``(a) Notification Required.--The Secretary concerned shall provide 
notification of the hospitalization of any member of the armed forces 
evacuated from a theater of combat to the appropriate Members of 
Congress.
    ``(b) Appropriate Members.--In this section, the term `appropriate 
Members of Congress', with respect to the member of the armed forces 
about whom notification is being made, means the Senators and the 
Members of the House of Representatives representing the States or 
districts, respectively, that include the member's home of record and, 
if different, the residence of the next of kin, or a different location 
as provided by the member.
    ``(c) Consent of Member Required.--The notification under 
subsection (a) may be provided only with the consent of the member of 
the armed forces about whom notification is to be made. In the case of 
a member who is unable to provide consent, information and consent may 
be provided by next of kin.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1074m. Notification to Congress of hospitalization of combat wounded 
                            members.''.

SEC. 1415. INDEPENDENT MEDICAL ADVOCATE FOR MEMBERS BEFORE MEDICAL 
              EVALUATION BOARDS.

    (a) Assignment of Independent Medical Advocate.--Section 1222 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(d) Independent Medical Advocate for Members Before Medical 
Evaluation Boards.--(1) The Secretary of each military department shall 
ensure, in the case of any member of the armed forces being considered 
by a medical evaluation board under that Secretary's supervision, that 
the member has access to a physician or other appropriate health care 
professional who is independent of the medical evaluation board.
    ``(2) The physician or other health care professional assigned to a 
member shall--
            ``(A) serve as an advocate for the best interests of the 
        member; and
            ``(B) provide the member with advice and counsel regarding 
        the medical condition of the member and the findings and 
        recommendations of the medical evaluation board.''.
    (b) Clerical Amendments.--
            (1) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 1222. Physical evaluation boards and medical evaluation 
              boards''.
            (2) Table of sections.--The table of sections at the 
        beginning of chapter 61 of such title is amended by striking 
        the item relating to section 1222 and inserting the following 
        new item:

``1222. Physical evaluation boards and medical evaluation boards.''.
    (c) Effective Date.--Subsection (d) of section 1222 of title 10, 
United States Code, as added by subsection (a), shall apply with 
respect to medical evaluation boards convened after the end of the 180-
day period beginning on the date of the enactment of this Act.

SEC. 1416. TRAINING AND WORKLOAD FOR PHYSICAL EVALUATION BOARD LIAISON 
              OFFICERS.

    (a) Requirements.--Section 1222(b) of title 10, United States Code, 
is amended--
            (1) in paragraph (1)--
                    (A) by striking ``establishing--'' and all that 
                follows through ``a requirement'' and inserting 
                ``establishing a requirement''; and
                    (B) by striking ``that Secretary; and'' and all 
                that follows through the end of subparagraph (B) and 
                inserting ``that Secretary. A physical evaluation board 
                liaison officer may not be assigned more than 20 
                members at any one time, except that the Secretary 
                concerned may authorize the assignment of additional 
                members, for not more than 120 days, if required due to 
                unforeseen circumstances.'';
            (2) in paragraph (2), by inserting after ``(2)'' the 
        following new sentences: ``The Secretary of Defense shall 
        establish a standardized training program and curriculum for 
        physical evaluation board liaison officers. Successful 
        completion of the training program is required before a person 
        may assume the duties of a physical evaluation board liaison 
        officer.''; and
            (3) by adding at the end the following new paragraph:
    ``(3) In this subsection, the term `physical evaluation board 
liaison officer' includes any person designated as, or assigned the 
duties of, an assistant to a physical evaluation board liaison 
officer.''.
    (b) Effective Date.--The limitation on the maximum number of 
members of the Armed Forces who may be assigned to a physical 
evaluation board liaison officer shall take effect 180 days after the 
date of the enactment of this Act. The training program and curriculum 
for physical evaluation board liaison officers shall be implemented not 
later than 180 days after the date of the enactment of this Act.

SEC. 1417. STANDARDIZED TRAINING PROGRAM AND CURRICULUM FOR DEPARTMENT 
              OF DEFENSE DISABILITY EVALUATION SYSTEM.

    (a) Training Program Required.--Section 1216 of title 10, United 
States Code, is amended by adding at the end the following new 
subsection:
    ``(e)(1) The Secretary of Defense shall establish a standardized 
training program and curriculum for persons described in paragraph (2) 
who are involved in the disability evaluation system. The training 
under the program shall be provided as soon as practicable in 
coordination with other training associated with the responsibilities 
of the person.
    ``(2) Persons covered by paragraph (1) include--
            ``(A) Commanders.
            ``(B) Enlisted members who perform supervisory functions.
            ``(C) Health care professionals.
            ``(D) Others persons with administrative, professional, or 
        technical responsibilities in the disability evaluation system.
    ``(3) In this subsection, the term `disability evaluation system' 
means the Department of Defense system or process for evaluating the 
nature of and extent of disabilities affecting members of the armed 
forces (other than the Coast Guard) and comprised of medical evaluation 
boards, physical evaluation boards, counseling of members, and final 
disposition by appropriate personnel authorities, as operated by the 
Secretaries of the military departments, and, in the case of the Coast 
Guard, a similar system or process operated by the Secretary of 
Homeland Security.''.
    (b) Effective Date.--The standardized training program and 
curriculum required by subsection (e) of section 1216 of title 10, 
United States Code, as added by subsection (a), shall be established 
not later than 180 days after the date of the enactment of this Act.

SEC. 1418. IMPROVED TRAINING FOR HEALTH CARE PROFESSIONALS, MEDICAL 
              CARE CASE MANAGERS, AND SERVICE MEMBER ADVOCATES ON 
              PARTICULAR CONDITIONS OF RECOVERING SERVICE MEMBERS.

    (a) Recommendations.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
appropriate congressional committees a report setting forth 
recommendations for the improvement of the training provided to health 
care professionals, medical care case managers, and service member 
advocates who provide care for or assistance to recovering service 
members. The recommendations shall include, at a minimum, specific 
recommendations to ensure that such health care professionals, medical 
care case managers, and service member advocates are adequately trained 
and able to detect early warning signs of post-traumatic stress 
disorder (PTSD), suicidal or homicidal thoughts or behaviors, and other 
behavioral health concerns among recovering service members and make 
prompt notification to the appropriate health care professionals.
    (b) Annual Review of Training.--Not later than 180 days after the 
date of the enactment of this Act and annually thereafter throughout 
the global war on terror, the Secretary shall submit to the appropriate 
congressional committees a report on the following:
            (1) The progress made in providing the training recommended 
        under subsection (a).
            (2) The quality of training provided to health care 
        professionals, medical care case managers, and service member 
        advocates, and the number of such professionals, managers, and 
        advocates trained.
            (3) The progress made in developing the tracking system 
        under subsection (c) and the results of the system.
    (c) Tracking System.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall develop a system to track 
the number of notifications made by medical care case managers and 
service member advocates to health care professionals regarding early 
warning signs of post-traumatic stress disorder and suicide in 
recovering service members assigned to the managers and advocates.

SEC. 1419. PILOT PROGRAM TO ESTABLISH AN ARMY WOUNDED WARRIOR BATTALION 
              AT AN APPROPRIATE ACTIVE DUTY BASE.

    (a) Pilot Program Required.--
            (1) Establishment.--The Secretary of the Army shall 
        establish a pilot program, at an appropriate active duty base 
        with a major medical facility, based on the Wounded Warrior 
        Regiment program of the Marine Corps. The pilot program shall 
        be known as the Army Wounded Warrior Battalion.
            (2) Purpose.--Under the pilot program, the Battalion shall 
        track and assist members of the Armed Forces in an outpatient 
        status who are still in need of medical treatment through--
                    (A) the course of their treatment;
                    (B) medical and physical evaluation boards;
                    (C) transition back to their parent units; and
                    (D) medical retirement and subsequent transition 
                into the Department of Veterans Affairs medical system.
            (3) Organization.--The commanding officer of the Battalion 
        shall be selected by the Army Chief of Staff and shall be a 
        post-command, at O-5 or O-5 select, with combat experience in 
        Operation Iraqi Freedom or Operation Enduring Freedom. The 
        chain-of-command shall be filled by previously wounded junior 
        officers and non-commissioned officers when available and 
        appropriate.
            (4) Facilities.--The base selected for the pilot program 
        shall provide adequate physical infrastructure to house the 
        Army Wounded Warrior Battalion. Any funds necessary for 
        construction or renovation of existing facilities shall be 
        allocated from the Department of Defense Medical Support Fund 
        established under this title.
            (5) Coordination.--The Secretary of the Army shall consult 
        with appropriate Marine Corps counterparts to ensure 
        coordination of best practices and lessons learned.
            (6) Period of pilot program.--The pilot program shall be in 
        effect for a period of one year.
    (b) Reporting Requirement.--Not later than 90 days after the end of 
the one-year period for the pilot project, the Secretary of the Army 
shall submit to Congress a report containing--
            (1) an evaluation of the results of the pilot project;
            (2) an assessment of the Army's ability to establish 
        Wounded Warrior Battalions at other major Army bases.
            (3) recommendations regarding--
                    (A) the adaptability of the Wounded Warrior 
                Battalion concept for the Army's larger wounded 
                population; and
                    (B) closer coordination and sharing of resources 
                with counterpart programs of the Marine Corps.
    (c) Effective Date.--The pilot program required by this section 
shall be implemented not later than 180 days after the date of the 
enactment of this Act.

SEC. 1420. CRITERIA FOR REMOVAL OF MEMBER FROM TEMPORARY DISABILITY 
              RETIRED LIST.

    (a) Criteria.--Section 1210(e) of title 10, United States Code, is 
amended by inserting ``of a permanent nature and stable and is'' after 
``physical disability is''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to any case received for consideration by a physical evaluation 
board after the date of the enactment of this Act.

SEC. 1421. IMPROVED TRANSITION OF MEMBERS OF THE ARMED FORCES TO 
              DEPARTMENT OF VETERANS AFFAIRS UPON RETIREMENT OR 
              SEPARATION.

    (a) Transition of Members Separated or Retired.--
            (1) Transition process.--Chapter 58 of title 10, United 
        States Code, is amended by inserting after section 1142 the 
        following new section:
``Sec. 1142a. Process for transition of members to health care and 
              physical disability systems of Department of Veterans 
              Affairs
    ``(a) Transition Plan.--(1) The Secretary of Defense shall ensure 
that each member of the armed forces who is being separated or retired 
under chapter 61 of this title receives a written transition plan 
that--
            ``(A) specifies the recommended schedule and milestones for 
        the transition of the member from military service; and
            ``(B) provides for a coordinated transition of the member 
        from the Department of Defense disability system to the 
        Department of Veterans Affairs.
    ``(2) A member being separated or retired under chapter 61 of this 
title shall receive the transition plan before the separation or 
retirement date of the member.
    ``(3) The transition plan for a member under this subsection shall 
include information and guidance designed to assist the member in 
understanding and meeting the schedule and milestones for the member's 
transition.
    ``(b) Formal Transition Process.--(1) The Secretary of Defense, in 
cooperation with the Secretary of Veterans Affairs, shall establish a 
formal process for the transmittal to the Secretary of Veterans Affairs 
of the records and other information described in paragraph (2) as part 
of the separation or retirement of a member of the armed forces under 
chapter 61 of this title.
    ``(2) The records and other information to be transmitted under 
paragraph (1) with respect to a member shall include, at a minimum, the 
following:
            ``(A) The member's address and contact information.
            ``(B) The member's DD-214 discharge form, which shall be 
        transmitted electronically.
            ``(C) A copy of the member's service record, including 
        medical records and any results of a Physical Evaluation Board.
            ``(D) Whether the member is entitled to transitional health 
        care, a conversion health policy, or other health benefits 
        through the Department of Defense under section 1145 of this 
        title.
            ``(E) Any requests by the member for assistance in 
        enrolling in, or completed applications for enrollment in, the 
        health care system of the Department of Veterans Affairs for 
        health care benefits for which the member may be eligible under 
        laws administered by the Secretary of Veterans Affairs.
            ``(F) Any requests by the member for assistance in applying 
        for, or completed applications for, compensation and vocational 
        rehabilitation benefits to which the member may be entitled 
        under laws administered by the Secretary of Veterans Affairs, 
        if the member is being medically separated or is being retired 
        under chapter 61 of this title.
    ``(3) The transmittal of information under paragraph (1) may be 
subject to the consent of the member, as required by statute.
    ``(4) With the consent of the member, the member's address and 
contact information shall also be submitted to the department or agency 
for veterans affairs of the State in which the member intends to reside 
after the separation or retirement of the member.
    ``(c) Meeting.--(1) The formal process required by subsection (b) 
for the transmittal of records and other information with respect to a 
member shall include a meeting between representatives of the Secretary 
concerned and the Secretary of Veterans Affairs, which shall take place 
at a location designated by the Secretaries. The member shall be 
informed of the meeting at least 30 days in advance of the meeting, 
except that the member may waive the notice requirement in order to 
accelerate transmission of the member's records and other information 
to the Department of Veterans Affairs.
    ``(2) A member shall be given an opportunity to submit a written 
statement for consideration by the Secretary of Veterans Affairs.
    ``(d) Time for Transmittal of Records.--The Secretary concerned 
shall provide for the transmittal to the Department of Veterans Affairs 
of records and other information with respect to a member at the 
earliest practicable date. In no case should the transmittal occur 
later than the date of the separation or retirement of the member.
    ``(e) Armed Forces.--In this section, the term `armed forces' means 
the Army, Navy, Air Force, and Marine Corps.''.
            (2) Table of sections.--The table of sections at the 
        beginning of such chapter is amended by inserting after the 
        item relating to section 1142 the following new item:

``1142a. Process for transition of members to health care and physical 
                            disability systems of Department of 
                            Veterans Affairs.''.
    (b) Uniform Separation and Evaluation Physical.--Section 1145 of 
such title is amended--
            (1) by redesignating subsections (d) and (e) as subsections 
        (e) and (f), respectively; and
            (2) by inserting after subsection (c) the following new 
        subsection:
    ``(d) Uniform Separation and Evaluation Physical.--The joint 
separation and evaluation physical, as described in DD-2808 and DD-
2697, shall be used by the Secretary of Defense in connection with the 
medical separation or retirement of all members of the armed forces, 
including members separated or retired under chapter 61 of this title. 
The Secretary of Veterans Affairs shall adopt the same separation and 
evaluation physical for use by the Department of Veterans Affairs.''.
    (c) Interoperability of Critical Medical Information and Bi-
Directional Access.--
            (1) Interoperability and access improvement.--The Secretary 
        of Defense and Secretary of Veterans Affairs shall jointly 
        establish and implement a process to ensure an interoperable, 
        bi-directional, real-time exchange of critical medical 
        information between the Department of Defense and the 
        Department of Veterans Affairs.
            (2) Critical medical information defined.--In this 
        subsection, the term ``critical medical information'' includes, 
        at a minimum, outpatient notes, clinical notes, radiographs, 
        laboratory data, information regarding medications, operation 
        notes, narrative summaries, and discharge summaries.
    (d) Co-Location of VA Benefit Teams.--
            (1) Co-location.--The Secretary of Defense and the 
        Secretary of Veterans Affairs shall jointly determine the 
        optimal locations for the deployment of Department of Veterans 
        Affairs benefits team to support recovering service members 
        assigned to military medical treatment facilities, medical-
        related support facilities, and community-based health care 
        organizations.
            (2) Military medical treatment facility defined.--In this 
        subsection, the term ``medical-related support facility'' has 
        the meaning given that term in subsection (b) of section 492 of 
        title 10, United States Code, as added by section 1431(a).
    (e) Repeal of Superseded Chapter 61 Medical Record Transmittal 
Requirement.--
            (1) Repeal.--Section 1142 of such title is amended by 
        striking subsection (c).
            (2) Section heading.--The heading of such section is 
        amended to read as follows:
``Sec. 1142. Preseparation counseling''.
            (3) Table of sections.--The table of sections at the 
        beginning of chapter 58 of such title is amended by striking 
        the item relating to section 1142 and inserting the following 
        new item:

``1142. Preseparation counseling.''.
    (f) Effective Dates.--Section 1142a of title 10, United States 
Code, as added by subsection (a), and subsection (d) of section 1145 of 
such title, as added by subsection (b), shall apply with respect to 
members of the Armed Forces who are separated or retired from the Armed 
Forces on or after the first day of the eighth month beginning after 
the date of the enactment of this Act. The requirements of subsections 
(c) and (d), and the amendments made by subsection (e), shall take 
effect on the first day of such eighth month.

SEC. 1422. ESTABLISHMENT OF MEDICAL SUPPORT FUND FOR SUPPORT OF MEMBERS 
              OF THE ARMED FORCES RETURNING TO MILITARY SERVICE OR 
              CIVILIAN LIFE.

    (a) Establishment and Purpose.--There is established on the books 
of the Treasury a fund to be known as the Department of Defense Medical 
Support Fund (hereinafter in this section referred to as the ``Fund''), 
which shall be administered by the Secretary of the Treasury.
    (b) Purposes.--The Fund shall be used--
            (1) to support programs and activities relating to the 
        medical treatment, care, rehabilitation, recovery, and support 
        of wounded and injured members of the Armed Forces and their 
        return to military service or transition to civilian society; 
        and
            (2) to support programs and facilities intended to support 
        the families of wounded and injured members of the Armed 
        Forces.
    (c) Assets of Fund.--There shall be deposited into the Fund any 
amount appropriated to the Fund, which shall constitute the assets of 
the Fund.
    (d) Transfer of Funds.--
            (1) Authority to transfer.--The Secretary of Defense may 
        transfer amounts in the Fund to appropriations accounts for 
        military personnel; operation and maintenance; procurement; 
        research, development, test, and evaluation; military 
        construction; and the Defense Health Program. Amounts so 
        transferred shall be merged with and available for the same 
        purposes and for the same time period as the appropriation 
        account to which transferred.
            (2) Addition to other authority.--The transfer authority 
        provided in paragraph (1) is in addition to any other transfer 
        authority available to the Department of Defense. Upon a 
        determination that all or part of the amounts transferred from 
        the Fund are not necessary for the purposes for which 
        transferred, such amounts may be transferred back to the Fund.
            (3) Notification.--The Secretary of Defense shall, not 
        fewer than five days before making a transfer from the Fund, 
        notify the congressional defense committees in writing of the 
        details of the transfer. The Secretary shall provide an summary 
        of transfers from the Fund during a fiscal year in the defense 
        budget materials accompanying the budget for that fiscal year 
        submitted by the President under section 1105(a) of title 31, 
        United States Code.
    (e) Wounded Warrior Regiment Program.--The Secretary of Defense 
shall ensure that $10,000,000 for fiscal year 2008 is transferred from 
the Medical Support Fund to support programs, activities, and 
facilities associated with the Marine Corps Wounded Warrior Regiment 
program, to be used as follows:
            (1) $6,550,000 for Case Management and Patient Support.
            (2) $1,200,000 for Wounded Warrior Interim Regimental 
        Headquarters Building conversion.
            (3) $1,300,000 for Case Management System Development.
            (4) $95,000 for Support Equipment.
    (f) Funding.--Of the amounts authorized to be appropriated pursuant 
to section 421 for military personnel accounts, $50,000,000 is 
authorized for the Department of Defense Medical Support Fund. Such 
funds shall remain available through September 30, 2008.

SEC. 1423. OVERSIGHT BOARD FOR WOUNDED WARRIORS.

    (a) Establishment.--There is hereby established a board to be known 
as the Oversight Board for Wounded Warriors (in this section referred 
to as the ``Oversight Board'').
    (b) Composition.--The Oversight Board shall be composed of 12 
members, of whom--
            (1) two shall be appointed by the majority leader of the 
        Senate;
            (2) two shall be appointed by the minority leader of the 
        Senate;
            (3) two shall be appointed by the Speaker of the House of 
        Representatives;
            (4) two shall be appointed by the minority leader of the 
        House of Representatives;
            (5) two shall be appointed by the Secretary of Veterans 
        Affairs; and
            (6) two shall be appointed by the Secretary of Defense.
    (c) Qualifications.--All members of the Oversight Board shall have 
sufficient knowledge of, or experience with, the military healthcare 
system, the disability evaluation system, or the experience of a 
recovering service member or family member of a recovering service 
member.
    (d) Appointment.--
            (1) Term.--Each member of the Oversight Board shall be 
        appointed for a term of three years. A member may be 
        reappointed for one or more additional terms.
            (2) Vacancies.--Any vacancy in the Oversight Board shall be 
        filled in the same manner in which the original appointment was 
        made.
    (e) Duties.--
            (1) Advice and consultation.--The Oversight Board shall 
        provide advice and consultation to the Secretary of Defense and 
        the Committees on Armed Services of the Senate and the House of 
        Representatives regarding--
                    (A) the process for streamlining the disability 
                evaluation systems of the military departments;
                    (B) the process for correcting and improving the 
                ratios of case managers and service member advocates to 
                recovering service members;
                    (C) the need to revise Department of Defense 
                policies to improve the experience of recovering 
                service members while under Department of Defense care;
                    (D) the need to revise Department of Defense 
                policies to improve counseling, outreach, and general 
                services provided to family members of recovering 
                service members;
                    (E) the need to revise Department of Defense 
                policies regarding the provision of quality lodging to 
                recovering service members; and
                    (F) such other matters relating to the evaluation 
                and care of recovering service members, including 
                evaluation under disability evaluation systems, as the 
                Board considers appropriate.
            (2) Visits to military medical treatment facilities.--In 
        carrying out its duties, each member of the Oversight Board 
        shall visit not less than three military medical treatment 
        facilities each year, and the Board shall conduct each year one 
        meeting of all the members of the Board at a military medical 
        treatment facility.
    (f) Staff.--The Secretary shall make available the services of at 
least two officials or employees of the Department of Defense to 
provide support and assistance to members of the Oversight Board.
    (g) Travel Expenses.--Members of the Oversight Board shall be 
allowed travel expenses, including per diem in lieu of subsistence, at 
rates authorized for employees of agencies under subchapter I of 
chapter 57 of title 5, United States Code, while away from their homes 
or regular places of business in the performance of service for the 
Oversight Board.
    (h) Annual Reports.--The Oversight Board shall submit to the 
Secretary of Defense and the Committees on Armed Services of the Senate 
and the House of Representatives each year a report on its activities 
during the preceding year, including any findings and recommendations 
of the Oversight Board as a result of such activities.

SEC. 1424. OPTION FOR MEMBERS OF RESERVE COMPONENTS TO USE MILITARY 
              MEDICAL TREATMENT FACILITIES CLOSEST TO HOME FOR CERTAIN 
              INJURIES.

    The Secretary of Defense shall expand the opportunities for 
recovering service members of the reserve components to receive 
treatment on an outpatient basis at a military medical treatment 
facility or other location designated by the Secretary closest to the 
member's home rather than closest to the base from which the member was 
deployed.

SEC. 1425. PLANS AND RESEARCH FOR REDUCING POST TRAUMATIC STRESS 
              DISORDER.

    (a) Plans for Reducing Post Traumatic Stress Disorder.--
            (1) Plan for prevention.--
                    (A) In general.--The Secretary of Defense shall 
                develop a plan to incorporate evidence-based preventive 
                and early-intervention measures, practices, or 
                procedures that reduce the likelihood that personnel in 
                combat will develop post-traumatic stress disorder or 
                other stress-related psychopathologies (including 
                substance use conditions) into--
                            (i) basic and pre-deployment training for 
                        enlisted members of the Armed Forces, 
                        noncommissioned officers, and officers;
                            (ii) combat theater operations; and
                            (iii) post-deployment service.
                    (B) Updates.--The Secretary of Defense shall update 
                the plan under subparagraph (A) periodically to 
                incorporate, as the Secretary considers appropriate, 
                the results of relevant research, including research 
                conducted pursuant to subsection (b).
            (2) Research.--Subject to subsection (b), the Secretary of 
        Defense shall develop a plan, in consultation with the 
        Department of Veterans Affairs, the National Institutes of 
        Health, and the National Academy of Sciences, to conduct such 
        research as is necessary to develop the plan described in 
        paragraph (1).
    (b) Evidence-Based Research and Training.--
            (1) Working group.--The Secretary of Defense shall conduct 
        a study, in coordination with the Department of Veterans 
        Affairs, the National Institutes of Health, and the National 
        Academy of Sciences' Institute of Medicine, to determine the 
        feasibility of establishing a working group tasked with 
        researching and developing evidence-based measures, practices, 
        or procedures that reduce the likelihood that personnel in 
        combat will develop post-traumatic stress disorder or other 
        stress-related psychological pathologies (including substance 
        use conditions). The working group shall include personnel with 
        experience in a combat theater, and behavioral health personnel 
        who have experience providing treatment to individuals with 
        experience in a combat theater.
            (2) Peer-reviewed research program.--Not later than 180 
        days after the date of the enactment of this Act, the Secretary 
        of Defense shall submit to Congress a plan for a peer-reviewed 
        research program within the Defense Health Program's research 
        and development function to research and develop evidence-based 
        preventive and early intervention measures, practices, or 
        procedures that reduce the likelihood that personnel in combat 
        will develop post-traumatic stress disorder or other stress-
        related psychopathologies (including substance use conditions).
    (c) Report.--The Secretary of Defense shall submit to Congress a 
report on the plans and studies required under this section.

                    Subtitle B--Studies and Reports

SEC. 1431. ANNUAL REPORT ON MILITARY MEDICAL FACILITIES.

    (a) In General.--
            (1) Report requirement.--Chapter 23 of title 10, United 
        States Code, as amended by this Act, is further amended by 
        adding at the end the following new section:
``Sec. 492. Annual report on military medical facilities
    ``(a) Annual Report.--Not later than the date on which the 
President submits the budget for a fiscal year to Congress pursuant to 
section 1105 of title 31, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the adequacy, suitability, and quality of 
medical facilities and medical-related support facilities at each 
military installation within the Department of Defense.
    ``(b) Response to Hot-Line Information.--The Secretary of Defense 
shall include in each report information regarding--
            ``(1) any deficiencies in the adequacy, quality, or state 
        of repair of medical-related support facilities raised as a 
        result of information received during the period covered by the 
        report through the toll-free hot line maintained pursuant to 
        section 1567 of this title; and
            ``(2) the investigations conducted and plans of action 
        prepared under such section to respond to such deficiencies.
    ``(c) Medical-Related Support Facility.--In this section, the term 
`medical-related support facility' is any facility of the Department of 
Defense that provides support to any of the following:
            ``(1) Members of the armed forces admitted for treatment to 
        military medical treatment facilities.
            ``(2) Members of the armed forces assigned to military 
        medical treatment facilities as an outpatient.
            ``(3) Family members accompanying any member described in 
        paragraph (1) or (2) as a nonmedical attendant.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``492. Annual report on military medical facilities.''.
    (b) Effective Date.--The first report under section 492 of title 
10, United States Code, as added by subsection (a), shall be submitted 
not later than the date of submission of the budget for fiscal year 
2009.

SEC. 1432. ACCESS OF RECOVERING SERVICE MEMBERS TO ADEQUATE OUTPATIENT 
              RESIDENTIAL FACILITIES.

    (a) Required Inspections of Facilities.--All quarters of the United 
States and housing facilities under the jurisdiction of the Armed 
Forces that are occupied by recovering service members shall be 
inspected on a semiannual basis for the first two years after the 
enactment of this Act and annually thereafter by the inspectors general 
of the regional medical commands.
    (b) Inspector General Reports.--The inspector general for each 
regional medical command shall--
            (1) submit a report on each inspection of a facility 
        conducted under subsection (a) to the post commander at such 
        facility, the commanding officer of the hospital affiliated 
        with such facility, the surgeon general of the military 
        department that operates such hospital, the Secretary of the 
        military department concerned, the Assistant Secretary of 
        Defense for Health Affairs, the Oversight Board for Wounded 
        Warriors established pursuant to section 1423, and the 
        appropriate congressional committees; and
            (2) post each such report on the Internet website of such 
        regional medical command.

SEC. 1433. EVALUATION AND REPORT ON DEPARTMENT OF DEFENSE AND 
              DEPARTMENT OF VETERANS AFFAIRS DISABILITY EVALUATION 
              SYSTEMS.

    (a) Evaluation.--The Secretary of Defense and the Secretary of 
Veterans Affairs shall conduct a joint evaluation of the disability 
evaluation systems used by the Department of Defense and the Department 
of Veterans Affairs for the purpose of--
            (1) improving the consistency of the two disability 
        evaluation systems; and
            (2) evaluating the feasibility of, and potential options 
        for, consolidating the two systems.
    (b) Relation to Veterans' Disability Benefits Commission.--In 
conducting the evaluation of the disability evaluation systems used by 
the Department of Defense and the Department of Veterans Affairs, the 
Secretary of Defense and the Secretary of Veterans Affairs shall 
consider the findings and recommendations of the Veterans' Disability 
Benefits Commission established pursuant to title XV of the National 
Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 38 
U.S.C. 1101 note).
    (c) Report.--Not later than 180 days after the date of the 
submission of the final report of the Veterans' Disability Benefits 
Commission, the Secretary of Defense and the Secretary of Veterans 
Affairs shall submit to Congress a report containing--
            (1) the results of the evaluation; and
            (2) the recommendations of the Secretaries for improving 
        the consistency of the two disability evaluation systems and 
        such other recommendations as the Secretaries consider 
        appropriate.

SEC. 1434. STUDY AND REPORT ON SUPPORT SERVICES FOR FAMILIES OF 
              RECOVERING SERVICE MEMBERS.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
of the provision of support services for families of recovering service 
members.
    (b) Matters Covered.--The study under subsection (a) shall include 
the following:
            (1) A determination of the types of support services that 
        are currently provided by the Department of Defense to family 
        members described in subsection (c), and the cost of providing 
        such services.
            (2) A determination of additional types of support services 
        that would be feasible for the Department to provide to such 
        family members, and the costs of providing such services, 
        including the following types of services:
                    (A) The provision of medical care at military 
                medical treatment facilities.
                    (B) The provision of job placement services offered 
                by the Department of Defense to any family member 
                caring for a recovering service member for more than 45 
                days during a one-year period.
                    (C) The provision of meals without charge at 
                military medical treatment facilities.
            (3) A survey of military medical treatment facilities to 
        estimate the number of family members to whom the support 
        services would be provided.
            (4) A determination of any discrimination in employment 
        that such family members experience, including denial of 
        retention in employment, promotion, or any benefit of 
        employment by an employer on the basis of the person's absence 
        from employment as described in subsection (c), and a 
        determination, in consultation with the Secretary of Labor, of 
        the options available for such family members.
    (c) Covered Family Members.--A family member described in this 
subsection is a family member of a recovering service member who is--
            (1) on invitational orders while caring for the recovering 
        service member;
            (2) a non-medical attendee caring for the recovering 
        service member; or
            (3) receiving per diem payments from the Department of 
        Defense while caring for the recovering service member.
    (d) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the results of the study, with such 
findings and recommendations as the Secretary considers appropriate.

SEC. 1435. REPORT ON TRAUMATIC BRAIN INJURY CLASSIFICATIONS.

    (a) Interim Report.--Not later than 90 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives an interim report describing the changes undertaken 
within the Department of Defense to ensure that traumatic brain injury 
victims receive a proper medical designation concomitant with their 
injury as opposed to the current medical designation which assigns a 
generic ``organic psychiatric disorder'' classification.
    (b) Final Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a final report concerning traumatic brain injury 
classifications and an explanation and justification of the 
Department's use of the international classification of disease (ICD) 9 
designation, recommendations for transitioning to ICD 10 or 11, and the 
benefits the civilian community experiences from using ICD 10.

SEC. 1436. EVALUATION OF THE POLYTRAUMA LIAISON OFFICER/NON-
              COMMISSIONED OFFICER PROGRAM.

    (a) Evaluation Required.--The Secretary of Defense shall conduct an 
evaluation of the Polytrauma Liaison Officer/Non-Commissioned Officer 
program, which is the program operated by each of the military 
departments and the Department of Veterans Affairs for the purpose of--
            (1) assisting in the seamless transition of members of the 
        Armed Forces from the Department of Defense health care system 
        to the Department of Veterans Affairs system; and
            (2) expediting the flow of information and communication 
        between military treatment facilities and the Veterans Affairs 
        Polytrauma Centers.
    (b) Matters Covered.--The evaluation of the Polytrauma Liaison 
Officer/Non-Commissioned Officer program shall include evaluating the 
following areas:
            (1) The program's effectiveness in the following areas:
                    (A) Handling of military patient transfers.
                    (B) Ability to access military records in a timely 
                manner.
                    (C) Collaboration with Polytrauma Center treatment 
                teams.
                    (D) Collaboration with Veteran Service 
                Organizations.
                    (E) Functioning as the Polytrauma Center's subject-
                matter expert on military issues.
                    (F) Supporting and assisting family members.
                    (G) Providing education, information, and referrals 
                to members of the Armed Forces and their family 
                members.
                    (H) Functioning as uniformed advocates for members 
                of the Armed Forces and their family members.
                    (I) Inclusion in Polytrauma Center meetings.
                    (J) Completion of required administrative 
                reporting.
                    (K) Ability to provide necessary administrative 
                support to all members of the Armed Forces.
            (2) Manpower requirements to effectively carry out all 
        required functions of the Polytrauma Liaison Officer/Non-
        Commissioned Officer program given current and expected case 
        loads.
            (3) Expansion of the program to incorporate Navy and Marine 
        Corps officers and senior enlisted personnel.
    (c) Reporting Requirement.--Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit to 
Congress a report containing--
            (1) the results of the evaluation; and
            (2) recommendations for any improvements in the program.

SEC. 1437. STUDY AND REPORT ON STANDARD SOLDIER PATIENT TRACKING 
              SYSTEM.

    (a) Study Required.--The Secretary of Defense shall conduct a study 
on the feasibility of developing a joint soldier tracking system for 
recovering service members.
    (b) Matters Covered.--The study under subsection (a) shall include 
the following:
            (1) Review of the feasibility of allowing each recovering 
        service member, each family member of such a member, each 
        commander of a military installation retaining medical holdover 
        patients, each patient navigator, and ombudsman office 
        personnel, at all times, to be able to locate and understand 
        exactly where a recovering service member is in the medical 
        holdover process.
            (2) A determination of whether the tracking system can be 
        designed to ensure that--
                    (A) the commander of each military medical facility 
                where recovering service members are located is able to 
                track appointments of such members to ensure they are 
                meeting timeliness and other standards that serve the 
                member; and
                    (B) each recovering service member is able to know 
                when his appointments and other medical evaluation 
                board or physical evaluation board deadlines will be 
                and that they have been scheduled in a timely and 
                accurate manner.
            (3) Any other information needed to conduct oversight of 
        care of the member through out the medical holdover process.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committees on Armed Services of the Senate and the House of 
Representatives a report on the results of the study, with such 
findings and recommendations as the Secretary considers appropriate.

SEC. 1438. STUDY AND REPORT ON WAITING PERIODS FOR APPOINTMENTS AT 
              DEPARTMENT OF VETERANS AFFAIRS MEDICAL FACILITIES.

    (a) Study Required.--The Secretary of Veterans Affairs shall 
conduct a study on the average length of time between the desired date 
for which a veteran seeks to schedule an appointment for health care at 
a Department of Veterans Affairs medical facility and the date on which 
such appointment is completed.
    (b) Focus of Study.--In conducting the study under subsection (a), 
the Secretary shall focus on appointments scheduled and completed at 
Department medical facilities located in both rural and urban areas.
    (c) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall submit a report to Congress 
containing the findings of the study under subsection (a) and 
recommendations for decreasing the waiting time between the desired 
date of an appointment and the completion of the appointment to a 
maximum of 15 days.

                     Subtitle C--General Provisions

SEC. 1451. MORATORIUM ON CONVERSION TO CONTRACTOR PERFORMANCE OF 
              DEPARTMENT OF DEFENSE FUNCTIONS AT MILITARY MEDICAL 
              FACILITIES.

    (a) Findings.--Congress finds the following:
            (1) The conduct of public-private competitions for the 
        performance of Department of Defense functions, based on Office 
        of Management and Budget Circular A-76, can lead to dramatic 
        reductions in the workforce, undermining an agency's ability to 
        perform its mission.
            (2) The Army Garrison commander at the Walter Reed Army 
        Medical Center has stated that the extended A-76 competition 
        process contributed to the departure of highly skilled 
        administrative and maintenance personnel, which led to the 
        problems at the Walter Reed Army Medical Center.
    (b) Moratorium.--During the one-year period beginning on the date 
of the enactment of this Act, no study or competition may be begun or 
announced pursuant to section 2461 of title 10, United States Code, or 
otherwise pursuant to Office of Management and Budget Circular A-76 
relating to the possible conversion to performance by a contractor of 
any Department of Defense function carried out at a military medical 
facility .
    (c) Report Required.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Defense shall submit to the 
Committee on Armed Services of the Senate and the Committee on Armed 
Services of the House of Representatives a report on the public-private 
competitions being conducted for Department of Defense functions 
carried out at military medical facilities as of the date of the 
enactment of this Act by each military department and defense agency. 
Such report shall include--
            (1) for each such competition--
                    (A) the cost of conducting the public-private 
                competition;
                    (B) the number of military personnel and civilian 
                employees of the Department of Defense affected;
                    (C) the estimated savings identified and the 
                savings actually achieved;
                    (D) an evaluation whether the anticipated and 
                budgeted savings can be achieved through a public-
                private competition; and
                    (E) the effect of converting the performance of the 
                function to performance by a contractor on the quality 
                of the performance of the function;
            (2) a description of any public-private competition the 
        Secretary would conduct if the moratorium under subsection (b) 
        were not in effect; and
            (3) an assessment of whether any method of business reform 
        or reengineering other than a public-private competition could, 
        if implemented in the future, achieve any anticipated or 
        budgeted savings.

SEC. 1452. PROHIBITION ON TRANSFER OF RESOURCES FROM MEDICAL CARE.

    Neither the Secretary of Defense nor the Secretaries of the 
military departments may transfer funds or personnel from medical care 
functions to administrative functions within the Department of Defense 
in order to comply with the new administrative requirements imposed by 
this title or the amendments made by this title.

SEC. 1453. INCREASE IN PHYSICIANS AT HOSPITALS OF THE DEPARTMENT OF 
              VETERANS AFFAIRS.

    The Secretary of Veterans Affairs shall increase the number of 
resident physicians at hospitals of the Department of Veterans Affairs.

  TITLE XV--AUTHORIZATION OF ADDITIONAL APPROPRIATIONS FOR OPERATION 
              IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

Sec. 1501. Purpose and statement of congressional policy.
Sec. 1502. Army procurement.
Sec. 1503. Navy and Marine Corps procurement.
Sec. 1504. Air Force procurement.
Sec. 1505. Joint Improvised Explosive Device Defeat Fund.
Sec. 1506. Defense-wide activities procurement.
Sec. 1507. Research, development, test, and evaluation.
Sec. 1508. Operation and maintenance.
Sec. 1509. Working capital funds.
Sec. 1510. Other Department of Defense programs.
Sec. 1511. Iraq Freedom Fund.
Sec. 1512. Iraq Security Forces Fund.
Sec. 1513. Afghanistan Security Forces Fund.
Sec. 1514. Military personnel.
Sec. 1515. Authorized Army construction and land acquisition projects.
Sec. 1516. Authorized Navy construction and land acquisition projects.
Sec. 1517. Treatment as additional authorizations.

SEC. 1501. PURPOSE AND STATEMENT OF CONGRESSIONAL POLICY.

    (a) Purpose.--The purpose of this title is to authorize 
appropriations for the Department of Defense for fiscal year 2008 to 
provide additional funds for Operation Iraqi Freedom and Operation 
Enduring Freedom.
    (b) Policy.--Congress has provided members of the Armed Forces 
deployed outside of the United States, and the families of such 
members, with ongoing funds for their protection and operations and 
will continue to support their service and valor on behalf of the 
United States.

SEC. 1502. ARMY PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement accounts of the Army in amounts as follows:
            (1) For aircraft procurement, $1,677,706,000.
            (2) For ammunition procurement, $313,000,000.
            (3) For weapons and tracked combat vehicles procurement, 
        $4,780,172,000.
            (4) For missile procurement, $295,626,000.
            (5) For other procurement, $11,123,699,000.

SEC. 1503. NAVY AND MARINE CORPS PROCUREMENT.

    (a) Navy.--Funds are hereby authorized to be appropriated for 
fiscal year 2008 for procurement accounts for the Navy in amounts as 
follows:
            (1) For aircraft procurement, $2,917,958,000
            (2) For weapons procurement, $251,281,000
            (3) For other procurement, $727,580,000.
    (b) Marine Corps.--Funds are hereby authorized to be appropriated 
for fiscal year 2008 for the procurement account for the Marine Corps 
in the amount of $3,863,267,000.
    (c) Navy and Marine Corps Ammunition.--Funds are hereby authorized 
to be appropriated for fiscal year 2008 for the procurement account for 
ammunition for the Navy and the Marine Corps in the amount of 
$590,090,000.

SEC. 1504. AIR FORCE PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for procurement accounts for the Air Force in amounts as follows:
            (1) For aircraft procurement, $5,189,709,000.
            (2) For ammunition procurement, $74,005,000.
            (3) For missile procurement, $1,800,000.
            (4) For other procurement, $3,926,810,000.

SEC. 1505. JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT FUND.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
for fiscal year 2008 for the Joint Improvised Explosive Device Defeat 
Fund in the amount of $4,000,000,000.
    (b) Use and Transfer of Funds.--Subsections (b) and (c) of section 
1514 of the John Warner National Defense Authorization Act for Fiscal 
Year 2007 (Public Law 109-364; 120 Stat. 2439) shall apply to the funds 
appropriated pursuant to the authorization of appropriations in 
subsection (a).
    (c) Revision of Management Plan.--The Secretary of Defense shall 
revise the management plan required by section 1514(d) of the John 
Warner National Defense Authorization Act for Fiscal Year 2007 to 
identify projected transfers and obligations through September 30, 
2008.
    (d) Duration of Authority.--Section 1514(f) of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 is amended by 
striking ``September 30, 2009'' and inserting ``September 30, 2010''.

SEC. 1506. DEFENSE-WIDE ACTIVITIES PROCUREMENT.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the procurement account for Defense-wide in the amount of 
$594,768,000.

SEC. 1507. 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, $91,278,000.
            (2) For the Navy, $516,303,000.
            (3) For the Air Force, $816,041,000.
            (4) For Defense-wide activities, $727,498,000

SEC. 1508. OPERATION AND MAINTENANCE.

    Funds are hereby authorized to be appropriated for fiscal year 2008 
for the use of the Armed Forces for expenses, not otherwise provided 
for, for operation and maintenance, in amounts as follows:
            (1) For the Army, $45,350,964,000
            (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 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. 1509. 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, $5,100,000.

SEC. 1510. 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 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 for 
operation and maintenance.

SEC. 1511. 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. 1512. IRAQ SECURITY FORCES FUND.

    (a) Authorization of Appropriations.--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.
    (b) Use, Transfer, and Other Requirements Regarding Funds.--
Subsections (b), (c) and (d) of section 1516 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364; 120 Stat. 2441) shall apply to the funds appropriated pursuant 
to the authorization of appropriations in subsection (a).
    (c) Duration of Authority.--Section 1516(g) of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 is amended by 
striking ``September 30, 2008'' and inserting ``September 30, 2009''.

SEC. 1513. AFGHANISTAN SECURITY FORCES FUND.

    (a) Authorization of Appropriations.--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.
    (b) Use, Transfer, and Other Requirements Regarding Funds.--
Subsections (b), (c) and (d) of section 1517 of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 (Public Law 
109-364; 120 Stat. 2442) shall apply to the funds appropriated pursuant 
to the authorization of appropriations in subsection (a).
    (c) Duration of Authority.--Section 1517(g) of the John Warner 
National Defense Authorization Act for Fiscal Year 2007 is amended by 
striking ``September 30, 2008'' and inserting ``September 30, 2009''.

SEC. 1514. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of 
Defense for military personnel accounts for fiscal year 2008 a total of 
$17,471,763,000.

SEC. 1515. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Authorized Projects.--Using amounts appropriated pursuant to 
the authorization of appropriations in subsection (b) 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...............     $31,850,000
                               Al Asad..................     $46,100,000
                               Camp Anaconda............     $49,200,000
                               Fallujah.................        $880,000
                               Camp Marez...............        $880,000
                               Mosul....................     $43,000,000
                               Camp Ramadi..............        $880,000
                               Scania...................      $5,000,000
                               Camp Speicher............     $54,900,000
                               Camp Taqqadum............        $880,000
                               Tikrit...................     $43,000,000
                               Camp Victory.............     $24,600,000
                               Camp Warrior.............        $880,000
                               Various Locations........    $102,000,000
------------------------------------------------------------------------

    (b) Authorization of Appropriations.--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 
$526,450,000 as follows:
            (1) For military construction projects outside the United 
        States authorized by subsection (a), $507,050,000.
            (2) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $19,400,000.

SEC. 1516. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Authorized Projects.--Using amounts appropriated pursuant to 
the authorization of appropriations in subsection (b), 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......................................       $43,310,000
------------------------------------------------------------      ----------------------------------------------

    (b) Authorization of Appropriations.--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 subsection (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.

SEC. 1517. TREATMENT AS ADDITIONAL AUTHORIZATIONS.

    The amounts authorized to be appropriated by this title are in 
addition to amounts otherwise authorized to be appropriated by this 
Act.

                 TITLE XVI--NATIONAL GUARD ENHANCEMENT

Sec. 1601. Short title.

                   Subtitle A--National Guard Bureau

Sec. 1611. Enhancement of duties and position of Chief of the National 
                            Guard Bureau.
Sec. 1612. Establishment of National Guard Bureau as joint activity of 
                            Department of Defense.
Sec. 1613. Enhancement of functions of National Guard Bureau.
Sec. 1614. Requirement for Secretary of Defense to prepare annual plan 
                            for response to natural disasters and 
                            terrorist events.
Sec. 1615. Determination of Department of Defense civil support 
                            requirements.
Sec. 1616. Conforming and clerical amendments.

          Subtitle B--Additional Reserve Component Enhancement

Sec. 1621. United States Northern Command.
Sec. 1622. Council of Governors.
Sec. 1623. Reserve Components Policy Board.
Sec. 1624. Requirements for certain high-level positions to be held by 
                            reserve component general or flag officers.
Sec. 1625. Retirement age and years of service limitations on certain 
                            reserve general and flag officers.
Sec. 1626. Additional reporting requirements relating to National Guard 
                            equipment.

SEC. 1601. SHORT TITLE.

    This title may be cited as the ``National Guard Empowerment Act''.

                   Subtitle A--National Guard Bureau

SEC. 1611. ENHANCEMENT OF DUTIES AND POSITION OF CHIEF OF THE NATIONAL 
              GUARD BUREAU.

    (a) Principal Adviser to Secretary of Defense Through Chairman of 
Joint Chiefs of Staff on National Guard Matters.--Subsection (c) of 
section 10502 of title 10, United States Code, is amended by inserting 
after ``principal adviser'' the following: ``to the Secretary of 
Defense (through the Chairman of the Joint Chiefs of Staff),''.
    (b) Adviser to Commander of the United States Northern Command and 
Secretary of Homeland Security.--Subsection (c) of such section is 
further amended--
            (1) by inserting ``(1)'' before ``The Chief''; and
            (2) by adding at the end the following new paragraph:
    ``(2) The Chief of the National Guard Bureau also is an adviser on 
such matters to the commander of the combatant command the geographic 
area of responsibility of which includes the United States and to the 
Secretary of Homeland Security.''.
    (c) Appointment to Office in Grade of General.--Subsection (d) of 
such section is amended by striking ``lieutenant general'' and 
inserting ``general''.
    (d) Appointment Process.--Subsection (a) of such section is 
amended--
            (1) by redesignating paragraphs (1), (2), and (3) as 
        subparagraphs (A), (B), and (C), respectively;
            (2) by inserting ``(1)'' before ``There is''; and
            (3) by adding at the end the following new paragraphs:
    ``(2) The Secretary of Defense shall establish a process to 
identify, from among the officers of the Army National Guard of the 
United States and Air National Guard of the United States recommended 
under paragraph (1)(A), the best qualified officer or officers whom the 
Secretary of Defense will recommend for consideration by the President 
for appointment as Chief of the National Guard Bureau.
    ``(3) In establishing the process under paragraph (2), the 
Secretary of Defense shall--
            ``(A) consider such procedural recommendations as the 
        current Chief of the National Guard Bureau may provide;
            ``(B) employ a selection advisory board, which shall be 
        appointed, charted, and instructed by agreement between the 
        Secretary of the Army and the Secretary of the Air Force; and
            ``(C) incorporate the requirements of section 601(d) of 
        this title relating to a performance evaluation and necessary 
        qualifications for the position.''.
    (e) Repeal of Prohibition on Chief Holding Office After Age 64.--
Subsection (b) of such section is amended by striking ``An officer may 
not hold that office after becoming 64 years of age.''.
    (f) Appointment of Next Chief of the National Guard Bureau.--Not 
later than 120 days after the date of the enactment of this Act, the 
Secretary of Defense shall submit to the President recommendations 
regarding the best qualified officer or officers for consideration by 
the President for appointment as the next Chief of the National Guard 
Bureau under section 10502 of title 10, United States Code, as amended 
by this section. The amendments made by subsections (c), (d), and (e) 
shall apply with respect to such appointment. The officer serving in 
the office of Chief of the National Guard Bureau as of the date of the 
enactment of this Act may be recommended for appointment and appointed 
to that office to serve in the grade of general.

SEC. 1612. ESTABLISHMENT OF NATIONAL GUARD BUREAU AS JOINT ACTIVITY OF 
              DEPARTMENT OF DEFENSE.

    (a) Joint Activity of the Department of Defense.--Subsection (a) of 
section 10501 of title 10, United States Code, is amended by striking 
``joint bureau of the Department of the Army and the Department of the 
Air Force'' and inserting ``joint activity of the Department of 
Defense''.
    (b) Joint Manpower Requirements.--
            (1) In general.--Chapter 1011 of such title is amended by 
        adding at the end the following new section:
``Sec. 10508. National Guard Bureau: general provisions
    ``The manpower requirements of the National Guard Bureau as a joint 
activity of the Department of Defense shall be determined in accordance 
with regulations prescribed by the Secretary of Defense, in 
consultation with the Chairman of the Joint Chiefs of Staff.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following new item:

``10508. National Guard Bureau: general provisions.''.

SEC. 1613. ENHANCEMENT OF FUNCTIONS OF NATIONAL GUARD BUREAU.

    (a) Additional General Functions.--Section 10503 of title 10, 
United States Code, is amended--
            (1) by predesignating paragraph (12), as paragraph (13); 
        and
            (2) by inserting after paragraph (11) the following new 
        paragraph (12):
            ``(12)(A) Facilitating and coordinating with the entities 
        listed in subparagraph (B) the use of National Guard personnel 
        and resources for operations conducted under title 32, or in 
        support of State missions.
            ``(B) The entities listed in this subparagraph for purposes 
        of subparagraph (A) are the following:
                    ``(I) Other Federal agencies.
                    ``(ii) The Adjutants General of the States.
                    ``(iii) The United States Joint Forces Command.
                    ``(iv) The combatant command the geographic area of 
                responsibility of which includes the United States,''.
    (b) Charter Developed and Prescribed by Secretary of Defense.--
Section 10503 of such title is amended--
            (1) in the matter preceding paragraph (1)--
                    (A) by striking ``The Secretary of the Army and the 
                Secretary of the Air Force shall jointly develop'' and 
                inserting ``The Secretary of Defense, in consultation 
                with the Chairman of the Joint Chiefs of Staff, the 
                Secretary of the Army, and the Secretary of the Air 
                Force, shall develop''; and
                    (B) by striking ``cover'' in the second sentence 
                and inserting ``reflect the full scope of the duties 
                and activities of the Bureau, including'' ; and
            (2) in paragraph (12), by striking ``the Secretaries'' and 
        inserting ``the Secretary of Defense''.

SEC. 1614. REQUIREMENT FOR SECRETARY OF DEFENSE TO PREPARE ANNUAL PLAN 
              FOR RESPONSE TO NATURAL DISASTERS AND TERRORIST EVENTS.

    (a) Requirement for Annual Plan.--Not later than March 1, 2008, and 
each March 1 thereafter, the Secretary of Defense, in consultation with 
the commander of the United States Northern Command and the Chief of 
the National Guard Bureau, shall prepare and submit to Congress a plan 
for coordinating the use of the National Guard and members of the Armed 
Forces on active duty when responding to natural disasters, acts of 
terrorism, and other man-made disasters as identified in the national 
planning scenarios described in subsection (e).
    (b) Information to Be Provided to Secretary.--To assist the 
Secretary of Defense in preparing the plan, the National Guard Bureau, 
pursuant to its purpose as channel of communications as set forth in 
section 10501(b) of title 10, United States Code, shall provide to the 
Secretary information gathered from Governors, adjutants general of 
States, and other State civil authorities responsible for homeland 
preparation and response to natural and man-made disasters.
    (c) Two Versions.--The plan shall set forth two versions of 
response, one using only members of the National Guard, and one using 
both members of the National Guard and members of the regular 
components of the Armed Forces.
    (d) Matters Covered.--The plan shall cover, at a minimum, the 
following:
            (1) Protocols for the Department of Defense, the National 
        Guard Bureau, and the Governors of the several States to carry 
        out operations in coordination with each other and to ensure 
        that Governors and local communities are properly informed and 
        remain in control in their respective States and communities.
            (2) An identification of operational procedures, command 
        structures, and lines of communication to ensure a coordinated, 
        efficient response to contingencies.
            (3) An identification of the training and equipment needed 
        for both National Guard personnel and members of the Armed 
        Forces on active duty to provide military assistance to civil 
        authorities and for other domestic operations to respond to 
        hazards identified in the national planning scenarios.
    (e) National Planning Scenarios.--The plan shall provide for 
response to the following hazards: Nuclear detonation, biological 
attack, biological disease outbreak/pandemic flu, the plague, chemical 
attack-blister agent, chemical attack-toxic industrial chemicals, 
chemical attack-nerve agent, chemical attack-chlorine tank explosion, 
major hurricane, major earthquake, radiological attack-radiological 
dispersal device, explosives attack-bombing using improvised explosive 
device, biological attack-food contamination, biological attack-foreign 
animal disease and cyber attack.

SEC. 1615. DETERMINATION OF DEPARTMENT OF DEFENSE CIVIL SUPPORT 
              REQUIREMENTS.

    (a) Determination of Requirements.--The Secretary of Defense shall 
determine the military-unique capabilities needed to be provided by the 
Department of Defense to support civil authorities in an incident of 
national significance or a catastrophic incident.
    (b) Plan for Funding Capabilities.--
            (1) Plan.--The Secretary of Defense shall develop and 
        implement a plan, in coordination with the Secretaries of the 
        military departments and the Chairman of the Joint Chiefs of 
        Staff, for providing the funds and resources necessary to 
        develop and maintain the following:
                    (A) The military-unique capabilities determined 
                under subsection (a).
                    (B) Any additional capabilities determined by the 
                Secretary to be necessary to support the use of the 
                active components and the reserve components of the 
                armed forces for homeland defense missions, domestic 
                emergency responses, and providing military support to 
                civil authorities.
            (2) Term of plan.--The plan required under paragraph (1) 
        shall cover at least five years.
    (c) Budget.--The Secretary of Defense shall include in the 
materials accompanying the budget submitted for each fiscal year a 
request for funds necessary to carry out the plan required under 
subsection (b) during the fiscal year covered by the budget. The 
defense budget materials shall delineate and explain the budget 
treatment of the plan for each component of each military department, 
each combatant command, and each affected Defense Agency.
    (d) Implementation.--In carrying out this section, the Secretary of 
Defense, acting through the chairman of the Joint Chiefs of Staff, 
shall ensure the appropriate assignment of responsibilities, 
coordination of the efforts, and prioritization of renouncing by the 
appropriate combatant commands, the military departments, and the 
National Guard Bureau.
    (e) Definitions.--In this section:
            (1) The term ``military-unique capabilities'' means those 
        capabilities that, in the view of the Secretary of Defense--
                    (A) cannot be provided by other Federal, State or 
                local civilian agencies; and
                    (B) are essential to provide support to civil 
                authorities in an incident of national significance or 
                a catastrophic incident.
            (2) The term ``defense budget materials'', with respect to 
        a fiscal year, means the materials submitted to Congress by the 
        Secretary of Defense in support of the budget for that fiscal 
        year.
    (f) Strategic Planning Guidance.--Section 113(g)(2) of title 10, 
United States Code, is amended by striking ``contingency plans'' at the 
end of the first sentence and inserting the following: ``contingency 
plans, including plans for providing support to civil authorities in an 
incident of national significance or a catastrophic incident, for 
homeland defense, and for military support to civil authorities''.

SEC. 1616. CONFORMING AND CLERICAL AMENDMENTS.

    (a) Conforming Amendment.--The heading of section 10503 of such 
title is amended to read as follows:
``Sec. 10503. Functions of National Guard Bureau: charter''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 1011 of such title is amended by striking the item relating to 
section 10503 and inserting the following new item:

``10503. Functions of National Guard Bureau: charter.''.

          Subtitle B--Additional Reserve Component Enhancement

SEC. 1621. UNITED STATES NORTHERN COMMAND.

    (a) Manpower Review.--
            (1) Review by chairman of the joint chiefs of staff.--Not 
        later than one year after the date of the enactment of this 
        Act, the Chairman of the Joint Chiefs of Staff shall submit to 
        the Secretary of Defense a review of the civilian and military 
        positions, job descriptions, and assignments within the United 
        States Northern Command with the goal of significantly 
        increasing the number of members of a reserve component 
        assigned to, and civilians employed by, the United States 
        Northern Command who have experience in the planning, training, 
        and employment of forces for homeland defense missions, 
        domestic emergency response, and providing military support to 
        civil authorities.
            (2) Submission of results of review.--Not later than 90 
        days after the date on which the Secretary of Defense receives 
        the results of the review under paragraph (1), the Secretary 
        shall submit to Congress a copy of the results of the review, 
        together with such recommendations as the Secretary considers 
        appropriate to achieve the objectives of the review.
    (b) Command and Control of Mixed-Status Forces in Certain 
Missions.--
            (1) Procedures required.--The Secretary of Defense shall 
        establish procedures under which an officer who is on active 
        duty or an officer who is on full-time National Guard duty may 
        command mixed-status forces in connection with the training and 
        use of mixed-status forces for homeland defense missions, 
        domestic emergency responses, and providing military support to 
        civil authorities.
            (2) Elements of procedures.--The procedures shall include 
        measures to enable--
                    (A) the Commander of United States Northern Command 
                and subordinate commanders within the United States 
                Northern Command to exercise command of such mixed-
                status forces; and
                    (B) the Adjutant General or other officers of the 
                National Guard of a State to exercise command of such 
                mixed-status forces.
            (3) Coordination.--The Secretary of Defense shall establish 
        the procedures in coordination with the Chairman of the Joint 
        Chiefs of Staff, the Chief of the National Guard Bureau, and 
        the Governors of the States.
    (c) Definitions.--In this section:
            (1) The term ``United States Northern Command'' means the 
        combatant command the geographic area of responsibility of 
        which includes the United States.
            (2) the term ``mixed-status forces'' means units and 
        members of the National Guard that are on full-time National 
        Guard duty participating in an encampment, maneuver, training 
        exercise, or operation with members of the armed forces on 
        active duty.
            (3) The term ``State'' means the several States, the 
        Commonwealth of Puerto Rico, the District of Columbia, Guam, 
        and the Virgin Islands.
            (4) The term ``Governor'', with respect to the District of 
        Columbia, means the commanding general of the District of 
        Columbia National Guard.
            (5) The terms ``active duty'' and ``full-time National 
        Guard duty'' have the meanings provided those terms by section 
        101 of title 10, United States Code.

SEC. 1622. COUNCIL OF GOVERNORS.

    The President shall establish a bipartisan Council of Governors to 
advise the Secretary of Defense, the Secretary of Homeland Security, 
and the White House Homeland Security Council on matters related to the 
National Guard and civil support missions.

SEC. 1623. RESERVE COMPONENTS POLICY BOARD.

    (a) Reserve Components Policy Board.--Section 10301 of title 10, 
United States Code, is amended to read as follows:
``Sec. 10301. Reserve Components Policy Board
    ``(a) There is in the Office of the Secretary of Defense a Reserve 
Components Policy Board. The Board shall provide the Secretary of 
Defense, through the Deputy Secretary of Defense, independent advice 
and recommendations on strategies, policies, and practices designed to 
improve and enhance the capabilities, efficiency, and effectiveness of 
the reserve components of the United States.
    ``(b) The Board shall consist of 15 members appointed from civilian 
life by the Secretary of Defense. The Secretary shall designate the 
chairman and a vice chairman of the Board. Members of the Board shall 
be appointed without regard to political affiliation, shall be 
appointed for two-year, renewable terms, and shall have a proven record 
of high-level achievement in a national security-related field that 
includes matters pertaining to the reserve components of the United 
States.
    ``(c) Members of the Board shall be selected on the basis of 
knowledge, expertise, or achievement in the following areas:
            ``(1) The reserve components of the United States.
            ``(2) The national security and national military 
        strategies of the United States.
            ``(3) The roles and missions of the active and reserve 
        components of the United States Armed Forces.
            ``(4) The organization, force structure, and force mix of 
        the United States Armed Forces.
            ``(5) Acquisition; research and development; military 
        operations; or personnel and compensation programs, policies, 
        and activities of the Department of Defense.
            ``(6) Homeland defense and support to civil authorities.
    ``(d) The Chairman shall be selected on the basis of extensive 
knowledge, expertise, or achievement with respect to the reserve 
components of the United States, including the National Guard.
    ``(e) The Under Secretary of Defense for Personnel and Readiness 
shall provide an executive director and the necessary support staff to 
manage the activities of the Board in consultation with the Chairman.
    ``(f) The Board shall act on those matters referred to it by the 
Secretary of Defense or the Chairman and, in addition, on any matter 
raised by a member of the Board. As a part of its duties, the Board 
shall periodically meet with members of the reserve components of the 
United States.''.
    (b) Clerical Amendment.--The item relating to section 10301 in the 
table of sections at the beginning of chapter 1009 of such title is 
amended to read as follows:

``10301. Reserve Components Policy Board.''.
    (c) Conforming Amendments.--
            (1) Title 10, United States Code, is amended in the 
        following provisions by striking ``Reserve Forces Policy 
        Board'' and inserting ``Reserve Components Policy Board'':
                    (A) Section 101(d)(6)(B)(i).
                    (B) Section 113(c)(2) (both places).
                    (C) Section 175.
            (2) The heading of section 175 of such title is amended to 
        read as follows:
``Sec. 175. Reserve Components Policy Board''.
            (3) The item relating to section 175 in the table of 
        sections for chapter 7 of such title is amended to read as 
        follows:

``175. Reserve Components Policy Board.''.

SEC. 1624. REQUIREMENTS FOR CERTAIN HIGH-LEVEL POSITIONS TO BE HELD BY 
              RESERVE COMPONENT GENERAL OR FLAG OFFICERS.

    (a) Unified and Specified Combatant Command Positions.--
Subparagraph (A) of section 526(b)(2) of title 10, United States Code, 
is amended by striking ``10 general and flag officer positions on the 
staffs of the commanders of'' and inserting ``15 general and flag 
officer positions in''.
    (b) Designation of Lieutenant General or Vice Admiral Positions to 
Be Held Only by Reserve Component Officers.--Such subparagraph is 
further amended--
            (1) by inserting ``(i)'' after ``(A)'';
            (2) by striking the last sentence; and
            (3) by adding at the end the following new clauses:
    ``(ii) The Chairman of the Joint Chiefs of Staff shall designate up 
to three general and flag officer positions in the grade of lieutenant 
general or vice admiral to be held only by reserve component officers. 
One of the positions designated under this clause shall be the deputy 
commander of the combatant command the geographic area of 
responsibility of which includes the United States, unless a reserve 
component officer is serving as commander of that combatant command. 
Each position designated under this clause shall be in addition to 
those positions that are required by law to be filled by an officer 
serving in the grade of lieutenant general or vice admiral.
    ``(iii) The positions designated under clauses (i) and (ii) shall 
be considered a joint duty assignment position for the purposes of 
chapter 38 of this title.''.

SEC. 1625. RETIREMENT AGE AND YEARS OF SERVICE LIMITATIONS ON CERTAIN 
              RESERVE GENERAL AND FLAG OFFICERS.

    (a) Retirement for Age.--
            (1) Inclusion of reserve generals and admirals.--Section 
        14511 of title 10, United States Code, is amended to read as 
        follows:
``Sec. 14511. Separation at age 64: major generals and generals and 
              rear admirals and admirals
    ``(a) Major Generals and Rear 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 major general and each reserve officer of the Navy in the 
grade of rear admiral, except an officer covered by section 14512 of 
this title, shall be separated in accordance with section 14515 of this 
title on the last day of the month in which the officer becomes 64 
years of age.
    ``(b) Generals and Admirals.--(1) 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 general 
and each reserve officer of the Navy in the grade of admiral shall be 
separated in accordance with section 14515 of this title on the last 
day of the month in which the officer becomes 64 years of age.
    ``(2) The retirement of an officer under paragraph (1) may be 
deferred--
            ``(A) by the President, but such a deferment may not extend 
        beyond the first day of the month following the month in which 
        the officer becomes 68 years of age; or
            ``(B) by the Secretary of Defense, but such a deferment may 
        not extend beyond the first day of the month following the 
        month in which the officer becomes 66 years of age.''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 1407 of such title is amended by striking 
        the item relating to section 14511 and inserting the following 
        new item:

``14511. Separation at age 64: major generals and generals and rear 
                            admirals and admirals.''.
    (b) Conforming Amendments and Reserve Officers Holding Certain 
Other Offices.--Section 14512 of such title is amended--
            (1) in subsection (a)(2)--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B), (C), and 
                (D) as subparagraphs (A), (B), and (C), respectively;
            (2) in subsection (b)--
                    (A) by inserting ``(1)'' before ``The Secretary''; 
                and
                    (B) by adding at the end the following new 
                paragraph:
    ``(2) The President may defer the retirement of a reserve officer 
serving in the position of Chief of the Navy Reserve or Commander of 
the Marine Forces Reserve, but such deferment may not extend beyond the 
first day of the month following the month in which the officer becomes 
66 years of age. A deferment under this paragraph shall not count 
toward the limitation on the total number of officers whose retirement 
may be deferred at any one time under paragraph (1).''; and
            (3) by adding at the end the following new subsection:
    ``(c) Designated Lieutenant General or Vice Admiral Positions Held 
by Reserve Component Officers.--Unless retired, transferred to the 
Retired Reserve, or discharged at an earlier date, a reserve officer 
serving in one of the general and flag officer positions designated 
under section 526(b)(2)(A)(ii) of this title to be held by a reserve 
officer in the grade of lieutenant general or vice admiral shall, on 
the last day of the month in which the officer becomes 66 years of age, 
be separated in accordance with section 14515 of this title.''.
    (c) Imposition of Years of Service Limitation.--
            (1) Imposition of limitation.--Section 14508 of such title 
        is amended by inserting after subsection (c), as added by 
        section 511, the following new subsection:
    ``(d) Forty Years of Service for Generals and 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 general and each reserve officer of the Navy in 
the grade of admiral shall, 30 days after completion of 40 years of 
commissioned service, be separated in accordance with section 14514 of 
this title.''.
            (2) Conforming amendments.--Subsection (b) of section 10502 
        of such title, as amended by section 1611(e), is further 
        amended--
                    (A) by inserting ``(1)'' before the first sentence; 
                and
                    (B) by striking ``While holding that office'' and 
                inserting the following:
    ``(2) Except as provided in section 14508(d) of this title, while 
holding the office of Chief of the National Guard Bureau''.
    (d) Treatment of Current Chief of the National Guard Bureau.--
Section 14512(a) of title 10, United States Code, as in effect on the 
day before the date of the enactment of this Act, shall continue to 
apply with respect to the officer serving in the office of Chief of the 
National Guard Bureau as of that date. However, if the officer serving 
in the office of Chief of the National Guard Bureau as of that date is 
subsequently appointed to that office to serve in the grade of general, 
subsection (b) of section 14511  of such title, as added by this 
section, shall apply.

SEC. 1626. ADDITIONAL REPORTING REQUIREMENTS RELATING TO NATIONAL GUARD 
              EQUIPMENT.

    Section 10541 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(d) Each report under this section concerning equipment of the 
National Guard shall also include the following:
            ``(1) A statement of the accuracy of the projections 
        required by subsection (b)(5)(D) contained in earlier reports 
        under this section, and an explanation, if the projection was 
        not met, of why the projection was not met.
            ``(2) A certification from the Chief of the National Guard 
        Bureau setting forth an inventory for the preceding fiscal year 
        of each item of equipment--
                    ``(A) for which funds were appropriated;
                    ``(B) which was due to be procured for the National 
                Guard during that fiscal year; and
                    ``(C) which has not been received by a National 
                Guard unit as of the close of that fiscal year.''.

             TITLE XVII--DEFENSE READINESS PRODUCTION BOARD

Sec. 1701. Purpose.
Sec. 1702. Establishment of Defense Readiness Production Board.
Sec. 1703. Defense Production Industry Advisory Council.
Sec. 1704. Role of Chairman of Board in certain reporting processes.
Sec. 1705. Authority to use multiyear contracts.
Sec. 1706. Transfer authority.
Sec. 1707. Special authority for use of working capital funds for 
                            critical readiness requirements.
Sec. 1708. Strategic Readiness Fund.

SEC. 1701. PURPOSE.

    The purpose of this title is to establish a Defense Readiness 
Production Board to identify and designate critical readiness 
requirements, to improve the utilization of the defense industrial 
base, and to provide authorities to the Secretary of Defense and the 
Secretaries of the military departments to address critical readiness 
requirements.

SEC. 1702. ESTABLISHMENT OF DEFENSE READINESS PRODUCTION BOARD.

    (a) Establishment.--The Secretary of Defense shall establish a 
Defense Readiness Production Board (in this subtitle referred to as the 
``Board'') within the Office of the Secretary of Defense.
    (b) Membership.--
            (1) In general.--The Board shall be composed of 16 members 
        appointed by the Secretary of Defense in accordance with this 
        subsection.
            (2) Chairman.--The Secretary shall appoint a Chairman from 
        within the Office of the Secretary of Defense.
            (3) Military personnel.--The Secretary shall appoint 
        members from among officers of the Armed Forces serving on the 
        joint staff and each of the Armed Forces. In making 
        appointments under this paragraph, the Secretary shall ensure 
        that there is full representation of the reserve components of 
        each of the Armed Forces, including at least two 
        representatives of the National Guard and two individuals with 
        responsibilities relating to a depot activity.
            (4) Civilian personnel.--The Secretary shall appoint 
        members from among civilian employees of the Department of 
        Defense serving in each of the military departments and in such 
        other entities within the Department as the Secretary 
        determines appropriate.
            (5) Other agencies.--The Secretary may request such 
        representatives from other Federal agencies to serve as members 
        as the Secretary of Defense considers necessary, appropriate, 
        and relevant to the work of the Board.
            (6) Terms; vacancies.--The Secretary shall determine the 
        term of office of members of the Board and the manner of 
        filling vacancies on the Board.
    (c) Functions.--
            (1) Designation of critical readiness requirements.--
                    (A) The Board shall--
                            (i) monitor and assess the readiness of the 
                        Armed Forces;
                            (ii) assist the Secretary of Defense and 
                        Congress in the identification of deficiencies 
                        in the readiness of the Armed Forces caused by 
                        shortfalls in weapons systems, equipment, and 
                        supplies; and
                            (iii) identify and formally designate 
                        critical readiness requirements.
                    (B) In this title, the term ``critical readiness 
                requirements'' means shortfalls in equipment or 
                supplies that materially reduce readiness of the Armed 
                Forces and that--
                            (i) cannot be adequately addressed by 
                        identifying acceptable substitute capabilities 
                        or cross leveling of equipment that does not 
                        unacceptably reduce the readiness of other 
                        Armed Forces; and
                            (ii) that are likely to persist for more 
                        than two years based on currently projected 
                        budgets and schedules for deliveries of 
                        equipment and supplies.
                    (C) During the period beginning on the date of the 
                enactment of this Act and ending on the date of the 
                first meeting of the Board, the Secretary of Defense 
                may identify and formally designate critical readiness 
                requirements under subparagraph (A)(iii) in lieu of the 
                Board.
            (2) Monitoring and assessment of industrial capacity.--The 
        Board shall also monitor and assess the industrial capacity of 
        all elements of the Department of Defense, the defense 
        industrial base, and non-traditional suppliers to the 
        Department of Defense--
                    (A) to determine where industrial capacity is being 
                insufficiently used to meet the needs of the Department 
                of Defense, particularly in addressing critical 
                readiness requirements; and
                    (B) to recommend ways to increase the use of the 
                industrial base, including through encouraging the use 
                of public-private partnerships for existing systems 
                currently maintained outside the depot system as a 
                means of promoting competition, attracting non-
                traditional suppliers, and expanding the business base 
                of traditional suppliers.
            (3) Reports and notifications.--
                    (A) The Board shall submit to the Secretary of 
                Defense and to the congressional defense committees 
                reports to communicate its findings and the progress 
                made by the Department of Defense in addressing 
                critical readiness requirements, at such times as it 
                considers necessary, but not less often than every six 
                months.
                    (B) The Board shall notify the Secretary of Defense 
                and the congressional defense committees within 10 days 
                after it designates a critical readiness requirement 
                under paragraph (1). If the Secretary of Defense 
                designates a critical readiness requirement under 
                paragraph (1)(C) in lieu of the Board, the Secretary 
                shall notify the congressional defense committees 
                within 10 days after such designation.
    (d) Staff.--The Secretary of Defense shall assign staff, and 
request the Secretaries of the military departments to assign staff, as 
necessary to assist the Board in carrying out its duties.
    (e) Termination.--The Board shall terminate 5 years after the date 
of its establishment under subsection (a).

SEC. 1703. DEFENSE PRODUCTION INDUSTRY ADVISORY COUNCIL.

    (a) Establishment.--The Secretary of Defense shall establish a 
Defense Production Industry Advisory Council (in this section referred 
to as the ``Council'') to advise and assist the Defense Readiness 
Production Board in fulfilling its duties and functions with respect to 
the industrial base.
    (b) Membership.--The Council shall be composed of 12 members, 
appointed by the Secretary of Defense in consultation with the Armed 
Services Committees of the Senate and the House of Representatives from 
among individuals with knowledge of the defense industrial base, 
including individuals who--
            (1) represent major sectors of defense industry most 
        relevant to the work of the Council;
            (2) represent non-traditional suppliers to the Department 
        of Defense from industries most relevant to the work of the 
        Council;
            (3) represent suppliers of essential materials most 
        relevant to the work of the Council; and
            (4) represent the workforce in the defense industrial base 
        most relevant to the work of the Council.
    (c) Functions.--The Council shall advise and assist the Defense 
Readiness Production Board in fulfilling its duties and functions with 
regard to the industrial base and on such other matters as the 
Secretary may direct.
    (d) Reimbursement.--The Secretary may provide reimbursement to 
members of the Council for purposes of attending meetings of the 
Council, in accordance with Federal guidelines.
    (e) Termination.--The Council shall terminate 5 years after the 
date of its establishment under subsection (a).

SEC. 1704. ROLE OF CHAIRMAN OF BOARD IN CERTAIN REPORTING PROCESSES.

    (a) Readiness Reporting System.--
            (1) Inclusion in joint readiness reviews.--The Chairman of 
        the Board, or a representative of the Chairman, shall be 
        included in the quarterly joint readiness reviews and monthly 
        updates required under section 117(d) of title 10, United 
        States Code.
            (2) Inclusion in reports.--The Chairman of the Board may 
        submit views to the Secretary of Defense for inclusion in the 
        report submitted to Congress by the Secretary under section 
        117(e) of such title.
    (b) Quarterly Reports on Military Readiness.--The Chairman of the 
Board shall be included in the process for preparing quarterly reports 
required under section 482 of title 10, United States Code. The 
Chairman may submit views to the Secretary of Defense for inclusion in 
such reports.
    (c) Reports on Fund Transfers.--The Chairman of the Board shall be 
included in the process of transferring any funds described in reports 
submitted under section 483 of title 10, United States Code. The 
Chairman may submit views to the Secretary of Defense for inclusion in 
such reports, and if the Chairman determines that any transfer 
described in a report would negatively affect a critical readiness 
requirement, shall submit views on such transfer.

SEC. 1705. AUTHORITY TO USE MULTIYEAR CONTRACTS.

    (a) In General.--Notwithstanding section 2306b of title 10, United 
States Code, the Secretary of a military department may enter into a 
multiyear contract to procure an item if such item will fill, or 
substantially fill, a critical readiness requirement designated by the 
Board.
    (b) Limitation on Items.--The authority under subsection (a) may 
not be used unless the item to be procured--
            (1) is the same or substantially the same as an item 
        procured previously using a multiyear contract;
            (2) has been in full-rate production for at least 3 years; 
        or
            (3) is a non-developmental commercial item with 
        modifications that are de minimis in nature.
    (c) Additional Limitation.--The authority under subsection (a) may 
not be used unless the Secretary of the military department concerned--
            (1) certifies that the pricing under the contract is fair 
        and reasonable and that the Secretary has all the information 
        necessary to make such certification; and
            (2) the congressional defense committees have been notified 
        at least 30 days in advance of the award of the proposed 
        contract, and the notification includes a statement of the 
        cancellation ceiling for the contract.
    (d) Accounting for Costs.--For the purpose of accounting for the 
costs of contracts entered into under this section, the Department of 
Defense shall either--
            (1) record obligations for the full cost of the contract at 
        the time of contract award; or
            (2) record obligations for each fiscal year of the contract 
        equal to the Government's total annual liability, which 
        includes, for a fiscal year, the performance cost of the 
        contract for the fiscal year plus any costs that would be 
        incurred if the contract were cancelled at the end of the 
        fiscal year.
    (e) Multiyear Contract Defined.--In this section, the term 
``multiyear contract'' has the meaning provided in section 2306b(k) of 
this title.
    (f) Regulations.--The Secretary of Defense shall prescribe 
regulations to carry out this section. The regulations shall include 
provisions similar to the provisions required under section 2306b(e) of 
this title (relating to protection of existing authority).

SEC. 1706. TRANSFER AUTHORITY.

    (a) In General.--The Secretary of Defense may transfer from amounts 
described in subsection (b) to other appropriations of the Department 
of Defense for fiscal year 2008 or any subsequent fiscal year such 
amounts as the Secretary determines necessary to address critical 
readiness requirements designated by the Board. Amounts so transferred 
shall be merged with and be available for the same purposes as the 
accounts to which transferred. The total amount that the Secretary may 
transfer under the authority of this section in any fiscal year is 
$1,000,000,000.
    (b) Amounts Subject to Transfer.--Transfers under this section may 
be made only from amounts appropriated to the Department of Defense for 
fiscal year 2008 or any subsequent fiscal year that remain available 
for obligation.
    (c) Additional Authority.--The authority provided by this section 
is in addition to any other authority provided by law authorizing the 
transfer of amounts available to the Department of Defense.

SEC. 1707. SPECIAL AUTHORITY FOR USE OF WORKING CAPITAL FUNDS FOR 
              CRITICAL READINESS REQUIREMENTS.

    (a) Notification to Secretary of Certain Expenses.--The Secretary 
of a military department shall notify the Secretary of Defense if the 
Secretary of the military department determines that costs will be 
incurred for work on a critical readiness program in excess of amounts 
available in the working capital fund of the military department.
    (b) Transfer of Funds.--The Secretary of Defense, after receiving a 
notification under subsection (a), may transfer funds from another 
working capital fund or other funds available to the Department of 
Defense for fiscal year 2008 or any subsequent fiscal year sufficient 
to cover the costs of the critical readiness program. The Secretary of 
the military department to which the funds are transferred shall notify 
the congressional defense committees of the transfer within 30 days 
after the transfer is made.
    (c) Requirement to Reimburse Working Capital Funds.--In the case of 
any working capital fund from which a transfer is made under subsection 
(b), the Secretary of Defense shall, within 12 months after the 
transfer, reimburse the fund from any of the following:
            (1) An appropriation of funds.
            (2) Other funds available to the Department of Defense.
            (3) If the Secretary is unable to provide reimbursement 
        pursuant to paragraph (1) or (2) within nine months after the 
        transfer, advance billing (under section 2208(i) of title 10, 
        United States Code) from the military department carrying out 
        the critical readiness program.
    (d) Additional Transfer Authority.--The transfer authority under 
this section is in addition to any other transfer authority.
    (e) Critical Readiness Program.--In this section, the term 
``critical readiness program'' means a program to address a critical 
readiness requirement designated by the Board.

SEC. 1708. STRATEGIC READINESS FUND.

    (a) Establishment.--There is established on the books of the 
Treasury a fund to be known as the Department of Defense Strategic 
Readiness Fund (in this subsection referred to as the ``Fund''), which 
shall be administered by the Secretary of the Treasury.
    (b) Purposes.--The Fund shall be used to address critical readiness 
requirements designated under section 1701(c).
    (c) Assets of Fund.--There shall be deposited into the Fund any 
amount appropriated to the Fund, which shall constitute the assets of 
the Fund.
    (d) Transfer of Funds.--
            (1) The Secretary of Defense may transfer amounts in the 
        Fund to such appropriations accounts as the Secretary 
        determines appropriate for addressing critical readiness 
        requirements designated under section 1701(c). Amounts so 
        transferred shall be merged with and available for the same 
        purposes and for the same time period as the appropriation 
        account to which transferred.
            (2) The transfer authority provided in paragraph (1) is in 
        addition to any other transfer authority available to the 
        Department of Defense. Upon a determination that all or part of 
        the amounts transferred from the Fund are not necessary for the 
        purposes for which transferred, such amounts may be transferred 
        back to the Fund.
            (3) The Secretary of Defense shall notify the congressional 
        defense committees within 30 days after the Secretary makes a 
        transfer under this subsection.
    (e) Authorization.--There is hereby authorized to be appropriated 
to the Strategic Readiness Fund $1,000,000,000, to be derived from 
amounts for Operations and Maintenance under section 1508.

            DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

SEC. 2001. SHORT TITLE.

    This division may be cited as the ``Military Construction 
Authorization Act for Fiscal Year 2008''.

                            TITLE XXI--ARMY

Sec. 2101. Authorized Army construction and land acquisition projects.
Sec. 2102. Family housing.
Sec. 2103. Improvements to military family housing units.
Sec. 2104. Authorization of appropriations, Army.
Sec. 2105. Modification of authority to carry out certain fiscal year 
                            2006 project.

SEC. 2101. AUTHORIZED ARMY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2104(a)(1), the 
Secretary of the Army may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:

                                         Army: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Alabama...................................  Anniston Army Depot...............................       $26,000,000
Alaska....................................  Fort Richardson...................................       $92,800,000
                                            Fort Wainwright...................................      $105,600,000
Arizona...................................  Fort Huachuca.....................................      $129,600,000
California................................  Fort Irwin........................................       $24,000,000
                                            Presidio, Monterey................................       $28,000,000
Colorado..................................  Fort Carson.......................................      $157,200,000
Delaware..................................  Dover Air Force Base..............................       $17,500,000
Florida...................................  Eglin Air Force Base..............................       $66,000,000
                                            Southern Command Headquarters, Miami..............      $237,000,000
Georgia...................................  Fort Benning......................................      $185,800,000
                                            Fort Stewart/Hunter Army Air Field................      $123,500,000
Hawaii....................................  Fort Shafter......................................       $31,000,000
                                            Kahuku Training Area..............................        $9,200,000
                                            Schofield Barracks................................       $88,000,000
                                            Wheeler Army Air Field............................       $51,000,000
Kansas....................................  Fort Leavenworth..................................       $90,800,000
                                            Fort Riley........................................      $140,200,000
Kentucky..................................  Fort Campbell.....................................      $105,000,000
                                            Fort Knox.........................................        $6,700,000
Missouri..................................  Fort Leonard Wood.................................      $129,050,000
Nevada....................................  Hawthorne Army Ammunition Plant...................       $11,800,000
New Mexico................................  White Sands Missile Range.........................       $71,000,000
New York..................................  Fort Drum.........................................      $300,600,000
North Carolina............................  Fort Bragg........................................      $270,800,000
Oklahoma..................................  Fort Sill.........................................        $2,900,000
South Carolina............................  Fort Jackson......................................       $85,000,000
Texas.....................................  Camp Bullis.......................................        $1,600,000
                                            Corpus Christi....................................       $11,200,000
                                            Fort Bliss........................................      $111,900,000
                                            Fort Hood.........................................      $138,000,000
                                            Fort Sam Houston..................................       $19,150,000
                                            Red River Army Depot..............................        $9,200,000
Virginia..................................  Fort Belvoir......................................       $13,000,000
                                            Fort Eustis.......................................       $75,000,000
                                            Fort Lee..........................................       $22,600,000
                                            Fort Myer.........................................       $20,800,000
Washington................................  Fort Lewis........................................      $167,900,000
                                            Yakima Training Center............................       $29,000,000
----------------------------------------------------------------------------------------------------------------

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

                     Army: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Afghanistan..................  Afghanistan..............     $13,800,000
Bulgaria.....................  Nevo Selo FOS............     $61,000,000
Germany......................  Grafenwoehr..............     $62,000,000
Hondurus.....................  Various locations........      $2,550,000
Italy........................  Vicenza..................    $173,000,000
Korea........................  Camp Humphreys...........     $57,000,000
Romania......................  Various locations........     $12,600,000
------------------------------------------------------------------------

SEC. 2102. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2104(a)(5)(A), the Secretary of the Army may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations or locations, in the number of units, 
and in the amounts set forth in the following table:

                                              Army: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                  Installation or Location             Units              Amount
----------------------------------------------------------------------------------------------------------------
Utah....................................  Dugway Proving Grounds.........  28...................      $5,000,000
Germany.................................  Ansbach........................  138..................     $52,000,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2104(a)(5)(A), the 
Secretary of the Army may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of family housing units in an amount not to 
exceed $2,000,000.

SEC. 2103. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2104(a)(5)(A), the Secretary of the Army may improve existing 
military family housing units in an amount not to exceed $365,400,000.

SEC. 2104. AUTHORIZATION OF APPROPRIATIONS, ARMY.

    (a) Authorization of Appropriations.--Funds are hereby authorized 
to be appropriated for fiscal years beginning after September 30, 2007, 
for military construction, land acquisition, and military family 
housing functions of the Department of the Army in the total amount of 
$5,382,917,000 as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2101(a), $3,222,500,000.
            (2) For military construction projects outside the United 
        States authorized by section 2101(b), $381,950,000.
            (3) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $27,200,000.
            (4) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $329,547,000.
            (5) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $424,400,000.
                    (B) For support of military family housing 
                (including the functions described in section 2833 of 
                title 10, United States Code), $731,920,000.
            (6) For the construction of increment 2 of a barracks 
        complex at Fort Lewis, Washington, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2007 (division B of Public Law 109-364; 120 Stat. 
        2445), as amended by section 20814 of the Continuing 
        Appropriations Resolution, 2007 (division B of Public Law 109-
        289), as added by section 2 of the Revised Continuing 
        Appropriations Resolution, 2007 (Public Law 110-5; 121 Stat. 
        41), $102,000,000.
            (7) For the construction of increment 3 of a barracks 
        complex at Fort Bragg, North Carolina, authorized by section 
        2101(a) of the Military Construction Authorization Act for 
        Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
        3485), $47,400,000
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2101 of this 
Act may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1) and (2) of subsection (a).
            (2) $46,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of an operations complex at 
        Eglin Air Force Base, Florida).
            (3) $70,000,000 (the balance of the amount authorized under 
        section 2201(a) for construction of the United States Southern 
        Command Headquarters, Miami, Florida).

SEC. 2105. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2006 PROJECT.

    (a) Modification.--The table in section 2101(a) of the Military 
Construction Authorization Act for Fiscal Year 2006 (division B of 
Public Law 109-163; 119 Stat. 3485) is amended in the item relating to 
Fort Bragg, North Carolina, by striking ``$301,250,000'' in the amount 
column and inserting ``$308,250,000''.
    (b) Conforming Amendments.--Section 2104(b)(5) of that Act (119 
Stat. 3488) is amended by striking ``$77,400,000'' and inserting 
``$84,400,000''.

                            TITLE XXII--NAVY

Sec. 2201. Authorized Navy construction and land acquisition projects.
Sec. 2202. Family housing.
Sec. 2203. Improvements to military family housing units.
Sec. 2204. Authorization of appropriations, Navy.
Sec. 2205. Repeal of authorization for construction of Navy Outlying 
                            Landing Field, Washington County, North 
                            Carolina.

SEC. 2201. AUTHORIZED NAVY CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2204(a)(1), the 
Secretary of the Navy may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following table:

                                         Navy: Inside the United States
----------------------------------------------------------------------------------------------------------------
                   State                                 Installation or Location                    Amount
----------------------------------------------------------------------------------------------------------------
Alaska....................................  Outlying Field Evergreen..........................        $9,560,000
Arizona...................................  Marine Corps Air Station, Yuma....................       $33,720,000
California................................  Marine Corps Air Station, Miramar.................       $26,760,000
                                            Marine Corps Base, Camp Pendleton.................      $282,450,000
                                            Marine Corps Base, Twentynine Palms...............      $142,619,000
                                            Naval Station, San Diego..........................       $23,630,000
Florida...................................  Marine Corps Logistics Base, Blount Island........        $7,570,000
  ........................................  Naval Surface Warfare Center, Panama City.........       $13,870,000
                                            Naval Training Center, Corry Field................        $1,600,000
Hawaii....................................  Marine Corps Air Station, Kaneohe.................       $37,961,000
                                            Naval Base, Pearl Harbor..........................       $99,860,000
                                            Naval Station Pearl Harbor, Wahiawa...............       $65,410,000
Illinois..................................  Naval Training Center, Great Lakes................       $10,221,000
Maryland..................................  Naval Air Warfare Center, Patuxent River..........       $38,360,000
                                            Naval Surface Warfare Center, Indian Head.........        $9,500,000
North Carolina............................  Marine Corps Air Station, Cherry Point............       $28,610,000
                                            Marine Corps Air Station, New River...............       $58,630,000
                                            Marine Corps Base, Camp Lejeune...................      $234,730,000
South Carolina............................  Marine Corps Air Station, Beaufort................       $10,300,000
                                            Marine Corps Recruit Depot, Parris Island.........       $55,282,000
Texas.....................................  Naval Air Station, Corpus Christi.................       $14,290,000
Virginia..................................  Marine Corps Base, Quantico.......................       $50,519,000
                                            Naval Station, Norfolk............................       $65,360,000
                                            Naval Support Activity, Chesapeake................        $8,450,000
                                            Naval Surface Warfare Center, Dahlgren............       $10,000,000
Washington................................  Naval Air Station, Whidbey Island.................       $34,510,000
                                            Naval Station, Bremerton..........................      $119,760,000
----------------------------------------------------------------------------------------------------------------

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

                     Navy: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Bahrain......................  Southwest Asia...........     $35,500,000
Diego Garcia.................  Naval Support Facility,        $7,150,000
                                Diego Garcia.
Djibouti.....................  Camp Lemonier............     $22,390,000
Guam.........................  Naval Activities, Guam...    $278,818,000
------------------------------------------------------------------------

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

                       Navy: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Unspecified          Wharf Utilities Upgrade..      $8,900,000
                               Host Nation                    $2,700,000
                                Infrastructure.
------------------------------------------------------------------------

SEC. 2202. FAMILY HOUSING.

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

                                              Navy: Family Housing
----------------------------------------------------------------------------------------------------------------
                Location                           Installation                    Units              Amount
----------------------------------------------------------------------------------------------------------------
Mariana Islands.........................  Naval Activities, Guam.........  73...................     $57,167,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2204(a)(6)(A), the 
Secretary of the Navy may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $3,172,000.

SEC. 2203. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2204(a)(6)(A), the Secretary of the Navy may improve existing 
military family housing units in an amount not to exceed $237,990,000.

SEC. 2204. AUTHORIZATION OF APPROPRIATIONS, NAVY.

    (a) In General.--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 $2,804,429,000, as 
follows:
            (1) For military construction projects inside the United 
        States authorized by section 2201(a), $1,493,532,000.
            (2) For military construction projects outside the United 
        States authorized by section 2201(b), $343,858,000.
            (3) For military construction projects at unspecified 
        worldwide locations authorized by section 2201(c), $11,600,000.
            (4) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $10,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $111,067,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $298,329,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $371,404,000.
            (7) For the construction of increment 2 of the construction 
        of an addition to the National Maritime Intelligence Center, 
        Suitland, Maryland, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 2007 
        (division B of Public Law 109-364; 120 Stat. 2448), 
        $52,069,000.
            (8) For the construction of increment 3 of recruit training 
        barracks infrastructure upgrade at Recruit Training Command, 
        Great Lakes, Illinois, authorized by section 2201(a) of the 
        Military Construction Authorization Act for Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), 
        $16,650,000.
            (9) For the construction of increment 3 of wharf upgrades 
        at Yokosuka, Japan, authorized by section 2201(b) of the 
        Military Construction Authorization Act of Fiscal Year 2006 
        (division B of Public Law 109-163; 119 Stat. 3490), $8,750,000.
            (10) For the construction of increment 2 of the Bachelor 
        Enlisted Quarters Homeport Ashore Program at Bremerton, 
        Washington (formerly referred to as a project at Naval Station, 
        Everett), authorized by section 2201(a) of the Military 
        Construction Authorization Act of Fiscal Year 2006 (division B 
        of Public Law 109-163; 119 Stat.3490), $47,240,000.
            (11) For the construction of increment 4 of the limited 
        area production and storage complex at Naval Submarine Base, 
        Kitsap, Bangor, Washington (formerly referred to as a project 
        at the Strategic Weapons Facility Pacific, Bangor), authorized 
        by section 2201(a) of the Military Construction Authorization 
        Act of Fiscal Year 2005 (division B of Public Law 108-375; 118 
        Stat. 2105), as amended by section 2206 of the Military 
        Construction Authorization Act for Fiscal Year 2006 (division B 
        of Public Law 109-163; 119 Stat. 3493), $39,750,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2201 of this 
Act may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a).
            (2) $50,000,000 (the balance of the amount authorized under 
        section 2201(b) for construction of a wharf extension in Apra 
        Harbor, Guam.

SEC. 2205. REPEAL OF AUTHORIZATION FOR CONSTRUCTION OF NAVY OUTLYING 
              LANDING FIELD, WASHINGTON COUNTY, NORTH CAROLINA.

    (a) Repeal of Authorization.--The table in section 2201(a) of the 
Military Construction Authorization Act for Fiscal Year 2004 (division 
B of Public Law 108-136; 117 Stat. 1704) is amended by striking the 
item relating to Navy Outlying Landing Field, Washington County, North 
Carolina, as added by section 2205(a) of the Military Construction 
Authorization Act for Fiscal Year 2007 (division B of Public Law 109-
364; 120 Stat. 2452).
    (b) Repeal of Incremental Funding Authority.--Section 2204(b) of 
that Act (117 Stat. 1706) is amended by striking paragraph (6).
    (c) Effect of Repeal.--The amendments made by this section do not 
affect the expenditure of funds obligated, before the effective date of 
this title, for the construction of the Navy Outlying Landing Field, 
Washington County, North Carolina, or the acquisition of real property 
to facilitate such construction.

                         TITLE XXIII--AIR FORCE

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

SEC. 2301. AUTHORIZED AIR FORCE CONSTRUCTION AND LAND ACQUISITION 
              PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2304(a)(1), the 
Secretary of the Air Force may acquire real property and carry out 
military construction projects for the installations or locations 
inside the United States, and in the amounts, set forth in the 
following table:

                                       Air Force: Inside the United States
----------------------------------------------------------------------------------------------------------------
                    State                                 Installation or Location                   Amount
----------------------------------------------------------------------------------------------------------------
Alaska......................................  Elmendorf Air Force Base........................       $70,180,000
Arizona.....................................  Davis-Monthan Air Force Base....................       $11,200,000
                                              Kirtland Air Force Base.........................        $3,700,000
                                              Luke Air Force Base.............................        $5,500,000
Arkansas....................................  Little Rock Air Force Base......................        $9,800,000
California..................................  Edwards Air Force Base..........................        $8,500,000
                                              Travis Air Force Base...........................       $37,400,000
Colorado....................................  Fort Carson.....................................       $13,500,000
                                              Schriever Air Force Base........................       $24,500,000
                                              United States Air Force Academy.................       $15,000,000
District of Columbia........................  Bolling Air Force Base..........................        $2,500,000
Florida.....................................  Eglin Air Force Base............................      $158,300,000
                                              MacDill Air Force Base..........................       $60,500,000
                                              Patrick Air Force Base..........................       $11,854,000
                                              Tyndall Air Force Base..........................       $44,114,000
Georgia.....................................  Robins Air Force Base...........................       $19,700,000
Hawaii......................................  Hickam Air Force Base...........................       $31,971,000
Illinois....................................  Scott Air Force Base............................       $16,700,000
Kansas......................................  Fort Riley......................................       $12,515,000
Missouri....................................  Whiteman Air Force Base.........................       $11,400,000
Nebraska....................................  Offutt Air Force Base...........................       $16,952,000
New Mexico..................................  Cannon Air Force Base...........................        $1,688,000
North Dakota................................  Minot Air Force Base............................       $18,200,000
Oklahoma....................................  Altus Air Force Base............................        $2,000,000
                                               Tinker Air Force Base..........................       $34,600,000
South Carolina..............................  Shaw Air Force Base.............................        $9,300,000
Texas.......................................  Lackland Air Force Base.........................       $14,000,000
                                              Shepard Air Force Base..........................        $7,000,000
Utah........................................  Hill Air Force Base.............................       $16,799,000
Washington..................................  Fairchild Air Force Base........................        $6,200,000
Wyoming.....................................  Francis E. Warren Air Force Base................       $14,600,000
----------------------------------------------------------------------------------------------------------------

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

                  Air Force: Outside the United States
------------------------------------------------------------------------
           Country              Installation or Location      Amount
------------------------------------------------------------------------
Germany......................  Ramstein Air Base........     $48,209,000
Guam.........................  Andersen Air Force Base..     $15,800,000
Qatar........................  Al Udeid Air Base........     $22,300,000
Spain........................  Moron Air Base...........      $1,800,000
United Kingdom...............  Royal Air Force               $17,300,000
                                Lakenheath.
                               Royal Air Force Menwith       $41,000,000
                                Hill Station.
------------------------------------------------------------------------

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

                    Air Force: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Classified.........  Classified Project.......      $1,500,000
                               Classified-Special            $13,940,000
                                Evaluation Program.
------------------------------------------------------------------------

SEC. 2302. FAMILY HOUSING.

    (a) Construction and Acquisition.--Using amounts appropriated 
pursuant to the authorization of appropriations in section 
2304(a)(6)(A), the Secretary of the Air Force may construct or acquire 
family housing units (including land acquisition and supporting 
facilities) at the installations or locations, in the number of units, 
and in the amounts set forth in the following table:

                                            Air Force: Family Housing
----------------------------------------------------------------------------------------------------------------
            State or Country                   Installation or Location             Units             Amount
----------------------------------------------------------------------------------------------------------------
Germany.................................  Ramstein Air Base................  117................     $56,275,000
----------------------------------------------------------------------------------------------------------------

    (b) Planning and Design.--Using amounts appropriated pursuant to 
the authorization of appropriations in section 2304(a)(6)(A), the 
Secretary of the Air Force may carry out architectural and engineering 
services and construction design activities with respect to the 
construction or improvement of military family housing units in an 
amount not to exceed $12,210,000.

SEC. 2303. IMPROVEMENTS TO MILITARY FAMILY HOUSING UNITS.

    Subject to section 2825 of title 10, United States Code, and using 
amounts appropriated pursuant to the authorization of appropriations in 
section 2304(a)(6)(A), the Secretary of the Air Force may improve 
existing military family housing units in an amount not to exceed 
$294,262,000.

SEC. 2304. AUTHORIZATION OF APPROPRIATIONS, AIR FORCE.

    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 Air Force in the total amount of $2,120,191,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2301(a), $770,173,000.
            (2) For military construction projects outside the United 
        States authorized by section 2301(b), $146,409,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $15,440,000.
            (4) For unspecified minor military construction projects 
        authorized by section 2805 of title 10, United States Code, 
        $15,000,000.
            (5) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $62,087,000.
            (6) For military family housing functions:
                    (A) For construction and acquisition, planning and 
                design, and improvement of military family housing and 
                facilities, $362,747,000.
                    (B) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $688,335,000.
            (7) For the construction of increment 3 of the main base 
        runway at Edwards Air Force Base, California, authorized by 
        section 2301(a) of the Military Construction Authorization Act 
        for Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3494), $35,000,000.
            (8) For the construction of increment 3 of the CENTCOM 
        Joint Intelligence Center at MacDill Air Force Base, Florida, 
        authorized by section 2301(a) of the Military Construction 
        Authorization Act for Fiscal Year 2006 (division B of Public 
        Law 109-163; 119 Stat. 3494), as amended by section 2305 of the 
        Military Construction Authorization Act for Fiscal Year 2007 
        (division B of Public Law 109-364; 120 Stat. 2456), 
        $25,000,000.

SEC. 2305. MODIFICATION OF AUTHORITY TO CARRY OUT CERTAIN FISCAL YEAR 
              2006 PROJECT.

    (a) Further Modification of Inside the United States Project.--The 
table in section 2301(a) of the Military Construction Authorization Act 
for Fiscal Year 2006 (division B of Public Law 109-163; 119 Stat. 
3494), as amended by section 2305(a) of the Military Construction 
Authorization Act for Fiscal Year 2007 (division B of Public Law 109-
364; 120 Stat. 2456), is further amended in the item relating to 
MacDill Air Force Base, Florida, by striking ``$101,500,000'' in the 
amount column and inserting ``$126,500,000''.
    (b) Conforming Amendment.--Section 2304(b)(4) of the Military 
Construction Authorization Act for Fiscal Year 2006 (division B of 
Public Law 109-163; 119 Stat. 3496), as amended by section 2305(b) of 
the Military Construction Authorization Act for Fiscal Year 2007 
(division B of Public Law 109-364; 120 Stat. 2456), is further amended 
is amended by striking ``$23,300,000'' and inserting ``$48,300,000''.

                      TITLE XXIV--DEFENSE AGENCIES

Sec. 2401. Authorized Defense Agencies construction and land 
                            acquisition projects.
Sec. 2402. Energy conservation projects.
Sec. 2403. Authorized base closure and realignment activities funded 
                            through Department of Defense Base Closure 
                            Account 2005.
Sec. 2404. Authorization of appropriations, Defense Agencies.

SEC. 2401. AUTHORIZED DEFENSE AGENCIES CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    (a) Inside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(1), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations inside the 
United States, and in the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
North Carolina...............................  Marine Corps Base, Camp Lejeune..................      $2,014,000
----------------------------------------------------------------------------------------------------------------


                                           Defense Intelligence Agency
----------------------------------------------------------------------------------------------------------------
                     State                                   Installation or Location                 Amount
----------------------------------------------------------------------------------------------------------------
District of Columbia...........................  Bolling Air Force Base.........................      $1,012,000
----------------------------------------------------------------------------------------------------------------


                                            Defense Logistics Agency
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Port Loma Annex..................................    $140,000,000
Florida......................................  Naval Air Station, Key West......................      $1,874,000
Hawaii.......................................  Hickam Air Force Base............................     $26,000,000
New Mexico...................................  Kirtland Air Force Base..........................      $1,800,000
Ohio.........................................  Defense Supply Center Columbus...................      $4,000,000
Pennsylvania.................................  Defense Distribution Depot, New Cumberland.......     $21,000,000
Virginia.....................................  Fort Belvoir.....................................      $5,000,000
----------------------------------------------------------------------------------------------------------------


                                            National Security Agency
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Maryland.....................................  Fort Meade.......................................     $11,901,000
----------------------------------------------------------------------------------------------------------------


                                           Special Operations Command
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
California...................................  Marine Corps Base, Camp Pendleton................     $20,030,000
                                               Naval Amphibious Base, Coronodo..................     $12,000,000
Florida......................................  Hurlburt Field...................................     $29,111,000
                                               MacDill Air Force Base...........................     $47,700,000
Georgia......................................  Fort Benning.....................................     $35,000,000
                                               Hunter Army Air Field............................     $13,800,000
Kentucky.....................................  Fort Campbell....................................     $53,500,000
New Mexico...................................  Cannon Air Force Base............................      $7,500,000
North Carolina...............................  Fort Bragg.......................................     $47,250,000
                                               Marine Corps Base, Camp Lejeune..................     $28,210,000
Virginia.....................................  Dam Neck.........................................    $113,800,000
                                               Naval Amphibious Base, Little Creek..............     $99,000,000
Washington...................................  Fort Lewis.......................................     $77,000,000
----------------------------------------------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Florida......................................  MacDill Air Force Base...........................      $5,000,000
Illinois.....................................  Naval Hospital, Great Lakes......................     $99,000,000
New York.....................................  Fort Drum........................................     $41,000,000
Texas........................................  Camp Bullis......................................      $7,400,000
Virginia.....................................  Naval Station, Norfolk...........................      $6,450,000
Washington...................................  Fort Lewis.......................................     $21,000,000
----------------------------------------------------------------------------------------------------------------


                                        Washington Headquarters Services
----------------------------------------------------------------------------------------------------------------
                    State                                   Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Virginia.....................................  Pentagon Reservation.............................     $18,531,000
----------------------------------------------------------------------------------------------------------------

    (b) Outside the United States.--Using amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(2), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for the installations or locations outside the 
United States, and in the amounts, set forth in the following tables:

                                           Defense Education Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Belgium.......................................  Sterrebeek......................................      $5,992,000
Germany.......................................  Ramstein Air Base...............................      $5,393,000
                                                Wiesbaden Air Base..............................     $20,472,000
----------------------------------------------------------------------------------------------------------------


                                           Special Operations Command
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Bahrain.......................................  Southwest Asia..................................     $19,000,000
Qatar.........................................  Al Udeid AB.....................................     $52,852,000
----------------------------------------------------------------------------------------------------------------


                                           TRICARE Management Activity
----------------------------------------------------------------------------------------------------------------
                    Country                                 Installation or Location                  Amount
----------------------------------------------------------------------------------------------------------------
Germany.......................................  Spangdahlem Air Base............................     $30,100,000
----------------------------------------------------------------------------------------------------------------

    (c) Unspecified Worldwide.--Using the amounts appropriated pursuant 
to the authorization of appropriations in section 2404(a)(3), the 
Secretary of Defense may acquire real property and carry out military 
construction projects for unspecified installations or locations in the 
amount set forth in the following table:

                 Defense Agencies: Unspecified Worldwide
------------------------------------------------------------------------
           Location             Installation or Location      Amount
------------------------------------------------------------------------
Worldwide Classified           Classified Project.......      $1,887,000
------------------------------------------------------------------------

SEC. 2402. ENERGY CONSERVATION PROJECTS.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(7), the Secretary of Defense may 
carry out energy conservation projects under chapter 173 of title 10, 
United States Code, in the amount of $70,000,000.

SEC. 2403. AUTHORIZED BASE CLOSURE AND REALIGNMENT ACTIVITIES FUNDED 
              THROUGH DEPARTMENT OF DEFENSE BASE CLOSURE ACCOUNT 2005.

    Using amounts appropriated pursuant to the authorization of 
appropriations in section 2404(a)(9), the Secretary of Defense may 
carry out base closure and realignment activities, including real 
property acquisition and military construction projects, as authorized 
by the Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) and funded 
through the Department of Defense Base Closure Account 2005 established 
by section 2906A of such Act, in the amount of $8,174,315,000.

SEC. 2404. AUTHORIZATION OF APPROPRIATIONS, DEFENSE AGENCIES.

    (a) In General.--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 Defense (other than the military departments) in 
the total amount of $10,436,164,000, as follows:
            (1) For military construction projects inside the United 
        States authorized by section 2401(a), $996,883,000.
            (2) For military construction projects outside the United 
        States authorized by section 2401(b), $133,809,000.
            (3) For the military construction projects at unspecified 
        worldwide locations authorized by section 2301(c), $1,887,000.
            (4) For unspecified minor military construction projects 
        under section 2805 of title 10, United States Code, 
        $23,711,000.
            (5) For contingency construction projects of the Secretary 
        of Defense under section 2804 of title 10, United States Code, 
        $10,000,000.
            (6) For architectural and engineering services and 
        construction design under section 2807 of title 10, United 
        States Code, $147,328,000.
            (7) For energy conservation projects authorized by section 
        2402 of this Act, $70,000,000.
            (8) For base closure and realignment activities as 
        authorized by the Defense Base Closure and Realignment Act of 
        1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 
        2687 note) and funded through the Department of Defense Base 
        Closure Account 1990 established by section 2906 of such Act, 
        $230,689,000.
            (9) For base closure and realignment activities authorized 
        by section 2403 of this Act and funded through the Department 
        of Defense Base Closure Account 2005 established by section 
        2906A of the Defense Base Closure and Realignment Act of 1990 
        (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 
        note), $8,174,315,000.
            (10) For military family housing functions:
                    (A) For support of military family housing 
                (including functions described in section 2833 of title 
                10, United States Code), $48,848,000.
                    (B) For credit to the Department of Defense Family 
                Housing Improvement Fund established by section 
                2883(a)(1) of title 10, United States Code, $500,000.
            (11) For the construction of increment 2 of the health 
        clinic replacement at MacDill Air Force Base, Florida, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act of Fiscal Year 2007 (division B of Public Law 
        109-364; 120 Stat. 2457), $41,400,000.
            (12) For the construction of increment 2 of the replacement 
        of the Army Medical Research Institute of Infectious Diseases 
        at Fort Detrick, Maryland, authorized by section 2401(a) of the 
        Military Construction Authorization Act of Fiscal Year 2007 
        (division B of Public Law 109-364; 120 Stat. 2457), 
        $150,000,000.
            (13) For the construction of increment 3 of the regional 
        security operations center at Augusta, Georgia, authorized by 
        section 2401(a) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3497), as amended by section 7016 of Public Law 109-234 
        (120 Stat. 485), $100,000,000.
            (14) For the construction of increment 3 of the regional 
        security operations center at Kunia, Hawaii, authorized by 
        section 2401(a) of the Military Construction Authorization Act 
        of Fiscal Year 2006 (division B of Public Law 109-163; 119 
        Stat. 3497), as amended by section 7017 of Public Law 109-234 
        (120 Stat. 485), $136,318,000.
            (15) For the construction of increment 8 of a munitions 
        demilitarization facility at Blue Grass Army Depot, Kentucky, 
        authorized by section 2401(a) of the Military Construction 
        Authorization Act for Fiscal Year 2000 (division B of Public 
        Law 106-65; 113 Stat. 835), as amended by section 2405 of the 
        Military Construction Authorization Act for Fiscal Year 2002 
        (division B of Public Law 107-107; 115 Stat. 1298) and section 
        2405 of the Military Construction Authorization Act for Fiscal 
        Year 2003 (division B of Public Law 107-314; 116 Stat. 2698), 
        $51,017,000.
            (16) For the construction of increment 9 of a munitions 
        demilitarization facility at Pueblo Chemical Activity, 
        Colorado, authorized by section 2401(a) of the Military 
        Construction Authorization Act for Fiscal Year 1997 (division B 
        of Public Law 104-201; 110 Stat. 2775), as amended by section 
        2406 of the Military Construction Authorization Act for Fiscal 
        Year 2000 (division B of Public Law 106-65; 113 Stat. 839) and 
        section 2407 of the Military Construction Authorization Act for 
        Fiscal Year 2003 (division B of Public Law 107-314; 116 Stat. 
        2698), $35,159,000.
    (b) Limitation on Total Cost of Construction Projects.--
Notwithstanding the cost variations authorized by section 2853 of title 
10, United States Code, and any other cost variation authorized by law, 
the total cost of all projects carried out under section 2401 of this 
Act may not exceed the sum of the following:
            (1) The total amount authorized to be appropriated under 
        paragraphs (1), (2), and (3) of subsection (a).
            (2) $84,300,000 (the balance of the amount authorized for 
        the Defense Logistics Agency under section 2401(a) for the 
        replacement of fuel storage facilities, Point Loma Annex, 
        California).

   TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT 
                                PROGRAM

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

SEC. 2501. AUTHORIZED NATO CONSTRUCTION AND LAND ACQUISITION PROJECTS.

    The Secretary of Defense may make contributions for the North 
Atlantic Treaty Organization Security Investment Program as provided in 
section 2806 of title 10, United States Code, in an amount not to 
exceed the sum of the amount authorized to be appropriated for this 
purpose in section 2502 and the amount collected from the North 
Atlantic Treaty Organization as a result of construction previously 
financed by the United States.

SEC. 2502. AUTHORIZATION OF APPROPRIATIONS, NATO.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2007, for contributions by the Secretary 
of Defense under section 2806 of title 10, United States Code, for the 
share of the United States of the cost of projects for the North 
Atlantic Treaty Organization Security Investment Program authorized by 
section 2501, in the amount of $201,400,000.

            TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

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

SEC. 2601. AUTHORIZED GUARD AND RESERVE CONSTRUCTION AND LAND 
              ACQUISITION PROJECTS.

    Funds are hereby authorized to be appropriated for fiscal years 
beginning after September 30, 2007, for the costs of acquisition, 
architectural and engineering services, and construction of facilities 
for the reserve components, and for contributions therefor, under 
chapter 1803 of title 10, United States Code (including the cost of 
acquisition of land for those facilities), in the following amounts:
            (1) For the Department of the Army--
                    (A) for the Army National Guard of the United 
                States, $425,891,000; and
                    (B) for the Army Reserve, $133,084,000.
            (2) For the Department of the Navy, for the Navy Reserve 
        and Marine Corps Reserve, $59,950,000.
            (3) For the Department of the Air Force--
                    (A) for the Air National Guard of the United 
                States, $111,717,000; and
                    (B) for the Air Force Reserve, $27,559,000.

        TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

Sec. 2701. Expiration of authorizations and amounts required to be 
                            specified by law.
Sec. 2702. Extension of authorizations of certain fiscal year 2005 
                            projects.
Sec. 2703. Extension of authorizations of certain fiscal year 2004 
                            projects.
Sec. 2704. Effective date.

SEC. 2701. EXPIRATION OF AUTHORIZATIONS AND AMOUNTS REQUIRED TO BE 
              SPECIFIED BY LAW.

    (a) Expiration of Authorizations After Three Years.--Except as 
provided in subsection (b), all authorizations contained in titles XXI 
through XXVI for military construction projects, land acquisition, 
family housing projects and facilities, and contributions to the North 
Atlantic Treaty Organization Security Investment Program (and 
authorizations of appropriations therefor) shall expire on the later 
of--
            (1) October 1, 2010; or
            (2) the date of the enactment of an Act authorizing funds 
        for military construction for fiscal year 2011.
    (b) Exception.--Subsection (a) shall not apply to authorizations 
for military construction projects, land acquisition, family housing 
projects and facilities, and contributions to the North Atlantic Treaty 
Organization Security Investment Program (and authorizations of 
appropriations therefor), for which appropriated funds have been 
obligated before the later of--
            (1) October 1, 2010; or
            (2) the date of the enactment of an Act authorizing funds 
        for fiscal year 2011 for military construction projects, land 
        acquisition, family housing projects and facilities, or 
        contributions to the North Atlantic Treaty Organization 
        Security Investment Program.

SEC. 2702. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2005 
              PROJECTS.

    (a) Extension and Renewal.--Notwithstanding section 2701 of the 
Military Construction Authorization Act for Fiscal Year 2005 (division 
B of Public Law 108-375; 118 Stat. 2116), authorizations set forth in 
the tables in subsection (b), as provided in section 2101, 2302, 2401, 
or 2601 of that Act, shall remain in effect until October 1, 2008, or 
the date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2009, whichever is later.
    (b) Tables.--The tables referred to in subsection (a) are as 
follows:

              Army: Extension of 2005 Project Authorization
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Schofield Barracks, Hawaii.....  Training facility......     $35,542,000
------------------------------------------------------------------------


           Air Force: Extension of 2005 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Davis-Monthan Air Force Base,    Family housing (250         $48,500,000
 Arizona.                         units).
Vandenberg Air Force Base,       Family housing (120         $30,906,000
 California.                      units).
MacDill Air Force Base, Florida  Family housing (61          $21,723,000
                                  units).
  .............................  Housing maintenance          $1,250,000
                                  facility.
Whiteman Air Force Base,         Family housing (160         $37,087,000
 Missouri.                        units).
Seymour Johnson Air Force Base,  Family housing (167         $32,693,000
 North Carolina.                  units).
Goodfellow Air Force Base,       Family housing (127         $20,604,000
 Texas.                           units).
------------------------------------------------------------------------


         Defense Wide: Extension of 2005 Project Authorizations
------------------------------------------------------------------------
     Installation or Location        Agency and Project       Amount
------------------------------------------------------------------------
Naval Air Station, Oceana,         DLA bulk fuel storage      $3,589,000
 Virginia.                          tank.
Naval Air Station, Jacksonville,   TMA hospital project.     $28,438,000
 Florida.
------------------------------------------------------------------------


      Army National Guard: Extension of 2005 Project Authorizations
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Dublin, California...............  Readiness center.....     $11,318,000
Gary, Indiana....................  Reserve center.......      $9,380,000
------------------------------------------------------------------------


          Army Reserve: Extension of 2005 Project Authorization
------------------------------------------------------------------------
     Installation or Location             Project             Amount
------------------------------------------------------------------------
Corpus Christi (Robstown), Texas.  Storage facility.....      $9,038,000
------------------------------------------------------------------------

SEC. 2703. EXTENSION OF AUTHORIZATIONS OF CERTAIN FISCAL YEAR 2004 
              PROJECTS.

    (a) Extension.--Notwithstanding section 2701 of the Military 
Construction Authorization Act for Fiscal Year 2004 (division B of 
Public Law 108-136; 117 Stat. 1716), authorizations set forth in the 
tables in subsection (b), as provided in section 2302 or 2601 of that 
Act and extended by section 2702 of the Military Construction 
Authorization Act for Fiscal Year 2007 (division B of Public Law 109-
364; 120 Stat. 2464), shall remain in effect until October 1, 2008, or 
the date of the enactment of an Act authorizing funds for military 
construction for fiscal year 2009, whichever is later.
    (b) Tables.--The table referred to in subsection (a) is as follows:

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


      Army National Guard: Extension of 2004 Project Authorizations
------------------------------------------------------------------------
    Installation or Location             Project              Amount
------------------------------------------------------------------------
Albuquerque, New Mexico........  Readiness center.......      $2,533,000
Fort Indiantown Gap,             Multi-purpose training      $15,338,000
 Pennsylvania.                    range.
------------------------------------------------------------------------

SEC. 2704. EFFECTIVE DATE.

    Titles XXI, XXII, XXIII, XXIV, XXV, and XXVI of this Act shall take 
effect on the later of--
            (1) October 1, 2007; or
            (2) the date of the enactment of this Act.

         TITLE XXVIII--MILITARY CONSTRUCTION GENERAL PROVISIONS

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

Sec. 2801. Temporary authority to support revitalization of Department 
                            of Defense laboratories through unspecified 
                            minor military construction projects.
Sec. 2802. Increased threshold for congressional notification of leases 
                            for military family housing facilities in 
                            foreign countries.
Sec. 2803. Limitation on use of alternative authority for acquisition 
                            and improvement of military housing for 
                            privatization of temporary lodging 
                            facilities.
Sec. 2804. Expansion of authority to exchange reserve component 
                            facilities.
Sec. 2805. Extension of authority to accept cash equalization payments 
                            for reserve component facility exchanges.
Sec. 2806. Authority to use operation and maintenance funds for 
                            construction projects outside the United 
                            States.

        Subtitle B--Real Property and Facilities Administration

Sec. 2811. Continued consolidation of real property provisions without 
                            substantive change.
Sec. 2812. Cooperative agreement authority for management of cultural 
                            resources on certain sites outside military 
                            installations.
Sec. 2813. Agreements to limit encroachments and other constraints on 
                            military training, testing, and operations.
Sec. 2814. Expansion to all military departments of Army pilot program 
                            for purchase of certain municipal services 
                            for military installations.
Sec. 2815. Retention of proceeds from enhanced use leases at Selfridge 
                            Air National Guard Base.
Sec. 2816. Prohibition on commercial flights into Selfridge Air 
                            National Guard Base.

                Subtitle C--Base Closure and Realignment

Sec. 2821. Transfer of funds from Department of Defense Base Closure 
                            Account 2005 to Department of Defense 
                            Housing Funds.

                      Subtitle D--Land Conveyances

Sec. 2831. Conditions on acquisition of land for expansion of Pinon 
                            Canyon Maneuver Site, Colorado.
Sec. 2832. Grant of easement, Eglin Air Force Base, Florida.
Sec. 2833. Land conveyance, Lynn Haven Fuel Depot, Lynn Haven, Florida.
Sec. 2834. Additional conditions on lease of property for headquarters 
                            facility for United States Southern 
                            Command, Florida.
Sec. 2835. Transfer of jurisdiction, former Nike missile site, Grosse 
                            Isle, Michigan.
Sec. 2836. Land Exchange, Fort Hood, Texas.
Sec. 2837. Exchange of jurisdiction over real property involving Fort 
                            Belvoir, Virginia.
Sec. 2838. Modification of conveyance authority, Marine Corps Base, 
                            Camp Pendleton, California.

                      Subtitle E--Energy Security

Sec. 2851. Repeal of congressional notification requirement regarding 
                            cancellation ceiling for Department of 
                            Defense energy savings performance 
                            contracts.
Sec. 2852. Report on opportunities for leveraging funds of the 
                            Department of Defense and States to prevent 
                            disruption in event of electric grid or 
                            pipeline failures.

                       Subtitle F--Other Matters

Sec. 2861. Revised deadline for transfer of Arlington Naval Annex to 
                            Arlington National Cemetery.
Sec. 2862. Transfer of jurisdiction over Air Force Memorial to 
                            Department of the Air Force.
Sec. 2863. Establishment of national military working dog teams 
                            monument on suitable military installation.
Sec. 2864. Naming housing facility at Fort Carson, Colorado, in honor 
                            of the Honorable Joel Hefley, a former 
                            member of the United States House of 
                            Representatives.
Sec. 2865. Naming Navy and Marine Corps Reserve Center at Rock Island, 
                            Illinois, in honor of the Honorable Lane 
                            Evans, a former member of the United States 
                            House of Representatives.
Sec. 2866. Naming of research laboratory at Air Force Rome Research 
                            Site, Rome, New York, in honor of the 
                            Honorable Sherwood L. Boehlert, a former 
                            member of the United States House of 
                            Representatives.
Sec. 2867. Naming of administration building at Joint Systems 
                            Manufacturing Center, Lima, Ohio, in honor 
                            of the Honorable Michael G. Oxley, a former 
                            member of the United States House of 
                            Representatives.
Sec. 2868. Naming of Logistics Automation Training Facility, Army 
                            Quartermaster Center and School, Fort Lee, 
                            Virginia, in honor of General Richard H. 
                            Thompson.

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

SEC. 2801. TEMPORARY AUTHORITY TO SUPPORT REVITALIZATION OF DEPARTMENT 
              OF DEFENSE LABORATORIES THROUGH UNSPECIFIED MINOR 
              MILITARY CONSTRUCTION PROJECTS.

    (a) Laboratory Revitalization.--Section 2805 of title 10, United 
States Code, is amended--
            (1) by redesignation 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 concerned 
may obligate and expend--
            ``(A) from appropriations available to the Secretary 
        concerned for operation and maintenance, amounts necessary to 
        carry out an unspecified minor military construction project 
        costing not more than $2,000,000; or
            ``(B) from appropriations available to the Secretary 
        concerned 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 an unspecified minor military construction project 
conducted pursuant to this subsection, $2,000,000 shall be deemed to be 
the amount specified in subsection (b)(1) regarding when advance 
approval of the project by the Secretary concerned and congressional 
notification is required. The Secretary of Defense shall establish 
procedures for the review and approval of requests from the Secretary 
of a military department to carry out a construction project under this 
subsection.
    ``(3) For purposes of this subsection, the total amount allowed to 
be applied in any one fiscal year to projects at any one laboratory 
shall be limited to the larger of the amounts applicable under 
paragraph (1).
    ``(4) Not later than February 1, 2010, the Secretary of Defense 
shall submit to the congressional defense committees a report on the 
use of the authority provided by this subsection. The report shall 
include a list and description of the construction projects carried out 
under this subsection, including the location and cost of each project.
    ``(5) In this subsection, the term `laboratory' includes--
            ``(A) a research, engineering, and development center; and
            ``(B) a test and evaluation activity.
    ``(6) The authority to carry out a project under this subsection 
expires on September 30, 2012.''.
    (b) Stylistic Amendments.--Such section is further amended--
            (1) in subsection (a), by inserting ``Authority to Carry 
        Out Unspecified Minor Military Construction Projects.--'' after 
        ``(a)'';
            (2) in subsection (b), by inserting ``Approval and 
        Congressional Notification.--'' after ``(b)'';
            (3) in subsection (c), by inserting ``Use of Operation and 
        Maintenance Funds.--'' after ``(c)''; and
            (4) in subsection (e), as redesignated by subsection 
        (a)(1), by inserting ``Prohibition on Use for New Housing 
        Units.--'' after ``(e)''.

SEC. 2802. INCREASED THRESHOLD FOR CONGRESSIONAL NOTIFICATION OF LEASES 
              FOR MILITARY FAMILY HOUSING FACILITIES IN FOREIGN 
              COUNTRIES.

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

SEC. 2803. LIMITATION ON USE OF ALTERNATIVE AUTHORITY FOR ACQUISITION 
              AND IMPROVEMENT OF MILITARY HOUSING FOR PRIVATIZATION OF 
              TEMPORARY LODGING FACILITIES.

    (a) Privatization Limited to Pilot Program.--Section 2878 of title 
10, United States Code, is amended by adding at the end the following 
new subsection:
    ``(e) Limitation on Privatization of Temporary Lodging 
Facilities.--Notwithstanding any other provision of this subchapter, 
the privatization of temporary lodging facilities under this subchapter 
shall be limited to a pilot program to be conducted by the Secretary of 
the Army at the following military installations:
            ``(1) Redstone Arsenal, Alabama.
            ``(2) Fort Rucker, Alabama.
            ``(3) Yuma Proving Ground, Arizona.
            ``(4) Fort McNair, District of Columbia.
            ``(5) Fort Shafter, Hawaii.
            ``(6) Tripler Army Medical Center, Hawaii.
            ``(7) Fort Leavenworth, Kansas.
            ``(8) Fort Riley, Kansas.
            ``(9) Fort Polk, Louisiana.
            ``(10) Fort Sill, Oklahoma.
            ``(11) Fort Hood, Texas.
            ``(12) Fort Sam Houston, Texas.
            ``(13) Fort Myer, Virginia.''.
    (b) Reporting Requirements.--
            (1) Report by secretary of the army.--Not later than June 
        1, 2009, the Secretary of the Army shall submit to the 
        congressional defense committees and the Comptroller General a 
        report that--
                    (A) describes the implementation of the pilot 
                program authorized by subsection (e) of section 2878 of 
                title 10, United States Code, as added by this section, 
                at the military installations specified in such 
                subsection;
                    (B) evaluates the efficiency of the program; and
                    (C) contains such recommendations as the Secretary 
                considers appropriate regarding expansion of the 
                program.
            (2) Report by comptroller general.--Not later than February 
        1, 2010, the Comptroller General shall submit to the 
        congressional defense committees a review of the pilot program 
        and of the report of the Secretary.

SEC. 2804. EXPANSION OF AUTHORITY TO EXCHANGE RESERVE COMPONENT 
              FACILITIES.

    Section 18240(a) of title 10, United States Code is amended by 
striking ``with a State'' in the first sentence and inserting ``with an 
Executive agency (as defined in section 105 of title 5), the United 
States Postal Service, a State''.

SEC. 2805. EXTENSION OF AUTHORITY TO ACCEPT CASH EQUALIZATION PAYMENTS 
              FOR RESERVE COMPONENT FACILITY EXCHANGES.

    Section 2809(c)(5) of the Military Construction Authorization Act 
for Fiscal Year 2005 (division B of Public Law 108-375; 118 Stat. 2126) 
is amended by striking ``September 30, 2007'' and inserting ``September 
30, 2010''.

SEC. 2806. AUTHORITY TO USE OPERATION AND MAINTENANCE FUNDS FOR 
              CONSTRUCTION PROJECTS OUTSIDE THE UNITED STATES.

    (a) One-Year Extension of Authority.--Subsection (a) of section 
2808 of the Military Construction Authorization Act for Fiscal Year 
2004 (division B of Public Law 108-136; 117 Stat. 1723), as amended by 
section 2810 of the Military Construction Authorization Act for Fiscal 
Year 2005 (division B of Public Law 108-375; 118 Stat. 2128), section 
2809 of the Military Construction Authorization Act for Fiscal Year 
2006 (division B of Public Law 109-163; 119 Stat. 3508), and section 
2802 of the Military Construction Authorization Act for Fiscal Year 
2007 (division B of Public Law 109-364; 120 Stat. 2466), is further 
amended by striking ``2007'' and inserting ``2008''.
    (b) Repeal of Quarterly Reports; Advance Notice of Certain 
Projects.--Such section is further amended--
            (1) in subsection (b), by striking ``Within seven days 
        after'' and inserting ``Except with respect to a construction 
        project described in subsection (d), within seven days after'';
            (2) by striking subsection (d) and inserting the following 
        new subsection:
    ``(d) Advance Notice of Certain Construction Projects.--When a 
decision is made to use appropriated funds available for operation and 
maintenance to carry out a construction project outside the United 
States that has an estimated cost in excess of the amounts authorized 
for unspecified minor military construction projects under section 
2805(c) of title 10, United States Code, the Secretary of Defense shall 
notify the congressional committees specified in subsection (f) of that 
decision, including the information required by subsection (b). The 
project may then be carried out only after the end of the 21-day period 
beginning on the date the notification is received by the committees 
or, if earlier, the end of the 14-day period beginning on the date on 
which a copy of the notification is provided in an electronic medium 
pursuant to section 480 of title 10, United States Code. If notice is 
provided under this subsection with respect to a project, notice is not 
required under subsection (b) with respect to the same project.''; and
            (3) by striking subsection (g) and inserting the following 
        new subsection:
    ``(g) Effect of Failure to Submit Project Notifications.--If the 
notices regarding the obligation of the funds for a construction 
project required by subsection (b) or (d) is not submitted to the 
congressional committees specified in subsection (f) by the required 
date, appropriated funds available for operation and maintenance may 
not be obligated or expended after that date under the authority of 
this section to carry out construction projects outside the United 
States until the date on which the notice is finally submitted.''.

        Subtitle B--Real Property and Facilities Administration

SEC. 2811. CONTINUED 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) Land Acquisition Options in Advance of 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 the Secretary considers it suitable and likely to 
be needed for a military project of the military department under the 
jurisdiction of the Secretary.
    ``(2) As consideration for an option acquired under paragraph (1), 
the Secretary may pay, from funds available to the military department 
under the jurisdiction of the Secretary for real property activities, 
an amount that is not more than 12 percent of the appraised fair market 
value of the property.''.
    (b) Repeal of Superseded Provision.--
            (1) Repeal.--Section 2677 of such title is repealed.
            (2) Clerical amendment.--The table of sections at the 
        beginning of chapter 159 of such title is amended by striking 
        the item relating to section 2677.

SEC. 2812. COOPERATIVE AGREEMENT AUTHORITY FOR MANAGEMENT OF CULTURAL 
              RESOURCES ON CERTAIN SITES OUTSIDE MILITARY 
              INSTALLATIONS.

    (a) Expanded Authority.--Section 2684 of title 10, United States 
Code, is amended--
            (1) in subsection (a), by striking ``on a military 
        installation'' and inserting ``located on a site authorized by 
        subsection (b)'';
            (2) by redesignating subsections (b) and (c) as subsections 
        (c) and (d), respectively; and
            (3) by inserting after subsection (a) the following new 
        subsection (b):
    ``(b) Authorized Cultural Resources Sites.--To be covered by a 
cooperative agreement under subsection (a), cultural resources must be 
located--
            ``(1) on a military installation; or
            ``(2) on a site outside of a military installation, but 
        only if the cooperative agreement will directly relieve or 
        eliminate 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 a military installation.''.
    (b) Cultural Resource Defined.--Subsection (d) of such section, as 
redesignated by subsection (a)(2), is amended by adding at the end the 
following new paragraph:
            ``(5) An Indian sacred site, as defined in section 
        1(b)(iii) of Executive Order 13007.''.

SEC. 2813. AGREEMENTS TO LIMIT ENCROACHMENTS AND OTHER CONSTRAINTS ON 
              MILITARY TRAINING, TESTING, AND OPERATIONS.

    (a) Management of Natural Resources of Acquired Property.--
Subsection (d) of section 2684a 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; and
            (2) by inserting after paragraph (2) the following new 
        paragraph (3):
    ``(3) An agreement with an eligible entity under this section may 
provide for the management of natural resources on real property in 
which the Secretary concerned acquires any right, title, or interest in 
accordance with this subsection and for the payment by the United 
States of all or a portion of the costs of such natural resource 
management if the Secretary concerned determines that there is a 
demonstrated need to preserve or restore habitat for the purpose 
described in subsection (a)(2).''.
    (b) Limitation on Portion of Acquisition Costs Borne by United 
States.--Paragraph (4)(C) of such subsection, as redesignated by 
subsection (a)(1), is amended by striking ``equal to the fair market 
value'' and all that follows through the period at the end and 
inserting ``equal to, at the discretion of the Secretary concerned--
            ``(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) 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. 2814. EXPANSION TO ALL MILITARY DEPARTMENTS OF ARMY PILOT PROGRAM 
              FOR PURCHASE OF CERTAIN MUNICIPAL SERVICES FOR MILITARY 
              INSTALLATIONS.

    (a) Expansion of Pilot Program.--Section 325 of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal Year 2005 (Public 
Law 108-375; 10 U.S.C. 2461 note) is amended--
            (1) in the section heading, by striking ``army'' and 
        inserting ``military'';
            (2) in subsection (a)--
                    (A) by striking ``Secretary of the Army'' and 
                inserting ``Secretary of a military department''; and
                    (B) by striking ``an Army installation'' and 
                inserting ``a military installation under the 
                jurisdiction of the Secretary''; and
            (3) in subsection (d), by striking ``The Secretary'' and 
        inserting ``The Secretary of a military department''.
    (b) Participating Installations.--Subsection (c) of such section is 
amended by striking ``two Army installations'' and inserting ``three 
military installations of each branch of the Armed Forces''.
    (c) Extension of Duration of Program.--Such section is further 
amended by striking subsections (e) and (f) and inserting the following 
new subsection:
    ``(e) Termination of Pilot Program.--The pilot program shall 
terminate on September 30, 2012. Any contract entered into under the 
pilot program shall terminate not later than that date.''.

SEC. 2815. RETENTION OF PROCEEDS FROM ENHANCED USE LEASES AT SELFRIDGE 
              AIR NATIONAL GUARD BASE.

    Notwithstanding section 2667(e) of title 10, United States Code, or 
any other provision of law to the contrary, the proceeds derived from 
the execution of an enhanced use lease at Selfridge Air National Guard 
Base shall not be disbursed outside of that military installation.

SEC. 2816. PROHIBITION ON COMMERCIAL FLIGHTS INTO SELFRIDGE AIR 
              NATIONAL GUARD BASE.

    The Secretary of Defense shall prohibit the use of Selfridge Air 
National Guard Base by commercial service aircraft.

                Subtitle C--Base Closure and Realignment

SEC. 2821. TRANSFER OF FUNDS FROM DEPARTMENT OF DEFENSE BASE CLOSURE 
              ACCOUNT 2005 TO DEPARTMENT OF DEFENSE HOUSING FUNDS.

    (a) Transfer Authority.--Subsection (c) of section 2883 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.''.
    (b) Notification.--Subsection (f) of such section is amended by 
striking ``paragraph (1)(B) or (2)(B)'' and inserting ``subparagraph 
(B) or (G) of paragraph (1) or subparagraph (B) or (G) of paragraph 
(2)''.

                      Subtitle D--Land Conveyances

SEC. 2831. CONDITIONS ON ACQUISITION OF LAND FOR EXPANSION OF PINON 
              CANYON MANEUVER SITE, COLORADO.

    (a) Imposition of Conditions.--After completion of the review 
required by the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.), if the Secretary of the Army decides to acquire real 
property or an interest in real property located near the Pinon Canyon 
Maneuver Site in the State of Colorado (in this section referred to as 
the ``Site'') for the purpose of expanding the Site, the acquisition of 
such real property shall be subject to the requirements of this 
section.
    (b) Limitation on Expansion Methods.--The Secretary of the Army 
shall not tender an offer for the acquisition of, or employ 
condemnation, eminent domain, or seizure of, real property, or interest 
in real property, for the purpose of expanding the Site until the 
Secretary has complied with the following:
            (1) NEPA review.--The Secretary of the Army shall complete 
        the requisite reviews under the National Environmental Policy 
        Act of 1969 (42 U.S.C. 4321 et seq.).
            (2) Use of negotiation.--The Secretary of the Army shall 
        comply with the Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970 (42 U.S.C. 4601 et. seq.) by 
        making every reasonable effort to acquire by negotiation the 
        real property, or interest in real property, such as a lease or 
        easement.
            (3) Arbitration.--Notwithstanding, and in lieu of, any 
        other provision of law regarding arbitration or alternate 
        dispute resolution, the Secretary of the Army shall notify the 
        property owner or owners of their right to seek third party 
        arbitration, as identified in this paragraph, and of the desire 
        of the Secretary to conclude a negotiated agreement as to the 
        value of the real property or interest in real property sought 
        for acquisition by the Secretary. If the property owner or 
        owners and the Army do not reach an agreement within 90 days 
        after the Army has provided such notice, on the request of the 
        property owner or owners to the Secretary, the matter shall be 
        referred to third party arbitration for resolution within a 
        period of 90 days from the date of referral. The decision of 
        the arbitrator will be binding.
    (c) Conditions on Arbitration.--
            (1) Conditions.--Arbitration under subsection (b)(3) shall 
        be subject to the following conditions:
                    (A) The cost of such arbitration shall be the 
                responsibility of the Secretary of the Army.
                    (B) The Secretary of the Army shall identify at 
                least three neutral third parties with experience in 
                conducting arbitrations as to real property values and 
                shall make this information available to the property 
                owner or owners.
                    (C) The issue of property value shall be referred 
                to an arbitrator selected by the property owner or 
                owners from the neutral third parties identified by the 
                Secretary of the Army pursuant to subparagraph (B).
                    (D) The Army shall reimburse the property owner or 
                owners for reasonable costs incurred in pursuing the 
                arbitration as established by the arbitrator.
            (2) Arbitrator powers and immunities.--An arbitrator 
        selected under paragraph (1)(C) to whom an action is referred 
        under this section shall have the power within the acquisition 
        process to conduct arbitration hearings, to administer oaths 
        and affirmations, and to make decisions as to the value of the 
        real property or interest in real property subject to 
        arbitration. An individual serving as arbitrators pursuant to 
        this section is entitled to the immunities and protections 
        provided by law.
    (d) Community Planning Assistance.--A community adversely impacted 
by the acquisition by the Secretary of the Army of real property for 
the purpose of expanding the Site shall be deemed to be eligible for 
adjustment assistance under section 2391(b) of title 10, United States 
Code. The Secretary shall consult with the Governor of Colorado 
regarding other steps that may be taken to address impacts on local 
governments and affected communities.
    (e) Consultation Regarding Resulting Status of Acquired Land.--The 
Secretary of the Army shall consult with the Secretary of Interior 
regarding the status of any real property acquired for the purpose of 
expanding the Site for purposes of payments to local governments under 
section 6901 of title 31, United States Code.
    (f) Access.--
            (1) Access to cultural and historic sites.--The Secretary 
        of the Army shall ensure reasonable access to cultural and 
        historic sites within the Site.
            (2) Grazing.--Where appropriate and under reasonable 
        conditions, the Secretary of the Army shall allow the grazing 
        of livestock within the Site.
    (g) Forest Service Lands.--If the Secretary of the Army seeks to 
use real property for military purposes in the area of interest, which 
as of the date of the enactment of this Act were managed by the 
Secretary of Agriculture, the Secretary of the Army shall--
            (1) secure a special use permit, including terms and 
        conditions for such use that are agreed to by the Secretary of 
        the Army and the Secretary of Agriculture; or
            (2) upon agreement with the Secretary of Agriculture, enter 
        into an interchange of lands under the authority of section 1 
        of the Act of July 26, 1956 (16 U.S.C. 505a).
    (h) State Lands.--The Secretary of the Army shall seek to reach 
agreement with the Governor of Colorado on terms, conditions, and 
reasonable compensation under which lands in the area of interest owned 
by the State of Colorado can be used for military purposes.

SEC. 2832. GRANT OF EASEMENT, EGLIN AIR FORCE BASE, FLORIDA.

    (a) Grant Required.--The Secretary of the Air Force shall use the 
authority provided by section 2668 of title 10, United States Code, to 
grant to the Mid Bay Bridge Authority an easement for a roadway right-
of-way over such land at Eglin Air Force Base, Florida, as the 
Secretary determines necessary to facilitate the construction of a road 
connecting the northern landfall of the Mid Bay Bridge to Florida State 
Highway 85.
    (b) Consideration.--As consideration for the grant of the easement 
under subsection (a), the Mid Bay Bridge Authority shall pay to the 
Secretary an amount equal to the fair-market-value of the easement, as 
determined by the Secretary.
    (c) Costs of Project.--As a condition of the grant of the easement 
under subsection (a), the Mid Bay Bridge Authority shall be responsible 
for all costs associated with the highway project described in such 
subsection, including all costs the Secretary determines to be 
necessary to address any impacts that the project may have on the 
defense missions at Eglin Air Force Base.

SEC. 2833. LAND CONVEYANCE, LYNN HAVEN FUEL DEPOT, LYNN HAVEN, FLORIDA.

    (a) Conveyance Authorized.--The Secretary of the Air Force may 
convey to Florida State University (in this section referred to as the 
``'University'') all right, title, and interest of the United States in 
and to a parcel of real property, including improvements thereon, 
consisting of approximately 40 acres located at the Lynn Haven Fuel 
Depot in Lynn Haven, Florida, for the purpose of permitting the 
University to develop the property as a new satellite campus.
    (b) Consideration.--
            (1) In general.--For the conveyance of the property under 
        subsection (a), the University shall provide the United States 
        with consideration in an amount that is acceptable to the 
        Secretary, whether in the form of cash payment, in-kind 
        consideration, or a combination thereof.
            (2) Reduced tuition rates.--The Secretary may accept as in-
        kind consideration under paragraph (1) reduced tuition rates or 
        scholarships for military personnel and their dependents at the 
        University.
    (c) Payment of Costs of Conveyances.--
            (1) Payment required.--The Secretary shall require the 
        University to cover costs to be incurred by the Secretary, or 
        to reimburse the Secretary for costs incurred by the Secretary, 
        to carry out the conveyance under subsection (a), including 
        survey costs, related to the conveyance. If amounts are 
        collected from the University in advance of the Secretary 
        incurring the actual costs, and the amount collected exceeds 
        the costs actually incurred by the Secretary to carry out the 
        conveyance, the Secretary shall refund the excess amount to the 
        University.
            (2) Treatment of amounts received.--Amounts received under 
        paragraph (1) as reimbursement for costs incurred by the 
        Secretary to carry out the conveyance under subsection (a) 
        shall be credited to the fund or account that was used to cover 
        the costs incurred by the Secretary in carrying out the 
        conveyance. Amounts so credited shall be merged with amounts in 
        such fund or account and shall be available for the same 
        purposes, and subject to the same conditions and limitations, 
        as amounts in such fund or account.
    (d) Description of Property.--The exact acreage and legal 
description of the real property to be conveyed under subsection (a) 
shall be determined by a survey satisfactory to the Secretary.
    (e) Additional Term and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyance under 
subsection (a) as the Secretary considers appropriate to protect the 
interests of the United States.

SEC. 2834. ADDITIONAL CONDITIONS ON LEASE OF PROPERTY FOR HEADQUARTERS 
              FACILITY FOR UNITED STATES SOUTHERN COMMAND, FLORIDA.

    (a) Use of Property Authorized.--Subject to subsection (b), the 
Secretary of the Army may utilize the property of the State of Florida 
described in sublease number 4489-01, which was entered into between 
the State of Florida and the United States, for the purpose of 
construction of a consolidated headquarters facility for the United 
States Southern Command.
    (b) Negotiation for Additional Authorized Uses of Property.--Given 
the substantial investment to be made by the United States to construct 
a headquarters facility for the United States Southern Command on the 
property referred to in subsection (a), the Secretary shall enter into 
negotiations to secure, before the award of a contract for the 
construction of the facility, additional flexibility for the United 
States to use the property for general administrative purposes for any 
Federal agency, including in the event the property is no longer used 
for the United States Southern Command.
    (c) Acquisition of Additional Property.--The Secretary may obtain 
the use of additional State lands adjacent to the property referred to 
in subsection (a), if available by the terms of the lease referred to 
in such subsection and needed to complete the construction of the 
headquarters facility for the United States Southern Command. 
Subsection (b) shall apply with respect to any additional property 
secured under this subsection.

SEC. 2835. TRANSFER OF JURISDICTION, FORMER NIKE MISSILE SITE, GROSSE 
              ISLE, MICHIGAN.

    (a) Transfer.--Administrative jurisdiction over the property 
described in subsection (b) is hereby transferred from the 
Administrator of the Environmental Protection Agency to the Secretary 
of the Interior.
    (b) Property Described.--The property referred to in subsection (a) 
is the former Nike missile site located at the southern end of Grosse 
Ile, Michigan, as depicted on the map entitled ``07-CE'' on file with 
the Environmental Protection Agency and dated May 16, 1984.
    (c) Administration of Property.--Subject to subsection (d), the 
Secretary of the Interior shall administer the property described in 
subsection (b)--
            (1) acting through the United States Fish and Wildlife 
        Service;
            (2) as part of the Detroit River International Wildlife 
        Refuge; and
            (3) for use as a habitat for fish and wildlife and as a 
        recreational property for outdoor education and environmental 
        appreciation.
    (d) Management of Remediation by Army Corps of Engineers.--The 
Secretary of Defense, acting through the district office of the Army 
Corps of Engineers in Louisville, Kentucky, shall manage and carry out 
environmental remediation activities with respect to the property 
described in subsection (b) that, at a minimum, achieve the standard 
that the United States Fish and Wildlife Service determines sufficient 
to allow the property to be used as provided in subsection (c)(3). Such 
remediation activities, with the exception of long-term monitoring, 
shall be completed to achieve that standard not later than two years 
after the date of enactment of this Act. The Secretary of Defense may 
use amounts made available from the account established by section 
2703(a)(5) of title 10, United States Code, to carry out such 
remediation.
    (e) Savings Provision.--Nothing in this section shall be construed 
to affect or limit the application of, or any obligation to comply 
with, any environmental law, including the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et 
seq.) and the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.).

SEC. 2836. LAND EXCHANGE, FORT HOOD, TEXAS.

    (a) Exchange Authorized.--The Secretary of the Army may convey to 
the City of Copperas Cove, Texas (in this section referred to as the 
``City''), all right, title, and interest of the United States in and 
to a parcel of real property, including any improvements thereon, 
consisting of approximately 200 acres at Fort Hood, Texas, for the 
purpose of permitting the City to improve arterial transportation 
routes in the community.
    (b) Consideration.--As consideration for the conveyance under 
subsection (a), the City shall convey to the Secretary all right, 
title, and interest of the City in and to one or more parcels of real 
property that are acceptable to the Secretary. The fair market value of 
the real property acquired by the Secretary under this subsection shall 
be equal to the fair market value of the real property conveyed under 
subsection (a), as determined by appraisals acceptable to the 
Secretary.
    (c) Description of Property.--The exact acreage and legal 
description of the real property to be exchanged under this section 
shall be determined by surveys satisfactory to the Secretary.
    (d) Payment of Costs of Conveyances.--
            (1) Payment required.--The Secretary shall require the City 
        to cover costs to be incurred by the Secretary, or to reimburse 
        the Secretary for costs incurred by the Secretary, to carry out 
        the conveyances under this section, including survey costs, 
        related to the conveyances. If amounts are collected from the 
        City in advance of the Secretary incurring the actual costs, 
        and the amount collected exceeds the costs actually incurred by 
        the Secretary to carry out the conveyances, the Secretary shall 
        refund the excess amount to the City.
            (2) Treatment of amounts received.--Amounts received under 
        paragraph (1) as reimbursement for costs incurred by the 
        Secretary to carry out the conveyances under this section shall 
        be credited to the fund or account that was used to cover the 
        costs incurred by the Secretary in carrying out the 
        conveyances. Amounts so credited shall be merged with amounts 
        in such fund or account and shall be available for the same 
        purposes, and subject to the same conditions and limitations, 
        as amounts in such fund or account.
    (e) Additional Term and Conditions.--The Secretary may require such 
additional terms and conditions in connection with the conveyances 
under this section as the Secretary considers appropriate to protect 
the interests of the United States.

SEC. 2837. EXCHANGE OF JURISDICTION OVER REAL PROPERTY INVOLVING FORT 
              BELVOIR, VIRGINIA.

    (a) Exchange.--Not later than September 30, 2008, the Administrator 
of General Services and the Secretary of the Army shall enter into an 
agreement providing for a property exchange under which--
            (1) the Administrator transfers to the jurisdiction, 
        custody, and control of the Secretary--
                    (A) the parcel of real property described in 
                subsection (b), including any improvements thereon; or
                    (B) subject to a boundary determination by the 
                Administrator and concurrence by the Secretary, a 
                portion of the parcel of real property described in 
                subsection (b), including any improvements on that 
                portion; and
            (2) the Secretary transfers to the jurisdiction, custody, 
        and control of the Administrator a parcel of real property 
        described in subsection (c).
    (b) GSA Property Description.--The property and improvements 
referred to in subsection (a)(1) is the approximately 72.23 acre site 
at 6999 Loisdale Road in Springfield, Virginia, known as the GSA 
Franconia Warehouse, identified in the land records of Fairfax County, 
Virginia, as Parcel ID # 0902-01-0057, Lee District tax district 4000.
    (c) Army Property Description.--
            (1) In general.--The property referred to in subsection 
        (a)(2) is a parcel of real property acceptable to the 
        Administrator located at either--
                    (A) Fort Belvoir, Virginia; or
                    (B) another installation under the jurisdiction of 
                the Department of Army in the National Capital Region.
            (2) Improvements.--The parcel of real property selected for 
        transfer may include improvements on the property made by the 
        Army before the date of the enactment of this Act.
    (d) Negotiation.--
            (1) Terms and conditions.--As a condition of the exchange 
        of property under subsection (a), the agreement under such 
        subsection shall provide that the fair market value of the 
        properties to be exchanged shall be equal or equalized through 
        the use of a cash equalization payment.
            (2) Determination of fair market value.--For purposes of 
        paragraph (1), the fair market value of the property shall be 
        determined--
                    (A) based on the highest and best use of the 
                property, as determined by an independent appraisal 
                jointly commissioned by the Administrator and the 
                Secretary of the Army; and
                    (B) using the definition of fair market value 
                contained in the Uniform Appraisal Standards for 
                Federal Land Acquisitions.
    (e) No Effect on Compliance With Environmental Laws.--Nothing in 
this section may be construed to affect or limit the application of, or 
obligation to comply with, any environmental law, including section 
120(h) of the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (42 U.S.C. 9620(h)).
    (f) Use of Property.--After completion of the exchange of property 
under subsection (a), the Secretary may relocate personnel to 
facilities to be constructed or leased (or a combination of both) on 
the property who otherwise would be located or relocated to Fort 
Belvoir.
    (g) Relocation of Personnel, Equipment, and Supplies.--
            (1) In general.--Subject to paragraph (2), the 
        Administrator may procure and provide space for the relocation 
        of personnel, equipment, and supplies of the General Services 
        Administration and its tenants on property transferred under 
        subsection (a)(1).
            (2) Notice to committees.--Before undertaking an activity 
        under paragraph (1) that otherwise would require approval of a 
        prospectus under section 3307 of title 40, United States Code, 
        the Administrator shall provide to the Committee on 
        Transportation and Infrastructure of the House of 
        Representatives, the Committee on Environment and Public Works 
        of the Senate, and the congressional defense committees a 
        written notice containing a description of the activity to be 
        undertaken.
            (3) Relocation costs.--As a condition of the transfer of 
        property under subsection (a), the Secretary shall agree--
                    (A) to advance funds to the Administrator to cover 
                the costs projected to be incurred by the 
                Administrator, based on an estimate of such costs 
                prepared by the Administrator, for relocating 
                personnel, equipment, and supplies of the General 
                Services Administration and its tenants from the 
                property; and
                    (B) if the initial advance of funds is 
                insufficient, to advance additional funds to the 
                Administrator in accordance with a revised or 
                supplemental estimate prepared by the Administrator.
            (4) Excess funds.--The Administrator shall return to the 
        Secretary any funds received under paragraph (3) that are not 
        used for the purposes described in such paragraph.
    (h) Additional Terms and Conditions.--The Administrator and the 
Secretary of the Army may require such additional terms and conditions 
in connection with the exchange under subsection (a) as the 
Administrator, in consultation with the Secretary, determines 
appropriate to protect the interests of the United States and further 
the purposes of this section.

SEC. 2838. MODIFICATION OF CONVEYANCE AUTHORITY, MARINE CORPS BASE, 
              CAMP PENDLETON, CALIFORNIA.

    Section 2851(a) of the Military Construction Authorization Act for 
Fiscal Year 1999 (division B of Public Law 105-261; 112 Stat. 2219) is 
amended by striking ``, notwithstanding any provision of State law to 
the contrary,'', as added by section 2867 of Public Law 107-107 (115 
Stat. 1334).

                      Subtitle E--Energy Security

SEC. 2851. REPEAL OF CONGRESSIONAL NOTIFICATION REQUIREMENT REGARDING 
              CANCELLATION CEILING FOR DEPARTMENT OF DEFENSE ENERGY 
              SAVINGS PERFORMANCE CONTRACTS.

    Section 2913 of title 10, United States Code, is amended by 
striking subsection (e).

SEC. 2852. REPORT ON OPPORTUNITIES FOR LEVERAGING FUNDS OF THE 
              DEPARTMENT OF DEFENSE AND STATES TO PREVENT DISRUPTION IN 
              EVENT OF ELECTRIC GRID OR PIPELINE FAILURES.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense, acting through the Under Secretary of 
Defense for Acquisition, Technology, and Logistics, shall submit to the 
congressional defense committees a report on approaches by which the 
Department of Defense may contribute funds and other resources of the 
Department, which when combined with resources from other funding 
sources, such as State System Benefit Trust Funds, Clean Air Act State 
Implementation Funds, and State Homeland Security Critical 
Infrastructure Grants, will accelerate efforts to harden critical 
functions on and around military and security facilities to prevent 
disruption in the event of major electric grid or natural gas or 
petroleum pipeline failures.

                       Subtitle F--Other Matters

SEC. 2861. REVISED DEADLINE FOR TRANSFER OF ARLINGTON NAVAL ANNEX TO 
              ARLINGTON NATIONAL CEMETERY.

    Section 2881(h) of the Military Construction Authorization Act for 
Fiscal Year 2000 (division B of Public Law 106-65; 113 Stat. 880) is 
amended by striking paragraphs (1) and (2) and inserting the following 
new paragraphs:
            ``(1) January 1, 2013;
            ``(2) the date on which the Navy Annex property is no 
        longer required (as determined by the Secretary of Defense) for 
        use as temporary office space; or
            ``(3) one year after the date on which the Secretary of the 
        Army notifies the Secretary of Defense that the Navy Annex 
        property is needed for the expansion of Arlington National 
        Cemetery.''.

SEC. 2862. TRANSFER OF JURISDICTION OVER AIR FORCE MEMORIAL TO 
              DEPARTMENT OF THE AIR FORCE.

    (a) Transfer of Jurisdiction.--Notwithstanding section 2881 of the 
Military Construction Authorization Act for Fiscal Year 2000 (division 
B of Public Law 106-65; 113 Stat. 879) and section 2863 of the Military 
Construction Authorization Act for Fiscal Year 2002 (division B of 
Public Law 107-107; 115 Stat. 1330; 40 U.S.C. 1003 note), 
administrative jurisdiction, custody, and control of the parcel of 
Federal land described in subsection (b)(1) of such section 2863 is 
hereby transferred to the Secretary of the Air Force.
    (b) Access and Management of Air Force Memorial.--In addition to 
authorities available to the Secretary of the Air Force under any other 
provision of law, the Secretary 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 facilitate public access to 
the memorial.

SEC. 2863. ESTABLISHMENT OF NATIONAL MILITARY WORKING DOG TEAMS 
              MONUMENT ON SUITABLE MILITARY INSTALLATION.

    (a) Authority to Establish Monument.--The Secretary of Defense may 
permit the National War Dogs Monument, Inc., to establish and maintain, 
at a suitable location at Fort Belvoir, Virginia, or another military 
installation in the United States, a national monument to honor the 
sacrifice and service of United States Armed Forces working dog teams 
that have participated in the military operations of the United States.
    (b) Location and Design of Monument.--The actual location and final 
design of the monument authorized by subsection (a) shall be subject to 
the approval of the Secretary. In selecting the military installation 
and site on such installation to serve as the location for the 
monument, the Secretary shall seek to maximize access to the resulting 
monument for both visitors and their dogs.
    (c) Maintenance.--The maintenance of the monument authorized by 
subsection (a) by the National War Dogs Monument, Inc., shall be 
subject to such conditions regarding access to the monument, and such 
other conditions, as the Secretary considers appropriate to protect the 
interests of the United States.
    (d) Limitation on Payment of Expenses.--The United States 
Government shall not pay any expense for the establishment or 
maintenance of the monument authorized by subsection (a).

SEC. 2864. NAMING HOUSING FACILITY AT FORT CARSON, COLORADO, IN HONOR 
              OF THE HONORABLE JOEL HEFLEY, A FORMER MEMBER OF THE 
              UNITED STATES HOUSE OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Joel Hefley was elected to represent 
        Colorado's 5th Congressional district in 1986 and served in the 
        House of Representatives until the end of the 109th Congress in 
        2006 with distinction, class, integrity, and honor.
            (2) Representative Hefley served on the Committee on Armed 
        Services of the House of Representatives for 18 years, 
        including service as Chairman of the Subcommittee on Military 
        Installations and Facilities from 1995 through 2000 and, from 
        2001 through 2006, as Chairman of the Subcommittee on 
        Readiness.
            (3) Representative Hefley's colleagues know him to be a 
        fair and effective lawmaker who worked for the national 
        interest while never forgetting his Western roots.
            (4) Representative Hefley's efforts on the Committee on 
        Armed Services were instrumental to the military value of, and 
        quality of life at, installations in the State of Colorado, 
        including Fort Carson, Cheyenne Mountain, Peterson Air Force 
        Base, Schriever Air Force Base, Buckley Air Force Base, and the 
        United States Air Force Academy.
            (5) Representative Hefley was a leader in efforts to retain 
        and expand Fort Carson as an essential part of the national 
        defense system during the Defense Base Closure and Realignment 
        process.
            (6) Representative Hefley consistently advocated for 
        providing members of the Armed Forces and their families with 
        quality, safe, and affordable housing and supportive 
        communities.
            (7) Representative Hefley spearheaded the Military Housing 
        Privatization Initiative to eliminate inadequate housing on 
        military installations, with the first pilot program located at 
        Fort Carson.
            (8) Representative Hefley's leadership on the Military 
        Housing Privatization Initiative allowed for the privatization 
        of more than 121,000 units of military family housing, which 
        brought meaningful improvements to living conditions for 
        thousands of members of the Armed Forces and their spouses and 
        children at installations throughout the United States.
            (9) It is fitting and proper that an appropriate military 
        family housing area or structure at Fort Carson be designated 
        in honor of Representative Hefley.
    (b) Designation.--Notwithstanding Army Regulation AR 1-33, the 
Secretary of the Army shall designate one of the military family 
housing areas or facilities constructed for Fort Carson, Colorado, 
using the authority provided by subchapter IV of chapter 169 of title 
10, United States Code, as the ``Joel Hefley Village''.

SEC. 2865. NAMING NAVY AND MARINE CORPS RESERVE CENTER AT ROCK ISLAND, 
              ILLINOIS, IN HONOR OF THE HONORABLE LANE EVANS, A FORMER 
              MEMBER OF THE UNITED STATES HOUSE OF REPRESENTATIVES.

    (a) Findings.--Congress makes the following findings:
            (1) Representative Lane Evans was elected to the House of 
        Representatives in 1982 and served in the House of 
        Representatives until the end of the 109th Congress in 2006 
        representing the people of Illinois' 17th Congressional 
        district.
            (2) As a member of the Committee on Armed Services of the 
        House of Representatives, Representative Evans worked to bring 
        common sense priorities to defense spending and strengthen the 
        military's conventional readiness.
            (3) Representative Evans was a tireless advocate for 
        military veterans, ensuring that veterans receive the medical 
        care they need and advocating for individuals suffering from 
        post-traumatic stress disorder and Gulf War Syndrome.
            (4) Representative Evans' efforts to improve the transition 
        of individuals from military service to the care of the 
        Department of Veterans Affairs will continue to benefit 
        generations of veterans long into the future.
            (5) Representative Evans is credited with bringing new 
        services to veterans living in his Congressional district, 
        including outpatient clinics in the Quad Cities and Quincy and 
        the Quad-Cities Vet Center.
            (6) Representative Evans worked with local leaders to 
        promote the Rock Island Arsenal, and it earned new jobs and 
        missions through his support.
            (7) In honor of his service in the Marine Corps and to his 
        district and the United States, it is fitting and proper that 
        the Navy and Marine Corps Reserve Center at Rock Island Arsenal 
        be named in honor of Representative Evans.
    (b) Designation.--The Navy and Marine Corps Reserve Center at Rock 
Island Arsenal, Illinois, shall be known and designated as the ``Lane 
Evans Navy and Marine Corps Reserve Center''. Any reference in a law, 
map, regulation, document, paper, or other record of the United States 
to the Navy and Marine Corps Reserve Center at Rock Island Arsenal 
shall be deemed to be a reference to the Lane Evans Navy and Marine 
Corps Reserve Center.

SEC. 2866. NAMING OF RESEARCH LABORATORY AT AIR FORCE ROME RESEARCH 
              SITE, ROME, NEW YORK, IN HONOR OF THE HONORABLE SHERWOOD 
              L. BOEHLERT, A FORMER MEMBER OF THE UNITED STATES HOUSE 
              OF REPRESENTATIVES.

    The new laboratory building at the Air Force Rome Research Site, 
Rome, New York, shall be known and designated as the ``Sherwood 
Boehlert Center of Excellence for Information Science and Technology''. 
Any reference in a law, map, regulation, document, paper, or other 
record of the United States to such laboratory facility shall be deemed 
to be a reference to the Sherwood Boehlert Center of Excellence for 
Information Science and Technology.

SEC. 2867. NAMING OF ADMINISTRATION BUILDING AT JOINT SYSTEMS 
              MANUFACTURING CENTER, LIMA, OHIO, IN HONOR OF THE 
              HONORABLE MICHAEL G. OXLEY, A FORMER MEMBER OF THE UNITED 
              STATES HOUSE OF REPRESENTATIVES.

    The administration building under construction at the Joint Systems 
Manufacturing Center in Lima, Ohio, shall be known and designated as 
the ``Michael G. Oxley Administration and Technology Center''. Any 
reference in a law, map, regulation, document, paper, or other record 
of the United States to such building shall be deemed to be a reference 
to the Michael G. Oxley Administration and Technology Center.

SEC. 2868. NAMING OF LOGISTICS AUTOMATION TRAINING FACILITY, ARMY 
              QUARTERMASTER CENTER AND SCHOOL, FORT LEE, VIRGINIA, IN 
              HONOR OF GENERAL RICHARD H. THOMPSON.

    Notwithstanding Army Regulation AR 1-33, the Logistics Automation 
Training Facility of the Army Quartermaster Center and School at Fort 
Lee, Virginia, shall be known and designated as the ``General Richard 
H. Thompson Logistics Automation Training Facility'' in honor of 
General Richard H. Thompson, the only quartermaster to have risen from 
private to full general. Any reference in a law, map, regulation, 
document, paper, or other record of the United States to such facility 
shall be deemed to be a reference to the General Richard H. Thompson 
Logistics Automation Training Facility.

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

      TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

         Subtitle A--National Security Programs Authorizations

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

   Subtitle B--Program Authorizations, Restrictions, and Limitations

Sec. 3111. Study on using existing pits for the Reliable Replacement 
                            Warhead program.
Sec. 3112. National Nuclear Security Administration study on nuclear 
                            weapons complex protective forces.
Sec. 3113. Report on retirement and dismantlement of nuclear warheads.
Sec. 3114. Assessment of security risks posed to nuclear weapons 
                            complex.
Sec. 3115. Department of Energy report on plan to strengthen and expand 
                            International Radiological Threat Reduction 
                            program.
Sec. 3116. Department of Energy report on plan to strengthen and expand 
                            Materials Protection, Control, and 
                            Accounting program.
Sec. 3117. Authority to use International Nuclear Materials Protection 
                            and Cooperation program funds outside the 
                            former Soviet Union.
Sec. 3118. Increased authority for ombudsman under Energy Employees 
                            Occupational Illness Compensation Program.

         Subtitle A--National Security Programs Authorizations

SEC. 3101. NATIONAL NUCLEAR SECURITY ADMINISTRATION.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2008 for the activities of the National Nuclear 
Security Administration in carrying out programs necessary for national 
security in the amount of $9,536,833,000, to be allocated as follows:
            (1) For weapons activities, $6,511,312,000.
            (2) For defense nuclear nonproliferation activities, 
        $1,817,646,000.
            (3) For naval reactors, $808,219,000.
            (4) For the Office of the Administrator for Nuclear 
        Security, $399,656,000.

SEC. 3102. DEFENSE ENVIRONMENTAL CLEANUP.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2008 for defense environmental cleanup 
activities in carrying out programs necessary for national security in 
the amount of $5,363,905,000.

SEC. 3103. OTHER DEFENSE ACTIVITIES.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2008 for other defense activities in carrying 
out programs necessary for national security in the amount of 
$763,974,000.

SEC. 3104. DEFENSE NUCLEAR WASTE DISPOSAL.

    Funds are hereby authorized to be appropriated to the Department of 
Energy for fiscal year 2008 for defense nuclear waste disposal for 
payment to the Nuclear Waste Fund established in section 302(c) of the 
Nuclear Waste Policy Act of 1982 (42 U.S.C. 10222(c)) in the amount of 
$292,046,000.

   Subtitle B--Program Authorizations, Restrictions, and Limitations

SEC. 3111. STUDY ON USING EXISTING PITS FOR THE RELIABLE REPLACEMENT 
              WARHEAD PROGRAM.

    (a) Study Required.--The Administrator for Nuclear Security, in 
consultation with the Nuclear Weapons Council, shall carry out a study 
analyzing the feasibility of using existing pits to remanufacture 
warheads for the Reliable Replacement Warhead (RRW) program.
    (b) Report.--
            (1) In general.--Not later than February 1, 2008, the 
        Administrator shall submit to the congressional defense 
        committees a report on the results of the study. The report 
        shall be in unclassified form, but may include a classified 
        annex.
            (2) Matters included.--The report shall contain the 
        assessment of the Administrator of the results of the study, 
        including--
                    (A) an assessment of--
                            (i) whether using existing pits to 
                        remanufacture warheads for the RRW program is 
                        technically feasible;
                            (ii) whether remanufacturing warheads with 
                        existing pits is more desirable than 
                        remanufacturing warheads with newly 
                        manufactured pits;
                            (iii) the number of existing pits suitable 
                        for such remanufacturing;
                            (iv) whether proceeding to remanufacture 
                        warheads with existing pits before 
                        remanufacturing warheads with newly 
                        manufactured pits is desirable; and
                            (v) the extent to which remanufacturing 
                        warheads with existing pits, as compared to 
                        remanufacturing warheads with newly 
                        manufactured pits, would reduce future 
                        requirements for new pit production, and how 
                        such use of existing pits would affect the 
                        schedule and scope for new pit production; and
                    (B) a comparison of the requirements for 
                certifying--
                            (i) warheads remanufactured with existing 
                        pits;
                            (ii) warheads remanufactured with newly 
                        manufactured pits; and
                            (iii) warheads maintained by the Stockpile 
                        Life Extension Programs.
    (c) Definitions.--For the purposes of this section, the terms 
``remanufacturing'' and ``remanufacture'' mean the replacement of 
existing warheads with modern components that are designed to increase 
the reliability, safety, and surety of the warhead, but that do not 
alter the yield of the warhead or affect military characteristics of 
the warhead in any way.
    (d) Funding.--Of the amounts made available pursuant to the 
authorization of appropriations in section 3101(a)(1), such funds as 
may be necessary shall be available to carry out this section.

SEC. 3112. NATIONAL NUCLEAR SECURITY ADMINISTRATION STUDY ON NUCLEAR 
              WEAPONS COMPLEX PROTECTIVE FORCES.

    (a) Study Required.--The Administrator for Nuclear Security shall 
carry out a study on the composition of the workforce providing 
protective forces at the nuclear weapons complex.
    (b) Report.--Not later than March 1, 2008, the Administrator for 
Nuclear Security shall submit to the congressional defense committees a 
report on the results of the study. The report shall include the 
following:
            (1) An assessment of whether the incentives inherent in the 
        use of contractors to provide protective forces increase or 
        decrease the risk that such protective forces will be 
        substandard.
            (2) Assessments of the feasibility, costs, benefits, and 
        implications of having protective forces at the nuclear weapons 
        complex be provided by a workforce comprised--
                    (A) only of contractor employees;
                    (B) only of Federal employees;
                    (C) of both contractor employees and Federal 
                employees; and
                    (D) in any other manner that the Administrator 
                considers appropriate for assessment under this 
                paragraph.

SEC. 3113. REPORT ON RETIREMENT AND DISMANTLEMENT OF NUCLEAR WARHEADS.

    Not later than February 1, 2008, the Administrator for Nuclear 
Security, in consultation with the Nuclear Weapons Council, shall 
submit to the congressional defense committees a report on the 
retirement and dismantlement of the nuclear warheads that are not part 
of the enduring stockpile but that have not yet been retired or 
dismantled. The report shall include the following:
            (1) The existing plan and schedule for retiring and 
        dismantling those warheads.
            (2) An assessment of the capacity of the Pantex and Y-12 
        plants to accommodate an accelerated schedule for retiring and 
        dismantling those warheads.
            (3) An assessment of the feasibility of implementing such 
        an accelerated schedule.

SEC. 3114. ASSESSMENT OF SECURITY RISKS POSED TO NUCLEAR WEAPONS 
              COMPLEX.

    (a) Assessments Required.--The Administrator for Nuclear Security 
shall conduct an assessment of--
            (1) the physical security risks, and the cyber security 
        risks, posed to the nuclear weapons complex; and
            (2) the security technologies employed within the nuclear 
        weapons complex.
    (b) Report Required.--Not later than February 1, 2008, the 
Administrator shall submit to the congressional defense committees a 
report on the assessments conducted under subsection (a). The report 
shall include--
            (1) for each site within the nuclear weapons complex, a 
        description of the security technologies employed at the site 
        and, for each such technology, the age and maintenance status 
        of the technology;
            (2) a description of the methods used by the Department of 
        Energy to establish priorities among investments in physical 
        and cyber security programs and activities; and
            (3) a multi-year plan for the lifecycle maintenance (and 
        replacement) of the security technologies employed within the 
        nuclear weapons complex.

SEC. 3115. DEPARTMENT OF ENERGY REPORT ON PLAN TO STRENGTHEN AND EXPAND 
              INTERNATIONAL RADIOLOGICAL THREAT REDUCTION PROGRAM.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Energy shall submit to Congress a report that sets 
forth a specific plan for strengthening and expanding the Department of 
Energy International Radiological Threat Reduction (IRTR) program 
within the Global Threat Reduction Initiative. The plan shall address 
concerns raised and recommendations made by the Government 
Accountability Office in its report of March 13, 2007, titled 
``Focusing on the Highest Priority Radiological Sources Could Improve 
DOE's Efforts to Secure Sources in Foreign Countries'', and shall 
specifically include actions to--
            (1) improve the Department's coordination with the 
        Department of State and the Nuclear Regulatory Commission;
            (2) improve information-sharing between the Department and 
        the International Atomic Energy Agency;
            (3) with respect to hospitals and clinics containing 
        radiological sources that receive security upgrades, give 
        highest priority to those determined to be the highest risk;
            (4) accelerate efforts to remove as many radioisotope 
        thermoelectric generators (RTGs) in the Russian Federation as 
        practicable;
            (5) develop a long-term sustainability plan for security 
        upgrades that includes, among other things, future resources 
        required to implement such a plan; and
            (6) develop a long-term operational plan that steadily 
        increases funding for the IRTR program and ensures sufficient 
        funding to identify, recover, and secure all vulnerable high-
        risk radiological sources worldwide as quickly and effectively 
        as possible.

SEC. 3116. DEPARTMENT OF ENERGY REPORT ON PLAN TO STRENGTHEN AND EXPAND 
              MATERIALS PROTECTION, CONTROL, AND ACCOUNTING PROGRAM.

    Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Energy shall submit to Congress a specific plan for 
strengthening and expanding the Department of Energy Materials 
Protection, Control, and Accounting (MPC&A) program. The plan shall 
address concerns raised and recommendations made by the Government 
Accountability Office in its report of February 2007, titled ``Progress 
Made in Improving Security at Russian Nuclear Sites, but the Long-Term 
Sustainability of U.S. Funded Security Upgrades is Uncertain'', and 
shall specifically include actions to--
            (1) strengthen program management and the effectiveness of 
        the Department's efforts to improve security at weapons-usable 
        nuclear material and warhead sites in the Russian Federation 
        and other countries by--
                    (A) revising the metrics used to measure MPC&A 
                program progress to better reflect the level of 
                security upgrade completion at buildings reported as 
                ``secure'';
                    (B) actively working with Russia and other 
                countries, in coordination with and with the 
                concurrence of the Secretary of State, to develop an 
                access plan for each country; and
                    (C) developing a management information system to 
                track the Department's progress in providing Russia 
                with a sustainable MPC&A system by 2013; and
            (2) develop a long-term operational plan that steadily 
        increases funding for the MPC&A program, including for National 
        Programs and Sustainability, and ensures sufficient funding to 
        secure all weapons-usable nuclear material and warhead sites as 
        quickly and effectively as possible.

SEC. 3117. AUTHORITY TO USE INTERNATIONAL NUCLEAR MATERIALS PROTECTION 
              AND COOPERATION PROGRAM FUNDS OUTSIDE THE FORMER SOVIET 
              UNION.

    (a) Modification of Certification Requirement.--Section 3124 of the 
National Defense Authorization Act for Fiscal Year 2004 (Public Law 
108-136; 117 Stat. 1747) is amended in subsection (a)--
            (1) by striking ``the President may'' and inserting ``the 
        Secretary of Energy may''; and
            (2) by striking ``if the President'' and inserting ``if the 
        Secretary of Energy, with the concurrence of the Secretary of 
        State,''.
    (b) Repeal of Funding Limitation.--Section 3124 of that Act is 
further amended by striking subsection (c).
    (c) Congressional Notice Requirement.--Section 3124 of that Act is 
further amended in subsection (d)--
            (1) in pararaph (1)--
                    (A) by striking ``The President may not'' and 
                inserting ``The Secretary of Energy may not''; and
                    (B) by striking ``until the President'' and 
                inserting ``until the Secretary of Energy'';
            (2) in paragraph (2)--
                    (A) by striking ``Not later than 10 days after'' 
                and inserting ``Not later than 15 days prior to'';
                    (B) by striking ``the President shall'' and 
                inserting ``the Secretary of Energy shall''; and
                    (C) by striking ``Congress'' and inserting ``the 
                Committee on Armed Services and the Committee on 
                Foreign Affairs of the House of Representatives and the 
                Committee on Armed Services and Committee on Foreign 
                Relations of the Senate''; and
            (3) by adding at the end the following:
    ``(3) In the case of a situation that threatens human life or 
safety or where a delay would severely undermine the national security 
of the United States, notification under paragraph (2) shall be made 
not later than 10 days after obligating funds under the authority in 
subsection (a) for a project or activity.''.

SEC. 3118. INCREASED AUTHORITY FOR OMBUDSMAN UNDER ENERGY EMPLOYEES 
              OCCUPATIONAL ILLNESS COMPENSATION PROGRAM.

    Section 3686 of the Energy Employees Occupational Illness 
Compensation Program Act of 2000 (42 U.S.C. 7385s-15) is amended--
            (1) by amending subsection (c) to read as follows:
    ``(c) Duties.--The duties of the Office shall be as follows:
            ``(1) To assist individuals in making claims under this 
        title.
            ``(2) To provide information on the benefits available 
        under this title and on the requirements and procedures 
        applicable to the provision of such benefits.
            ``(3) To act as an advocate on behalf of individuals 
        seeking benefits under this title.
            ``(4) To make recommendations to the Secretary regarding 
        the location of centers (to be known as `resource centers') for 
        the acceptance and development of claims for benefits under 
        this title.
            ``(5) To carry out such other duties as the Secretary shall 
        specify.''; and
            (2) by striking subsection (g) (establishing a sunset date) 
        and inserting the following:
    ``(g) Contract Authority.--The Ombudsman shall have authority to 
contract for the services of individuals with expertise in relevant 
disciplines, including health physics, medicine, industrial hygiene, 
and toxicology, as the Ombudsman may from time to time consider 
appropriate.
    ``(h) Funding.--Effective for appropriations made for fiscal year 
2008 and each fiscal year thereafter, and notwithstanding section 3684 
or any other provision of this title, or section 151 of Division B of 
the Miscellaneous Appropriations Act, 2001 (as enacted into law by the 
Consolidated Appropriations Act, 2001 (Public Law 106-554; 114 Stat. 
2763A-251)), this section shall not be carried out with direct spending 
under this title. Instead, no funds shall be obligated for the purpose 
of carrying out this section except funds appropriated specifically for 
the purpose of carrying out this section in appropriations Acts enacted 
after the date of the enactment of this subsection. There are 
authorized to be appropriated such sums as may be necessary to carry 
out this section for fiscal year 2008 and each fiscal year 
thereafter.''.

          TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

Sec. 3201. Authorization.

SEC. 3201. AUTHORIZATION.

    There are authorized to be appropriated for fiscal year 2008, 
$22,499,000 for the operation of the Defense Nuclear Facilities Safety 
Board under chapter 21 of the Atomic Energy Act of 1954 (42 U.S.C. 2286 
et seq.).

                TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

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

SEC. 3301. AUTHORIZED USES OF NATIONAL DEFENSE STOCKPILE FUNDS.

    (a) Obligation of Stockpile Funds.--During fiscal year 2008, the 
National Defense Stockpile Manager may obligate up to $44,825,000 of 
the funds in the National Defense Stockpile Transaction Fund 
established under subsection (a) of section 9 of the Strategic and 
Critical Materials Stock Piling Act (50 U.S.C. 98h) for the authorized 
uses of such funds under subsection (b)(2) of such section, including 
the disposal of hazardous materials that are environmentally sensitive.
    (b) Additional Obligations.--The National Defense Stockpile Manager 
may obligate amounts in excess of the amount specified in subsection 
(a) if the National Defense Stockpile Manager notifies Congress that 
extraordinary or emergency conditions necessitate the additional 
obligations. The National Defense Stockpile Manager may make the 
additional obligations described in the notification after the end of 
the 45-day period beginning on the date on which Congress receives the 
notification.
    (c) Limitations.--The authorities provided by this section shall be 
subject to such limitations as may be provided in appropriations Acts.

SEC. 3302. REVISIONS TO REQUIRED RECEIPT OBJECTIVES FOR PREVIOUSLY 
              AUTHORIZED DISPOSALS FROM THE NATIONAL DEFENSE STOCKPILE.

    (a) Fiscal Year 2000 Disposal Authority.--Section 3402(b) of the 
National Defense Authorization Act for Fiscal Year 2000 (50 U.S.C. 98d 
note), as amended by section 3302 of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1788) and 
section 3302 of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109-163; 119 Stat. 3545), is amended by striking 
``$600,000,000 before'' in paragraph (5) 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 of 
the Ronald W. Reagan National Defense Authorization Act for Year 2005 
(Public Law 108-375; 118 Stat. 2193), section 3302 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 
Stat. 3545), and 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 by the end of fiscal 
year 2014'' in paragraph (7) and inserting ``$1,469,102,000 by the end 
of fiscal year 2015''.

                 TITLE XXXIV--NAVAL PETROLEUM RESERVES

Sec. 3401. Authorization of appropriations.

SEC. 3401. AUTHORIZATION OF APPROPRIATIONS.

    (a) Amount.--There are hereby authorized to be appropriated to the 
Secretary of Energy $17,301,000 for fiscal year 2008 for the purpose of 
carrying out activities under chapter 641 of title 10, United States 
Code, relating to the naval petroleum reserves.
    (b) Period of Availability.--Funds appropriated pursuant to the 
authorization of appropriations in subsection (a) shall remain 
available until expended.

                  TITLE XXXV--MARITIME ADMINISTRATION

Sec. 3501. Authorization of appropriations for fiscal year 2008.
Sec. 3502. Temporary authority to transfer obsolete combatant vessels 
                            to Navy for disposal.

SEC. 3501. AUTHORIZATION OF APPROPRIATIONS FOR FISCAL YEAR 2008.

    Funds are hereby authorized to be appropriated for fiscal year 
2008, to be available without fiscal year limitation if so provided in 
appropriations Acts, for the use of the Department of Transportation 
for the Maritime Administration as follows:
            (1) For expenses necessary for operations and training 
        activities, $115,276,000, of which--
                    (A) $13,850,000 shall remain available until 
                expended for capital improvements at the United States 
                Merchant Marine Academy; and
                    (B) $8,218,000 shall remain available until 
                expended for maintenance and repair of school ships at 
                the State Maritime Academies.
            (2) For expenses to dispose of obsolete vessels in the 
        National Defense Reserve Fleet, including provision of 
        assistance under section 7 of Public Law 92-402, $20,000,000.

SEC. 3502. TEMPORARY AUTHORITY TO TRANSFER OBSOLETE COMBATANT VESSELS 
              TO NAVY FOR DISPOSAL.

    The Secretary of Transportation shall, subject to the availability 
of appropriations and consistent with section 1535 of title 31, United 
States Code, popularly known as the Economy Act, transfer to the 
Secretary of the Navy during fiscal year 2008 for disposal by the Navy, 
no fewer than 3 combatant vessels in the nonretention fleet of the 
Maritime Administration that are acceptable to the Secretary of the 
Navy.
            Amend the title so as to read: ``A bill to authorize 
        appropriations for fiscal year 2008 for military activities of 
        the Department of Defense, for military construction, and for 
        defense activities of the Department of Energy, to prescribe 
        military personnel strengths for such fiscal year, and for 
        other purposes.''.
                                                  Union Calendar No. 86

110th CONGRESS

  1st Session

                               H. R. 1585

                          [Report No. 110-146]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                              May 11, 2007

Reported with amendments, committed to the Committee of the Whole House 
          on the State of the Union, and ordered to be printed`