(iv) The department may retain an amount 
reasonably necessary to pay expenses incidental 
to the administration and distribution of royal-
ties or other payments under this section by an 
organizational unit of the department other 
than its laboratories. 
(B) The balance of the royalties or other pay-
ments shall be transferred by the department to its 
laboratories, with the majority share of the royalties 
or other payments going to the laboratory where the 
development occurred. The royalties or other pay-
ments so transferred to any DoD laboratory may be 
used or obligated by that laboratory during the fiscal 
year in which they are received or during the 2 suc-
ceeding fiscal years— 
(i) to reward scientific, engineering, and 
technical employees of the DoD laboratory, in-
cluding developers of sensitive or classified tech-
nology, regardless of whether the technology 
has commercial applications; 
(ii) to further scientific exchange among 
the laboratories of the agency; 
(iii) for education and training of employ-
ees consistent with the research and develop-
ment missions and objectives of the department 
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or DoD laboratory, and for other activities that 
increase the potential for transfer of the tech-
nology of the laboratories; 
(iv) for payment of expenses incidental to 
the administration and licensing of computer 
software or other intellectual property made at 
that DoD laboratory, including the fees or other 
costs for the services of other agencies, persons, 
or organizations for intellectual property man-
agement and licensing services; or 
(v) for scientific research and development 
consistent with the research and development 
missions and objectives of the DoD laboratory. 
(C) All royalties or other payments retained by 
the department or DoD laboratory after payments 
have been made pursuant to subparagraphs (A) and 
(B) that are unobligated and unexpended at the end 
of the second fiscal year succeeding the fiscal year 
in which the royalties and other payments were re-
ceived shall be paid into the Treasury. 
(2) EXCEPTION.—If, after payments under 
paragraph (1)(A), the balance of the royalties or 
other payments received by the department in any 
fiscal year exceed 5 percent of the funds received for 
use by the DoD laboratory for research, develop-
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ment, engineering, testing and evaluation or other 
related administrative, processing or value-added ac-
tivities for that year, 75 percent of such excess shall 
be paid to the Treasury of the United States and the 
remaining 25 percent may be used or obligated 
under paragraph (1)(B). Any funds not so used or 
obligated shall be paid into the Treasury of the 
United States. 
(3) STATUS OF PAYMENTS TO EMPLOYEES.— 
Any payment made to an employee under this sec-
tion shall be in addition to the regular pay of the 
employee and to any other awards made to the em-
ployee, and shall not affect the entitlement of the 
employee to any regular pay, annuity, or award to 
which the employee is otherwise entitled or for which 
the employee is otherwise eligible or limit the 
amount thereof except that the monetary value of an 
award for the same project or effort shall be de-
ducted from the amount otherwise available under 
this paragraph. Payments, determined under the 
terms of this paragraph and made to an employee 
developer as such, may continue after the developer 
leaves the DoD laboratory or department. Payments 
made under this section shall not exceed $75,000 
per year to any one person, unless the President ap-
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proves a larger award (with the excess over $75,000 
being treated as a Presidential award under section 
4504 of title 5). 
(d) INFORMATION IN REPORT.—The report required 
by section 2515(d) of title 10, United States Code, shall 
include information regarding the implementation and ef-
fectiveness of this section. 
(e) EXPIRATION.—The authority provided in this sec-
tion shall expire on December 31, 2018. 
SEC. 805. EXTENSION OF AUTHORITY FOR PROGRAM TO 
AWARD 
PRIZES 
FOR 
ADVANCED 
TECH-
NOLOGY ACHIEVEMENTS. 
Section 2374a of title 10, United States Code, is 
amended by striking ‘‘September 30, 2013’’ in subsection 
(f) and inserting ‘‘September 30, 2017’’. 
SEC. 806. REVISIONS TO ELIGIBILITY FOR, AND AMOUNT 
OF, FINANCIAL ASSISTANCE UNDER DEPART-
MENT OF DEFENSE SCIENCE, MATHEMATICS, 
AND RESEARCH FOR TRANSFORMATION PRO-
GRAM. 
(a) ELIGIBILITY FOR EDUCATIONAL ASSISTANCE.— 
Paragraph (1) of section 2192a(b) of title 10, United 
States Code, is amended— 
(1) by striking subparagraph (A); and 
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(2) by redesignating subparagraphs (B) and 
(C) as subparagraphs (A) and (B), respectively. 
(b) AMOUNT OF EDUCATIONAL ASSISTANCE.—Para-
graph (2) of such section is amended by striking ‘‘the 
amount determined’’ and all that follows through ‘‘room 
and board’’ and inserting ‘‘an amount determined by the 
Secretary of Defense’’. 
(c) CONCURRENCE OF SECRETARY OF STATE FOR 
AWARDS
TO NON-CITIZENS.—Such section is further 
amended by adding at the end the following new para-
graph: 
‘‘(4) For the purposes of paragraph (1), a scholarship 
or fellowship awarded to a person who is not a citizen of 
the United States may only be awarded with the concur-
rence of the Secretary of State.’’. 
TITLE IX—DEPARTMENT OF DE-
FENSE ORGANIZATION AND 
MANAGEMENT 
SEC. 901. CLARIFICATION OF THE ORDER OF PRECEDENCE 
FOR THE PRINCIPAL DEPUTY UNDER SECRE-
TARIES OF DEFENSE. 
Subsection (d) of section 137a of title 10, United 
States Code, is amended by striking ‘‘and the Deputy 
Chief Management Officer of the Department of De-
fense.’’ and inserting ‘‘the Deputy Chief Management Of-
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ficer of the Department of Defense, and the officials serv-
ing in positions specified in section 131(b)(4) of this 
title.’’. 
SEC. 902. UPDATE OF STATUTORY SPECIFICATION OF 
FUNCTIONS OF THE CHAIRMAN OF THE 
JOINT CHIEFS OF STAFF RELATING TO DOC-
TRINE, TRAINING, AND EDUCATION. 
Paragraph (5) of section 153(a) of title 10, United 
States Code, is amended— 
(1) in the paragraph heading, by striking 
‘‘DOCTRINE, TRAINING, AND EDUCATION’’ and in-
serting ‘‘JOINT FORCE DEVELOPMENT ACTIVITIES’’; 
(2) in subparagraph (B), by inserting ‘‘and 
technical standards, and executing actions’’ after 
‘‘policies’’; 
(3) in subparagraph (C), by striking ‘‘and 
training’’; and 
(4) by adding at the end the following new sub-
paragraphs: 
‘‘(D) Formulating policies for concept develop-
ment and experimentation for the joint employment 
of the armed forces. 
‘‘(E) Formulating policies for gathering, devel-
oping, and disseminating joint lessons learned for 
the armed forces.’’. 
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