H. R. 5122—180
the House of Representatives a report on factors that affect reten-
tion of members of the Armed Forces who have a special operations 
forces designation. 
(b) ELEMENTS.—The report under subsection (a) shall include 
the following: 
(1) Information on the cost of training of members of the 
Armed Forces who have a special operations forces designation, 
with such information displayed separately and shown as aggre-
gate costs of training for such members at the 4-year, 8-year, 
12-year, 16-year, and 20-year points of service. 
(2) The average cost of special operations-unique training, 
both predeployment and during deployment, for the number 
of members of the Armed Forces who have a special operations 
forces designation who have been deployed at least twice to 
areas in which they were eligible for hostile fire pay. 
(3) For each component of the United States Special Oper-
ations Command, an estimate of when the assigned strength 
of that component will be under 90 percent of the authorized 
strength of that component, taking into account anticipated 
growth planned for in the most recent Quadrennial Defense 
Review. 
(4) The percentage of members of the Armed Forces with 
a special operations forces designation who have accumulated 
over 48 months of hostile fire pay and the percentage who 
have accumulated over 60 months of such pay. 
Subtitle 
E—Commissary 
and 
Non-
appropriated Fund Instrumentality Ben-
efits 
SEC. 661. TREATMENT OF PRICE SURCHARGES OF CERTAIN MERCHAN-
DISE SOLD AT COMMISSARY STORES. 
(a) MERCHANDISE PROCURED FROM EXCHANGES.—Subsection 
(c)(3) of section 2484 of title 10, United States Code, is amended—
(1) by inserting ‘‘(A)’’ after ‘‘(3)’’; 
(2) by striking ‘‘Subsections’’ and inserting ‘‘Except as pro-
vided in subparagraph (B), subsections’’; and 
(3) by adding at the end the following new subparagraph: 
‘‘(B) When a military exchange is the vendor of tobacco products 
or other merchandise authorized for sale in a commissary store 
under paragraph (1), any revenue above the cost of procuring the 
merchandise shall be allocated as if the revenue were a uniform 
sales price surcharge described in subsection (d).’’. 
(b) MERCHANDISE TREATED AS NONCOMMISSARY STORE INVEN-
TORY.—Subsection (g) of such section is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Notwithstanding’’; 
(2) by striking ‘‘Subsections’’ and inserting ‘‘Except as pro-
vided in paragraph (2), subsections’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(2) When tobacco products are authorized for sale in a com-
missary store as noncommissary store inventory, any revenue above 
the cost of procuring the tobacco products shall be allocated as 
if the revenue were a uniform sales price surcharge described 
in subsection (d).’’.
H. R. 5122—181
SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF 
DEFENSE PROPERTY FOR PROTECTION OF MORALE, WEL-
FARE, AND RECREATION ACTIVITIES AND REVENUE. 
(a) ADDITIONAL CONDITION ON USE OF LEASE AUTHORITY.—
Subsection (b) section 2667 of title 10, United States Code, is 
amended—
(1) in paragraph (4), by striking ‘‘and’’ at the end; 
(2) in paragraph (5), by striking the period and inserting 
‘‘; and’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(6) except as otherwise provided in subsection (d), shall 
require the lessee to provide the covered entities specified in 
paragraph (1) of that subsection the right to establish and 
operate a community support facility or provide community 
support services, or seek equitable compensation for morale, 
welfare, and recreation programs of the Department of Defense 
in lieu of the operation of such a facility or the provision 
of such services, if the Secretary determines that the lessee 
will provide merchandise or services in direct competition with 
covered entities through the lease.’’. 
(b) APPLICATION OF CONDITION; WAIVER.—Such section is fur-
ther amended—
(1) by redesignating subsections (d) through (i) as sub-
sections (e) through (j), respectively; and 
(2) by inserting after subsection (c) the following new sub-
section (d): 
‘‘(d) COMMUNITY SUPPORT FACILITIES AND COMMUNITY SUPPORT 
SERVICES UNDER LEASE; WAIVER.—(1) In this subsection and sub-
section (b)(6), the term ‘covered entity’ means each of the following: 
‘‘(A) The Army and Air Force Exchange Service. 
‘‘(B) The Navy Exchange Service Command. 
‘‘(C) The Marine Corps exchanges. 
‘‘(D) The Defense Commissary Agency. 
‘‘(E) The revenue-generating nonappropriated fund activi-
ties of the Department of Defense conducted for the morale, 
welfare, and recreation of members of the armed forces. 
‘‘(2) The Secretary of a military department may waive the 
requirement in subsection (b)(6) with respect to a lease if—
‘‘(A) the lease is entered into under subsection (g); or 
‘‘(B) the Secretary determines that the waiver is in the 
best interests of the Government. 
‘‘(3) The Secretary of the military department concerned shall 
provide to the congressional defense committees written notice of 
each waiver under paragraph (2), including the reasons for the 
waiver. 
‘‘(4) The covered entities shall exercise the right provided in 
subsection (b)(6) with respect to a lease, if at all, not later than 
90 days after receiving notice from the Secretary of the military 
department concerned regarding the opportunity to exercise such 
right with respect to the lease. The Secretary may, at the discretion 
of the Secretary, extend the period under this paragraph for the 
exercise of the right with respect to a lease for such additional 
period as the Secretary considers appropriate. 
‘‘(5) The Secretary of Defense shall prescribe in regulations 
uniform procedures and criteria for the evaluation of proposals
H. R. 5122—182
for enhanced use leases involving the operation of community sup-
port facilities or the provision of community support services by 
either a lessee under this section or a covered entity. 
‘‘(6) The Secretary of the military department concerned shall 
provide written notification to the Committee on Armed Services 
of the Senate and the Committee on Armed Services of the House 
of Representatives regarding all leases under this section that 
include the operation of a community support facility or the provi-
sion of community support services, regardless of whether the 
facility will be operated by a covered entity or the lessee or the 
services will be provided by a covered entity or the lessee.’’. 
(c) DEFINITIONS.—Subsection (i) of such section, as redesignated 
by subsection (b)(1) of this section, is amended to read as follows: 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) The term ‘community support facility’ includes an 
ancillary supporting facility (as that term is defined in section 
2871(1) of this title). 
‘‘(2) The term ‘community support services’ includes rev-
enue-generating food, recreational, lodging support services, 
and resale operations and other retail facilities and services 
intended to support a community. 
‘‘(3) The term ‘military installation’ has the meaning given 
such term in section 2687(e)(1) of this title.’’. 
(d) STYLISTIC, TECHNICAL, AND CONFORMING AMENDMENTS.—
Such section is further amended—
(1) in subsection (a), by inserting ‘‘LEASE AUTHORITY.—
’’ after ‘‘(a)’’; 
(2) in subsection (b), by inserting ‘‘CONDITIONS
ON 
LEASES.—’’ after ‘‘(b)’’; 
(3) in subsection (c), by inserting ‘‘TYPES
OF IN-KIND 
CONSIDERATION.—’’ after ‘‘(c)’’; 
(4) in subsection (e), as redesignated by subsection (b)(1) 
of this section—
(A) by inserting ‘‘DEPOSIT AND USE OF PROCEEDS.—
’’ after ‘‘(e)’’; and 
(B) in paragraph (5), by striking ‘‘subsection (f)’’ and 
inserting ‘‘subsection (g)’’; 
(5) in subsection (f), as redesignated by subsection (b)(1) 
of this section, by inserting ‘‘TREATMENT OF LESSEE INTEREST 
IN PROPERTY.—’’ after ‘‘(f)’’; 
(6) in subsection (g), as redesignated by subsection (b)(1) 
of this section—
(A) by inserting ‘‘SPECIAL RULES FOR BASE CLOSURE 
AND REALIGNMENT PROPERTY.—’’ after ‘‘(g)’’; and 
(B) in paragraph (1), by striking ‘‘subsection (a)(3)’’ 
and inserting ‘‘subsection (a)(2)’’; 
(7) in subsection (h), as redesignated by subsection (b)(1) 
of this section, by inserting ‘‘COMPETITIVE PROCEDURES FOR 
SELECTION OF CERTAIN LESSEES; EXCEPTION.—’’ after ‘‘(h)’’; and 
(8) in subsection (j), as redesignated by subsection (b)(1) 
of this section, by inserting ‘‘EXCLUSION OF CERTAIN LANDS.—
’’ after ‘‘(j)’’.
H. R. 5122—183
SEC. 663. REPORT ON COST EFFECTIVENESS OF PURCHASING 
COMMERCIAL 
INSURANCE 
FOR 
COMMISSARY 
AND 
EXCHANGE 
FACILITIES 
AND 
FACILITIES 
OF 
OTHER 
MORALE, WELFARE, AND RECREATION PROGRAMS AND 
NONAPPROPRIATED FUND INSTRUMENTALITIES. 
(a) REPORT REQUIRED.—Not later than July 31, 2007, the Sec-
retary of Defense shall submit to Congress a report evaluating 
the cost effectiveness of the Defense Commissary Agency and the 
nonappropriated fund activities specified in subsection (b) pur-
chasing commercial insurance to protect financial interests in facili-
ties operated by the Defense Commissary Agency or those non-
appropriated fund activities. 
(b) COVERED NONAPPROPRIATED FUND ACTIVITIES.—The report 
shall apply with respect to—
(1) the Army and Air Force Exchange Service; 
(2) the Navy Exchange Service Command; 
(3) the Marine Corps exchanges; and 
(4) any nonappropriated fund activity of the Department 
of Defense for the morale, welfare, and recreation of members 
of the Armed Forces. 
SEC. 664. STUDY AND REPORT REGARDING ACCESS OF DISABLED PER-
SONS TO MORALE, WELFARE, AND RECREATION FACILI-
TIES AND ACTIVITIES. 
(a) STUDY REQUIRED.—The Secretary of Defense shall conduct 
a study regarding the current capability of morale, welfare, and 
recreation facilities and activities operated by nonappropriated fund 
instrumentalities of the Department of Defense to provide access 
to and accommodate disabled persons who are otherwise eligible 
to use such facilities or participate in such activities and the legal 
requirements regarding such access and accommodation applicable 
to these morale, welfare, and recreation facilities and activities, 
with specific attention to the applicability of section 504 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794). 
(b) ELEMENTS OF STUDY.—In conducting the study, the Sec-
retary of Defense shall address at a minimum the following: 
(1) The current plans of the Secretary of Defense and 
the Secretaries of the military departments to improve the 
access and accommodation of disabled persons to morale, wel-
fare, and recreation facilities and activities operated by non-
appropriated fund instrumentalities of the Department of 
Defense, including plans to make available additional golf carts 
at military golf courses that are accessible for disabled persons 
authorized to use such courses, and whether any portion of 
these plans require congressional authorization or funding. 
(2) The timing and cost of making these morale, welfare, 
and recreation facilities and activities fully accessible to dis-
abled persons. 
(3) The expected utilization rates of these morale, welfare, 
and recreation facilities and activities by disabled persons, if 
the facilities and activities were fully accessible to disabled 
persons. 
(4) Any legal requirements applicable to providing golf 
carts at military golf courses that are accessible for disabled 
persons authorized to use such courses and the current avail-
ability of accessible golf carts at such courses.
H. R. 5122—184
(c) REPORT REQUIRED.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense shall submit 
to Congress a report containing the results of the study and any 
related findings, conclusions, and recommendations that the Sec-
retary considers to be appropriate concerning the access of disabled 
persons to morale, welfare, and recreation facilities and activities, 
and specifically the Secretary’s conclusions on making accessible 
golf carts available at all military golf courses for use by disabled 
persons authorized to use such courses. 
Subtitle F—Other Matters 
SEC. 670. LIMITATIONS ON TERMS OF CONSUMER CREDIT EXTENDED 
TO SERVICEMEMBERS AND DEPENDENTS. 
(a) TERMS
OF CONSUMER CREDIT.—Chapter 49 of title 10, 
United States Code, is amended by adding at the end the following 
new section: 
‘‘§ 987. Terms of consumer credit extended to members and 
dependents: limitations 
‘‘(a) INTEREST.—A creditor who extends consumer credit to a 
covered member of the armed forces or a dependent of such a 
member shall not require the member or dependent to pay interest 
with respect to the extension of such credit, except as—
‘‘(1) agreed to under the terms of the credit agreement 
or promissory note; 
‘‘(2) authorized by applicable State or Federal law; and 
‘‘(3) not specifically prohibited by this section. 
‘‘(b) ANNUAL PERCENTAGE RATE.—A creditor described in sub-
section (a) may not impose an annual percentage rate of interest 
greater than 36 percent with respect to the consumer credit 
extended to a covered member or a dependent of a covered member. 
‘‘(c) MANDATORY LOAN DISCLOSURES.—
‘‘(1) INFORMATION REQUIRED.—With respect to any exten-
sion of consumer credit (including any consumer credit origi-
nated or extended through the internet) to a covered member 
or a dependent of a covered member, a creditor shall provide 
to the member or dependent the following information orally 
and in writing before the issuance of the credit: 
‘‘(A) A statement of the annual percentage rate of 
interest applicable to the extension of credit. 
‘‘(B) Any disclosures required under the Truth in 
Lending Act (15 U.S.C. 1601 et seq.). 
‘‘(C) A clear description of the payment obligations 
of the member or dependent, as applicable. 
‘‘(2) TERMS.—Such disclosures shall be presented in accord-
ance with terms prescribed by the regulations issued by the 
Board of Governors of the Federal Reserve System to implement 
the Truth in Lending Act (15 U.S.C. 1601 et seq.). 
‘‘(d) PREEMPTION.—
‘‘(1) INCONSISTENT LAWS.—Except as provided in subsection 
(f)(2), this section preempts any State or Federal law, rule, 
or regulation, including any State usury law, to the extent 
that such law, rule, or regulation is inconsistent with this 
section, except that this section shall not preempt any such 
law, rule, or regulation that provides protection to a covered
H. R. 5122—185
member or a dependent of such a member in addition to the 
protection provided by this section. 
‘‘(2) DIFFERENT TREATMENT UNDER STATE LAW OF MEMBERS 
AND DEPENDENTS PROHIBITED.—States shall not—
‘‘(A) authorize creditors to charge covered members 
and their dependents annual percentage rates of interest 
for loans higher than the legal limit for residents of the 
State; or 
‘‘(B) permit violation or waiver of any State consumer 
lending protections for the benefit of residents of the State 
on the basis of nonresident or military status of a covered 
member or dependent of such a member, regardless of 
the member’s or dependent’s domicile or permanent home 
of record. 
‘‘(e) LIMITATIONS.—It shall be unlawful for any creditor to 
extend consumer credit to a covered member or a dependent of 
such a member with respect to which—
‘‘(1) the creditor rolls over, renews, repays, refinances, or 
consolidates any consumer credit extended to the borrower 
by the same creditor with the proceeds of other credit extended 
to the same covered member or a dependent; 
‘‘(2) the borrower is required to waive the borrower’s right 
to legal recourse under any otherwise applicable provision of 
State or Federal law, including any provision of the 
Servicemembers Civil Relief Act; 
‘‘(3) the creditor requires the borrower to submit to arbitra-
tion or imposes onerous legal notice provisions in the case 
of a dispute; 
‘‘(4) the creditor demands unreasonable notice from the 
borrower as a condition for legal action; 
‘‘(5) the creditor uses a check or other method of access 
to a deposit, savings, or other financial account maintained 
by the borrower, or the title of a vehicle as security for the 
obligation; 
‘‘(6) the creditor requires as a condition for the extension 
of credit that the borrower establish an allotment to repay 
an obligation; or 
‘‘(7) the borrower is prohibited from prepaying the loan 
or is charged a penalty or fee for prepaying all or part of 
the loan. 
‘‘(f) PENALTIES AND REMEDIES.—
‘‘(1) MISDEMEANOR.—A creditor who knowingly violates this 
section shall be fined as provided in title 18, or imprisoned 
for not more than one year, or both. 
‘‘(2) PRESERVATION OF OTHER REMEDIES.—The remedies and 
rights provided under this section are in addition to and do 
not preclude any remedy otherwise available under law to 
the person claiming relief under this section, including any 
award for consequential and punitive damages. 
‘‘(3) CONTRACT VOID.—Any credit agreement, promissory 
note, or other contract prohibited under this section is void 
from the inception of such contract. 
‘‘(4) ARBITRATION.—Notwithstanding section 2 of title 9, 
or any other Federal or State law, rule, or regulation, no 
agreement to arbitrate any dispute involving the extension 
of consumer credit shall be enforceable against any covered 
member or dependent of such a member, or any person who
H. R. 5122—186
was a covered member or dependent of that member when 
the agreement was made. 
‘‘(g) 
SERVICEMEMBERS
CIVIL
RELIEF
ACT
PROTECTIONS 
UNAFFECTED.—Nothing in this section may be construed to limit 
or otherwise affect the applicability of section 207 of the 
Servicemembers Civil Relief Act (50 U.S.C. App. 527). 
‘‘(h) REGULATIONS.—(1) The Secretary of Defense shall prescribe 
regulations to carry out this section. 
‘‘(2) Such regulations shall establish the following: 
‘‘(A) Disclosures required of any creditor that extends con-
sumer credit to a covered member or dependent of such a 
member. 
‘‘(B) The method for calculating the applicable annual 
percentage rate of interest on such obligations, in accordance 
with the limit established under this section. 
‘‘(C) A maximum allowable amount of all fees, and the 
types of fees, associated with any such extension of credit, 
to be expressed and disclosed to the borrower as a total amount 
and as a percentage of the principal amount of the obligation, 
at the time at which the transaction is entered into. 
‘‘(D) Definitions of ‘creditor’ under paragraph (5) and ‘con-
sumer credit’ under paragraph (6) of subsection (i), consistent 
with the provisions of this section. 
‘‘(E) Such other criteria or limitations as the Secretary 
of Defense determines appropriate, consistent with the provi-
sions of this section. 
‘‘(3) In prescribing regulations under this subsection, the Sec-
retary of Defense shall consult with the following: 
‘‘(A) The Federal Trade Commission. 
‘‘(B) The Board of Governors of the Federal Reserve System. 
‘‘(C) The Office of the Comptroller of the Currency. 
‘‘(D) The Federal Deposit Insurance Corporation. 
‘‘(E) The Office of Thrift Supervision. 
‘‘(F) The National Credit Union Administration. 
‘‘(G) The Treasury Department. 
‘‘(i) DEFINITIONS.—In this section: 
‘‘(1) COVERED MEMBER.—The term ‘covered member’ means 
a member of the armed forces who is—
‘‘(A) on active duty under a call or order that does 
not specify a period of 30 days or less; or 
‘‘(B) on active Guard and Reserve Duty. 
‘‘(2) DEPENDENT.—The term ‘dependent’, with respect to 
a covered member, means—
‘‘(A) the member’s spouse; 
‘‘(B) the member’s child (as defined in section 101(4) 
of title 38); or 
‘‘(C) an individual for whom the member provided more 
than one-half of the individual’s support for 180 days imme-
diately preceding an extension of consumer credit covered 
by this section. 
‘‘(3) INTEREST.—The term ‘interest’ includes all cost ele-
ments associated with the extension of credit, including fees, 
service charges, renewal charges, credit insurance premiums, 
any ancillary product sold with any extension of credit to a 
servicemember 
or 
the 
servicemember’s 
dependent, 
as 
applicable, and any other charge or premium with respect 
to the extension of consumer credit.
H. R. 5122—187
‘‘(4) ANNUAL PERCENTAGE RATE.—The term ‘annual percent-
age rate’ has the same meaning as in section 107 of the Truth 
and Lending Act (15 U.S.C. 1606), as implemented by regula-
tions of the Board of Governors of the Federal Reserve System. 
For purposes of this section, such term includes all fees and 
charges, including charges and fees for single premium credit 
insurance and other ancillary products sold in connection with 
the credit transaction, and such fees and charges shall be 
included in the calculation of the annual percentage rate. 
‘‘(5) CREDITOR.—The term ‘creditor’ means a person—
‘‘(A) who—
‘‘(i) is engaged in the business of extending con-
sumer credit; and 
‘‘(ii) meets such additional criteria as are specified 
for such purpose in regulations prescribed under this 
section; or 
‘‘(B) who is an assignee of a person described in 
subparagraph (A) with respect to any consumer credit 
extended. 
‘‘(6) CONSUMER CREDIT.—The term ‘consumer credit’ has 
the meaning provided for such term in regulations prescribed 
under this section, except that such term does not include 
(A) a residential mortgage, or (B) a loan procured in the course 
of purchasing a car or other personal property, when that 
loan is offered for the express purpose of financing the purchase 
and is secured by the car or personal property procured.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such title is amended by adding at the end the following 
new item:
‘‘987. Terms of consumer credit extended to members and dependents: limitations.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Except as provided in paragraph (2), sec-
tion 987 of title 10, United States Code, as added by subsection 
(a), shall take effect on October 1, 2007, or on such earlier 
date as may be prescribed by the Secretary of Defense, and 
shall apply with respect to extensions of consumer credit on 
or after such effective date. 
(2) AUTHORITY TO PRESCRIBE REGULATIONS.—Subsection (h) 
of such section shall take effect on the date of the enactment 
of this Act. 
(3) PUBLICATION OF EARLIER EFFECTIVE DATE.—If the Sec-
retary of Defense prescribes an effective date for section 987 
of title 10, United States Code, as added by subsection (a), 
earlier than October 1, 2007, the Secretary shall publish that 
date in the Federal Register. Such publication shall be made 
not less than 90 days before that earlier effective date. 
(d) INTERIM REGULATIONS.—The Secretary of Defense may pre-
scribe interim regulations as necessary to carry out such section. 
For the purpose of prescribing such interim regulations, the Sec-
retary is excepted from compliance with the notice-and-comment 
requirements of section 553 of title 5, United States Code. All 
interim rules prescribed under the authority of this subsection 
that are not earlier superseded by final rules shall expire no later 
than 270 days after the effective date of section 987 of title 10, 
United States Code, as added by this section.
H. R. 5122—188
SEC. 671. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVER-
PAYMENT OF PAY AND ALLOWANCES AND TRAVEL AND 
TRANSPORTATION ALLOWANCES. 
(a) MAXIMUM
WAIVER
AMOUNT; TIME
FOR
EXERCISE
OF 
AUTHORITY.—Section 2774 of title 10, United States Code, is 
amended—
(1) in subsection (a)(2)(A), by striking ‘‘$1,500’’ and 
inserting ‘‘$10,000’’; and 
(2) in subsection (b)(2), by striking ‘‘three years’’ and 
inserting ‘‘five years’’. 
(b) CONFORMING AMENDMENTS REGARDING NATIONAL GUARD.—
Section 716 of title 32, United States Code, is amended—
(1) in subsection (a)(2)(A), by striking ‘‘$1,500’’ and 
inserting ‘‘$10,000’’; and 
(2) in subsection (b)(2), by striking ‘‘three years’’ and 
inserting ‘‘five years’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on March 1, 2007. 
SEC. 672. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGEN-
CIES REGARDING DEBTS OR ERRONEOUS PAYMENTS 
PENDING A DECISION TO WAIVE, REMIT, OR CANCEL. 
(a) EXCEPTION.—Section 2780(b) of title 10, United States Code, 
is amended—
(1) by striking ‘‘The Secretary’’ and inserting ‘‘(1) Except 
as provided in paragraph (2), the Secretary of Defense’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) No disclosure shall be made under paragraph (1) with 
respect to an indebtedness while a decision regarding waiver of 
collection of the indebtedness is pending under section 2774 of 
this title or section 716 of title 32, or while a decision regarding 
remission or cancellation of the indebtedness is pending under 
section 4837, 6161, or 9837 of this title, unless the Secretary con-
cerned (as defined in section 101(5) of title 37) determines that 
disclosure under that paragraph pending such decision is in the 
best interests of the United States.’’. 
(b) EFFECTIVE DATE.—
(1) IN GENERAL.—The amendments made by this section 
shall take effect on March 1, 2007. 
(2) APPLICATION TO PRIOR ACTIONS.—Paragraph (2) of sec-
tion 2780(b) of title 10, United States Code, as added by sub-
section (a), shall not be construed to apply to or invalidate 
any action taken under such section before March 1, 2007. 
(c) REPORT.—Not later than March 1, 2007, the Secretary of 
Defense shall submit to the congressional defense committees a 
report on the requirement in section 2780(b) of title 10, United 
States Code, to disclose to consumer reporting agencies in accord-
ance with section 3711 of title 31, United States Code, information 
concerning certain indebtedness owed to the United States. The 
report shall include the following: 
(1) The total number of members of the Armed Forces 
whose indebtedness has been disclosed to consumer reporting 
agencies under section 2780(b), United States Code, during 
the period beginning on January 1, 2003, and ending on June 
30, 2006. 
(2) The circumstances under which a decision to recover 
the indebtedness was made, rather than a decision to waive,
H. R. 5122—189
remit, or cancel the indebtedness under the provisions of law 
referred to in paragraph (2) of such section, as added by sub-
section (a), and the title of the person who made the decision. 
(3) The cost of contracts for collection services to recover 
indebtedness owed to the United States that is delinquent. 
(4) An evaluation of whether or not such contracts, and 
the practice of disclosing to consumer reporting agencies the 
identity of members of the Armed Forces who owe a delinquent 
debt to the United States, has been effective in reducing indebt-
edness to the United States. 
(5) Such recommendations as the Secretary considers 
appropriate regarding the continuing disclosure of such 
information with respect to members of the Armed Forces. 
SEC. 673. EXPANSION AND ENHANCEMENT OF AUTHORITY TO REMIT 
OR CANCEL INDEBTEDNESS OF MEMBERS AND FORMER 
MEMBERS OF THE ARMED FORCES INCURRED ON ACTIVE 
DUTY. 
(a) DEPARTMENT OF THE ARMY.—
(1) COVERAGE OF ALL MEMBERS AND FORMER MEMBERS.—
Subsection (a) of section 4837 of title 10, United States Code, 
is amended by striking ‘‘of a member’’ and all that follows 
through ‘‘on active duty’’ and inserting ‘‘of a person to the 
United States or any instrumentality of the United States 
incurred while the person was serving on active duty as a 
member of the Army’’. 
(2) REPEAL
OF
LIMITATION
ON
TIME
FOR
EXERCISE
OF 
AUTHORITY.—Such section is further amended—
(A) by striking subsection (b); and 
(B) by redesignating subsections (c) and (d) as sub-
sections (b) and (c), respectively. 
(3) REPEAL
OF
TERMINATION
OF
MODIFIED
AUTHORITY.—
Paragraph (3) of section 683(a) of the National Defense 
Authorization Act for Fiscal Year 2006 (Public Law 109–163; 
119 Stat. 3322; 10 U.S.C. 4837 note) is repealed. 
(b) DEPARTMENT OF THE NAVY.—
(1) COVERAGE OF ALL MEMBERS AND FORMER MEMBERS.—
Section 6161 of title 10, United States Code, is amended by 
striking ‘‘of a member’’ and all that follows through ‘‘on active 
duty’’ and inserting ‘‘of a person to the United States or any 
instrumentality of the United States incurred while the person 
was serving on active duty as a member of the naval service’’. 
(2) REPEAL
OF
LIMITATION
ON
TIME
FOR
EXERCISE
OF 
AUTHORITY.—Such section is further amended—
(A) by striking subsection (b); and 
(B) by redesignating subsections (c) and (d) as sub-
sections (b) and (c), respectively. 
(3) REPEAL
OF
TERMINATION
OF
MODIFIED
AUTHORITY.—
Paragraph (3) of section 683(b) of the National Defense 
Authorization Act for Fiscal Year 2006 (119 Stat. 3323; 10 
U.S.C. 6161 note) is repealed. 
(c) DEPARTMENT OF THE AIR FORCE.—
(1) COVERAGE OF ALL MEMBERS AND FORMER MEMBERS.—
Subsection (a) of section 9837 of title 10, United States Code, 
is amended by striking ‘‘of a member’’ and all that follows 
through ‘‘on active duty’’ and inserting ‘‘of a person to the 
United States or any instrumentality of the United States
H. R. 5122—190
incurred while the person was serving on active duty as a 
member of the Air Force’’. 
(2) REPEAL
OF
LIMITATION
ON
TIME
FOR
EXERCISE
OF 
AUTHORITY.—Such section is further amended—
(A) by striking subsection (b); and 
(B) by redesignating subsections (c) and (d) as sub-
sections (b) and (c), respectively. 
(3) REPEAL
OF
TERMINATION
OF
MODIFIED
AUTHORITY.—
Paragraph (3) of section 683(c) of the National Defense 
Authorization Act for Fiscal Year 2006 (119 Stat. 3324; 10 
U.S.C. 9837 note) is repealed. 
(d) DEADLINE
FOR REGULATIONS.—The Secretary of Defense 
shall prescribe the regulations required for purposes of sections 
4837, 6161, and 9837 of title 10, United States Code, as amended 
by this section, not later than March 1, 2007. 
(e) CLARIFYING AND EDITORIAL AMENDMENTS.—
(1) SECRETARY
OF
THE
ARMY.—Subsection (a) of section 
4837 of title 10, United States Code, as amended by subsection 
(a)(1), is further amended—
(A) by striking ‘‘If the’’ and all that follows through 
‘‘States, the Secretary’’ and inserting ‘‘The Secretary of 
the Army’’; and 
(B) by inserting before the period at the end ‘‘, but 
only if the Secretary considers such action to be in the 
best interest of the United States’’. 
(2) SECRETARY
OF
THE
NAVY.—Subsection (a) of section 
6161 of such title, as amended by subsection (b)(1), is further 
amended—
(A) by striking ‘‘If the’’ and all that follows through 
‘‘States, the Secretary’’ and inserting ‘‘The Secretary of 
the Navy’’; and 
(B) by inserting before the period at the end ‘‘, but 
only if the Secretary considers such action to be in the 
best interest of the United States’’. 
(3) SECRETARY OF THE AIR FORCE.—Subsection (a) of section 
9837 of such title, as amended by subsection (c)(1), is further 
amended—
(A) by striking ‘‘If the’’ and all that follows through 
‘‘States, the Secretary’’ and inserting ‘‘The Secretary of 
the Air Force’’; and 
(B) by inserting before the period at the end ‘‘, but 
only if the Secretary considers such action to be in the 
best interest of the United States’’. 
SEC. 674. PHASED RECOVERY OF OVERPAYMENTS OF PAY MADE TO 
MEMBERS OF THE UNIFORMED SERVICES. 
(a) PHASED RECOVERY REQUIRED; MAXIMUM MONTHLY INSTALL-
MENT.—Subsection (c) of section 1007 of title 37, United States 
Code, is amended by adding at the end the following new paragraph: 
‘‘(3) If the indebtedness of a member of the uniformed services 
to the United States is due to the overpayment of pay or allowances 
to the member through no fault of the member, the amount of 
the overpayment shall be recovered in monthly installments. The 
amount deducted from the pay of the member for a month to 
recover the overpayment amount may not exceed 20 percent of 
the member’s pay for that month unless the member requests 
or consents to collection of the overpayment at an accelerated rate.’’.
H. R. 5122—191
(b) RECOVERY DELAY FOR INJURED MEMBERS.—Such subsection 
is further amended by inserting after paragraph (3), as added 
by subsection (a), the following new paragraph: 
‘‘(4) If a member of the uniformed services is injured or wounded 
under the circumstances described in section 310(a)(2)(C) of this 
title or, while in the line of duty, incurs a wound, injury, or illness 
in a combat operation or combat zone designated by the Secretary 
of Defense, any overpayment of pay or allowances made to the 
member while the member recovers from the wound, injury, or 
illness may not be deducted from the member’s pay until—
‘‘(A) the end of the 90-day period beginning on the date 
on which the member is notified of the overpayment; or 
‘‘(B) such earlier date as may be requested or agreed to 
by the member.’’. 
(c) CONFORMING AMENDMENTS.—Such subsection is further 
amended—
(1) by inserting ‘‘(1)’’ before ‘‘Under regulations’’; 
(2) by striking ‘‘his pay’’ both places it appears and inserting 
‘‘the member’s pay’’; 
(3) by striking ‘‘However, after’’ and inserting the following: 
‘‘(2) After’’; and 
(4) by inserting ‘‘by a member of the uniformed services’’ 
after ‘‘actually received’’. 
SEC. 675. JOINT FAMILY SUPPORT ASSISTANCE PROGRAM. 
(a) PROGRAM REQUIRED.—The Secretary of Defense shall carry 
out a joint family support assistance program for the purpose of 
providing to families of members of the Armed Forces the following 
types of assistance: 
(1) Financial and material assistance. 
(2) Mobile support services. 
(3) Sponsorship of volunteers and family support profes-
sionals for the delivery of support services. 
(4) Coordination of family assistance programs and activi-
ties provided by Military OneSource, Military Family Life 
Consultants, counselors, the Department of Defense, other Fed-
eral agencies, State and local agencies, and non-profit entities. 
(5) Facilitation of discussion on military family assistance 
programs, activities, and initiatives between and among the 
organizations, agencies, and entities referred to in paragraph 
(4). 
(6) Such other assistance that the Secretary considers 
appropriate. 
(b) LOCATIONS.—The Secretary of Defense shall carry out the 
program in not more than six areas of the United States selected 
by the Secretary. Up to three of the areas selected for the program 
shall be areas that are geographically isolated from military 
installations. 
(c) RESOURCES AND VOLUNTEERS.—The Secretary of Defense 
shall provide personnel and other resources of the Department 
of Defense necessary for the implementation and operation of the 
program and may accept and utilize the services of non-Government 
volunteers and non-profit entities under the program. 
(d) PROCEDURES.—The Secretary of Defense shall establish 
procedures for the operation of the program and for the provision 
of assistance to families of members of the Armed Forces under 
the program.
H. R. 5122—192
(e) RELATION TO FAMILY SUPPORT CENTERS.—The program is 
not intended to operate in lieu of existing family support centers, 
but is instead intended to augment the activities of the family 
support centers. 
(f) IMPLEMENTATION PLAN.—
(1) PLAN REQUIRED.—Not later than 90 days after the date 
on which funds are first obligated for the program, the Sec-
retary of Defense shall submit to the congressional defense 
committees a report setting forth a plan for the implementation 
of the program. 
(2) ELEMENTS.—The plan required under paragraph (1) 
shall include the following: 
(A) A description of the actions taken to select the 
areas in which the program will be conducted. 
(B) A description of the procedures established under 
subsection (d). 
(C) A review of proposed actions to be taken under 
the program to improve coordination of family assistance 
program and activities between and among the Department 
of Defense, other Federal agencies, State and local agencies, 
and non-profit entities. 
(g) REPORT.—
(1) REPORT REQUIRED.—Not later than 270 days after the 
date on which funds are first obligated for the program, the 
Secretary of Defense shall submit to the congressional defense 
committees a report on the program. 
(2) ELEMENTS.—The report shall include the following: 
(A) A description of the program, including the areas 
in which the program is conducted, the procedures estab-
lished under subsection (d) for operation of the program, 
and the assistance provided through the program for fami-
lies of members of the Armed Forces. 
(B) An assessment of the effectiveness of the program 
in providing assistance to families of members of the Armed 
Forces. 
(C) An assessment of the advisability of extending 
the program or making it permanent. 
(h) DURATION.—The authority to carry out the program shall 
expire at the end of the three-year period beginning on the date 
on which funds are first obligated for the program. 
SEC. 676. SPECIAL WORKING GROUP ON TRANSITION TO CIVILIAN 
EMPLOYMENT OF NATIONAL GUARD AND RESERVE MEM-
BERS RETURNING FROM DEPLOYMENT IN OPERATION 
IRAQI FREEDOM OR OPERATION ENDURING FREEDOM. 
(a) WORKING GROUP REQUIRED.—The Secretary of Defense shall 
establish within the Department of Defense a working group to 
identify and assess the needs of members of the National Guard 
and Reserve returning from deployment in Operation Iraqi Freedom 
or Operation Enduring Freedom in making the transition to civilian 
employment on their return from such deployment. 
(b) MEMBERS.—
(1) APPOINTMENT.—Subject to paragraph (2), the Secretary 
of Defense shall appoint the members of the working group. 
The Secretary of Defense shall attempt to achieve a balance 
of members on the working group from among employees of 
the following agencies:
H. R. 5122—193
(A) The Department of Defense. 
(B) The Department of Veterans Affairs. 
(C) The Department of Labor. 
(2) CONCURRENCE.—The appointment of employees of the 
Department of Veterans Affairs and the Department of Labor 
under paragraph (1) shall be subject to the concurrence of 
the Secretary of Veterans Affairs and the Secretary of Labor, 
respectively. 
(c) RESPONSIBILITIES.—The working group shall—
(1) identify and assess the needs of members of the National 
Guard and Reserve returning from deployment in Operation 
Iraqi Freedom or Operation Enduring Freedom in making the 
transition to civilian employment on their return from deploy-
ment, including the needs of—
(A) members who were self-employed before deploy-
ment and seek to return to such employment after deploy-
ment; 
(B) members who were students before deployment 
and seek to return to school or commence employment 
after deployment; 
(C) members who have experienced multiple recent 
deployments; and 
(D) members who have been wounded or injured during 
deployment; 
(2) identify and assess the extent to which such members 
receive promotions on their return from deployment in Oper-
ation Iraqi Freedom or Operation Enduring Freedom or experi-
ence constructive termination by their employers as a result 
of such deployment; and 
(3) develop recommendations on means of improving assist-
ance to such members in meeting the needs identified in para-
graph (1) on their return from deployment in Operation Iraqi 
Freedom or Operation Enduring Freedom. 
(d) CONSULTATION.—In carrying out its responsibilities under 
subsection (c), the working group shall consult with the following: 
(1) Employees of the Small Business Administration. 
(2) Representatives of employers that employ, and associa-
tions of employers whose members employ, members of the 
National Guard and Reserve deployed in Operation Iraqi 
Freedom or Operation Enduring Freedom. 
(3) Representatives of employee assistance organizations. 
(4) Representatives of organizations that assist wounded 
or injured members of the National Guard and Reserves in 
finding or sustaining employment. 
(5) Representatives of such other public or private organiza-
tions and entities as the working group considers appropriate. 
(e) REPORT.—
(1) IN GENERAL.—Not later than one year after the date 
of the enactment of this Act, the working group established 
under subsection (a) shall submit to the Secretary of Defense 
and Congress a report on its activities under subsection (c). 
(2) ELEMENTS.—The report shall include the following: 
(A) The results of the identifications and assessments 
required under subsection (c). 
(B) The recommendations developed under subsection 
(c)(3), including recommendations on the following:
H. R. 5122—194
(i) The provision of outreach and training to 
employers, employment assistance organizations, and 
associations of employers on the employment and 
transition needs of members of the National Guard 
and Reserve returning from deployment in Operation 
Iraqi Freedom or Operation Enduring Freedom. 
(ii) The provision of outreach and training to 
employers, employment assistance organizations, and 
associations of employers on the needs of family mem-
bers of such members. 
(iii) The improvement of collaboration between the 
public and private sectors in order to ensure the 
successful transition of such members into civilian 
employment upon their return from such deployment. 
(3) AVAILABILITY
TO
PUBLIC.—The Secretary shall take 
appropriate actions to make the report available to the public, 
including through the Internet website of the Department of 
Defense. 
(f) TERMINATION.—The working group shall terminate on the 
date that is two years after the date of the enactment of this 
Act. 
(g) EMPLOYMENT ASSISTANCE ORGANIZATION DEFINED.—In this 
section, the term ‘‘employment assistance organization’’ means an 
organization or entity, whether public or private, that provides 
assistance to individuals in finding or retaining employment, 
including organizations and entities under military career support 
programs. 
SEC. 677. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE ARMY 
EVACUATED FROM A COMBAT ZONE FOR INPATIENT CARE. 
(a) AUDIT REQUIRED.—The Secretary of the Army shall conduct 
a complete audit of the pay accounts of each member of the Army 
wounded or injured in a combat zone who was evacuated from 
a theater of operations for inpatient care during the period begin-
ning on May 1, 2005, and ending on April 30, 2006. 
(b) REPORT ON RESULTS OF AUDIT.—
(1) REPORT REQUIRED.—Not later than 120 days after the 
date of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report on the audit 
conducted under subsection (a). 
(2) IDENTIFICATION OF MEMBERS.—The report shall include 
a list of each member of the Army described in subsection 
(a) identified, in a manner that protects the privacy of the 
members, by—
(A) the date of the wound or injury that is the basis 
for the inclusion of the member on the list; and 
(B) the grade of the member and unit designation 
as of that date. 
(3) ADDITIONAL
REPORT
ELEMENTS.—For each member 
included on the list prepared under paragraph (2), the report 
shall include the following: 
(A) A statement of any underpayment of each of any 
pay, allowance, or other monetary benefit to which the 
member was entitled during the period beginning on the 
date on which the wound or injury was incurred and ending 
on April 30, 2006, including basic pay, hazardous duty 
pay, imminent danger pay, basic allowance for housing,
H. R. 5122—195
basic allowance for subsistence, any family separation 
allowance, any tax exclusion for combat duty, and any 
other pay, allowance, or monetary benefit to which such 
member was entitled during such period. 
(B) A statement of any disbursements made to correct 
underpayments made to the member, as identified under 
subparagraph (A). 
(C) A statement of any debts to the United States 
collected or pending collection from the member. 
(D) A statement of any reimbursements or debt relief 
granted to the member for a debt identified under subpara-
graph (C). 
(E) If the member has applied to the United States 
for a relief of debt—
(i) a description of the nature of the debt for which 
relief was applied; and 
(ii) a description of the disposition of the applica-
tion, including—
(I) if relief was granted, the date of disburse-
ment of relief; and 
(II) if relief was denied, the reasons for the 
denial of relief. 
(F) A report of any referral of the member to a collec-
tion or credit agency. 
(4) FORM OF REPORT.—The report shall be submitted in 
unclassified form, but may include a classified annex. 
SEC. 678. REPORT ON ELIGIBILITY AND PROVISION OF ASSIGNMENT 
INCENTIVE PAY. 
Not later than 60 days after the date of the enactment of 
this Act, the Secretary of the Army shall submit to Congress a 
report—
(1) specifying the number of members of the Army National 
Guard and the Army Reserve adversely affected by the dis-
parate treatment afforded to members who previously served 
under a call or order to active duty under section 12304 of 
title 10, United States Code, in determining eligibility for 
assignment incentive pay; and 
(2) containing proposed remedies or courses of action to 
correct this disparity, including allowing time served during 
a call or order to active duty under such section 12304 to 
count toward the time needed to qualify for assignment incen-
tive pay. 
SEC. 679. SENSE OF CONGRESS CALLING FOR PAYMENT TO WORLD 
WAR II VETERANS WHO SURVIVED BATAAN DEATH MARCH. 
(a) CALL
FOR APPROPRIATE COMPENSATION.—It is the sense 
of Congress that—
(1) there should be paid to each living Bataan Death March 
survivor an appropriate amount of compensation in recognition 
of their captivity during World War II; and 
(2) in the case of a Bataan Death March survivor who 
is deceased, but who has an unremarried surviving spouse, 
such compensation should be paid to that surviving spouse. 
(b) BATAAN DEATH MARCH SURVIVOR.—In this section, the term 
‘‘Bataan Death March survivor’’ means an individual who as a 
member of the Armed Forces during World War II was captured 
on the peninsula of Bataan or island of Corregidor in the territory
H. R. 5122—196
of the Philippines by Japanese forces and participated in and sur-
vived the Bataan Death March. 
TITLE VII—HEALTH CARE PROVISIONS
Subtitle A—TRICARE Program Improvements 
Sec. 701. TRICARE coverage for forensic examination following sexual assault or 
domestic violence. 
Sec. 702. Authorization of anesthesia and other costs for dental care for children 
and certain other patients. 
Sec. 703. Improvements to descriptions of cancer screening for women. 
Sec. 704. Prohibition on increases in certain health care costs for members of the 
uniformed services. 
Sec. 705. Demonstration project on coverage of selected over-the-counter drugs 
under the pharmacy benefits program. 
Sec. 706. Expanded eligibility of Selected Reserve members under TRICARE pro-
gram. 
Sec. 707. Relationship between the TRICARE program and employer-sponsored 
group health care plans. 
Sec. 708. Temporary prohibition on increase in copayments under retail pharmacy 
system of pharmacy benefits program. 
Subtitle B—Studies and Reports 
Sec. 711. Department of Defense task force on the future of military health care. 
Sec. 712. Study relating to chiropractic health care services. 
Sec. 713. Comptroller General audits of Department of Defense health care costs 
and cost-saving measures. 
Sec. 714. Transfer of custody of the Air Force Health Study assets to Medical Fol-
low-up Agency. 
Sec. 715. Study on allowing dependents of activated members of reserve compo-
nents to retain civilian health care coverage. 
Sec. 716. Study of health effects of exposure to depleted uranium. 
Sec. 717. Report and plan on services to military dependent children with autism. 
Sec. 718. Comptroller General study on Department of Defense pharmacy benefits 
program. 
Sec. 719. Review of Department of Defense medical quality improvement program. 
Sec. 720. Report on distribution of hemostatic agents for use in the field. 
Sec. 721. Longitudinal study on traumatic brain injury incurred by members of the 
Armed Forces in Operation Iraqi Freedom and Operation Enduring 
Freedom. 
Subtitle C—Planning, Programming, and Management 
Sec. 731. Standardization of claims processing under TRICARE program and Medi-
care program. 
Sec. 732. Requirements for support of military treatment facilities by civilian con-
tractors under TRICARE. 
Sec. 733. Standards and tracking of access to health care services for wounded, in-
jured, or ill servicemembers returning to the United States from a com-
bat zone. 
Sec. 734. Disease and chronic care management. 
Sec. 735. Additional elements of assessment of Department of Defense task force on 
mental health relating to mental health of members who were deployed 
in Operation Iraqi Freedom and Operation Enduring Freedom. 
Sec. 736. Additional authorized option periods for extension of current contracts 
under TRICARE. 
Sec. 737. Military vaccination matters. 
Sec. 738. Enhanced mental health screening and services for members of the 
Armed Forces. 
Subtitle D—Other Matters 
Sec. 741. Pilot projects on early diagnosis and treatment of post traumatic stress 
disorder and other mental health conditions. 
Sec. 742. Requirement to certify and report on conversion of military medical and 
dental positions to civilian medical and dental positions. 
Sec. 743. Three-year extension of joint incentives program on sharing of health care 
resources by the Department of Defense and Department of Veterans 
Affairs. 
Sec. 744. Training curricula for family caregivers on care and assistance for mem-
bers and former members of the Armed Forces with traumatic brain in-
jury.
H. R. 5122—197
Sec. 745. Recognition of Representative Lane Evans upon his retirement from the 
House of Representatives.
Subtitle A—TRICARE Program 
Improvements 
SEC. 701. TRICARE COVERAGE FOR FORENSIC EXAMINATION FOL-
LOWING SEXUAL ASSAULT OR DOMESTIC VIOLENCE. 
Section 1079(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(17) Forensic examinations following a sexual assault or 
domestic violence may be provided.’’. 
SEC. 702. AUTHORIZATION OF ANESTHESIA AND OTHER COSTS FOR 
DENTAL CARE FOR CHILDREN AND CERTAIN OTHER 
PATIENTS. 
Paragraph (1) of section 1079(a) of title 10, United States 
Code, is amended to read as follows: 
‘‘(1) With respect to dental care—
‘‘(A) except as provided in subparagraph (B), only that 
care required as a necessary adjunct to medical or surgical 
treatment may be provided; and 
‘‘(B) in connection with dental treatment for patients 
with developmental, mental, or physical disabilities or for 
pediatric patients age 5 or under, only institutional and 
anesthesia services may be provided.’’. 
SEC. 703. IMPROVEMENTS TO DESCRIPTIONS OF CANCER SCREENING 
FOR WOMEN. 
(a) TERMS RELATED TO PRIMARY AND PREVENTIVE HEALTH CARE 
SERVICES FOR WOMEN.—Section 1074d of title 10, United States 
Code, is amended—
(1) in subsection (a)(1), by adding at the end the following 
new sentence: ‘‘The services described in paragraphs (1) and 
(2) of subsection (b) shall be provided under such procedures 
and at such intervals as the Secretary of Defense shall pre-
scribe.’’; and 
(2) in subsection (b)—
(A) in paragraph (1), by striking ‘‘Papanicolaou tests 
(pap smear)’’ and inserting ‘‘Cervical cancer screening’’; 
and 
(B) in paragraph (2), by striking ‘‘Breast examinations 
and 
mammography’’ 
and 
inserting 
‘‘Breast 
cancer 
screening’’. 
(b) TERMS RELATED TO CONTRACTS FOR MEDICAL CARE FOR 
SPOUSES
AND
CHILDREN.—Section 1079(a)(2) of such title is 
amended—
(1) in the matter preceding subparagraph (A), by striking 
‘‘the schedule of pap smears and mammograms’’ and inserting 
‘‘the schedule and method of cervical cancer screenings and 
breast cancer screenings’’; and 
(2) in subparagraph (B), by striking ‘‘pap smears and 
mammograms’’ and inserting ‘‘cervical and breast cancer 
screenings’’.
H. R. 5122—198
SEC. 704. PROHIBITION ON INCREASES IN CERTAIN HEALTH CARE 
COSTS FOR MEMBERS OF THE UNIFORMED SERVICES. 
(a) PROHIBITION ON INCREASE IN CHARGES UNDER CONTRACTS 
FOR MEDICAL CARE.—Section 1097(e) of title 10, United States 
Code, is amended by adding at the end the following: ‘‘A premium, 
deductible, copayment, or other charge prescribed by the Secretary 
under this subsection may not be increased during the period begin-
ning on April 1, 2006, and ending on September 30, 2007.’’. 
(b) PROHIBITION
ON INCREASE
IN CHARGES
FOR INPATIENT 
CARE.—Section 1086(b)(3) of title 10, United States Code, is 
amended by inserting after ‘‘charges for inpatient care’’ the fol-
lowing: ‘‘, except that in no case may the charges for inpatient 
care for a patient exceed $535 per day during the period beginning 
on April 1, 2006, and ending on September 30, 2007.’’. 
(c) PROHIBITION ON INCREASE IN PREMIUMS UNDER TRICARE 
COVERAGE FOR CERTAIN MEMBERS IN THE SELECTED RESERVE.—
Section 1076d(d)(3) of title 10, United States Code, is amended 
by adding at the end the following: ‘‘During the period beginning 
on April 1, 2006, and ending on September 30, 2007, the monthly 
amount of the premium may not be increased above the amount 
in effect for the month of March 2006.’’. 
(d) PROHIBITION ON INCREASE IN PREMIUMS UNDER TRICARE 
COVERAGE
FOR
MEMBERS
OF
THE
READY
RESERVE.—Section 
1076b(e)(3) of title 10, United States Code, is amended by adding 
at the end the following: ‘‘During the period beginning on April 
1, 2006, and ending on September 30, 2007, the monthly amount 
of a premium under paragraph (2) may not be increased above 
the amount in effect for the first month health care is provided 
under this section as amended by Public Law 109–163.’’. 
SEC. 705. DEMONSTRATION PROJECT ON COVERAGE OF SELECTED 
OVER-THE-COUNTER 
DRUGS 
UNDER 
THE 
PHARMACY 
BENEFITS PROGRAM. 
(a) REQUIREMENT
TO CONDUCT DEMONSTRATION.—The Sec-
retary of Defense shall conduct a demonstration project under sec-
tion 1092 of title 10, United States Code, to allow particular over-
the-counter drugs to be included on the uniform formulary under 
section 1074g of such title. 
(b) ELEMENTS OF DEMONSTRATION PROJECT.—
(1) INCLUSION OF CERTAIN OVER-THE-COUNTER DRUGS.—(A) 
As part of the demonstration project, the Secretary shall modify 
uniform formulary specifications under section 1074g(a) of such 
title to include an over-the-counter drug (referred to in this 
section as an ‘‘OTC drug’’) on the uniform formulary if the 
Pharmacy and Therapeutics Committee finds that the OTC 
drug is cost-effective and therapeutically equivalent to a 
prescription drug. If the Pharmacy and Therapeutics Committee 
makes such a finding, the OTC drug shall be considered to 
be in the same therapeutic class of pharmaceutical agents 
as the prescription drug. 
(B) An OTC drug shall be made available to a beneficiary 
through the demonstration project, but only if—
(i) the beneficiary has a prescription for a drug 
requiring a prescription; and 
(ii) pursuant to subparagraph (A), the OTC drug—
(I) is on the uniform formulary; and
H. R. 5122—199
(II) has been determined to be therapeutically 
equivalent to the prescription drug. 
(2) CONDUCT THROUGH MILITARY FACILITIES, RETAIL PHAR-
MACIES, OR MAIL ORDER PROGRAM.—The Secretary shall conduct 
the demonstration project through at least two of the means 
described in subparagraph (E) of section 1074g(a)(2)(E) of such 
title through which OTC drugs are provided and may conduct 
the demonstration project throughout the entire pharmacy 
benefits program or at a limited number of sites. If the project 
is conducted at a limited number of sites, the number of sites 
shall be not less than five in each TRICARE region for each 
of the two means described in such subparagraph. 
(3) PERIOD OF DEMONSTRATION.—The Secretary shall pro-
vide for conducting the demonstration project for a period of 
time necessary to evaluate the feasibility and cost effectiveness 
of the demonstration. Such period shall be at least as long 
as the period covered by pharmacy contracts in existence on 
the date of the enactment of this Act (including any extensions 
of the contracts), or five years, whichever is shorter. 
(4) IMPLEMENTATION
DEADLINE.—Implementation of the 
demonstration project shall begin not later than May 1, 2007. 
(c) EVALUATION OF DEMONSTRATION PROJECT.—The Secretary 
shall evaluate the demonstration project for the following: 
(1) The costs and benefits of providing OTC drugs under 
the pharmacy benefits program in each of the means chosen 
by the Secretary to conduct the demonstration project. 
(2) The clinical effectiveness of providing OTC drugs under 
the pharmacy benefits program. 
(3) Customer satisfaction with the demonstration project. 
(d) REPORT.—Not later than two years after implementation 
of the demonstration project begins, the Secretary shall submit 
to the Committees on Armed Services of the Senate and House 
of Representatives a report on the demonstration project. The report 
shall contain—
(1) the evaluation required by subsection (c); 
(2) recommendations for improving the provision of OTC 
drugs under the pharmacy benefits program; and 
(3) recommendations on whether permanent authority 
should be provided to cover OTC drugs under the pharmacy 
benefits program. 
(e) CONTINUATION OF DEMONSTRATION PROJECT.—If the Sec-
retary recommends in the report under subsection (d) that perma-
nent authority should be provided, the Secretary may continue 
the demonstration project for up to one year after submitting the 
report. 
(f) DEFINITIONS.—In this section: 
(1) The term ‘‘drug’’ means a drug, including a biological 
product, within the meaning of section 1074g(f)(2) of title 10, 
United States Code. 
(2) The term ‘‘OTC drug’’ has the meaning indicated for 
such term in subsection (b)(1)(A). 
(3) The term ‘‘over-the-counter drug’’ means a drug that 
is not subject to section 503(b) of the Federal Food, Drug, 
and Cosmetic Act. 
(4) The term ‘‘prescription drug’’ means a drug that is 
subject to section 503(b) of the Federal Food, Drug, and Cos-
metic Act.
H. R. 5122—200
SEC. 706. EXPANDED ELIGIBILITY OF SELECTED RESERVE MEMBERS 
UNDER TRICARE PROGRAM. 
(a) GENERAL ELIGIBILITY.—Subsection (a) of section 1076d of 
title 10, United States Code, is amended—
(1) by striking ‘‘(a) ELIGIBILITY.—A member’’ and inserting 
‘‘(a) ELIGIBILITY.—(1) Except as provided in paragraph (2), a 
member’’; 
(2) by striking ‘‘after the member completes’’ and all that 
follows through ‘‘one or more whole years following such date’’; 
and 
(3) by adding at the end the following new paragraph: 
‘‘(2) Paragraph (1) does not apply to a member who is enrolled, 
or is eligible to enroll, in a health benefits plan under chapter 
89 of title 5.’’. 
(b) CONDITION FOR TERMINATION OF ELIGIBILITY.—Subsection 
(b) of such section is amended—
(1) by striking ‘‘(b) PERIOD OF COVERAGE.—(1) TRICARE 
Standard’’ and all that follows through ‘‘(4) Eligibility’’ and 
inserting ‘‘(b) TERMINATION OF ELIGIBILITY UPON TERMINATION 
OF SERVICE.—Eligibility’’; and 
(2) by striking paragraph (5). 
(c) CONFORMING AMENDMENTS.—
(1) Such section is further amended—
(A) by striking subsection (e); 
(B) by redesignating subsection (g) as subsection (e) 
and transferring such subsection within such section so 
as to appear following subsection (d); and 
(C) by striking paragraph (3) of subsection (f). 
(2) The heading for such section is amended to read as 
follows: 
‘‘§ 1076d. TRICARE program: TRICARE standard coverage 
for members of the Selected Reserve’’. 
(d) REPEAL OF OBSOLETE PROVISION.—Effective October 1, 2007, 
section 1076b of title 10, United States Code, is repealed. 
(e) CLERICAL AMENDMENTS.—Effective October 1, 2007, the 
table of sections at the beginning of chapter 55 of title 10, United 
States Code, is amended—
(1) by striking the item relating to section 1076b; and 
(2) by striking the item relating to section 1076d and 
inserting the following:
‘‘1076d. TRICARE program: TRICARE Standard coverage for members of the Se-
lected Reserve.’’.
(f) SAVINGS PROVISION.—Enrollments in TRICARE Standard 
that are in effect on the day before the date of the enactment 
of this Act under section 1076d of title 10, United States Code, 
as in effect on such day, shall be continued until terminated after 
such day under such section 1076d as amended by this section. 
(g) EFFECTIVE DATE.—The Secretary of Defense shall ensure 
that health care under TRICARE Standard is provided under sec-
tion 1076d of title 10, United States Code, as amended by this 
section, beginning not later than October 1, 2007.
H. R. 5122—201
SEC. 707. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND 
EMPLOYER-SPONSORED GROUP HEALTH CARE PLANS. 
(a) IN GENERAL.—Chapter 55 of title 10, United States Code, 
is amended by inserting after section 1097b the following new 
section: 
‘‘§ 1097c. TRICARE program: relationship with employer-
sponsored group health plans 
‘‘(a) PROHIBITION ON FINANCIAL INCENTIVES NOT TO ENROLL 
IN A GROUP HEALTH PLAN.—(1) Except as provided in this sub-
section, the provisions of section 1862(b)(3)(C) of the Social Security 
Act shall apply with respect to financial or other incentives for 
a TRICARE-eligible employee not to enroll (or to terminate enroll-
ment) under a health plan which would (in the case of such enroll-
ment) be a primary plan under sections 1079(j)(1) and 1086(g) 
of this title in the same manner as such section 1862(b)(3)(C) 
applies to financial or other incentives for an individual entitled 
to benefits under title XVIII of the Social Security Act not to 
enroll (or to terminate enrollment) under a group health plan or 
a large group health plan which would (in the case of enrollment) 
be a primary plan (as defined in section 1862(b)(2)(A) of such 
Act). 
‘‘(2)(A) The Secretary of Defense may by regulation adopt such 
additional exceptions to the prohibition referenced and applied 
under paragraph (1) as the Secretary deems appropriate and such 
paragraph (1) shall be implemented taking into account the adoption 
of such exceptions. 
‘‘(B) The Secretary of Defense and the Secretary of Health 
and Human Services are authorized to enter into agreements for 
carrying out this subsection. Any such agreement shall provide 
that any expenses incurred by the Secretary of Health and Human 
Services pertaining to carrying out this subsection shall be 
reimbursed by the Secretary of Defense. 
‘‘(C) Authorities of the Inspector General of the Department 
of Defense shall be available for oversight and investigations of 
responsibilities of employers and other entities under this sub-
section. 
‘‘(D) Information obtained under section 1095(k) of this title 
may be used in carrying out this subsection in the same manner 
as information obtained under section 1862(b)(5) of the Social Secu-
rity Act may be used in carrying out section 1862(b) of such Act. 
‘‘(E) Any amounts collected in carrying out paragraph (1) shall 
be handled in accordance with section 1079a of this title. 
‘‘(b) ELECTION OF TRICARE-ELIGIBLE EMPLOYEES TO PARTICI-
PATE IN GROUP HEALTH PLAN.—A TRICARE-eligible employee shall 
have the opportunity to elect to participate in the group health 
plan offered by the employer of the employee and receive primary 
coverage for health care services under the plan in the same manner 
and to the same extent as similarly situated employees of such 
employer who are not TRICARE-eligible employees. 
‘‘(c) INAPPLICABILITY TO CERTAIN EMPLOYERS.—The provisions 
of this section do not apply to any employer who has fewer than 
20 employees. 
‘‘(d) 
RETENTION
OF
ELIGIBILITY
FOR
COVERAGE
UNDER 
TRICARE.—Nothing in this section, including an election made 
by a TRICARE-eligible employee under subsection (b), shall be 
construed to affect, modify, or terminate the eligibility of a
H. R. 5122—202
TRICARE-eligible employee or spouse of such employee for health 
care or dental services under this chapter in accordance with the 
other provisions of this chapter. 
‘‘(e) OUTREACH.—The Secretary of Defense shall, in coordination 
with the other administering Secretaries, conduct outreach to 
inform covered beneficiaries who are entitled to health care benefits 
under the TRICARE program of the rights and responsibilities 
of such beneficiaries and employers under this section. 
‘‘(f) DEFINITIONS.—In this section: 
‘‘(1) The term ‘employer’ includes a State or unit of local 
government. 
‘‘(2) The term ‘group health plan’ means a group health 
plan (as that term is defined in section 5000(b)(1) of the Internal 
Revenue Code of 1986 without regard to section 5000(d) of 
the Internal Revenue Code of 1986). 
‘‘(3) The term ‘TRICARE-eligible employee’ means a covered 
beneficiary under section 1086 of this title entitled to health 
care benefits under the TRICARE program. 
‘‘(g) EFFECTIVE DATE.—This section shall take effect on January 
1, 2008.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 55 of such title is amended by inserting after 
the item relating to section 1097b the following new item:
‘‘1097c. TRICARE program: relationship with employer-sponsored group health 
plans.’’.
SEC. 708. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS 
UNDER RETAIL PHARMACY SYSTEM OF PHARMACY BENE-
FITS PROGRAM. 
(a) TEMPORARY PROHIBITION.—During the period beginning on 
October 1, 2006, and ending on September 30, 2007, the cost sharing 
requirements established under paragraph (6) of section 1074g of 
title 10, United States Code, for pharmaceutical agents available 
through retail pharmacies covered by paragraph (2)(E)(ii) of such 
section may not exceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
(b) TRANSFER
OF FUNDS.—The Secretary of Defense shall 
transfer $186,000,000 from the unobligated balances of the National 
Defense Stockpile Transaction Fund to the Department of Defense 
Medicare-Eligible Retiree Health Care Fund. 
Subtitle B—Studies and Reports 
SEC. 711. DEPARTMENT OF DEFENSE TASK FORCE ON THE FUTURE 
OF MILITARY HEALTH CARE. 
(a) REQUIREMENT
TO ESTABLISH.—The Secretary of Defense 
shall establish within the Department of Defense a task force 
to examine matters relating to the future of military health care. 
(b) COMPOSITION.—
(1) MEMBERS.—The task force shall consist of not more 
than 14 members appointed by the Secretary of Defense from 
among individuals described in paragraph (2) who have dem-
onstrated expertise in the area of health care programs and 
costs.
H. R. 5122—203
(2) RANGE OF MEMBERS.—The individuals appointed to the 
task force shall include—
(A) at least one member of each of the Medical Depart-
ments of the Army, Navy, and Air Force; 
(B) a number of persons from outside the Department 
of Defense equal to the total number of personnel from 
within the Department of Defense (whether members of 
the Armed Forces or civilian personnel) who are appointed 
to the task force; 
(C) persons who have experience in—
(i) health care actuarial forecasting; 
(ii) health care program and budget development; 
(iii) health care information technology; 
(iv) health care performance measurement; 
(v) health care quality improvement including evi-
dence-based medicine; and 
(vi) women’s health; 
(D) the senior medical advisor to the Chairman of 
the Joint Chiefs of Staff; 
(E) the Director of Defense Procurement and Acquisi-
tion Policy in the Office of the Under Secretary of Defense 
for Acquisition, Technology, and Logistics; 
(F) at least one member from the Defense Business 
Board; 
(G) at least one representative from an organization 
that advocates on behalf of active duty and retired members 
of the Armed Forces who has experience in health care; 
and 
(H) at least one member from the Institute of Medicine. 
(3) INDIVIDUALS APPOINTED OUTSIDE THE DEPARTMENT OF 
DEFENSE.—
(A) Individuals appointed to the task force from outside 
the Department of Defense may include officers or 
employees of other departments or agencies of the Federal 
Government, officers or employees of State and local 
governments, or individuals from the private sector. 
(B) Individuals appointed to the task force from outside 
the Department of Defense shall include—
(i) an officer or employee of the Department of 
Veterans Affairs; and 
(ii) an officer or employee of the Department of 
Health and Human Services. 
(4) DEADLINE
FOR
APPOINTMENT.—All appointments of 
individuals to the task force shall be made not later than 
90 days after the date of the enactment of this Act. 
(5) CO-CHAIRS
OF
TASK
FORCE.—There shall be two co-
chairs of the task force. One of the co-chairs shall be designated 
by the Secretary of Defense at the time of appointment from 
among the Department of Defense personnel appointed to the 
task force. The other co-chair shall be selected from among 
the members appointed from outside the Department of Defense 
by members so appointed. 
(c) ASSESSMENT AND RECOMMENDATIONS ON THE FUTURE OF 
MILITARY HEALTH CARE.—
(1) IN GENERAL.—Not later than 12 months after the date 
on which all members of the task force have been appointed, 
the task force shall submit to the Secretary a report containing
H. R. 5122—204
an assessment of, and recommendations for, sustaining the 
military health care services being provided to members of 
the Armed Forces, retirees, and their families. 
(2) UTILIZATION
OF
OTHER
EFFORTS.—In preparing the 
report, the task force shall take into consideration the findings 
and recommendations included in the Healthcare for Military 
Retirees Task Group of the Defense Business Board, previous 
Government Accountability Office reports, studies and reviews 
by the Assistant Secretary of Defense for Health Affairs, and 
any other studies or research conducted by organizations 
regarding program and organizational improvements to the 
military health care system. 
(3) ELEMENTS.—The assessment and recommendations 
(including recommendations for legislative or administrative 
action) shall include measures to address the following: 
(A) Wellness initiatives and disease management pro-
grams of the Department of Defense, including health risk 
tracking and the use of rewards for wellness. 
(B) Education programs focused on prevention aware-
ness and patient-initiated health care. 
(C) The ability to account for the true and accurate 
cost of health care in the military health system. 
(D) Alternative health care initiatives to manage 
patient behavior and costs, including options and costs 
and benefits of a universal enrollment system for all 
TRICARE users. 
(E) The appropriate command and control structure 
within the Department of Defense and the Armed Forces 
to manage the military health system. 
(F) The adequacy of the military health care procure-
ment system, including methods to streamline existing 
procurement activities. 
(G) The appropriate mix of military and civilian per-
sonnel to meet future readiness and high-quality health 
care service requirements. 
(H) The beneficiary and Government cost sharing 
structure required to sustain military health benefits over 
the long term. 
(I) Programs focused on managing the health care 
needs of Medicare-eligible military beneficiaries. 
(J) Efficient and cost effective contracts for health care 
support and staffing services, including performance-based 
requirements for health care provider reimbursement. 
(d) ADMINISTRATIVE MATTERS.—
(1) COMPENSATION.—Each member of the task force who 
is a member of the Armed Forces or a civilian officer or 
employee of the United States shall serve without compensation 
(other than compensation to which entitled as a member of 
the Armed Forces or an officer or employee of the United 
States, as the case may be). Other members of the task force 
shall be treated for purposes of section 3161 of title 5, United 
States Code, as having been appointed under subsection (b) 
of such section. 
(2) OVERSIGHT.—The Under Secretary of Defense for Per-
sonnel and Readiness shall oversee the activities of the task 
force.
H. R. 5122—205
(3) ADMINISTRATIVE
SUPPORT.—The Washington Head-
quarters Services of the Department of Defense shall provide 
the task force with personnel, facilities, and other administra-
tive support as necessary for the performance of the duties 
of the task force. 
(4) ACCESS TO FACILITIES.—The Under Secretary of Defense 
for Personnel and Readiness shall, in coordination with the 
Secretaries of the military departments, ensure appropriate 
access by the task force to military installations and facilities 
for purposes of the discharge of the duties of the task force. 
(e) REPORTS.—
(1) INTERIM REPORT.—Not later than May 31, 2007, the 
task force shall submit to the Secretary of Defense and the 
Committees on Armed Services of the Senate and the House 
of Representatives an interim report on the activities of the 
task force. At a minimum, the report shall include interim 
findings and recommendations regarding subsection (c)(3)(H), 
particularly with regard to cost sharing under the pharmacy 
benefits program. 
(2) FINAL REPORT.—(A) The task force shall submit to the 
Secretary of Defense a final report on its activities under this 
section. The report shall include—
(i) a description of the activities of the task force; 
(ii) the assessment and recommendations required by 
subsection (c); and 
(iii) such other matters relating to the activities of 
the task force that the task force considers appropriate. 
(B) Not later than 90 days after receipt of the report 
under subparagraph (A), the Secretary shall transmit the report 
to the Committees on Armed Services of the Senate and the 
House of Representatives. The Secretary may include in the 
transmittal such comments on the report as the Secretary 
considers appropriate. 
(f) TERMINATION.—The task force shall terminate 90 days after 
the date on which the final report of the task force is transmitted 
to Congress under subsection (e)(2). 
SEC. 712. STUDY RELATING TO CHIROPRACTIC HEALTH CARE SERV-
ICES. 
(a) STUDY REQUIRED.—
(1) GROUPS COVERED.—The Secretary of Defense shall con-
duct a study of providing chiropractic health care services and 
benefits to the following groups: 
(A) All members of the uniformed services on active 
duty and entitled to care under section 1074(a) of title 
10, United States Code. 
(B) All members described in subparagraph (A) and 
their eligible dependents, and all members of the Selected 
Reserves and their eligible dependents. 
(C) All members or former members of the uniformed 
services who are entitled to retired or retainer pay or 
equivalent pay and their eligible dependents. 
(2) MATTERS EXAMINED.—
(A) For each group listed in subparagraphs (A), (B), 
and (C) of paragraph (1), the study shall examine the 
following with respect to chiropractic health care services 
and benefits:
H. R. 5122—206
(i) The cost of providing such services and benefits. 
(ii) The feasibility of providing such services and 
benefits. 
(iii) An assessment of the health care benefits of 
providing such services and benefits. 
(iv) An estimate of the potential cost savings of 
providing such services and benefits in lieu of other 
medical services. 
(v) The identification of existing and planned 
health care infrastructure, including personnel, equip-
ment, and facilities, to accommodate the provision of 
chiropractic health care services. 
(B) For the members of the group listed in subpara-
graph (A) of paragraph (1), the study shall also examine 
the effects of providing chiropractic health care services 
and benefits—
(i) on the readiness of such members; and 
(ii) on the acceleration of the return to duty of 
such members following an identified injury or other 
malady that can be appropriately treated with chiro-
practic health care services. 
(3) SPACE AVAILABLE COSTS.—The study shall also include 
a detailed analysis of the projected costs of providing chiro-
practic health care services on a space available basis in the 
military treatment facilities currently providing chiropractic 
care under section 702 of the Floyd D. Spence National Defense 
Authorization Act of Fiscal Year 2001 (as enacted by Public 
Law 106–398; 10 U.S.C. 1092 note). 
(4) ELIGIBLE
DEPENDENT
DEFINED.—In this section, the 
term ‘‘eligible dependent’’ has the meaning given that term 
in section 1076a(k) of title 10, United States Code. 
(b) REPORT REQUIRED.—Not later than March 31, 2008, the 
Secretary of Defense shall submit to the Committees on Armed 
Services of the Senate and the House of Representatives a report 
on the study required under subsection (a). 
SEC. 713. COMPTROLLER GENERAL AUDITS OF DEPARTMENT OF 
DEFENSE HEALTH CARE COSTS AND COST-SAVING MEAS-
URES. 
(a) GENERAL AUDIT REQUIRED.—
(1) IN GENERAL.—The Comptroller General of the United 
States, in cooperation with the Director of the Congressional 
Budget Office, shall conduct an audit of the Department of 
Defense initiative to manage future medical benefits available 
through the Department known as ‘‘Sustain the Benefit’’. 
(2) ELEMENTS.—The audit required by paragraph (1) shall 
examine the following: 
(A) The basis for the calculation by the Department 
of Defense of the portion of the costs of health care benefits 
provided by the Department to beneficiaries that were paid 
by such beneficiaries in each of 1995 and 2005, including—
(i) a comparison of the cost to the Department 
of providing such benefits in each of 1995 and 2005; 
(ii) the explanation for any increases in the costs 
of the Department of providing such benefits between 
1995 and 2005; and
H. R. 5122—207
(iii) a comparison of the amounts paid, by category 
of beneficiaries, for health care benefits in 1995 with 
the amounts paid, by category of beneficiaries, for such 
benefits in 2005. 
(B) The calculations and assumptions utilized by the 
Department in estimating the savings anticipated through 
the implementation of proposed increases in cost-sharing 
for health care benefits beginning in 2007. 
(C) The average annual rate of increase, based on 
inflation, of medical costs for the Department under the 
Defense Health Program. 
(D) The annual rate of growth in the cost of the Defense 
Health Program that is attributable to inflation in the 
cost of medical services over the last five years and how 
such rate of growth compares with annual rates of increases 
in health care premiums under the Federal Employee 
Health Benefit Program and other health care programs 
as well as rates of growth of other health care cost indices 
over that time. 
(E) The assumptions utilized by the Department in 
estimating savings associated with adjustments in copay-
ments for pharmaceuticals. 
(F) The costs of the administration of the Defense 
Health Program and the TRICARE program for all cat-
egories of beneficiaries. 
(b) AUDIT OF TRICARE RESERVE SELECT PROGRAM.—
(1) IN GENERAL.—In addition to the audit required by sub-
section (a), the Comptroller General shall conduct an audit 
of the costs of the Department of Defense in implementing 
the TRICARE Reserve Select Program. 
(2) ELEMENTS.—The audit required by paragraph (1) shall 
include an examination of the following: 
(A) A comparison of the annual premium amounts 
established by the Department of Defense for the TRICARE 
Reserve Select Program with the actual costs of the Depart-
ment in providing benefits under that program in fiscal 
years 2004 and 2005. 
(B) The rate of inflation of health care costs of the 
Department during fiscal years 2004 and 2005, and a 
comparison of that rate of inflation with the annual 
increase in premiums under the TRICARE Reserve Select 
Program in January 2006. 
(C) A comparison of the financial and health-care utili-
zation assumptions utilized by the Department in estab-
lishing premiums under the TRICARE Reserve Select Pro-
gram with actual experiences under that program in the 
first year of the implementation of that program. 
(3) TRICARE RESERVE SELECT PROGRAM DEFINED.—In this 
section, the term ‘‘TRICARE Reserve Select Program’’ means 
the program carried out under section 1076d of title 10, United 
States Code. 
(c) USE OF INDEPENDENT EXPERTS.—Notwithstanding any other 
provision of law, in conducting the audits required by this section, 
the Comptroller General may engage the services of appropriate 
independent experts, including actuaries. 
(d) REPORT.—Not later than June 1, 2007, the Comptroller 
General shall submit to the congressional defense committees a
H. R. 5122—208
report on the audits conducted under this section. The report shall 
include—
(1) the findings of the Comptroller General as a result 
of the audits; and 
(2) such recommendations as the Comptroller General con-
siders appropriate in light of such findings to ensure maximum 
efficiency in the administration of the health care benefits 
programs of the Department of Defense. 
SEC. 714. TRANSFER OF CUSTODY OF THE AIR FORCE HEALTH STUDY 
ASSETS TO MEDICAL FOLLOW-UP AGENCY. 
(a) TRANSFER.—
(1) NOTIFICATION OF PARTICIPANTS.—The Secretary of the 
Air Force shall notify the participants of the Air Force Health 
Study that the study as currently constituted is ending as 
of September 30, 2006. In consultation with the Medical Follow-
up Agency (in this section referred to as the ‘‘Agency’’) of 
the Institute of Medicine of the National Academy of Sciences, 
the Secretary of the Air Force shall request the written consent 
of the participants to transfer their data and biological speci-
mens to the Agency during fiscal year 2007 and written consent 
for the Agency to maintain the data and specimens and make 
them available for additional studies. 
(2) COMPLETION OF TRANSFER.—Custodianship of the Air 
Force Health Study shall be completely transferred to the 
Agency on or before September 30, 2007. Assets to be trans-
ferred shall include electronic data files and biological speci-
mens of all the study participants. 
(3) COPIES TO ARCHIVES.—The Air Force shall send paper 
copies of all study documents to the National Archives. 
(b) REPORT ON TRANSFER.—
(1) REQUIREMENT.—Not later than 30 days after completion 
of the transfer of the assets of the Air Force Health Study 
under subsection (a), the Secretary of the Air Force shall submit 
to the Committees on Armed Services of the Senate and the 
House of Representatives a report on the transfer. 
(2) MATTERS COVERED.—At a minimum, the report shall 
include information on the number of study participants whose 
data and biological specimens were not transferred, the efforts 
that were taken to contact such participants, and the reasons 
why the transfer of their data and specimens did not occur. 
(c) DISPOSITION OF ASSETS NOT TRANSFERRED.—The Secretary 
of the Air Force may not destroy any data or biological specimens 
not transferred under subsection (a) until the expiration of the 
one-year period following submission of the report under subsection 
(b). 
(d) FUNDING.—
(1) COSTS OF TRANSFER.—The Secretary of Defense shall 
make available to the Air Force $850,000 for preparation, 
transfer of the assets of the Air Force Health Study, and 
shipment of data and specimens to the Medical Follow-up 
Agency and the National Archives during fiscal year 2007 from 
amounts available from the Department of Defense for that 
fiscal year. The Secretary of Defense is authorized to transfer 
the freezers and other physical assets assigned to the Air 
Force Health Study to the Agency without charge.