written transition plan specifying the recommended 
schedule and milestones for the transition of the 
member from military service. The member shall re-
ceive the plan before the separation or retirement 
date of the member. 
(2) CONTENT OF PLAN.—The transition plan 
for a participating member under the pilot program 
shall include information and guidance designed to 
assist the member in understanding and meeting the 
schedule and milestones for the member’s transition. 
(b) PILOT PROCESS FOR TRANSITION.— 
(1) PURPOSE; PARTICIPANTS.—Subject to para-
graph (3), the Secretary of Defense, in cooperation 
with the Secretary of Veterans Affairs, shall estab-
lish a pilot process for the transmittal to the Sec-
retary of Veterans Affairs of the records and other 
information described in paragraph (2) as part of 
the separation or retirement of a minimum of 5,000 
members of the Armed Forces who are separated or 
retired during the one-year period beginning on the 
effective date of this section. 
(2) COVERED
RECORDS.—The records and 
other information to be transmitted under para-
graph (1) with respect to a member participating in 
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the pilot process shall include, at a minimum, the 
following: 
(A) The member’s address and contact in-
formation. 
(B) A copy of the member’s service record, 
including medical records and any results of a 
Physical Evaluation Board. 
(C) Whether the member is entitled to 
transitional health care, a conversion heath pol-
icy, or other health benefits through the De-
partment of Defense under section 1145 of title 
10, United States Code. 
(D) Any requests by the member for as-
sistance in enrolling in, or completed applica-
tions 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 Sec-
retary of Veterans Affairs. 
(E) Any requests by the member for as-
sistance in applying for, or completed applica-
tions for, compensation and vocational rehabili-
tation benefits to which the member may be en-
titled under laws administered by the Secretary 
of Veterans Affairs, if the member is being 
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medically separated or is being retired under 
chapter 61 of title, United States Code. 
(3) The transmittal of information under para-
graph (1) may be subject to the consent of the mem-
ber, as required by statute. 
(c) MEETING.— 
(1) MEETING REQUIRED.—The pilot process re-
quired by subsection (b) for the transmittal of 
records and other information with respect to a 
member shall include a meeting between representa-
tives of the Secretary concerned and the Secretary 
of Veterans Affairs, which shall take place at a loca-
tion 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 in-
formation 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.—The Secretary of De-
fense shall provide for the transmittal to the Department 
of Veterans Affairs of records and other information with 
respect to a member participating in the pilot process at 
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the earliest practicable date. In no case should the trans-
mittal occur later than 60 days after the separation or 
retirement of the member. 
(e) REPORTING REQUIREMENT.—Not later than 90 
days after the end of the one-year period for the pilot pro-
gram and pilot process required by this section, the Sec-
retary of Defense shall submit to Congress a report con-
taining— 
(1) an evaluation of the results of the pilot pro-
gram and pilot process; 
(2) an assessment of the current status of ef-
forts to electronically transfer records and docu-
ments to the Department of Veterans Affairs and an 
estimate as to when the electronic transfer of 
records and documents to the Department of Vet-
erans Affairs will be fully achieved; and 
(3) recommendations regarding— 
(A) the expansion of the requirements for 
a transition plan and formal transition process 
to include all members being separated or re-
tired from the Armed Forces; and 
(B) the transformation of the process for 
transmitting records and other documents per-
taining to members separating or retiring from 
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the Armed Forces to the Department of Vet-
erans Affairs using solely electronic methods. 
(f) EARLY TERMINATION.—The Secretary of Defense 
or the Secretary of Veterans Affairs may terminate the 
pilot program or pilot process required by this section, or 
both, before the end of the one-year period provided for 
the pilot program and pilot process if either Secretary de-
termines that the pilot program or pilot process is ineffec-
tive in improving the transition of members of the Armed 
Forces from military service. The Secretary making the 
determination shall notify the Committee on Armed Serv-
ices and the Committee on Veterans Affairs of the House 
of Representatives and the Committee on Armed Services 
and the Committee on Veterans Affairs of the Senate of 
the reasons for the termination not later than 10 days 
after the determination is made. 
(g) EFFECTIVE DATE.—The pilot program and pilot 
process required by this section shall be implemented not 
later than the first day of the eighth month beginning 
after the date of the enactment of this Act. 
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SEC. 11. 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 es-
tablished 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 Treas-
ury. 
(b) PURPOSES.—The Fund shall be used— 
(1) to support programs and activities relating 
to the medical treatment, care, rehabilitation, recov-
ery, 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 ap-
propriations accounts for military personnel; oper-
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ation and maintenance; procurement; research, de-
velopment, test, and evaluation; military construc-
tion; 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 de-
fense committees in writing of the details of the 
transfer. 
(e) AUTHORIZATION.—There is hereby authorized to 
be appropriated to the Medical Support Fund, from an 
emergency supplemental appropriation for fiscal year 
2007 or 2008, $50,000,000, to remain available through 
September 30, 2008. 
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SEC. 12. ANNUAL REPORT ON MILITARY MEDICAL FACILI-
TIES. 
(a) IN GENERAL.— 
(1) REPORT
REQUIREMENT.—Chapter 23 of 
title 10, United States Code, is amended by adding 
at the end the following new section: 
‘‘§ 490. 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 Sec-
retary of Defense shall submit to the Committees on 
Armed Services of the Senate and the House of Represent-
atives a report on the adequacy, suitability, and quality 
of medical facilities and medical-related support facilities 
at each military installation within the Department of De-
fense. 
‘‘(b) 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 out-
patient. 
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‘‘(3) Family members accompanying any mem-
ber described in paragraph (1) or (2) as a nonmed-
ical attendant.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by adding at the end the following new item: 
‘‘490. Annual report on military medical facilities.’’. 
(b) EFFECTIVE DATE.—The first report under sec-
tion 490 of title 10, United States Code, as added by sub-
section (a), shall be submitted not later than the date of 
submission of the budget for fiscal year 2009. 
SEC. 13. 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 evalua-
tion of the disability evaluation systems used by the De-
partment of Defense and the Department of Veterans Af-
fairs for the purpose of— 
(1) improving the consistency of the two dis-
ability 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 dis-
ability evaluation systems used by the Department of De-
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fense and the Department of Veterans Affairs, the Sec-
retary of Defense and the Secretary of Veterans Affairs 
shall consider the findings and recommendations of the 
Veterans’ Disability Benefits Commission established pur-
suant to title XV of the National Defense Authorization 
Act for Fiscal Year 2004 (Public Law 108–136; 38 U.S.C. 
1101 et seq.). 
(c) REPORT.—Not later than 180 days after the date 
of the submission of the final report of the Veterans’ Dis-
ability 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 eval-
uation systems and such other recommendations as 
the Secretaries consider appropriate. 
SEC. 14. 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— 
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(1) two shall be appointed by the majority lead-
er of the Senate; 
(2) two shall be appointed by the minority lead-
er of the Senate; 
(3) two shall be appointed by the Speaker of 
the House of Representatives; 
(4) two shall be appointed by the minority lead-
er of the House of Representatives; 
(5) two shall be appointed by the President; 
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 evalua-
tion 
system, 
or 
the 
experience 
of 
a 
recovering 
servicemember or family member of a recovering 
servicemember. 
(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 addi-
tional terms. 
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(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 Over-
sight Board shall provide advice and consultation to 
the Secretary of Defense and the Committees on 
Armed Services of the Senate and the House of Rep-
resentatives regarding— 
(A) the process for streamlining the dis-
ability evaluation systems of the military de-
partments; 
(B) the process for correcting and improv-
ing the ratios of case managers and service 
member 
advocates 
to 
recovering 
servicemembers; 
(C) the need to revise Department of De-
fense policies to improve the experience of re-
covering servicemembers while under Depart-
ment of Defense care; 
(D) the need to revise Department of De-
fense policies to improve counseling, outreach, 
and general services provided to family mem-
bers of recovering servicemembers; 
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(E) the need to revise Department of De-
fense policies regarding the provision of quality 
lodging to recovering servicemembers; and 
(F) such other matters relating to the eval-
uation and care of recovering servicemembers, 
including evaluation under disability evaluation 
systems, as the Board considers appropriate. 
(2) VISITS TO MILITARY MEDICAL TREATMENT 
FACILITIES.—In carrying out its duties, each mem-
ber 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 med-
ical treatment facility. 
(f) STAFF.—The Secretary shall make available the 
services of at least two officials or employees of the De-
partment 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 reg-
ular places of business in the performance of service for 
the Oversight Board. 
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(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 Rep-
resentatives each year a report on its activities during the 
preceding year, including any findings and recommenda-
tions of the Oversight Board as a result of such activities. 
SEC. 15. DEFINITIONS. 
In this Act: 
(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 De-
partment of Defense system or process for evalu-
ating the nature of and extent of disabilities affect-
ing 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 per-
sonnel 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. 
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(3) FAMILY MEMBER.—The term ‘‘family mem-
ber’’, with respect to a recovering servicemember, 
has the meaning given that term in section 411h(b) 
of title 37, United States Code. 
(4) RECOVERING SERVICEMEMBER.—The term 
‘‘recovering servicemember’’ 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, ill-
ness, or disease incurred or aggravated while on ac-
tive duty in the Armed Forces. 
Æ 
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