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National Defense Authorization Act for Fiscal Year 2007
(Public Law 109–364) are hereby adjusted, with respect to
any such authorized amount, by the amount by which ap-
propriations pursuant to such authorization are increased
by a supplemental appropriation or by a transfer of funds,
or decreased by a rescission, or any thereof, pursuant to
the U.S. Troop Readiness, Veterans’ Care, Katrina Recov-
ery, and Iraq Accountability Appropriations Act, 2007
(Public Law 110–28).
SEC. 1003. MODIFICATION OF FISCAL YEAR 2007 GENERAL
TRANSFER AUTHORITY.
Section 1001(a) of the John Warner National Defense
Authorization Act for Fiscal Year 2007 (Public Law 109–
364; 120 Stat. 2371) is amended by adding at the end the
following new paragraph:
‘‘(3) EXCEPTION FOR CERTAIN TRANSFERS.—The
following transfers of funds shall be not be counted to-
ward the limitation in paragraph (2) on the amount
that may be transferred under this section:
‘‘(A) The transfer of funds to the Iraq Secu-
rity Forces Fund under reprogramming FY07–
07–R PA.
‘‘(B) The transfer of funds to the Joint Im-
provised Explosive Device Defeat Fund under re-
programming FY07–11 PA.
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‘‘(C) The transfer of funds back from the ac-
counts referred to in subparagraphs (A) and (B)
to 
restore 
the 
sources 
used 
in 
the
reprogrammings referred to in such subpara-
graphs.’’.
SEC. 1004. UNITED STATES CONTRIBUTION TO NATO COM-
MON-FUNDED BUDGETS IN FISCAL YEAR 2008.
(a) FISCAL
YEAR
2008 LIMITATION.—The total
amount contributed by the Secretary of Defense in fiscal
year 2008 for the common-funded budgets of NATO may
be any amount up to, but not in excess of, the amount speci-
fied in subsection (b) (rather than the maximum amount
that would otherwise be applicable to those contributions
under the fiscal year 1998 baseline limitation).
(b) TOTAL AMOUNT.—The amount of the limitation
applicable under subsection (a) is the sum of the following:
(1) The amounts of unexpended balances, as of
the end of fiscal year 2007, of funds appropriated for
fiscal years before fiscal year 2008 for payments for
those budgets.
(2) The amount specified in subsection (c)(1).
(3) The amount specified in subsection (c)(2).
(4) The total amount of the contributions author-
ized to be made under section 2501.
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(c) AUTHORIZED AMOUNTS.—Amounts authorized to
be appropriated by titles II and III of this Act are available
for contributions for the common-funded budgets of NATO
as follows:
(1) Of the amount provided in section 201(1),
$1,031,000 for the Civil Budget.
(2) Of the amount provided in section 301(1),
$362,159,000 for the Military Budget.
(d) DEFINITIONS.—For purposes of this section:
(1) COMMON-FUNDED BUDGETS OF NATO.—The
term ‘‘common-funded budgets of NATO’’ means the
Military Budget, the Security Investment Program,
and the Civil Budget of the North Atlantic Treaty Or-
ganization (and any successor or additional account
or program of NATO).
(2) FISCAL YEAR 1998 BASELINE LIMITATION.—
The term ‘‘fiscal year 1998 baseline limitation’’
means the maximum annual amount of Department
of Defense contributions for common-funded budgets of
NATO that is set forth as the annual limitation in
section 3(2)(C)(ii) of the resolution of the Senate giv-
ing the advice and consent of the Senate to the ratifi-
cation of the Protocols to the North Atlantic Treaty
of 1949 on the Accession of Poland, Hungary, and the
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Czech Republic (as defined in section 4(7) of that res-
olution), approved by the Senate on April 30, 1998.
SEC. 1005. FINANCIAL MANAGEMENT TRANSFORMATION
INITIATIVE FOR THE DEFENSE AGENCIES.
(a) FINANCIAL MANAGEMENT TRANSFORMATION INI-
TIATIVE.—
(1) IN GENERAL.—The Director of the Business
Transformation Agency of the Department of Defense
shall carry out an initiative for financial manage-
ment transformation in the Defense Agencies. The ini-
tiative shall be known as the ‘‘Defense Agencies Ini-
tiative’’ (in this section referred to as the ‘‘Initia-
tive’’).
(2) SCOPE OF AUTHORITY.—In carrying out the
Initiative, the Director of the Business Trans-
formation Agency may require the heads of the De-
fense Agencies to carry out actions that are within the
purpose and scope of the Initiative.
(b) PURPOSES.—The purposes of Initiative shall be as
follows:
(1) To eliminate or replace financial manage-
ment systems of the Defense Agencies that are dupli-
cative, redundant, or fail to comply with the stand-
ards set forth in subsection (d).
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(2) To transform the budget, finance, and ac-
counting operations of the Defense Agencies to enable
the Defense Agencies to achieve accurate and reliable
financial information needed to support financial ac-
countability and effective and efficient management
decisions.
(c) REQUIRED ELEMENTS.—The Initiative shall in-
clude, to the maximum extent practicable—
(1) the utilization of commercial, off-the-shelf
technologies and web-based solutions;
(2) a standardized technical environment and an
open and accessible architecture; and
(3) the implementation of common business proc-
esses, shared services, and common data structures.
(d) STANDARDS.—In carrying out the Initiative, the
Director of the Business Transformation Agency shall en-
sure that the Initiative is consistent with—
(1) the requirements of the Business Enterprise
Architecture and Transition Plan developed pursuant
to section 2222 of title 10, United States Code;
(2) the Standard Financial Information Struc-
ture of the Department of Defense;
(3) the Federal Financial Management Improve-
ment Act of 1996 (and the amendments made by that
Act); and
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(4) other applicable requirements of law and reg-
ulation.
(e) SCOPE.—The Initiative shall be designed to pro-
vide, at a minimum, capabilities in the major process areas
for both general fund and working capital fund operations
of the Defense Agencies as follows:
(1) Budget formulation.
(2) Budget to report, including general ledger
and trial balance.
(3) Procure to pay, including commitments, obli-
gations, and accounts payable.
(4) Order to fulfill, including billing and ac-
counts receivable.
(5) Cost accounting.
(6) Acquire to retire (account management).
(7) Time and attendance and employee entitle-
ment.
(8) Grants financial management.
(f) PROGRAM CONTROL.—In carrying out the Initia-
tive, the Director of the Business Transformation Agency
shall establish—
(1) a board (to be known as the ‘‘Configuration
Control Board’’) to manage scope and cost changes to
the Initiative; and
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(2) a program management office (to be known
as the ‘‘Program Management Office’’) to control and
enforce assumptions made in the acquisition plan, the
cost estimate, and the system integration contract for
the Initiative, as directed by the Configuration Con-
trol Board.
(g) PLAN ON DEVELOPMENT AND IMPLEMENTATION OF
INITIATIVE.—Not later than six months after the date of
the enactment of this Act, the Director of the Business
Transformation Agency shall submit to the congressional
defense committees a plan for the development and imple-
mentation of the Initiative. The plan shall provide for the
implementation of an initial capability under the Initiative
as follows:
(1) In at least one Defense Agency by not later
than eight months after the date of the enactment of
this Act.
(2) In not less than six Defense Agencies by not
later than 18 months after the date of the enactment
of this Act.
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SEC. 1006. REPEAL OF REQUIREMENT FOR TWO-YEAR BUDG-
ET CYCLE FOR THE DEPARTMENT OF DE-
FENSE.
Section 1405 of the Department of Defense Authoriza-
tion Act, 1986 (Public Law 99–145; 99 Stat. 744; 31 U.S.C.
1105 note) is repealed.
SEC. 1007. EXTENSION OF PERIOD FOR TRANSFER OF
FUNDS TO FOREIGN CURRENCY FLUCTUA-
TIONS, DEFENSE ACCOUNT.
Section 2779 of title 10, United States Code, is
amended—
(1) in subsection (a)(2), by striking ‘‘second fis-
cal year’’ and inserting ‘‘fourth fiscal year’’; and
(2) in subsection (d)(2), by striking ‘‘second fis-
cal year’’ and inserting ‘‘fourth fiscal year’’.
SEC. 1008. REPORT ON FUNDING OF THE DEPARTMENT OF
DEFENSE FOR HEALTH CARE FOR ANY FISCAL
YEAR IN WHICH THE ARMED FORCES ARE EN-
GAGED IN A MAJOR MILITARY CONFLICT.
If the Armed Forces are involved in a major military
conflict when the President submits to Congress the budget
for a fiscal year under section 1105 of title 31, United
States Code, and the aggregate amount included in that
budget for the Department of Defense for health care for
such fiscal year is less than the aggregate amount provided
by Congress for the Department for health care for such pre-
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ceding fiscal year, and, in the case of the Department, the
total allocation from the Defense Health Program to any
military department is less than the total such allocation
in the preceding fiscal year, the President shall submit to
Congress a report on—
(1) the reasons for the determination that inclu-
sion of a lesser aggregate amount or allocation to any
military department is in the national interest; and
(2) the anticipated effects of the inclusion of such
lesser aggregate amount or allocation to any military
department on the access to and delivery of medical
and support services to members of the Armed Forces
and their family members.
Subtitle B—Counter-Drug Activities
SEC. 1011. EXPANSION OF DEPARTMENT OF DEFENSE AU-
THORITY 
TO 
PROVIDE 
SUPPORT 
FOR
COUNTER-DRUG ACTIVITIES TO CERTAIN AD-
DITIONAL FOREIGN GOVERNMENTS.
Section 1033(b) of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 111 Stat.
1881), as amended by section 1021(b) of the National De-
fense Authorization Act for Fiscal Year 2004 (Public Law
108–136; 117 Stat. 1593) and section 1022(b) of the John
Warner National Defense Authorization Act for Fiscal Year
2007 (Public Law 109–364; 120 Stat. 2382), is further
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amended by adding at the end the following new para-
graphs:
‘‘(17) The Government of the Dominican Repub-
lic.
‘‘(18) The Government of Mexico.’’.
SEC. 1012. REPORT ON COUNTERNARCOTICS ASSISTANCE
FOR THE GOVERNMENT OF HAITI.
(a) REPORT REQUIRED.—Not later than 120 days
after the date of the enactment of this Act, the President
shall submit to Congress a report on counternarcotics assist-
ance for the Government of Haiti.
(b) MATTERS TO BE INCLUDED.—The report required
by subsection (a) shall include the following:
(1) A description and assessment of the counter-
narcotics assistance provided to the Government of
Haiti by each of the Department of Defense, the De-
partment of State, the Department of Homeland Se-
curity, and the Department of Justice.
(2) A description and assessment of any impedi-
ments to increasing counternarcotics assistance to the
Government of Haiti, including corruption and lack
of entities available to partner with in Haiti.
(3) An assessment of the feasability and advis-
ability of providing additional counternarcotics as-
sistance to the Government of Haiti, including an ex-
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tension and expansion to the Government of Haiti of
Department of Defense authority to provide support
for counter-drug activities of certain foreign govern-
ments.
(4) An assessment of the potential for counter-
narcotics assistance for the Government of Haiti
through the United Nations Stabilization Mission in
Haiti.
(c) FORM.—The report required by subsection (a) shall
be submitted in unclassified form, but may include a classi-
fied annex.
Subtitle C—Miscellaneous
Authorities and Limitations
SEC. 1021. ENHANCEMENT OF AUTHORITY TO PAY RE-
WARDS FOR ASSISTANCE IN COMBATING TER-
RORISM.
(a) INCREASE IN AMOUNT OF REWARD.—Subsection
(b) of section 127b of title 10, United States Code, is amend-
ed by inserting ‘‘, or $5,000,000 during fiscal year 2008’’
after ‘‘$200,000’’.
(b) DELEGATION OF AUTHORITY TO COMMANDERS OF
COMBATANT COMMANDS.—Subsection (c)(1)(B) of such title
is amended by inserting ‘‘, or $1,000,000 during fiscal year
2008’’ after ‘‘$50,000’’.
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(c) CONSULTATION WITH SECRETARY OF STATE IN
AWARD.—Subsection (d)(2) of such section is amended by
inserting ‘‘, or $2,000,000 during fiscal year 2008’’ after
‘‘$100,000’’.
SEC. 1022. REPEAL OF MODIFICATION OF AUTHORITIES RE-
LATING TO THE USE OF THE ARMED FORCES
IN MAJOR PUBLIC EMERGENCIES.
(a) REPEAL.—
(1) IN
GENERAL.—Section 333 of title 10,
United States Code, as amended by section 1076 of
the John Warner National Defense Authorization Act
for Fiscal Year 2007 (Public Law 109–364; 120 Stat.
2404), is amended to read as such section read on Oc-
tober 16, 2006, which is the day before the date of the
enactment of the John Warner National Defense Au-
thorization Act for Fiscal Year 2007.
(2) CONFORMING CLERICAL AMENDMENTS.—(A)
The heading of such section 333, as so amended, is
amended to read as such heading read on October 16,
2006.
(B) The item relating to such section 333 in the
table of sections at the beginning of chapter 15 of such
title, as so amended, is amended to read as such item
read on October 16, 2006.
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(C) The heading of chapter 15 of such title, as
so amended, is amended to read as such heading read
on October 16, 2006.
(D) The item relating to chapter 15 of such title
in the tables of chapters at the beginning of subtitle
A of such title, and at the beginning of part I of such
subtitle, as so amended, is amended to read as such
item read on October 16, 2006.
(b) OTHER CONFORMING AMENDMENTS.—
(1) CONFORMING REPEAL.—(A) Section 2567 of
title 10, United States Code, is repealed.
(B) The table of sections at the beginning of
chapter 152 of such title is amended by striking the
item relating to section 2567.
(2) 
ADDITIONAL
AMENDMENT.—Section
12304(c)(1) of such title, as amended by section 1076
of the John Warner National Defense Authorization
Act for Fiscal Year 2007, is amended to read as such
section read on October 16, 2006.
SEC. 1023. HATE CRIMES.
(a) SHORT TITLE.—This section may be cited as the
‘‘Matthew Shepard Local Law Enforcement Hate Crimes
Prevention Act of 2007’’.
(b) FINDINGS.—Congress makes the following findings:
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(1) The incidence of violence motivated by the
actual or perceived race, color, religion, national ori-
gin, gender, sexual orientation, gender identity, or
disability of the victim poses a serious national prob-
lem.
(2) Such violence disrupts the tranquility and
safety of communities and is deeply divisive.
(3) State and local authorities are now and will
continue to be responsible for prosecuting the over-
whelming majority of violent crimes in the United
States, including violent crimes motivated by bias.
These authorities can carry out their responsibilities
more effectively with greater Federal assistance.
(4) Existing Federal law is inadequate to ad-
dress this problem.
(5) A prominent characteristic of a violent crime
motivated by bias is that it devastates not just the ac-
tual victim and the family and friends of the victim,
but frequently savages the community sharing the
traits that caused the victim to be selected.
(6) Such violence substantially affects interstate
commerce in many ways, including the following:
(A) The movement of members of targeted
groups is impeded, and members of such groups