(3) in paragraph (4), by adding at the end the 
following new subparagraph: 
‘‘(C) The term ‘owner of covenant prop-
erty’ means an owner of property subject to a 
covenant provided by the United States in ac-
cordance with the requirements of section 
120(h)(3) and (4) of CERCLA (42 U.S.C. 
9620(h)(3) and (4)): Provided, however, That 
the covenant property is also the site of the 
services to be performed.’’. 
(b) SOURCE OF FUNDS FOR FORMER BRAC PROP-
ERTY SUBJECT TO COVENANT FOR ADDITIONAL REME-
DIAL ACTION.—Section 2703 of such title is amended— 
(1) in subsection (g)(1), by striking ‘‘The sole 
source’’ and inserting ‘‘Except as provided in sub-
section (h), the sole source’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) SOLE SOURCE OF FUNDS FOR ENVIRONMENTAL 
REMEDIATION
AT CERTAIN BASE REALIGNMENT
AND 
CLOSURE SITES.—In the case of property disposed of pur-
suant to a base closure law and subject to a covenant de-
scribed in section 2701(d)(4)(C) of this title, the sole 
source of funds for services under subsection 2701(d)(1)
shall be the base closure account established under the ap-
plicable base closure law.’’. 
SEC. 312. THE ENVIRONMENTAL QUALITY ANNUAL RE-
PORT. 
Section 2706(b)(2) of title 10, United States Code, 
is amended— 
(1) by striking subparagraphs (D), (E), and 
(F); and 
(2) by inserting after subparagraph (C) the fol-
lowing new subparagraph (D): 
‘‘(D) A statement of the amounts ex-
pended, and anticipated to be expended, during 
the period covered by the report for any activi-
ties overseas related to the environment, includ-
ing amounts for activities relating to environ-
mental remediation, compliance, conservation, 
and pollution prevention.’’. 
Subtitle C—Workplace and Depot 
Issues 
SEC. 321. RETENTION OF REIMBURSEMENT FOR PROVI-
SION OF RECIPROCAL FIRE PROTECTION 
SERVICES. 
Section 5 of the Act of May 27, 1955 (chapter 105; 
69 Stat. 67; 42 U.S.C. 1856d) is amended— 
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 5.’’; and
(2) by adding at the end the following new sub-
section: 
‘‘(b) Notwithstanding the provisions of sub-
section (a), all sums received by any Department of 
Defense activity for fire protection rendered pursu-
ant to this Act shall be credited to the appropria-
tion, fund, or account from which the expenses were 
paid. Amounts so credited shall be merged with 
funds in such appropriation, fund, or account and 
shall be available for the same purposes and subject 
to the same limitations as the funds with which 
merged.’’. 
SEC. 322. EXCEPTIONS TO PROHIBITION ON CONTRACTS 
FOR PERFORMANCE OF FIREFIGHTING OR 
SECURITY-GUARD FUNCTIONS. 
Section 2465(b) of title 10, United States Code, is 
amended by adding at the end the following new para-
graphs: 
‘‘(5) A contract for the performance of security- 
guard functions that the Secretary of Defense deter-
mines are, or otherwise would be, performed by 
members of the armed forces. 
‘‘(6) A contract to be carried out at a closed 
military installation or facility.’’.
SEC. 323. FIELDING OF BALLISTIC MISSILE DEFENSE CAPA-
BILITIES. 
(a) AUTHORITY.—Funds described in subsection (b) 
may, upon approval by the Secretary of Defense, be used 
for the development and fielding of ballistic missile defense 
capabilities. 
(b) COVERED FUNDS.—Subsection (a) applies to 
funds appropriated for fiscal year 2006 or fiscal year 2007 
for research, development, test, and evaluation for the 
Missile Defense Agency. 
SEC. 324. EXPANSION OF FIRE PROTECTION SERVICES 
UNDER RECIPROCAL AGREEMENTS. 
Section (b) of the Act of May 27, 1955 (chapter 105; 
69 Stat. 66; 42 U.S.C. 1856(b)), is amended by inserting 
after ‘‘and fire fighting’’ the following: ‘‘as well as emer-
gency services including, but not limited to, basic and ad-
vanced life support, hazardous material containment and 
confinement, and special rescue events involving vehicular 
and water mishaps, and trench, building and confined 
space extractions’’. 
Subtitle D—Other Matters 
SEC. 331. TERMINATION OF THE NATIONAL SECURITY EDU-
CATION TRUST FUND. 
(a) TERMINATION OF FUND.—Not later than 90 days 
after the date of enactment of this Act, the Secretary of 
Defense shall—
(1) close the National Security Education Trust 
Fund established under section 804 of the David L. 
Boren National Security Education Act of 1991 
(Public Law 102–183; 50 U.S.C. 1904); and 
(2) transfer the amounts in the closed fund to 
the currently available appropriation for the Depart-
ment of Defense under the heading ‘‘Operation and 
Maintenance—Defense Wide’’ for use as specified in 
section 805(d) of such Act (50 U.S.C. 1905(d)) (as 
amended by subsection (b)(2) of this section). 
(b) CONFORMING AMENDMENTS
AND REPEALS.— 
Title VIII of such Public Law 102–183 is amended— 
(1) in section 802(2) (50 U.S.C. 1902(a)(2)), 
by striking ‘‘for obligation out of the National Secu-
rity Education Trust Fund’’; 
(2) by amending section 805(d) (50 U.S.C. 
1905(d)) to read as follows: 
‘‘(d) NECESSARY
EXPENDITURES.—Expenditures 
necessary for awarding scholarships, fellowships, and 
grants in accordance with the provisions of this title and 
for properly allocable costs of the Federal Government for 
the administration of the program under this title shall 
be paid from funds available for the Operation and Main-
tenance of the Department of Defense.’’;
(3) in section 808 (50 U.S.C. 1908), by striking 
clause (2); and 
(4) by repealing sections 809 and 810 (50 
U.S.C. 1909 and 1910). 
TITLE IV—MILITARY 
PERSONNEL AUTHORIZATIONS 
Subtitle A—Active Forces 
SEC. 401. END STRENGTHS FOR ACTIVE FORCES. 
The Armed Forces are authorized strengths for active 
duty personnel as of September 30, 2006, as follows: 
(1) The Army, 482,400. 
(2) The Navy, 352,700. 
(3) The Marine Corps, 175,000. 
(4) The Air Force, 357,400. 
Subtitle B—Reserve Forces 
SEC. 411. END STRENGTHS FOR SELECTED RESERVE. 
(a) IN GENERAL.—The Armed Forces are authorized 
strengths for Selected Reserve personnel of the reserve 
components as of September 30, 2006, as follows: 
(1) The Army National Guard of the United 
States, 350,000. 
(2) The Army Reserve, 205,000. 
(3) The Naval Reserve, 73,100. 
(4) The Marine Corps Reserve, 39,600.
(5) The Air National Guard of the United 
States, 106,800. 
(6) The Air Force Reserve, 74,000. 
(7) The Coast Guard Reserve, 10,000. 
(b) ADJUSTMENTS.—The end strengths prescribed by 
subsection (a) for the Selected Reserve of any reserve com-
ponent shall be proportionately reduced by— 
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of 
such component which are on active duty (other 
than for training) at the end of the fiscal year; and 
(2) the total number of individual members not 
in units organized to serve as units of the Selected 
Reserve of such component who are on active duty 
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end 
of the fiscal year. 
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end 
strength prescribed for such fiscal year for the Selected 
Reserve of such reserve component shall be increased pro-
portionately by the total authorized strengths of such 
units and by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE 
DUTY IN SUPPORT OF THE RESERVES. 
Within the end strengths prescribed in section 
411(a), the reserve components of the Armed Forces are 
authorized, as of September 30, 2006, the following num-
ber of Reserves to be serving on full-time active duty or 
full-time duty, in the case of members of the National 
Guard, for the purpose of organizing, administering, re-
cruiting, instructing, or training the reserve components: 
(1) The Army National Guard of the United 
States, 27,345. 
(2) The Army Reserve, 15,270. 
(3) The Naval Reserve, 13,392. 
(4) The Marine Corps Reserve, 2,261. 
(5) The Air National Guard of the United 
States, 13,089. 
(6) The Air Force Reserve, 2,290. 
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS 
(DUAL STATUS). 
The minimum number of military technicians (dual 
status) as of the last day of fiscal year 2006 for the re-
serve components of the Army and the Air Force (notwith-
standing section 129 of title 10, United States Code) shall 
be the following: 
(1) For the Army Reserve, 7,649.
(2) For the Army National Guard of the United 
States, 25,563. 
(3) For the Air Force Reserve, 9,852. 
(4) For the Air National Guard of the United 
States, 22,971. 
SEC. 414. FISCAL YEAR 2006 LIMITATION ON NUMBER OF 
NON-DUAL STATUS TECHNICIANS. 
(a) LIMITATIONS.—(1) Within the limitation pro-
vided in section 10217(c)(2) of title 10, United States 
Code, the number of non-dual status technicians employed 
by the National Guard as of September 30, 2006, may 
not exceed the following: 
(A) For the Army National Guard of the 
United States, 1,600. 
(B) For the Air National Guard of the United 
States, 350. 
(2) The number of non-dual status technicians em-
ployed by the Army Reserve as of September 30, 2006, 
may not exceed 695. 
(3) The number of non-dual status technicians em-
ployed by the Air Force Reserve as of September 30, 
2006, may not exceed 90. 
(b) NON-DUAL STATUS TECHNICIANS DEFINED.—In 
this section, the term ‘‘non-dual status technician’’ has the
meaning given that term in section 10217(a) of title 10, 
United States Code. 
TITLE V—MILITARY PERSONNEL 
POLICY 
Subtitle A—Officer Personnel 
Policy 
SEC. 501. ELIMINATION OF FROCKING FOR OFFICERS 
ABOVE THE GRADE OF MAJOR GENERAL OR 
REAR ADMIRAL. 
(a) PROHIBITION
AGAINST
FROCKING.—Section 
777(a) of title 10, United States Code, is amended— 
(1) by striking ‘‘AUTHORITY.—An officer’’ and 
inserting ‘‘AUTHORITY.—(1) Except as provided in 
paragraph (2), an officer’’; and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) No officer may be frocked to a grade above 
the grade of major general or, in the case of an offi-
cer of the Navy, rear admiral.’’. 
(b) OFFICERS EXCLUDED FROM GRADE DISTRIBU-
TION CALCULATIONS.—Section 525(d) of such title is 
amended to read as follows: 
‘‘(d) An officer continuing to hold the grade of gen-
eral, admiral, lieutenant general, or vice admiral under
paragraph (2), (3), or (4) of section 601(b) shall not be 
counted for purposes of this section.’’. 
(c) APPOINTMENTS TO POSITIONS OF IMPORTANCE 
AND RESPONSIBILITY.—Section 601 of such title is 
amended— 
(1) in subsection (a), by inserting after the 
third sentence the following new sentence: ‘‘An offi-
cer assigned to a position of importance and respon-
sibility under this section shall be promoted to the 
grade specified for that position on the date he be-
gins serving in that position.’’; 
(2) in subsection (b), by inserting before the 
semicolon at the end of paragraph (2) the following: 
‘‘, except that the period authorized for transition to 
the second position may not exceed 30 days unless 
a longer period is required by military necessity as 
determined by the Secretary of Defense or his des-
ignee after consultation with the Chairman or Vice 
Chairman of the Joint Chiefs of Staff’’; and 
(3) by adding at the end the following new sub-
section: 
‘‘(e) If the Secretary of Defense approves a transition 
period of more than 30 days under subsection (b)(2), the 
Secretary shall notify the Committee on Armed Services 
of the Senate and the Committee on Armed Services of
the House of Representatives of his decision at the same 
time that he notifies the Secretary concerned. If a transi-
tion period exceeds 30 days without the approval of the 
Secretary of Defense or his designee, the officer moving 
to a new position shall revert to his permanent grade effec-
tive on the thirty-first day after leaving a position des-
ignated under subsection (a).’’. 
SEC. 502. AUTHORIZED STRENGTH: GENERAL AND FLAG 
OFFICERS ON ACTIVE DUTY. 
Section 526(b)(2)(A) of title 10, United States Code, 
is amended to read as follows: 
‘‘(A) The Chairman of the Joint Chiefs of Staff may 
designate up to 11 general and flag officer positions on 
the staffs of the commanders of the combatant commands, 
and the Joint Staff, as positions to be held only by reserve 
component officers who are in a general or flag officer 
grade below lieutenant general or vice admiral. Each posi-
tion so designated shall be considered to be a joint duty 
assignment position for purposes of chapter 38 of this 
title.’’.
Subtitle B—Reserve Component 
Personnel Matters 
SEC. 511. ELIMINATE LIMITATION ON AMOUNT OF ROTC 
SCHOLARSHIP FINANCIAL ASSISTANCE. 
(a) IN GENERAL.—Section 2107(c) of title 10, 
United States Code, is amended— 
(1) by striking paragraph (4); and 
(2) in paragraph (5)(B), by striking ‘‘, (3), or 
(4)’’ and inserting ‘‘or (3)’’. 
(b) ARMY RESERVE OR ARMY NATIONAL GUARD.— 
Section 2107a(c) of such title is amended by striking para-
graph (3). 
SEC. 512. MODIFICATIONS TO RESERVE EDUCATIONAL 
BENEFIT FOR CERTAIN ACTIVE SERVICE. 
(a) ELIGIBILITY CRITERIA.—Section 16163(a) of 
title 10, United States Code, is amended by striking ‘‘On 
or after September 11, 2001, a member of a reserve com-
ponent’’ and inserting ‘‘A member of a reserve component 
who commenced active service described in paragraphs (1) 
or (2) on or after September 11, 2001’’. 
(b) ELECTION OF BENEFIT.—Subsection (e) of such 
section is amended by striking ‘‘Secretary concerned’’ and 
inserting ‘‘Secretary of Veterans Affairs’’. 
(c) EXCEPTION TO IMMEDIATE TERMINATION OF AS-
SISTANCE.—Section 16165 of such title is amended—
(1) by striking ‘‘Educational assistance’’ and 
inserting ‘‘(a) Except as provided in subsection (b), 
educational assistance’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) Under regulations prescribed by the Secretary 
of Defense, educational assistance may be provided under 
this chapter to a member of the Selected Reserve when 
the member incurs a break in service in the Selected Re-
serve of not more than 90 days, provided the member con-
tinues to serve in the Ready Reserve.’’. 
SEC. 513. REVISION OF BONUS FOR ENLISTED MEMBERS TO 
SERVE IN THE SELECTED RESERVE. 
(a) IN GENERAL.—Section 308c of title 37, United 
States Code, is amended to read as follows: 
‘‘§ 308c. Special pay: bonus for affiliation or enlist-
ment in the Selected Reserve 
‘‘(a) BONUS AUTHORIZATION.—Under regulations 
prescribed by the Secretary of Defense, the Secretary con-
cerned may pay— 
‘‘(1) an affiliation bonus to an enlisted member 
of an armed force who has completed fewer than 20 
total years of military service and executes a written 
agreement to serve in the Selected Reserve of a re-
serve component for a period of not less than three
years in a skill, unit or pay grade designated under 
subsection (b) after being discharged or released 
from active duty under honorable conditions; and 
‘‘(2) an accession bonus to a person who has 
not previously served in the armed forces and who 
executes a written agreement to serve as an enlisted 
member in the Selected Reserve of a reserve compo-
nent for a period of not less than three years, upon 
acceptance of the agreement by the Secretary con-
cerned. 
‘‘(b) DESIGNATION OF CRITICAL SHORTAGES.—The 
Secretary concerned shall designate the critical skills, 
units and pay grade shortages for the purposes of sub-
section (a)(1). 
‘‘(c) LIMITATION
ON AMOUNT
OF BONUS.—The 
amount of a bonus under subsection (a) may not exceed 
$10,000. 
‘‘(d) PAYMENT METHOD.—Upon acceptance of a 
written agreement by the Secretary concerned, the total 
amount of the bonus payable under the agreement be-
comes fixed. The agreement shall specify whether the 
bonus shall be paid by the Secretary in a lump sum or 
in installments. 
‘‘(e) REPAYMENT FOR FAILURE TO COMMENCE OR 
COMPLETE OBLIGATED SERVICE.—(1) An individual who,
after receiving all or part of the bonus under an agreement 
referred to in subsection (a), does not commence to serve 
in the Selected Reserve or does not satisfactorily partici-
pate in the Selected Reserve for the total period of service 
specified in the agreement shall repay to the United States 
such compensation or benefit, except under conditions es-
tablished by the Secretary concerned. 
‘‘(2) The Secretary concerned shall set forth whether 
repayment is required in whole or in part, the method for 
computing the amount of the repayment, and the condi-
tions under which an exception to the required repayment 
would apply. 
‘‘(3) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed 
to the United States. A discharge in bankruptcy under 
title 11 that is entered less than five years after the termi-
nation of an agreement entered into under subsection (a) 
does not discharge the individual signing the agreement 
from a debt arising under such agreement or under para-
graph (1). 
‘‘(f) CONTINUED ENTITLEMENT
TO BONUS PAY-
MENTS.—A member entitled to a bonus under this section 
who is called or ordered to active duty shall be paid, dur-
ing that period of active duty, any amount of the bonus
that becomes payable to the member during that period 
of active duty. 
‘‘(g) TERMINATION
OF BONUS AUTHORITY.—No 
bonus may be paid under this section with respect to any 
agreement, reenlistment, or voluntary extension of an en-
listment, in the armed forces entered into after December 
31, 2006.’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
(1) Section 308e of such title is repealed. 
(2) The table of sections at the beginning of chapter 
5 of such title is amended— 
(A) by striking the item relating to section 308c 
and inserting the following new item: 
‘‘308c. Special pay: bonus for affiliation or enlistment in the Selected Reserve.’’; 
and 
(B) by striking the item relating to section 
308e. 
SEC. 514. RETENTION INCENTIVE FOR MEMBERS OF THE 
SELECTED RESERVE QUALIFIED IN A CRIT-
ICAL MILITARY SKILL OR UNIT. 
(a) BONUS AUTHORITY.—Chapter 5 of title 37, 
United States Code, is amended by inserting after section 
308j the following new section:
‘‘§ 308k. Special pay: retention incentive for members 
of the Selected Reserve qualified in a 
critical military skill or unit 
‘‘(a) RETENTION BONUS AUTHORIZED.—An eligible 
officer or enlisted member of the armed forces may be paid 
a retention bonus as provided in this section if— 
‘‘(1) in the case of an officer or warrant officer, 
the member executes a written agreement to remain 
in the Selected Reserve for at least two years; 
‘‘(2) in the case of an enlisted member, the 
member reenlists or voluntarily extends the mem-
ber’s enlistment in the Selected Reserve for a period 
of at least two years; or 
‘‘(3) in the case of an enlisted member serving 
on an indefinite reenlistment, the member executes 
a written agreement to remain in the Selected Re-
serve for at least two years. 
‘‘(b) ELIGIBILITY REQUIREMENTS.—An officer or 
enlisted member is eligible for a retention bonus under this 
section if the member— 
‘‘(1) is qualified in a designated critical military 
skill or unit; or 
‘‘(2) agrees to train or retrain in a specialty 
skill designated as critical. 
‘‘(c) DESIGNATION OF CRITICAL SHORTAGES.—The 
Secretary of Defense, or the Secretary of Homeland Secu-
rity with respect to the Coast Guard when it is not oper-
ating as a service in the Navy, shall designate the critical 
skills and units for the purposes of subsection (b). 
‘‘(d) CERTAIN MEMBERS INELIGIBLE.—A retention 
bonus may not be provided under subsection (a) to a mem-
ber of the armed forces who— 
‘‘(1) has completed more than 25 years of 
qualifying service under section 12732 of title 10; or 
‘‘(2) will complete the member’s twenty-fifth 
year of qualifying service under section 12732 of 
title 10 before the end of the period of service for 
which the bonus is being offered. 
‘‘(e) PAYMENT METHODS.—(1) A bonus under this 
section may be paid in a single lump sum or in periodic 
installments. 
(2) In the case of a member who agrees to train or 
retrain in a specialty skill designated as critical under sub-
section (b)(2), no payment may be made until the member 
successfully completes the training or retraining and is 
qualified in the skill. 
‘‘(f) MAXIMUM BONUS AMOUNT.—A member may 
enter into an agreement under this section, or reenlist or 
voluntarily extend the member’s enlistment, more than 
once to receive a bonus under this section. However, a
member may not receive a total of more than $100,000 
in payments under this section. 
‘‘(g) RELATIONSHIP TO OTHER INCENTIVES.—A re-
tention bonus paid under this section is in addition to any 
other pay and allowances to which a member is entitled. 
‘‘(h) REPAYMENT FOR FAILURE TO COMMENCE OR 
COMPLETE OBLIGATED SERVICE.—(1) An individual who, 
after receiving all or part of the bonus under an agreement 
referred to in subsection (a), does not commence to serve 
in the Selected Reserve or does not satisfactorily partici-
pate in the Selected Reserve for the total period of service 
specified in the agreement shall repay to the United States 
such compensation or benefit, except under conditions es-
tablished by the Secretary concerned. 
‘‘(2) The Secretary concerned shall set forth whether 
repayment is required in whole or in part, the method for 
computing the amount of the repayment, and the condi-
tions under which an exception to the required repayment 
would apply. 
‘‘(3) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed 
to the United States. A discharge in bankruptcy under 
title 11 that is entered less than five years after the termi-
nation of an agreement entered into under subsection (a) 
does not discharge the individual signing the agreement
from a debt arising under such agreement or under para-
graph (1). 
‘‘(i) REGULATIONS.—This section shall be adminis-
tered under regulations prescribed by the Secretary of De-
fense for the armed forces under his jurisdiction and by 
the Secretary of Homeland Security for the Coast Guard 
when it is not operating as a service in the Navy. 
‘‘(j) TERMINATION
OF
BONUS
AUTHORITY.—No 
bonus may be paid under this section with respect to any 
agreement, reenlistment, or voluntary extension of an en-
listment in the armed forces entered into after December 
31, 2006, and no agreement under this section may be 
entered into after that date.’’. 
(b) CONFORMING AND CLERICAL AMENDMENTS.— 
(1) Sections 308d and 308h of such title are repealed. 
(2) The table of sections at the beginning of chapter 
5 of such title is amended— 
(A) by striking the items relating to sections 
308d and 308h; and 
(B) by inserting after the item relating to sec-
tion 308j the following new item: 
‘‘308k. Special pay: retention incentive for members of the Selected Reserve 
qualified in a critical military skill.’’.
SEC. 515. UNIFORM AUTHORITY FOR RESERVE GENERAL 
OFFICER AGE DEFERMENTS. 
(a) IN GENERAL.—Section 14512 of title 10, United 
States Code, is amended— 
(1) by striking paragraph (a); and 
(2) in paragraph (b)— 
(A) by striking ‘‘(b) NAVY AND MARINE 
CORPS.—’’; 
(B) by striking ‘‘Secretary of the Navy’’ 
and inserting ‘‘Secretary concerned’’; 
(C) by striking ‘‘Marine Corps’’ in the first 
sentence and inserting ‘‘Marine Corps, Army or 
Air Force’’; and 
(D) by amending the second sentence to 
read as follows: ‘‘The Secretary concerned may 
not defer more than 10 officers at any one 
time.’’. 
(b) CLERICAL AMENDMENTS.—(1) The heading of 
such section is amended to read as follows: 
‘‘§ 14512. Separation at age 64’’. 
(2) The table of sections at the beginning of chapter 
1407 of such title is amended by striking the item relating 
to section 14512 and inserting the following new item: 
‘‘14512. Separation at age 64.’’.
SEC. 516. EXPANDED USE OF RESERVE COMPONENT MEM-
BERS TO PERFORM DEVELOPMENTAL AND 
OPERATIONAL TESTING AND NEW EQUIP-
MENT TRAINING. 
(a) REIMBURSEMENT.—The Secretary of the Army 
may transfer from funds available to support an acquisi-
tion program in the amount necessary to reimburse the 
appropriate reserve component military personnel account 
for costs charged to that account for military pay and al-
lowances in connection with the demonstration program 
described in subsection (b). 
(b) DEMONSTRATION PROGRAM.—(1) A demonstra-
tion program under this section shall evaluate— 
(A) cost savings and other benefits that may re-
sult from the use of members of the reserve compo-
nents to perform test, evaluation, and related activi-
ties for an acquisition program, rather than the use 
of contractor personnel for such purposes; and 
(B) the use of appropriations available for 
multi-year research, development, testing and eval-
uation and procurement to reimburse reserve compo-
nents for the pay, allowances, and expenses incurred 
when such members perform duties to conduct ac-
quisition, logistics, and new equipment training ac-
tivities in connection with the demonstration pro-
gram.
(2) Nothing in this section authorizes a deviation 
from established Reserve and National Guard personnel 
and training procedures. 
(c) LIMITATION
ON
AMOUNT.—Not more than 
$10,000,000 may be transferred under this section during 
each year of the demonstration program. 
(d) MERGER
OF TRANSFERRED FUNDS.—Funds 
transferred to an account under this section shall be 
merged with other sums in the account and shall be avail-
able for the same period and purposes as the sums with 
which merged. 
(e) RELATIONSHIP TO OTHER TRANSFER AUTHOR-
ITY.—The transfer authority under this section is in addi-
tion to any other transfer authority. 
(f) TERMINATION.—The demonstration program 
under this section shall terminate on September 30, 2010. 
Subtitle C—Joint Officer Manage-
ment and Professional Military 
Education 
SEC. 521. NEW MISSION STATEMENT AND EXPANDED ELIGI-
BILITY FOR ENLISTED PERSONNEL AT THE 
NAVAL POSTGRADUATE SCHOOL. 
(a) COMBAT RELATED FOCUS OF THE NAVAL POST-
GRADUATE SCHOOL.—(1) Section 7041 of title 10, United 
States Code, is amended to read as follows:
§ 7041. Function 
‘‘There is a United States Naval Postgraduate School 
that provides advanced instruction, and technical and pro-
fessional education to commissioned officers of the naval 
service to enhance combat effectiveness and our national 
security.’’. 
(2) Paragraph (1) of section 7042(b) of such title is 
amended by striking ‘‘advanced instruction and technical 
education’’ and inserting ‘‘advanced instruction, and tech-
nical and professional education’’. 
(b) EXPANDED ELIGIBILITY FOR ENLISTED PER-
SONNEL.—Paragraph (2) of section 7045(a) of such title 
is amended— 
(1) by redesignating subparagraph (C) as sub-
paragraph (D); 
(2) by inserting after subparagraph (B) the fol-
lowing new subparagraph (C): 
‘‘(C) The Secretary may permit an eligible 
member of the armed forces to receive instruc-
tion from the Postgraduate School in certificate 
programs and courses required for the perform-
ance of their duties.’’; and 
(3) in subparagraph (D), as redesignated by 
paragraph (1), by striking ‘‘(A) and (B)’’ and insert-
ing ‘‘(A) through (C)’’.
(c) REIMBURSEMENT OF COSTS.—Paragraph (2) of 
section 7045(b) of such title is amended by striking 
‘‘(a)(2)(C)’’ and inserting ‘‘(a)(2)(D)’’. 
(d) GRADUATE
DEGREE
PILOT
PROGRAM.—(1) 
Chapter 605 of such title is amended by adding at the 
end the following new section: 
‘‘§ 7050. Graduate degree pilot program for en-
listed members 
‘‘(a) ESTABLISHMENT OF PROGRAM.—The Secretary 
of the Navy may establish a pilot program to assess 
whether graduate degrees can increase the proficiency of 
enlisted members in selected operational, staff and head-
quarters level positions. 
‘‘(b) ADMISSION.—The Secretary may permit eligible 
enlisted members to receive graduate level instruction at 
the Naval Postgraduate School on a space-available basis 
in programs leading to a master’s degree in technical, ana-
lytical, and engineering curricula. 
‘‘(c) ELIGIBILITY.—(1) No more than ten eligible en-
listed members may be admitted under this program in 
an academic year. 
‘‘(2) To be eligible for instruction under this section, 
the enlisted member must have been awarded a bacca-
laureate degree by an institution of higher education.
‘‘(d) AWARD OF A MASTER’S DEGREE.—Upon suc-
cessful completion of the course of instruction in which 
the enlisted member was enrolled, the member may be 
awarded a master’s degree under section 7048 of this title. 
‘‘(e) EVALUATION OF PROGRAM.—Before the start of 
the seventh academic year of instruction, the Secretary 
shall evaluate the effectiveness of the program. 
‘‘(f) EXPIRATION DATE.—No new participants may 
be enrolled in this program after the conclusion of the sev-
enth academic year of instruction.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item: 
‘‘7050. Graduate degree pilot program for enlisted members.’’. 
Subtitle D—Military Service 
Academies 
SEC. 531. PAY INCREASE FOR PERMANENT MILITARY PRO-
FESSORS AT THE UNITED STATES NAVAL 
ACADEMY WITH OVER 36 YEARS OF SERVICE. 
Section 203(b) of title 37, United States Code, is 
amended by striking ‘‘at the United States Military Acad-
emy or the United States Air Force Academy’’ and insert-
ing ‘‘at the United States Military Academy, the United 
States Air Force Academy or the United States Naval 
Academy,’’.
SEC. 532. AUTHORITY TO RETAIN PERMANENT PROFES-
SORS AT THE NAVAL ACADEMY FOR MORE 
THAN THIRTY YEARS. 
(a) WAIVER OF TIME LIMITS.—Paragraph (2) of sec-
tion 641 of title 10, United States Code, is amended to 
read as follows: 
‘‘(2) The director of admissions, dean, and perma-
nent professors at the United States Military Academy; 
the registrar, dean, and permanent professors at the 
United States Air Force Academy; and, for the purposes 
of sections 633 and 634 only, permanent professors at the 
United States Naval Academy.’’. 
(b) RETENTION OF PERMANENT PROFESSORS BE-
YOND THIRTY YEARS.—(1) Chapter 603 of such title is 
amended by adding at the end the following new section: 
‘‘§ 6979. Retention of permanent professors at the 
United States Naval Academy. 
‘‘(a) RETIREMENT FOR YEARS OF SERVICE.—(1) Ex-
cept as provided in subsection (b), an officer serving as 
a permanent professor at the Naval Academy in the grade 
of commander, who is not on a list of officers rec-
ommended for promotion to the grade of captain, shall, 
if not earlier retired, be retired on the first day of the 
month after the month in which he completes 28 years 
of active commissioned service.
‘‘(2) Except as provided in subsection (b), an officer 
serving as a permanent professor at the Naval Academy 
in the grade of captain, who is not on a list of officers 
recommended for promotion to the grade of rear admiral 
(lower half), shall, if not earlier retired, be retired on the 
first day of the month after the month in which he com-
pletes 30 years of active commissioned service. 
‘‘(b) CONTINUATION ON ACTIVE DUTY.—(1) An offi-
cer subject to retirement under subsection (a) may be con-
tinued on active duty by the Secretary of the Navy— 
‘‘(A) upon the recommendation of the Super-
intendent of the Naval Academy; and 
‘‘(B) with the concurrence of the Chief of Naval 
Operations. 
‘‘(2) The Secretary of the Navy shall determine the 
period of continuation on active duty under this section. 
‘‘(c) ELIGIBILITY FOR PROMOTION.—A permanent 
professor at the Naval Academy who has been retained 
on active duty as a permanent professor after more than 
28 years of active commissioned service in the grade of 
commander remains eligible for consideration for pro-
motion to the grade of captain.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new item:
‘‘6979. Retention of permanent professors at the United States Naval Acad-
emy.’’. 
Subtitle E—Other Education and 
Training Matters 
SEC. 541. INCREASE ROTC SCHOLARSHIP LIMIT. 
Section 2107a(h) of title 10, United States Code, is 
amended by striking ‘‘208’’ and inserting ‘‘416’’. 
SEC. 542. CLARIFICATION OF RESTRICTION ON COMPENSA-
TION FOR CORRESPONDENCE COURSES. 
Paragraph (1) of section 206(d) of title 37, United 
States Code, is amended by inserting ‘‘a member of the 
National Guard or’’ after ‘‘performed by’’. 
Subtitle F—Military Justice 
Matters 
SEC. 551. ADMINISTRATIVE SESSIONS OF COURTS-MAR-
TIAL. 
Section 839(a) of title 10, United States Code (article 
39 of the Uniform Code of Military Justice), is amended 
by adding at the end the following new sentence: ‘‘If per-
mitted by regulations of the Secretary concerned, and if 
the accused has a counsel physically present at his loca-
tion, these proceedings may be conducted by the use of 
video-teleconferencing or similar technology.’’.
SEC. 552. UNLIMITED PERIOD FOR PROSECUTION OF MUR-
DER AND RAPE; EXTENDED PERIOD FOR 
PROSECUTION OF CHILD ABUSE CASES IN 
COURTS-MARTIAL. 
Section 843 of title 10, United States Code (article 
43 of the Uniform Code of Military Justice), is amended— 
(1) in subsection (a), by inserting ‘‘, murder, 
rape’’ after ‘‘in a time of war’’; and 
(2) in subsection (b)(2)— 
(A) in subparagraph (A), by striking ‘‘be-
fore the child attains the age of 25 years’’ and 
inserting ‘‘during the life of the victim or within 
five years from the date of the offense, which-
ever is greater,’’; 
(B) in subparagraph (B)— 
(i) by striking ‘‘sexual or physical’’; 
(ii) in clause (i), by striking ‘‘Rape or 
carnal’’ and inserting ‘‘Carnal’’; and 
(iii) in clause (v), by striking ‘‘Inde-
cent assault,’’ and inserting ‘‘Kidnapping; 
indecent assault;’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(C) In subparagraph (A), the term ‘child 
abuse offense’ includes an act that involves 
abuse of a person who has not attained the age
of 18 years and would constitute an offense 
under chapters 110 or 117 or section 1591 of 
title 18.’’. 
SEC. 553. AMENDING OFFENSE OF RAPE UNDER THE UNI-
FORM CODE OF MILITARY JUSTICE; ELIMI-
NATION OF MISTAKE OF AGE DEFENSE IN 
CARNAL KNOWLEDGE OF CHILD CASES. 
(a) RAPE.—Section 920(a) of title 10, United States 
Code (article 120 of the Uniform Code of Military Jus-
tice), is amended by striking ‘‘, by force and without con-
sent,’’ and inserting ‘‘by force’’. 
(b) MISTAKE OF AGE DEFENSE.—Section 920 of 
such title is further amended by striking subsection (d). 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 12 months after the date of 
the enactment of this Act and apply with respect to of-
fenses committed after such effective date. 
SEC. 554. ESTABLISHING THE OFFENSE OF STALKING 
UNDER THE UNIFORM CODE OF MILITARY 
JUSTICE. 
(a) IN GENERAL.—(1) Subchapter X of chapter 47 
of title 10, United States Code (the Uniform Code of Mili-
tary Justice), is amended by inserting after section 893 
(article 93) the following new section:
‘‘§ 893a. Art. 93a. Stalking 
‘‘(a) Any person subject to this chapter— 
‘‘(1) who wrongfully engages in a course of con-
duct directed at a specific person that would cause 
a reasonable person to fear death or bodily harm, in-
cluding sexual assault, to himself or herself or a 
member of his or her immediate family; 
‘‘(2) who has knowledge or should have knowl-
edge that the specific person will be placed in rea-
sonable fear of death or bodily harm, including sex-
ual assault, to himself or herself or a member of his 
or her immediate family; and 
‘‘(3) whose acts induce reasonable fear in the 
specific person of death or bodily harm, including 
sexual assault, to himself or herself or to a member 
of his or her immediate family, is guilty of stalking. 
‘‘(b) Any person found guilty of stalking shall be pun-
ished as a court-martial may direct. 
‘‘(c) For purposes of this section: 
‘‘(1) The term ‘course of conduct’ means re-
peatedly maintaining a visual or physical proximity 
to a specific person, or repeatedly conveying verbal 
or written threats, or threats implied by conduct or 
a combination thereof directed at or toward a spe-
cific person.
‘‘(2) The term ‘repeatedly’ means on two or 
more occasions. 
‘‘(3) The term ‘immediate family’ means a 
spouse, parent, child, sibling, or any other family 
member or relative who regularly resides in the 
household or who within the prior six months regu-
larly resided in the household.’’. 
(2) The table of sections at the beginning of such sub-
chapter is amended by inserting after the item relating 
to section 893 the following new item: 
‘‘893a. Art. 93a. Stalking.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 12 months after the date of 
the enactment of this Act and apply with respect to of-
fenses committed after such effective date. 
SEC. 555. AMENDING OFFENSE OF SODOMY UNDER THE 
UNIFORM CODE OF MILITARY JUSTICE. 
(a) FORCIBLE SODOMY AND SODOMY OF A CHILD.— 
(1) Section 925 of title 10, United States Code (article 
125 of the Uniform Code of Military Justice), is amended 
to read as follows: 
‘‘§ 925. Art. 125. Forcible sodomy and sodomy of a 
child 
‘‘(a) Any person subject to this chapter who engages 
in unnatural carnal copulation by force with another per-
son is guilty of forcible sodomy. Any person found guilty
of forcible sodomy shall be punished as a court-martial 
may direct. 
‘‘(b) Any person subject to this chapter who, under 
circumstances not amounting to forcible sodomy, commits 
an act of unnatural carnal copulation with a person— 
‘‘(1) who is not his or her spouse; and 
‘‘(2) who has not attained the age of sixteen 
years; 
is guilty of sodomy of a child and shall be punished as 
a court-martial may direct. 
‘‘(c) Penetration, however slight, is sufficient to com-
plete either of these offenses.’’. 
(2) The table of sections at the beginning of sub-
chapter X of chapter 47 of such title is amended by strik-
ing the item relating to section 925 and inserting the fol-
lowing new item: 
‘‘925. Art. 125. Forcible sodomy and sodomy of a child.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall take effect 12 months after the date of 
the enactment of this Act and apply with respect to of-
fenses committed after such effective date.
Subtitle G—Management and 
Administrative Matters 
SEC. 561. CLARIFICATION OF AUTHORITY OF MILITARY 
LEGAL ASSISTANCE COUNSEL TO PROVIDE 
MILITARY LEGAL ASSISTANCE WITHOUT RE-
GARD TO LICENSING REQUIREMENTS. 
Section 1044 of title 10, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(e)(1) Notwithstanding any law regarding the licen-
sure of attorneys, a judge advocate or civilian attorney 
who is authorized to provide military legal assistance is 
authorized to provide that assistance in any jurisdiction, 
subject to such regulations as may be prescribed by the 
Secretary concerned. 
‘‘(2) In this subsection, the term ‘military legal as-
sistance’ includes— 
‘‘(A) legal assistance provided under this sec-
tion; and 
‘‘(B) legal assistance contemplated by sections 
1044a, 1044b, 1044c, and 1044d of this title.’’.
Subtitle H—Other Matters 
SEC. 571. UNIFORM ENLISTMENT PRACTICES OF THE 
ARMED FORCES. 
(a) REPEAL OF EXISTING LAW.—Sections 3253 and 
8253 of title 10, United States Code, are repealed. 
(b) UNIFORM PROHIBITION.—Section 504 of such 
title is amended— 
(1) by inserting ‘‘(a)’’ at the beginning of the 
text; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) No person may be enlisted in any armed force 
unless he is a national of the United States as defined 
in section 101(a)(22) of the Immigration and Nationality 
Act (8 U.S.C. 1101(a)(22)), an alien who is lawfully ad-
mitted for permanent residence as defined in section 
101(a)(20) of the Immigration and Nationality Act (8 
U.S.C. 1101(a)(20)), or a person described in section 341 
of the Compact of Free Association with the Federated 
States of Micronesia, the Republic of the Marshall Islands, 
or Palau (section 201(a) of Public Law 108–188 (117 
Stat. 2784, 48 U.S.C. 1921 note), section 201(b) of Public 
Law 108–188 (117 Stat. 2823, 48 U.S.C. 1921 note), and 
section 201 of Public Law 99–658 (100 Stat. 3678, 48 
U.S.C. 1681 note), respectively). However, the Secretary
concerned may authorize exceptions when the Secretary 
determines that such enlistment is vital to the national 
interest.’’. 
SEC. 572. INCREASE IN PERCENTAGE LIMITS ON REDUC-
TION OF TIME IN GRADE REQUIREMENTS 
FOR 
RETENTION 
OF 
GRADE 
UPON 
VOL-
UNTARY RETIREMENT. 
Section 1370(a)(2) of title 10, United States Code, 
is amended by adding at the end the following new sub-
paragraph: 
‘‘(F) Notwithstanding subparagraph (E), and during 
the period beginning on October 1, 2005, and ending on 
September 30, 2010, the number of active-duty lieutenant 
colonels or (in the case of the Navy) commanders in one 
of the armed forces for whom a service-in-grade reduction 
is made under this section in any fiscal year may not ex-
ceed four percent of the authorized active-duty strength 
for that fiscal year for officers of that armed force in that 
grade, and the number of active-duty colonels or (in the 
case of the Navy) captains in one of the armed forces for 
whom a service-in-grade reduction is made under this sec-
tion in any fiscal year may not exceed four percent of the 
authorized active-duty strength for that fiscal year for of-
ficers of that armed force in that grade.’’.
SEC. 573. CONSOLIDATING FROCKING LIMITS. 
Section 777(d) of title 10, United States Code, is 
amended— 
(1) by striking paragraphs (1) and (2) and in-
serting the following new paragraph (1): 
‘‘(1) The total number of brigadier generals, 
rear admirals (lower half), major generals and rear 
admirals on the active-duty list who are authorized 
as described in subsection (a) to wear the insignia 
for the grade of brigadier general, rear admiral 
(lower half), major general or rear admiral, as the 
case may be, may not exceed 85.’’; and 
(2) by redesignating paragraph (3) as para-
graph (2). 
SEC. 574. RECEIPT OF STATUTORY SELECTION BOARD COR-
RESPONDENCE. 
(a) OFFICERS ON THE ACTIVE-DUTY LIST.—Section 
614(b) of title 10, United States Code, is amended by in-
serting ‘‘11:59 PM on the date prior to’’ after ‘‘not later 
than’’. 
(b) OFFICERS
ON
THE RESERVE ACTIVE-STATUS 
LIST.—Section 14106 of such title is amended by insert-
ing ‘‘11:59 PM on the date prior to’’ after ‘‘not later 
than’’.
SEC. 
575. 
MILITARY 
PERSONNEL 
DEMONSTRATION 
PROJECTS. 
(a) IN GENERAL.—Chapter 3 of title 10, United 
States Code, is amended by inserting after section 129c 
the following new section: 
‘‘§ 129d. Military personnel demonstration projects 
‘‘(a) AUTHORITY.—As provided in this section, the 
Secretary of Defense, in consultation with the Director of 
the Office of Management and Budget, may conduct and 
evaluate demonstration projects regarding foreign area of-
ficers, surface warfare officers and the special operation 
forces within the military personnel system. Subject to the 
provisions of this section, this authority shall not be lim-
ited by any lack of specific authority under this title or 
title 37 to take the action contemplated, or by any provi-
sion of this title, title 37 or any rule or regulation pre-
scribed under those titles which is inconsistent with the 
action, including any law or regulation relating to the 
methods of— 
‘‘(1) establishing qualification requirements for, 
recruitment for, and appointment to positions; 
‘‘(2) determining requirements and compen-
sating personnel; 
‘‘(3) assigning, reassigning, separating or pro-
moting personnel;
‘‘(4) providing incentives to personnel, including 
the provision of group or individual incentive bo-
nuses or pay; 
‘‘(5) involving military members in personnel 
decisions; and 
‘‘(6) reducing requirements. 
‘‘(b) PLANS.—Before conducting or entering into any 
agreement or contract to conduct a demonstration project, 
the Secretary shall— 
‘‘(1) develop a plan for such project which de-
scribes its purpose, the personnel groups to be cov-
ered, the project itself, its anticipated outcomes and 
the method of evaluating the project; 
‘‘(2) at least 30 days in advance of the date a 
project is to take effect, provide notification of the 
proposed project— 
‘‘(A) to personnel who are likely to be af-
fected by the project; and 
‘‘(B) to each House of the Congress; and 
‘‘(3) provide each House of the Congress with 
the final version of the plan and a summary of the 
results of each project. 
‘‘(c) WAIVER.—No demonstration project under this 
section may provide for a waiver of this title or title 37 
except with the approval of the Secretary.
‘‘(d) LIMITATIONS.—(1) Each demonstration project 
shall— 
‘‘(A) involve not more than 2,000 individuals 
other than individuals in any control groups nec-
essary to validate the results of the project; and 
‘‘(B) terminate before the end of the 5-year pe-
riod beginning on the date on which the project 
takes effect, except that the project may continue 
beyond the date to the extent necessary to validate 
the results of the project. 
‘‘(2) Not more than 4 active demonstration projects 
may be in effect at any time.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘129d. Military personnel demonstration projects.’’. 
TITLE VI—COMPENSATION AND 
OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
SEC. 601. PERMANENT AUTHORITY FOR THE SUPPLE-
MENTAL 
SUBSISTENCE 
ALLOWANCE 
FOR 
LOW-INCOME MEMBERS WITH DEPENDENTS. 
Section 402a of title 37, United States Code, is 
amended by striking subsection (i).
SEC. 602. REPEAL OF BASIC ALLOWANCE FOR HOUSING 
DIFFERENTIAL. 
(a) MEMBERS PAYING CHILD SUPPORT.—Section 
403 of title 37, United States Code, is amended by strik-
ing subsection (m). 
(b) DEFINITION OF DEPENDENT.—Section 403 is 
further amended— 
(1) by redesignating subsections (n) and (o) as 
subsections (m) and (n), respectively; and 
(2) by adding at the end the following new sub-
section (o): 
‘‘(o) DEPENDENT DEFINED.—For purposes of this 
section, the term ‘dependent’, with respect to a member 
of a uniformed service, means the following persons: 
‘‘(1) The spouse of the member. 
‘‘(2) An unmarried child of the member who— 
‘‘(A) resides with the member unless sepa-
rated— 
‘‘(i) by the necessity of military serv-
ice; 
‘‘(ii) to receive institutional care as a 
result of disability or incapacitation; or 
‘‘(iii) under such other circumstances 
as the Secretary concerned may prescribe; 
and 
‘‘(B) is under 21 years of age;
‘‘(C) is incapable of self-support because of 
mental or physical incapacity and is in fact de-
pendent on the member for more than one-half 
of the child’s support; or 
‘‘(D) is under 23 years of age, is enrolled 
in a full-time course of study in an institution 
of higher education approved by the Secretary 
concerned for purposes of this clause, and is in 
fact dependent on the member for more than 
one-half of the child’s support. 
‘‘(3) A parent of the member if— 
‘‘(A) the parent is in fact dependent on the 
member for more than one-half of the parent’s 
support; 
‘‘(B) the parent has been so dependent for 
a period prescribed by the Secretary concerned 
or became so dependent due to a change of cir-
cumstances arising after the member entered on 
active duty; and 
‘‘(C) the dependency of the parent on the 
member is determined on the basis of an affi-
davit submitted by the parent and any other 
evidence required under regulations prescribed 
by the Secretary concerned. 
‘‘(4) An unmarried person who—
‘‘(A) is placed in the legal custody of the 
member as a result of an order of a court of 
competent jurisdiction in the United States (or 
Puerto Rico or a possession of the United 
States) for a period of at least 12 consecutive 
months; 
‘‘(B) either— 
‘‘(i) has not attained the age of 21; 
‘‘(ii) has not attained the age of 23 
years and is enrolled in a full-time course 
of study at an institution of higher learn-
ing approved by the Secretary concerned; 
or 
‘‘(iii) is incapable of self support be-
cause of a mental or physical incapacity 
that occurred while the person was consid-
ered a dependent of the member or former 
member under this paragraph pursuant to 
clause (i) or (ii); 
‘‘(C) is dependent on the member for over 
one-half of the person’s support; 
‘‘(D) resides with the member unless sepa-
rated by the necessity of military service or to 
receive institutional care as a result of disability 
or incapacitation or under such other cir-
cumstances as the Secretary concerned may by 
regulation prescribe; and 
‘‘(E) is not a dependent of a member 
under any other subparagraph. 
‘‘(5) For purposes of this section: 
‘‘(A) The term ’child’ includes— 
‘‘(i) a stepchild of the member (except 
that such term does not include a stepchild 
after the divorce of the member from the 
stepchild’s parent by blood); 
‘‘(ii) an adopted child of the member, 
including a child placed in the home of the 
member by a placement agency (recognized 
by the Secretary of Defense) in anticipa-
tion of the legal adoption of the child by 
the member; and 
‘‘(iii) an illegitimate child of the mem-
ber if the member’s parentage of the child 
is established in accordance with criteria 
prescribed in regulations by the Secretary 
concerned. 
‘‘(B) The term ‘parent’ means— 
‘‘(i) a natural parent of the member; 
‘‘(ii) a stepparent of the member;
‘‘(iii) a parent of the member by 
adoption; 
‘‘(iv) a parent, stepparent, or adopted 
parent of the spouse of the member; and 
‘‘(v) any other person, including a 
former stepparent, who has stood in loco 
parentis to the member at any time for a 
continuous period of at least five years be-
fore the member became 21 years of age.’’. 
SEC. 603. REVISIONS TO PAY AND ALLOWANCES CONSID-
ERED FOR SAVED PAY UPON APPOINTMENT 
AS AN OFFICER. 
Section 907(d) of title 37, United States Code, is 
amended to read as follows: 
‘‘(d)(1) In determining the amount of the pay and 
allowances of a grade formerly held by an officer, the fol-
lowing special and incentive pays may be considered only 
so long as the officer continues to perform the duty cre-
ating the entitlement to or eligibility for that pay and 
would otherwise be eligible to receive that pay in his 
former grade: 
‘‘(A) Incentive pay for hazardous duty under 
section 301 of this title. 
‘‘(B) Submarine duty incentive pay under sec-
tion 301c of this title.
‘‘(C) Special pay for diving duty under section 
304 of this title. 
‘‘(D) Hardship duty pay under section 305 of 
this title. 
‘‘(E) Career sea pay under section 305a of this 
title. 
‘‘(F) Special pay for service as a member of a 
Weapons of Mass Destruction Civil Support Team 
under section 305b of this title. 
‘‘(G) Assignment incentive pay under section 
307a of this title. 
‘‘(H) Hostile fire pay or imminent danger pay 
under section 310 of this title. 
‘‘(I) Overseas tour extension incentive pay 
under section 314 of this title. 
‘‘(J) Foreign language proficiency pay under 
section 316 of this title. 
‘‘(K) Critical skill retention bonus under section 
323 of this title. 
‘‘(2) The following special and incentive pays are de-
pendent on a member being in enlisted status and may 
not be considered in determining the amount of the pay 
and allowances of a grade formerly held by an officer: 
‘‘(A) Special duty assignment pay under section 
307 of this title.
‘‘(B) Reenlistment bonus under section 308 of 
this title. 
‘‘(C) Enlistment bonus under section 309 of 
this title. 
‘‘(D) Nuclear enlisted bonus under section 312a 
of this title. 
‘‘(E) Career enlisted flyer incentive pay under 
section 320 of this title.’’. 
Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. UNIFORM PAYMENT OF FOREIGN LANGUAGE 
PROFICIENCY PAY TO RESERVE COMPONENT 
MEMBERS AND MEMBERS ON ACTIVE DUTY. 
(a) IN GENERAL.—Section 316 of title 37, United 
States Code, is amended— 
(1) in subsection (a)— 
(A) by striking ‘‘subsection (c)’’ and in-
serting ‘‘subsection (b)’’; 
(B) by striking ‘‘monthly special pay’’ and 
inserting ‘‘a bonus’’; and 
(C) by striking ‘‘is entitled to basic pay 
under section 204 of this title and who’’; 
(2) by striking subsection (b) and redesignating 
subsections (c), (d), (e), (f), (g) and (h) as sub-
sections (b), (c), (d), (e), (f) and (g), respectively;
(3) in subsection (b), as redesignated by para-
graph (2)— 
(A) by striking ‘‘special pay or a bonus’’ 
and inserting ‘‘a bonus’’; 
(B) by striking ‘‘subsection (a) or (b)’’ and 
inserting ‘‘subsection (a)’’; and 
(C) by striking ‘‘special pay or bonus’’ and 
inserting ‘‘bonus’’; 
(4) by amending subsections (c) and (d), as re-
designated by paragraph (2), to read as follows: 
‘‘(c) BONUS AMOUNT.—The bonus paid under sub-
section (a) may not exceed $12,000 per year. The Sec-
retary concerned may pay the bonus in a single lump sum 
at the beginning of the certification period or in install-
ments during the certification period. 
‘‘(d) RELATIONSHIP
TO OTHER PAY
OR ALLOW-
ANCES.—A bonus paid under this section is in addition 
to any other pay or allowance payable to a member under 
any other provision of law.’’; 
(5) in subsection (e), as redesignated by para-
graph (2)— 
(A) in paragraph (1)— 
(i) by striking ‘‘Notwithstanding’’ and 
all that follows through ‘‘pay or’’ and in-
serting ‘‘The Secretary concerned may
waive the certification requirement in sub-
section (b) and pay’’; and 
(ii) in subparagraph (C), by striking 
‘‘or a’’ and all that follows through ‘‘mem-
ber’’; 
(B) in paragraph (2), by striking ‘‘For 
purposes’’ and all that follows through ‘‘the 
Secretary’’ and inserting ‘‘The Secretary’’; 
(C) in paragraph (3)— 
(i) by striking ‘‘special pay or a 
bonus’’ and inserting ‘‘a bonus’’; 
(ii) by striking ‘‘subsection (c)’’ and 
inserting ‘‘subsection (b)’’; 
(iii) by striking ‘‘special pay or 
bonus’’ and inserting ‘‘bonus’’; and 
(iv) by striking ‘‘subsection (h)’’ and 
inserting ‘‘subsection (g)’’; and 
(D) in paragraph (4)— 
(i) by striking ‘‘subsection (c)’’ and 
inserting ‘‘subsection (b)’’; 
(ii) by striking ‘‘bonus in the manner’’ 
and inserting ‘‘amount received by the 
member as’’; and (iii) by striking ‘‘sub-
section (g)’’ and inserting ‘‘subsection (f)’’; 
and
(6) by amending subsection (f), as redesignated 
by paragraph (2), to read as follows: 
‘‘(f) REPAYMENT
OF BONUS.—(1) The Secretary 
concerned may terminate at any time the eligibility of a 
member to receive a bonus under subsection (a). 
‘‘(2) A member who receives a bonus under this sec-
tion, but who does not satisfy an eligibility requirement 
specified in paragraph (1), (2), (3), or (4) of subsection 
(a) for the entire certification period for which the bonus 
was paid, shall be subject to the repayment provisions of 
section 327 of this title.’’. 
(b) CLERICAL AMENDMENTS.—(1) Section 316 is 
further amended by striking ‘‘pay and’’ in the heading and 
inserting ‘‘pay:’’. 
(2) The table of sections at the beginning of chapter 
5 of such title is amended by striking the item relating 
to section 316 and inserting the following new item: 
‘‘316. Special pay: bonus for members with foreign language proficiency.’’. 
SEC. 612. INCREASE MAXIMUM AMOUNT OF SELECTIVE RE-
ENLISTMENT BONUS. 
(a) IN GENERAL.—Section 308(a)(2)(B) of title 37, 
United States Code, is amended by striking ‘‘$60,000’’ 
and inserting ‘‘$90,000’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
(1)(A) Section 312a of such title is repealed.
(B) The table of sections at the beginning of chapter 
5 of such title is amended by striking the item relating 
to section 312a. 
(2) Section 308(a)(1) of such title is further amend-
ed— 
(A) by adding ‘‘and’’ at the end of subpara-
graph (B); 
(B) by striking subparagraph (C); and 
(C) by redesignating subparagraph (D) as subpara-
graph (C). 
SEC. 613. ONE-YEAR EXTENSION OF CERTAIN BONUS AND 
SPECIAL PAYS FOR RESERVE FORCES. 
(a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN 
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section 
302g(f) of title 37, United States Code, is amended by 
striking ‘‘December 31, 2005’’ and inserting ‘‘December 
31, 2006’’. 
(b) SELECTED RESERVE REENLISTMENT BONUS.— 
Section 308b(g) of such title is amended by striking ‘‘De-
cember 31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘Decem-
ber 31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section
308d(c) of such title is amended by striking ‘‘December 
31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(f) READY RESERVE NON-PRIOR SERVICE ENLIST-
MENT BONUS.—Section 308g(h) of such title is amended 
by striking ‘‘September 30, 1992’’ and inserting ‘‘Decem-
ber 31, 2006’’. 
(g) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended 
by striking ‘‘December 31, 2005’’ and inserting ‘‘Decem-
ber 31, 2006’’. 
(h) PRIOR SERVICE REENLISTMENT BONUS.—Sec-
tion 308i(f) of such title is amended by striking ‘‘Decem-
ber 31, 2005’’ and inserting ‘‘December 31, 2006’’. 
(i) REPAYMENT OF EDUCATION LOANS FOR CERTAIN 
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED 
RESERVE.—Section 16302(d) of title 10, United States 
Code, is amended by striking ‘‘January 1, 2006’’ and in-
serting ‘‘January 1, 2007’’. 
SEC. 614. FLEXIBLE PAYMENT OF ASSIGNMENT INCENTIVE 
PAY. 
Section 307a of title 37, United States Code, is 
amended—
(1) in subsection (a), by striking ‘‘monthly’’; 
(2) by redesignating subsections (d), (e), and 
(f) as subsections (f), (g), and (h), respectively; and 
(3) by inserting after subsection (c) the fol-
lowing new subsections (d) and (e): 
‘‘(d) PAYMENT OF SPECIAL PAY.—(1) The Secretary 
concerned may specify in a written agreement under sub-
section (b) that payment shall be at a monthly rate, a 
lump sum, or in installments. 
‘‘(2) The maximum amount of a lump sum payment 
may not exceed the product of the maximum monthly rate 
authorized under subsection (c) and the number of months 
in the period for which incentive pay will be provided. In-
stallments shall be calculated using the same formula for 
the agreed upon period of each installment. 
‘‘(3) If a member extends the assignment specified 
in the agreement with the Secretary, incentive pay for the 
period of the extension may be paid at a monthly rate, 
in a lump sum, or in installments pursuant to this sub-
section. 
‘‘(e) REPAYMENT OF SPECIAL PAY.—(1) A member 
who, having entered into an agreement under this section, 
receives a lump sum or installment payment under sub-
section (d) and fails to complete the total period of service 
specified in the agreement voluntarily or because of mis-
conduct, shall refund to the United States on a pro rata 
basis the unearned portion of the payment to the extent 
that the Secretary concerned determines conditions and 
circumstances warrant. 
‘‘(2) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed 
to the United States. 
‘‘(3) A discharge in bankruptcy under title 11 that 
is entered less than five years after the termination of the 
agreement does not discharge the member signing the 
agreement from a debt arising under paragraph (1).’’. 
SEC. 615. REPAYMENT OF UNEARNED PORTIONS OF BO-
NUSES, SPECIAL PAYS, AND EDUCATIONAL 
BENEFITS. 
(a) REPAYMENT OF UNEARNED PORTIONS OF BO-
NUSES.—(1) Chapter 5 of title 37, United States Code, 
is amended by adding at the end the following new section: 
‘‘§ 327. Repayment of unearned portions of bonuses, 
incentives, special pay or similar pay-
ments, or educational benefits or sti-
pends when conditions of payment not 
met 
‘‘(a) IN GENERAL.—A member of the uniformed 
services who has received a bonus, incentive, special pay 
or similar payment, or an educational benefit or stipend,
and who is, by law, subject to the repayment provisions 
of this section shall repay to the United States such com-
pensation or benefit when the member does not meet the 
conditions of the pay or benefit, except under conditions 
established by the Secretary concerned. 
‘‘(b) REGULATIONS.—The Secretary concerned may 
set forth in regulations procedures for determining the 
amount of any repayment, and the conditions under which 
an exception to the required repayment would apply. The 
Secretary concerned may specify in such regulations the 
conditions under which any future installment payment of 
a bonus, incentive, special pay, or similar payment or ben-
efit will not be made when the member does not meet the 
conditions of pay or benefit. For the military departments, 
this section shall be administered under regulations pre-
scribed by the Secretary of Defense. 
‘‘(c) DEBT.—An obligation to repay the United 
States under subsection (a) is, for all purposes, a debt 
owed the United States. 
‘‘(d) EFFECT
OF BANKRUPTCY.—A discharge in 
bankruptcy under title 11 does not discharge a person 
from a debt under this section if the final decree of dis-
charge is entered less than five years after the date of 
the termination of the service or the date of the termi-
nation of the agreement on which the debt is based. This
subsection applies to any case commenced under title 11 
after March 30, 2006.’’. 
(2) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘327. Repayment of unearned portions of bonuses, incentives, special pay or 
similar payments, or educational benefits or stipends, when 
conditions of payment not met.’’. 
(b) 
AVIATION
CAREER
OFFICER
RETENTION 
BONUS.—Subsection (g) of section 301b of such title is 
amended to read as follows: 
‘‘(g) REPAYMENT OF BONUS.—An officer who does 
not complete the period of active duty specified in the 
agreement entered into under subsection (a) shall be sub-
ject to the repayment provisions of section 327 of this 
title.’’. 
(c) MEDICAL
OFFICER
MULTIYEAR
RETENTION 
BONUS.—Subsection (c) of section 301d of such title is 
amended to read as follows: 
‘‘(c) REPAYMENT OF BONUS.—An officer who does 
not complete the period of active duty specified in the 
agreement entered into under subsection (a) shall be sub-
ject to the repayment provisions of section 327 of this 
title.’’. 
(d) DENTAL
OFFICER
MULTIYEAR
RETENTION 
BONUS.—Subsection (d) of section 301e of such title is 
amended to read as follows:
‘‘(d) REPAYMENT OF BONUS.—An officer who does 
not complete the period of active duty specified in the 
agreement entered into under subsection (a) shall be sub-
ject to the repayment provisions of section 327 of this 
title.’’. 
(e) MEDICAL OFFICER SPECIAL PAY.—Section 302 
of such title is amended— 
(1) in subsection (c), by amending the last sen-
tence in paragraph (2) to read as follows: ‘‘If such 
entitlement is terminated, the officer concerned shall 
be subject to the repayment provisions of section 327 
of this title.’’. 
(2) by amending subsection (f) to read as fol-
lows: 
‘‘(f) REPAYMENT.—An officer who does not complete 
the period for which the payment was made under sub-
section (a)(4) or (b)(1) shall be subject to the repayment 
provisions of section 327 of this title.’’. 
(f) OPTOMETRIST RETENTION SPECIAL PAY.—Para-
graph (4) of section 302a(b) of such title is amended to 
read as follows: 
‘‘(4) The Secretary concerned may terminate at any 
time the eligibility of an officer to receive retention special 
pay under paragraph (1). An officer who does not com-
plete the period for which the payment was made under