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(4) in paragraph (3) of subsection (a) (as re-
designated by paragraph (2)), by capitalizing the 
first letter of the first word; 
(5) by transferring paragraphs (3), (4), and (5) 
of subsection (b) to the end of subsection (a) and re-
designating those paragraphs as paragraphs (4), (5), 
and (6), respectively; and 
(6) by striking subsection (b) (as amended by 
paragraph (5)) and subsections (c) and (d) and in-
serting the following new subsection (b): 
‘‘(b) No funds authorized or appropriated to the De-
partment of Defense may be used to fund, or otherwise 
provide for, the payments required by this section.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect with respect to payments 
under chapter 56 of title 10, United States Code, begin-
ning with fiscal year 2008. 
SEC. 590. MILITARY CHAPLAINS. 
(a) UNITED STATES ARMY.—Section 3547 of title 
10, United States Code, is amended by adding at the end 
the following new subsection: 
‘‘(c) Each chaplain shall have the prerogative to pray 
according to the dictates of the chaplain’s own conscience, 
except as must be limited by military necessity, with any 
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HR 5122 PCS 
such limitation being imposed in the least restrictive man-
ner feasible.’’. 
(b) UNITED STATES MILITARY ACADEMY.—Section 
4337 of such title is amended— 
(1) by inserting ‘‘(a)’’ before ‘‘There’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) The Chaplain shall have the prerogative to pray 
according to the dictates of the Chaplain’s conscience, ex-
cept as must be limited by military necessity, with any 
such limitation being imposed in the least restrictive man-
ner feasible.’’. 
(c) UNITED STATES NAVY AND MARINE CORPS.— 
Section 6031 of such title is amended by adding at the 
end the following new subsection: 
‘‘(d) Each chaplain shall have the prerogative to pray 
according to the dictates of the chaplain’s own conscience, 
except as must be limited by military necessity, with any 
such limitation being imposed in the least restrictive man-
ner feasible.’’. 
(d) UNITED STATES AIR FORCE.—Section 8547 of 
such title is amended by adding at the end the following 
new subsection: 
‘‘(c) Each chaplain shall have the prerogative to pray 
according to the dictates of the chaplain’s own conscience, 
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HR 5122 PCS 
except as must be limited by military necessity, with any 
such limitation being imposed in the least restrictive man-
ner feasible.’’. 
(e) UNITED STATES AIR FORCE ACADEMY.—Section 
9337 of such title is amended— 
(1) by inserting ‘‘(a)’’ before ‘‘There’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) The Chaplain shall have the prerogative to pray 
according to the dictates of the Chaplain’s conscience, ex-
cept as must be limited by military necessity, with any 
such limitation being imposed in the least restrictive man-
ner feasible.’’. 
SEC. 591. REPORT ON PERSONNEL REQUIREMENTS FOR 
AIRBORNE ASSETS IDENTIFIED AS LOW-DEN-
SITY, HIGH-DEMAND AIRBORNE ASSETS. 
(a) REPORT REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the Committee on Armed Serv-
ices of the Senate and the Committee on Armed Services 
of the House of Representatives a report on personnel re-
quirements for airborne assets identified as Low-Density, 
High-Demand Airborne Assets based on combatant com-
mander requirements to conduct and sustain operations 
for the global war on terrorism. 
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HR 5122 PCS 
(b) MATTER TO BE INCLUDED.—The report shall in-
clude the following for each airborne asset identified as 
a Low-Density, High-Demand Airborne Asset: 
(1) The numbers of operations and mainte-
nance crews to meet tasking contemplated to con-
duct operations for the global war on terrorism. 
(2) The current numbers of operations and 
maintenance crews. 
(3) If applicable, shortages of operations and 
maintenance crews. 
(4) Whether such shortages are addressed in 
the future-years defense program. 
(5) Whether end-strength increases are required 
to meet any such shortages. 
(6) Costs of personnel needed to address short-
falls. 
(7) If applicable, the number and types of 
equipment needed to address training shortfalls. 
SEC. 592. ENTREPRENEURIAL SERVICE MEMBERS EM-
POWERMENT TASK FORCE. 
(a) ESTABLISHMENT.—The Secretary of Defense, in 
coordination with the Administrator of the Small Business 
Administration, shall establish a task force to provide 
timely input to the Secretary and the Administrator with 
respect to— 
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HR 5122 PCS 
(1) measures that would improve the programs 
and activities of the Department and the Adminis-
tration that are designed to address the economic 
concerns, as well as the business challenges and op-
portunities, of entrepreneurial service members; and 
(2) measures that would improve the coordina-
tion of the programs and activities relating to entre-
preneurial service members conducted by— 
(A) the National Committee for Employer 
Support of the National Guard and Reserve; 
(B) Veterans Business Outreach Centers; 
(C) Federal procurement entities; and 
(D) any other elements within, or affiliates 
of, the Department of Defense or the Small 
Business Administration. 
(b) PLAN.—The task force shall develop within 90 
days after its first meeting, and revise as appropriate 
thereafter, a plan for carrying out the duty under sub-
section (a). 
(c) CONSULTATION.—In carrying out the duty under 
subsection (a), the task force shall consult with appro-
priate Federal, State, and local agencies and appropriate 
elements of the private sector, including academic institu-
tions and industry representatives. 
(d) COMPOSITION.— 
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HR 5122 PCS 
(1) CO-CHAIRS.—The task force shall have two 
co-chairs, one an officer or employee of the Depart-
ment of Defense assigned by the Secretary, and one 
an officer or employee of the Small Business Admin-
istration assigned by the Administrator. The initial 
assignments shall be made within 60 days after the 
date of the enactment of this Act. 
(2) OTHER MEMBERS.—The Secretary, in co-
ordination with the Administrator, shall appoint the 
remaining task force members, numbering not less 
than 8 and not more than 15. The selections shall 
be made within 120 days after the date of the enact-
ment of this Act. The Secretary, in coordination 
with the Administrator, shall ensure that the task 
force includes individuals from both public service 
and the private sector, and that each of the fol-
lowing groups is represented on the task force: 
(A) Entrepreneurial service members who 
are owners of small businesses. 
(B) Small businesses that employ entrepre-
neurial service members as essential employees. 
(C) Associations that further the interests 
of small businesses, members of the reserve 
components of the Armed Forces, or both. 
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HR 5122 PCS 
(D) Any other entities that the Secretary, 
in coordination with the Administrator, con-
siders appropriate. 
(3) COMPENSATION.—An individual serving as 
a member of the task force shall not receive com-
pensation by reason of that service. 
(e) MEETINGS.— 
(1) FREQUENCY.—The task force shall meet 
not less frequently than twice per year. The initial 
meeting shall be held within 150 days after the date 
of the enactment of this Act. 
(2) QUORUM.—A majority of the members of 
the task force shall constitute a quorum. 
(f) REPORTS.—The task force shall provide to the 
Secretary and the Administrator not only the minutes of 
each meeting, but also a report of its findings and rec-
ommendations, should there be any, within 90 days of 
each meeting. Not later than 60 days after the receipt of 
such a report— 
(1) the Secretary shall submit a copy of the re-
port to the Committee on Armed Services of the 
House of Representatives and the Committee on 
Armed Services of the Senate; and 
(2) the Administrator shall submit a copy of the 
report to the Committee on Small Business of the 
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HR 5122 PCS 
House of Representatives and the Committee on 
Small Business and Entrepreneurship of the Senate. 
(g) DETAIL OF CERTAIN FEDERAL EMPLOYEES.— 
The Secretary may detail an officer or employee of the 
Department of Defense, and the Administrator may detail 
an officer or employee of the Small Business Administra-
tion, to the task force without additional reimbursement 
and without interruption or loss of civil status or privilege. 
(h) EXPENSES.—The Department of Defense and the 
Small Business Administration shall share equally in the 
cost of supporting the task force. 
(i) DEFINITION.—In this section, the term ‘‘entrepre-
neurial service member’’ means an individual who is 
both— 
(1) an actual or prospective owner of, or an es-
sential employee of, a small business; and 
(2) a member of a reserve component of the 
Armed Forces. 
(j) TERMINATION.—The task force shall terminate 
September 30, 2009. 
SEC. 593. COMPTROLLER GENERAL REPORT ON MILITARY 
CONSCIENTIOUS OBJECTORS. 
(a) REPORT REQUIRED.—Not later than 180 days 
after the date of the enactment of this Act, the Comp-
troller General shall submit to Congress a report con-
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HR 5122 PCS 
cerning the frequency and consequences of members of the 
Armed Forces claiming status as a military conscientious 
objector between January 1, 1989, and December 31, 
2006. 
(b) CONTENT OF REPORT.—The report shall specifi-
cally address the following: 
(1) The number of all applications for status as 
a military conscientious objector, even if the applica-
tion was not acted on or other discharge given, bro-
ken down by military branch, including the Coast 
Guard, and regular and reserve components. 
(2) Number of discharges or reassignments 
given. 
(3) The process used to consider applications, 
including average time frame and any reassignment 
to non-combatant duties while claim pending. 
(4) Reasons for approval or disapproval of ap-
plications. 
(5) Any difference in benefits upon discharge as 
a military conscientious objector compared to other 
discharges. 
(6) The effect of stop loss provisions in First 
Gulf War and currently, cancellation of orders to 
combat or rear attachment duty while claim pend-
ing. 
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HR 5122 PCS 
(7) Pre-war statistical comparisons. 
SEC. 594. COMMISSION ON THE NATIONAL GUARD AND RE-
SERVES. 
(a) SIX-MONTH EXTENSION OF COMMISSION.—Sub-
section (f)(2) of section 513 of the Ronald W. Reagan Na-
tional Defense Authorization Act for Fiscal Year 2005 
(Public Law 108–375; 118 Stat. 1882) is amended by 
striking ‘‘one year’’ and inserting ‘‘18 months’’. 
(b) ADDITIONAL MATTERS TO BE REVIEWED BY 
COMMISSION.—The Commission on the National Guard 
and Reserves shall include among the matters it studies 
(in addition to the matters specified in subsection (c) of 
such section 513) the following: 
(1) PROVISIONS
OF
H.R. 5200, 109TH
CON-
GRESS.—The advisability and feasibility of imple-
menting the provisions of H.R. 5200 of the 109th 
Congress, as introduced in the House of Representa-
tives on April 26, 2006. 
(2) CHIEF OF NATIONAL GUARD BUREAU.—As 
an alternative to implementation of the provisions of 
the bill specified in paragraph (1) that provide for 
the Chief of the National Guard Bureau to be a 
member of the Joint Chiefs of Staff and to hold the 
grade of general, the advisability and feasibility of 
providing for the Chief of the National Guard Bu-
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HR 5122 PCS 
reau to hold the grade of general in the performance 
of the current duties of that office. 
(3) NATIONAL GUARD EQUIPMENT AND FUND-
ING REQUIREMENTS.—The adequacy of the Depart-
ment of Defense processes for defining the equip-
ment and funding necessary for the National Guard 
to conduct both its responsibilities under title 10, 
United States Code, and its responsibilities under 
title 32, United States Code, including homeland de-
fense and related homeland missions, including as 
part of such study— 
(A) consideration of the extent to which 
those processes should be developed taking into 
consideration the views of the Chief of the Na-
tional Guard Bureau, as well as the views of the 
54 Adjutant Generals and the views of the 
Chiefs of the Army National Guard and the Air 
Guard; and 
(B) whether there should be an improved 
means by which National Guard equipment re-
quirements are validated by the Joint Chiefs of 
Staff and are considered for funding by the 
Secretaries of the Army and Air Force. 
(c) PRIORITY REVIEW AND REPORT.— 
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HR 5122 PCS 
(1) PRIORITY
REVIEW.—The Commission on 
the National Guard and Reserves shall carry out its 
study of the matters specified in paragraphs (1) and 
(2) of subsection (b) on a priority basis, with a high-
er priority for matters under those paragraphs relat-
ing to the grade and functions of the Chief of the 
National Guard Bureau. 
(2) REPORT.—In addition to the reports re-
quired under subsection (f) of section 513 of the 
Ronald W. Reagan National Defense Authorization 
Act for Fiscal Year 2005 (Public Law 108–375; 118 
Stat. 1882), the Commission shall submit to the 
Committee on Armed Services of the Senate and the 
Committee on Armed Services of the House of Rep-
resentatives an interim report, not later than March 
1, 2007, specifically on the matters covered by para-
graph (1). In such report, the Commission shall set 
forth its findings and any recommendations it con-
siders appropriate with respect to those matters. 
SEC. 595. INCLUSION IN ANNUAL DEPARTMENT OF DE-
FENSE REPORT ON SEXUAL ASSAULTS OF IN-
FORMATION ON RESULTS OF DISCIPLINARY 
ACTIONS. 
Section 577(f)(2)(B) of the Ronald W. Reagan Na-
tional Defense Authorization Act for Fiscal Year 2005 
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HR 5122 PCS 
(Public Law 108–375; 118 Stat. 1927) is amended by in-
serting before the period at the end the following: ‘‘and 
the results of the disciplinary action’’. 
TITLE VI—COMPENSATION AND 
OTHER PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Increase in basic pay for fiscal year 2007. 
Sec. 602. Targeted increase in basic pay rates. 
Sec. 603. Conforming change in general and flag officer pay cap to reflect in-
crease in pay cap for Senior Executive Service personnel. 
Sec. 604. Availability of second basic allowance for housing for certain reserve 
component or retired members serving in support of contin-
gency operations. 
Sec. 605. Extension of temporary continuation of housing allowance for depend-
ents of members dying on active duty to spouses who are also 
members. 
Sec. 606. Clarification of effective date of prohibition on compensation for cor-
respondence courses. 
Sec. 607. Payment of full premium for coverage under Servicemembers’ Group 
Life Insurance program during service in Operation Enduring 
Freedom or Operation Iraqi Freedom. 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. Extension of certain bonus and special pay authorities for reserve 
forces. 
Sec. 612. Extension of bonus and special pay authorities for health care profes-
sionals. 
Sec. 613. Extension of special pay and bonus authorities for nuclear officers. 
Sec. 614. Extension of other bonus, special pay, and separation pay authorities. 
Sec. 615. Expansion of eligibility of dental officers for additional special pay. 
Sec. 616. Increase in maximum annual rate of special pay for Selected Reserve 
health care professionals in critically short wartime specialties. 
Sec. 617. Authority to provide lump sum payment of nuclear officer incentive 
pay. 
Sec. 618. Increase in maximum amount of nuclear career accession bonus. 
Sec. 619. Increase in maximum amount of incentive bonus for transfer between 
armed forces. 
Sec. 620. Clarification regarding members of the Army eligible for bonus for re-
ferring other persons for enlistment in the Army. 
Sec. 621. Pilot program for recruitment bonus for critical health care special-
ties. 
Sec. 622. Enhancement of temporary program of voluntary separation pay and 
benefits. 
Sec. 623. Additional authorities and incentives to encourage retired members 
and reserve component members to volunteer to serve on active 
duty in high-demand, low-density assignments. 
Sec. 624. Elimination of inequity in eligibility and provision of assignment in-
centive pay. 
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205 
HR 5122 PCS 
Subtitle C—Travel and Transportation Allowances 
Sec. 631. Authority to pay costs associated with delivery of motor vehicle to 
storage location selected by member and subsequent removal of 
vehicle. 
Sec. 632. Transportation of additional motor vehicle of members on change of 
permanent station to or from nonforeign areas outside the con-
tinental United States. 
Sec. 633. Travel and transportation allowances for transportation of family 
members incident to illness or injury of members. 
Subtitle D—Retired Pay and Survivor Benefits 
Sec. 641. Military Survivor Benefit Plan beneficiaries under insurable interest 
coverage. 
Sec. 642. Retroactive payment of additional death gratuity for certain members 
not previously covered. 
Sec. 643. Equity in computation of disability retired pay for reserve component 
members wounded in action. 
Sec. 644. Study on retention of members of the Armed Forces within special 
operations command. 
Sec. 645. Sense of Congress concerning eligibility of certain additional depend-
ent children for annuities under military survivor benefit plan. 
Subtitle E—Commissary and Nonappropriated Fund Instrumentality Benefits 
Sec. 651. Treatment of price surcharges of tobacco products and certain other 
merchandise sold at commissary stores. 
Sec. 652. Limitation on use of Department of Defense lease authority to under-
mine commissaries and exchanges and other morale, welfare, 
and recreation programs and nonappropriated fund instrumen-
talities. 
Sec. 653. Use of nonappropriated funds to supplement or replace appropriated 
funds for construction of facilities of exchange stores system 
and other nonappropriated fund instrumentalities, military 
lodging facilities, and community facilities. 
Sec. 654. Report on cost effectiveness of purchasing commercial insurance for 
commissary and exchange facilities and facilities of other mo-
rale, welfare, and recreation programs and nonappropriated 
fund instrumentalities. 
Subtitle F—Other Matters 
Sec. 661. Repeal of annual reporting requirement regarding effects of recruit-
ment and retention initiatives. 
Sec. 662. Pilot project for provision of golf carts accessible for disabled persons 
at military golf courses. 
Sec. 663. Enhanced authority to remit or cancel indebtedness of members of 
the Armed Forces incurred on active duty. 
Sec. 664. Phased recovery of overpayments of pay made to members of the 
Uniformed Services. 
Sec. 665. Sense of Congress calling for payment to World War II veterans who 
survived Bataan Death March. 
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206 
HR 5122 PCS 
Subtitle A—Pay and Allowances 
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2007. 
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The 
adjustment to become effective during fiscal year 2007 re-
quired by section 1009 of title 37, United States Code, 
in the rates of monthly basic pay authorized members of 
the uniformed services shall not be made. 
(b) INCREASE IN BASIC PAY.—Effective on January 
1, 2007, the rates of monthly basic pay for members of 
the uniformed services are increased by 2.7 percent. 
SEC. 602. TARGETED INCREASE IN BASIC PAY RATES. 
Effective on April 1, 2007, the rates of monthly basic 
pay for members of the uniformed services within each pay 
grade are as follows: 
COMMISSIONED OFFICERS1 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
O–102 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 
8,494.20 
8,772.60 
8,957.10 
9,008.70 
9,239.10 
O–7 
7,058.40 
7,386.00 
7,538.10 
7,658.40 
7,876.80 
O–6 
5,231.40 
5,747.40 
6,124.50 
6,124.50 
6,147.60 
O–5 
4,361.10 
4,912.80 
5,253.00 
5,316.90 
5,529.00 
O–4 
3,762.90 
4,356.00 
4,646.40 
4,711.50 
4,981.20 
O–33 
3,308.40 
3,750.60 
4,048.20 
4,413.60 
4,624.50 
O–23 
2,858.10 
3,255.60 
3,749.70 
3,876.30 
3,956.10 
O–13 
2,481.30 
2,582.40 
3,121.80 
3,121.80 
3,121.80 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
O–102 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
O–9 
0.00 
0.00 
0.00 
0.00 
0.00 
O–8 
9,624.00 
9,713.40 
10,079.10 
10,183.80 
10,498.80 
O–7 
8,092.20 
8,341.80 
8,590.80 
8,840.40 
9,624.00 
O–6 
6,411.30 
6,446.10 
6,446.10 
6,812.40 
7,460.10 
O–5 
5,656.20 
5,935.20 
6,140.10 
6,404.40 
6,809.70 
O–4 
5,270.40 
5,630.10 
5,911.20 
6,105.90 
6,217.80 
O–33 
4,856.70 
5,007.00 
5,253.90 
5,382.30 
5,382.30 
O–23 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
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HR 5122 PCS 
COMMISSIONED OFFICERS1—Continued 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
O–13 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
O–102 
$0.00 
$13,725.90 
$13,793.10 
$14,079.90 
$14,579.70 
O–9 
0.00 
12,005.10 
12,177.60 
12,427.80 
12,863.70 
O–8 
10,954.20 
11,374.50 
11,655.00 
11,655.00 
11,655.00 
O–7 
10,286.10 
10,286.10 
10,286.10 
10,286.10 
10,338.30 
O–6 
7,840.20 
8,220.00 
8,436.30 
8,655.00 
9,080.10 
O–5 
7,002.30 
7,192.80 
7,409.10 
7,409.10 
7,409.10 
O–4 
6,282.90 
6,282.90 
6,282.90 
6,282.90 
6,282.90 
O–33 
5,382.30 
5,382.30 
5,382.30 
5,382.30 
5,382.30 
O–23 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
3,956.10 
O–13 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
3,121.80 
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for commissioned 
oficers in pay grades 0–7 through 0–10 may not exceed the rate of pay for level II of the Executive Schedule 
and the actual rate of basic pay for all other officers may not exceed the rate of pay for level V of the Execu-
tive Schedule. 
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint Chiefs of 
Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force, Commandant of 
the Marine Corps, Commandant of the Coast Guard, or commander of a unified or specified combatant com-
mand (as defined in section 161(c) of title 10, United States Code, basic pay for this grade is $16,037.40, re-
gardless of cumulative years of service computed under section 205 of title 37, United States Code. 
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have been credited 
with over 4 years of active duty service as an enlisted member or warrant officer. 
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE 
DUTY SERVICE AS AN ENLISTED MEMBER OR WARRANT 
OFFICER 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
O–3E 
$0.00 
$0.00 
$0.00 
$4,413.60 
$4,624.50 
O–2E 
0.00 
0.00 
0.00 
3,876.30 
3,956.10 
O–1E 
0.00 
0.00 
0.00 
3,121.80 
3,333.90 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
0–3E 
$4,856.70 
$5,007.00 
$5,253.90 
$5,462.10 
$5,581.20 
0–2E 
4,082.10 
4,294.20 
4,458.90. 
4,581.00 
4,581.00 
0–1E 
3,456.90 
3,582.90 
3,706.80 
3,876.30 
3,876.30 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
0–3E 
$5,743.80 
$5,743.80 
$5,743.80 
$5,743.80 
$5,743.80 
0–2E 
4,581.00 
4,581.00 
4,581.00 
4,581.00 
4,581.00 
0–1E 
3,876.30 
3,876.30 
3,876.30 
3,876.30 
3,876.30 
WARRANT OFFICERS1 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
W–5 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 
3,418.80 
3,677.70 
3,783.60 
3,887.40 
4,066.20 
W–3 
3,122.10 
3,252.30 
3,385.50 
3,429.60 
3,569.40 
W–2 
2,762.70 
3023.40 
3,104.40 
3,159.90 
3,338.70 
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HR 5122 PCS 
WARRANT OFFICERS1—Continued 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
W–1 
2,425.20 
2,685.00 
2,756.40 
2,904.30 
3,080.10 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
W–5 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
W–4 
4,242.90 
4,422.30 
4,691.40 
4,927.80 
5152.80 
W–3 
3,843.90 
4,130.10 
4,265.40 
4,421.40 
4,582.20 
W–2 
3,616.80 
3,754.80 
3,890.70 
4,056.60 
4,186.20 
W–1 
3,337.80 
3,458.40 
3,627.00 
3,792.90 
3,922.80 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
W–5 
$0.00 
$6,078.30 
$6,386.10 
$6,615.60 
$6,869.70 
W–4 
5,336.40 
5,516.10 
5,779.50 
5,995.80 
6,242.70 
W–3 
4,870.50 
5,065.80 
5,181.90 
5,306.40 
5,475.30 
W–2 
4,303.80 
4,444.20 
4,536.90 
4,611.30 
4,611.30 
W–1 
4,042.80 
4,188.90 
4,188.90 
4,188.90 
4,188.90 
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for warrant officers 
may not exceed the rate of pay for level V of the Executive Schedule. 
ENLISTED MEMBERS1 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
E–92 
$0.00 
$0.00 
$0.00 
$0.00 
$0.00 
E–8 
0.00 
0.00 
0.00 
0.00 
0.00 
E–7 
2,350.50 
2,565.60 
2,663.70 
2,794.20 
2,895.60 
E–6 
2,033.10 
2,236.80 
2,335.80 
2,431.50 
2,531.70 
E–5 
1,863.00 
1,987.50 
2,083.50 
2,181.90 
2,335.20 
E–4 
1,707.90 
1,795.20 
1,892.40 
1,988.10 
2,073.00 
E–3 
1,541.70 
1,638.90 
1,737.60 
1,737.60 
1,737.60 
E–2 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
E–13 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
Over 8 
Over 10 
Over 12 
Over 14 
Over 16 
E–92 
$0.00 
$4,130.70 
$4,224.30 
$4,342.50 
$4,481.40 
E–8 
3,381.30 
3,531.00 
3,623.70 
3,734.40 
3,854.70 
E–7 
3,070.20 
3,168.30 
3,326.70 
3,471.00 
3,569.70 
E–6 
2,757.60 
2,845.20 
3,000.00 
3,051.90 
3,089.70 
E–5 
2,483.70 
2,613.90 
2,630.10 
2,630.10 
2,630.10 
E–4 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
E–3 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
E–2 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
E–13 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
Over 18 
Over 20 
Over 22 
Over 24 
Over 26 
E–92 
$4,620.90 
$4,845.30 
$5,034.60 
$5,234.70 
$5,539.50 
E–8 
4,071.60 
4,181.40 
4,368.60 
4,472.40 
4,727.70 
E–7 
3,674.40 
3,715.50 
3,852.00 
3,944.40 
4,224.60 
E–6 
3,133.50 
3,133.50 
3,133.50 
3,133.50 
3,133.50 
E–5 
2,630.10 
2,630.10 
2,630.10 
2,630.10 
2,630.10 
E–4 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
2,073.00 
E–3 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
1,737.60 
E–2 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
1,465.80 
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HR 5122 PCS 
ENLISTED MEMBERS1—Continued 
Years of service computed under section 205 of title 37, United States Code 
Pay 
Grade 
2 or less 
Over 2 
Over 3 
Over 4 
Over 6 
E–13 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1,308.00 
1 Notwithstanding the pay rates specified in this table, the actual basic pay for enlisted members may not 
exceed the rate of pay for level V of the Executive Schedule. 
2 Subject to the preceding footnote, the rate of basic pay for an enlisted member in this grade while serving 
as Sergeant Major of the Army, Master Chief Petty Officer of the Navy, Chief Master Sergeant of the Air 
Force, Sergeant Major of the Marine Corps, Master Chief Petty Officer of the Coast Guard, or Senior Enlisted 
Advisor to the Chairman of the Joint Chiefs of Statff is $6,675.00, regardless of cumulative years of service 
computed under section 205 of title 37, United States Code. 
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, the rate of 
basic pay is $1,209.90. 
SEC. 603. CONFORMING CHANGE IN GENERAL AND FLAG 
OFFICER PAY CAP TO REFLECT INCREASE IN 
PAY CAP FOR SENIOR EXECUTIVE SERVICE 
PERSONNEL. 
(a) INCREASE.—Section 203(a)(2) of title 37, United 
States Code, is amended by striking ‘‘level III of the Exec-
utive Schedule’’ and inserting ‘‘level II of the Executive 
Schedule’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2006. 
SEC. 604. AVAILABILITY OF SECOND BASIC ALLOWANCE 
FOR HOUSING FOR CERTAIN RESERVE COM-
PONENT OR RETIRED MEMBERS SERVING IN 
SUPPORT OF CONTINGENCY OPERATIONS. 
Section 403(g) of title 37, United States Code, is 
amended— 
(1) by redesignating paragraphs (2), (3), and 
(4) as paragraphs (3), (4), and (5), respectively; 
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HR 5122 PCS 
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2): 
‘‘(2) The Secretary concerned may provide a basic al-
lowance for housing to a member described in paragraph 
(1) at a monthly rate equal to the rate of the basic allow-
ance for housing established under subsection (b) or the 
overseas basic allowance for housing established under 
subsection (c), whichever applies to the location at which 
the member is serving, for members in the same grade 
at that location without dependents. The member may re-
ceive both a basic allowance for housing under paragraph 
(1) and under this paragraph for the same month, but 
may not receive the portion of the allowance authorized 
under section 404 of this title, if any, for lodging expenses 
if a basic allowance for housing is provided under this 
paragraph.’’; and 
(3) in paragraph (3), as so redesignated, by 
striking ‘‘Paragraph (1)’’ and inserting ‘‘Paragraphs 
(1) and (2)’’. 
SEC. 605. EXTENSION OF TEMPORARY CONTINUATION OF 
HOUSING ALLOWANCE FOR DEPENDENTS OF 
MEMBERS 
DYING 
ON 
ACTIVE 
DUTY 
TO 
SPOUSES WHO ARE ALSO MEMBERS. 
(a) EXTENSION.—Section 403(l) of title 37, United 
States Code, is amended— 
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HR 5122 PCS 
(1) by redesignating paragraph (3) as para-
graph (4); and 
(2) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3) An allowance may be paid under paragraph (2) 
to the spouse of the deceased member even though the 
spouse is also a member of the uniformed services. The 
allowance paid under such paragraph is in addition to any 
other pay and allowances to which the spouse is entitled 
as a member.’’. 
(b) EFFECTIVE DATE.— 
(1) GENERAL RULE.—The amendments made 
by subsection (a) shall take effect on October 1, 
2006. 
(2) TRANSITIONAL
RULE.—After October 1, 
2006, the Secretary of Defense, and the Secretary of 
Homeland Security in the case of the Coast Guard, 
may pay the allowance authorized by section 
403(l)(2) of title 37, United States Code, to a mem-
ber of the uniformed services who is the spouse of 
a member who died on active duty during the one- 
year period ending on that date, except that the pay-
ment of the allowance must terminate within 365 
days after the date of the member’s death. 
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HR 5122 PCS 
SEC. 606. CLARIFICATION OF EFFECTIVE DATE OF PROHI-
BITION 
ON 
COMPENSATION 
FOR 
COR-
RESPONDENCE COURSES. 
Section 206(d) of title 37, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(3) The prohibition in paragraph (1), including the 
prohibition as it relates to a member of the National 
Guard while not in Federal service, applies to— 
‘‘(A) any work or study performed on or after 
September 7, 1962, unless that work or study is spe-
cifically covered by the exception in paragraph (2); 
and 
‘‘(B) any claim based on that work or study 
arising after that date.’’. 
SEC. 607. PAYMENT OF FULL PREMIUM FOR COVERAGE 
UNDER SERVICEMEMBERS’ GROUP LIFE IN-
SURANCE PROGRAM DURING SERVICE IN OP-
ERATION ENDURING FREEDOM OR OPER-
ATION IRAQI FREEDOM. 
(a) ENHANCED ALLOWANCE TO COVER SGLI DE-
DUCTIONS.—Subsection (a)(1) of section 437 of title 37, 
United States Code, is amended by striking ‘‘for the first 
$150,000’’ and all that follows through ‘‘of such title’’ and 
inserting ‘‘for the amount of Servicemembers’ Group Life 
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HR 5122 PCS 
Insurance coverage held by the member under section 
1967 of such title’’. 
(b) CONFORMING AMENDMENTS.—Such section is 
further amended— 
(1) in subsection (a)— 
(A) by striking ‘‘(1)’’ before ‘‘in the case 
of’’; and 
(B) by striking paragraph (2); 
(2) by striking subsection (b); and 
(3) by redesignating subsection (c) as sub-
section (b) and in paragraph (2) of that subsection 
by striking ‘‘coverage amount specified in subsection 
(a)(1) or in effect pursuant to subsection (b),’’ and 
inserting ‘‘maximum coverage amount available for 
such insurance,’’. 
(c) CLERICAL AMENDMENTS.—The heading for such 
section, and the item relating to such section in the table 
of sections at the beginning of chapter 7 of such title, are 
each amended by striking the fourth and fifth words. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the first day of the first 
month beginning on or after the date of the enactment 
of this Act and shall apply with respect to service by mem-
bers of the Armed Forces in the theater of operations for 
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HR 5122 PCS 
Operation Enduring Freedom or Operation Iraqi Freedom 
for months beginning on or after that date. 
(e) FUNDING SOURCE.—Of the amounts authorized 
to be appropriated to the Department of Defense for mili-
tary personnel accounts as emergency supplemental appro-
priations for fiscal years 2006 and 2007 to provide funds 
for additional costs due to Operation Iraqi Freedom and 
Operation Enduring Freedom, $31,000,000 shall be avail-
able to cover the additional costs incurred to implement 
the amendments made by this section. 
Subtitle B—Bonuses and Special 
and Incentive Pays 
SEC. 611. EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR RESERVE FORCES. 
(a) SELECTED RESERVE REENLISTMENT BONUS.— 
Section 308b(g) of title 37, United States Code, is amend-
ed by striking ‘‘December 31, 2006’’ and inserting ‘‘De-
cember 31, 2007’’. 
(b) SELECTED RESERVE AFFILIATION OR ENLIST-
MENT BONUS.—Section 308c(i) of such title is amended 
by striking ‘‘December 31, 2006’’ and inserting ‘‘Decem-
ber 31, 2007’’. 
(c) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section 
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HR 5122 PCS 
308d(c) of such title is amended by striking ‘‘December 
31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(d) READY RESERVE ENLISTMENT BONUS FOR PER-
SONS WITHOUT PRIOR SERVICE.—Section 308g(h)(2) of 
such title is amended by striking ‘‘December 31, 2006’’ 
and inserting ‘‘December 31, 2007’’. 
(e) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS FOR PERSONS WITH PRIOR SERVICE.—Sec-
tion 308h(e) of such title is amended by striking ‘‘Decem-
ber 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(f) SELECTED RESERVE ENLISTMENT BONUS FOR 
PERSONS WITH PRIOR SERVICE.—Section 308i(f) of such 
title is amended by striking ‘‘December 31, 2006’’ and in-
serting ‘‘December 31, 2007’’. 
SEC. 612. EXTENSION OF BONUS AND SPECIAL PAY AU-
THORITIES 
FOR 
HEALTH 
CARE 
PROFES-
SIONALS. 
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States 
Code, is amended by striking ‘‘December 31, 2006’’ and 
inserting ‘‘December 31, 2007’’. 
(b) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of such title is 
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HR 5122 PCS 
amended by striking ‘‘January 1, 2007’’ and inserting 
‘‘January 1, 2008’’. 
(c) ACCESSION BONUS FOR REGISTERED NURSES.— 
Section 302d(a)(1) of title 37, United States Code, is 
amended by striking ‘‘December 31, 2006’’ and inserting 
‘‘December 31, 2007’’. 
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended 
by striking ‘‘December 31, 2006’’ and inserting ‘‘Decem-
ber 31, 2007’’. 
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH 
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPE-
CIALTIES.—Section 302g(e) of such title is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
(f) ACCESSION BONUS FOR DENTAL OFFICERS.— 
Section 302h(a)(1) of such title is amended by striking 
‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
(g) ACCESSION BONUS FOR PHARMACY OFFICERS.— 
Section 302j(a) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
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HR 5122 PCS 
SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AU-
THORITIES FOR NUCLEAR OFFICERS. 
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 
312(e) of title 37, United States Code, is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
(b) NUCLEAR CAREER ACCESSION BONUS.—Section 
312b(c) of such title is amended by striking ‘‘December 
31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(c) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE 
BONUS.—Section 312c(d) of such title is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
SEC. 614. EXTENSION OF OTHER BONUS, SPECIAL PAY, AND 
SEPARATION PAY AUTHORITIES. 
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2006’’ and inserting ‘‘Decem-
ber 31, 2007’’. 
(b) ASSIGNMENT INCENTIVE PAY.—Section 307a(g) 
of such title is amended by striking ‘‘December 31, 2007’’ 
and inserting ‘‘December 31, 2008’’. 
(c) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
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HR 5122 PCS 
ing ‘‘December 31, 2006’’ and inserting ‘‘December 31, 
2007’’. 
(d) ENLISTMENT BONUS FOR ACTIVE MEMBERS.— 
Section 309(e) of such title is amended by striking ‘‘De-
cember 31, 2006’’ and inserting ‘‘December 31, 2007’’. 
(e) RETENTION BONUS FOR MEMBERS WITH CRIT-
ICAL MILITARY SKILLS.—Section 323(i) of such title is 
amended by striking ‘‘December 31, 2006’’ and inserting 
‘‘December 31, 2007’’. 
(f) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
(g) MILITARY OCCUPATIONAL SPECIALTY CONVER-
SION INCENTIVE BONUS.—Section 326(g) of such title is 
amended by striking ‘‘December 31, 2006’’ and inserting 
‘‘December 31, 2007’’. 
(h) TRANSFER BETWEEN ARMED FORCES INCEN-
TIVE BONUS.—Section 327(h) of such title is amended by 
striking ‘‘December 31, 2006’’ and inserting ‘‘December 
31, 2007’’. 
SEC. 615. EXPANSION OF ELIGIBILITY OF DENTAL OFFI-
CERS FOR ADDITIONAL SPECIAL PAY. 
(a) REPEAL OF INTERNSHIP AND RESIDENCY EX-
CEPTION.—Section 302b(a)(4) of title 37, United States 
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HR 5122 PCS 
Code, is amended by striking the first sentence and insert-
ing the following new sentence: ‘‘An officer who is entitled 
to variable special pay under paragraph (2) or (3) is also 
entitled to additional special pay for any 12-month period 
during which an agreement executed under subsection (b) 
is in effect with respect to the officer.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2006. 
SEC. 616. INCREASE IN MAXIMUM ANNUAL RATE OF SPE-
CIAL PAY FOR SELECTED RESERVE HEALTH 
CARE PROFESSIONALS IN CRITICALLY SHORT 
WARTIME SPECIALTIES. 
(a) INCREASE.—Section 302g(a) of title 37, United 
States Code, is amended by striking ‘‘$10,000’’ and in-
serting ‘‘$25,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2006. 
SEC. 617. AUTHORITY TO PROVIDE LUMP SUM PAYMENT OF 
NUCLEAR OFFICER INCENTIVE PAY. 
(a) LUMP SUM PAYMENT OPTION.—Subsection (a) 
of section 312 of title 37, United States Code, is amended 
in the matter after paragraph (3)— 
(1) by striking ‘‘in equal annual installments’’ 
and inserting ‘‘in a single lump-sum or in annual in-
stallments of equal or different amounts’’; and 
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HR 5122 PCS 
(2) by striking ‘‘with the number of install-
ments being equal to the number of years covered by 
the contract plus one’’ and inserting ‘‘and, if the 
special pay will be paid in annual installments, the 
number of installments may not exceed the number 
of years covered by the agreement plus one’’. 
(b) CLERICAL AND CONFORMING AMENDMENTS.— 
Such section is further amended— 
(1) by redesignating subsections (b) through (e) 
as subsections (c) through (f), respectively; 
(2) in subsection (a)— 
(A) by striking ‘‘an officer’’ in the matter 
before paragraph (1) and inserting ‘‘the Sec-
retary may pay special pay under subsection (b) 
to an officer’’; 
(B) by striking the semicolon at the end of 
paragraph (3) and inserting a period; 
(C) by striking ‘‘may, upon’’ and all that 
follows through ‘‘The Secretary of the Navy 
shall’’ and inserting the following: 
‘‘(b) PAYMENT AMOUNT; PAYMENT OPTIONS.—(1) 
The total amount paid to an officer under an agreement 
under subsection (a) or (e)(1) may not exceed $30,000 
for each year of the active-service agreement. Amounts 
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HR 5122 PCS 
paid under the agreement are in addition to all other com-
pensation to which the officer is entitled. 
‘‘(2) The Secretary shall’’; 
(D) by striking ‘‘Upon acceptance of the 
agreement by the Secretary or his designee’’ 
and inserting the following: 
‘‘(3) Upon acceptance of an agreement under sub-
section (a) or (e)(1) by the Secretary ’’; 
(E) by striking ‘‘The Secretary (or his des-
ignee)’’ and inserting the following: 
‘‘(4) The Secretary’’; 
(3) in subsection (c), as redesignated by para-
graph (1), by striking ‘‘subsection (a) or subsection 
(d)(1)’’ and inserting ‘‘subsection (b) or (e)(1)’’; and 
(4) in the first sentence of subsection (e)(1), as 
redesignated by paragraph (1)— 
(A) by striking ‘‘such subsection’’ and in-
serting ‘‘subsection (b)’’; and 
(B) by striking ‘‘that subsection’’ and in-
serting ‘‘this subsection’’. 
(c) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended— 
(1) in subsection (a), by inserting ‘‘SPECIAL 
PAY AUTHORIZED; ELIGIBILITY.—’’ after ‘‘(a)’’; 
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HR 5122 PCS 
(2) in subsection (c), as redesignated by sub-
section (b)(1), by inserting ‘‘REPAYMENT.—’’ after 
‘‘(c)’’; 
(3) in subsection (d), as redesignated by sub-
section (b)(1), by inserting ‘‘RELATION TO SERVICE 
OBLIGATION.—’’ after ‘‘(d)’’; 
(4) in subsection (e), as redesignated by sub-
section (b)(1), by inserting ‘‘NEW AGREEMENT.—’’ 
after ‘‘(e)’’; and 
(5) in subsection (f), as redesignated by sub-
section (b)(1), by inserting ‘‘DURATION OF AUTHOR-
ITY.—’’ after ‘‘(f)’’. 
SEC. 618. INCREASE IN MAXIMUM AMOUNT OF NUCLEAR 
CAREER ACCESSION BONUS. 
(a) INCREASE.—Section 312b(a)(1) of title 37, 
United States Code, is amended by striking ‘‘$20,000’’ 
and inserting ‘‘$30,000’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2006. 
SEC. 619. INCREASE IN MAXIMUM AMOUNT OF INCENTIVE 
BONUS FOR TRANSFER BETWEEN ARMED 
FORCES. 
(a) INCREASE.—Section 327(d)(1) of title 37, United 
States Code, is amended by striking ‘‘$2,500’’ and insert-
ing ‘‘$10,000’’. 
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HR 5122 PCS 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall take effect on October 1, 2006. 
SEC. 620. CLARIFICATION REGARDING MEMBERS OF THE 
ARMY ELIGIBLE FOR BONUS FOR REFERRING 
OTHER PERSONS FOR ENLISTMENT IN THE 
ARMY. 
Section 645(a) of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 
3310) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) IN GENERAL.—The Secretary’’; 
(2) by striking ‘‘, whether in the regular compo-
nent of the Army or in the Army National Guard or 
Army Reserve,’’ and inserting ‘‘described in para-
graph (2)’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(2) MEMBERS ELIGIBLE FOR BONUS.—Subject 
to subsection (c), the following members of the Army 
are eligible for a referral bonus under this section: 
‘‘(A) A member in the regular component 
of the Army. 
‘‘(B) A member of the Army National 
Guard. 
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HR 5122 PCS 
‘‘(C) A member of the Army Reserve. 
‘‘(D) A member of the Army in a retired 
status, including a member under 60 years of 
age who, but for age, would be eligible for re-
tired pay.’’. 
SEC. 621. PILOT PROGRAM FOR RECRUITMENT BONUS FOR 
CRITICAL HEALTH CARE SPECIALTIES. 
(a) PILOT PROGRAM.—Section 2121 of title 10, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(e)(1) The Secretary of Defense may carry out a 
pilot program for payment of a recruitment incentive 
bonus to increase participation in the program. The Sec-
retary shall prescribe regulations specifying the amount 
and terms of the bonus. The bonus shall be used to im-
prove recruitment for critical health care specialties. A 
bonus under the pilot program shall be in addition to the 
stipend under subsection (d). 
‘‘(2) The amount prescribed under paragraph (1) for 
the bonus under the pilot program shall be determined by 
the Secretary. 
‘‘(3) The scope of the pilot program shall be limited 
to no more than 100 total participants in no more than 
five critical medical specialties. The program shall last no 
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HR 5122 PCS 
more than two years, beginning on the earlier of the date 
the first participant is selected or January 1, 2010. ’’. 
(b) REPORTS.—The Secretary of Defense shall pre-
pare a mid-term report and a final report on the findings 
and recommendations resulting from the pilot program. 
The Secretary shall submit those reports to the Commit-
tees on Armed Services of the Senate and the House of 
Representatives. 
SEC. 622. ENHANCEMENT OF TEMPORARY PROGRAM OF 
VOLUNTARY SEPARATION PAY AND BENE-
FITS. 
(a) ONE-YEAR EXTENSION OF AUTHORITY.—Section 
1175a(k)(1) of title 10, United States Code, is amended 
by striking ‘‘December 31, 2008,’’ and inserting ‘‘Decem-
ber 31, 2009’’. 
(b) EXPANSION OF ELIGIBLE MEMBERS.—Section 
643 of the National Defense Authorization Act for Fiscal 
Year 2006 (Public Law 109–163; 119 Stat. 3306) is 
amended by striking subsection (b). 
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HR 5122 PCS 
SEC. 623. ADDITIONAL AUTHORITIES AND INCENTIVES TO 
ENCOURAGE RETIRED MEMBERS AND RE-
SERVE COMPONENT MEMBERS TO VOLUN-
TEER TO SERVE ON ACTIVE DUTY IN HIGH- 
DEMAND, LOW-DENSITY ASSIGNMENTS. 
(a) AUTHORITY
TO OFFER INCENTIVE BONUS.— 
Chapter 5 of title 37, United States Code, is amended by 
adding at the end the following new section: 
‘‘§ 329. Incentive bonus: retired members and reserve 
component 
members 
volunteering 
for 
high-demand, low-density assignments 
‘‘(a) INCENTIVE BONUS AUTHORIZED.—The Sec-
retary of Defense may pay a bonus under this section to 
a retired member or former member of the Army, Navy, 
Air Force, or Marine Corps or to a member of a reserve 
component of the Army, Navy, Air Force, or Marine Corps 
(who is not otherwise serving on active duty) who executes 
a written agreement to serve on active duty for a period 
specified in the agreement in an assignment intended to 
alleviate a high-demand, low-density military capability or 
in any other specialty designated by the Secretary as crit-
ical to meet wartime or peacetime requirements. 
‘‘(b) MAXIMUM AMOUNT OF BONUS.—A bonus under 
subsection (a) and any incentive developed under sub-
section (d) may not exceed $50,000. 
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HR 5122 PCS 
‘‘(c) METHODS OF PAYMENT.—At the election of the 
Secretary, a bonus under subsection (a) and any incentive 
developed under subsection (d) shall be paid or provided— 
‘‘(1) when the member commences service on 
active duty; or 
‘‘(2) in annual installments in such amounts as 
may be determined by the Secretary. 
‘‘(d) DEVELOPMENT OF ADDITIONAL INCENTIVES.— 
(1) The Secretary may develop and provide to members 
referred to in subsection (a) additional incentives to en-
courage such members to return to active duty in assign-
ments intended to alleviate a high-demand, low-density 
military capability or in others specialties designated by 
the Secretary as critical to meet wartime or peacetime re-
quirements. 
‘‘(2) The provision of any incentive developed under 
this subsection shall be subject to an agreement, as re-
quired for bonuses under subsection (a). 
‘‘(3) Not later than 30 days before first offering any 
incentive developed under this subsection, the Secretary 
shall submit to the congressional defense committees a re-
port that contains a description of that incentive and an 
explanation why a bonus under subsection (a) or other pay 
and allowances are not sufficient to alleviate the high-de-
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HR 5122 PCS 
mand, low-density military capability or otherwise fill crit-
ical military specialties. 
‘‘(e) RELATIONSHIP TO OTHER PAY AND ALLOW-
ANCES.—A bonus or other incentive paid or provided to 
a member under this section is in addition to any other 
pay and allowances to which the member is entitled. 
‘‘(f) REPAYMENT.—A member who does not complete 
the period of active duty specified in the agreement exe-
cuted under subsection (a) or (d) shall be subject to the 
repayment provisions of section 303a(e) of this title. 
‘‘(g) HIGH-DEMAND, LOW-DENSITY ASSIGNMENT 
DEFINED.—In this section, the term ‘high-demand, low- 
density military capability’ means a combat, combat sup-
port or service support capability, unit, system, or occupa-
tional specialty that the Secretary determines has funding, 
equipment, or personnel levels that are substantially below 
the levels required to fully meet or sustain actual or ex-
pected operational requirements set by regional com-
manders. 
‘‘(h) REGULATIONS.—The Secretary of Defense may 
prescribe such regulations as the Secretary considers nec-
essary to carry out this section. 
‘‘(i) TERMINATION OF AUTHORITY.—No agreement 
under subsection (a) or (d) may be entered into after De-
cember 31, 2010.’’. 
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HR 5122 PCS 
(b) TEMPORARY AUTHORITY TO ORDER RETIRED 
MEMBERS TO ACTIVE DUTY IN HIGH-DEMAND, LOW- 
DENSITY
ASSIGNMENTS.—Section 688a of title 10, 
United States Code, is amended— 
(1) in subsection (a)— 
(A) by striking the first sentence and in-
serting the following new sentence: ‘‘The Sec-
retary of a military department may order to 
active duty a retired member who agrees to 
serve on active duty in an assignment intended 
to alleviate a high-demand, low-density military 
capability or in any other specialty designated 
by the Secretary as critical to meet wartime or 
peacetime requirements.’’; and 
(B) in the second sentence, by striking ‘‘of-
ficer’’ both places it appears and inserting 
‘‘member’’; 
(2) in subsection (b), by striking ‘‘an officer’’ 
and inserting ‘‘a member’’; 
(3) in subsection (c), by striking ‘‘500 officers’’ 
and inserting ‘‘1,000 members’’; 
(4) in subsection (d), by striking ‘‘officer’’ and 
inserting ‘‘member’’; 
(5) in subsection (e), by striking ‘‘Officers’’ and 
inserting ‘‘Retired members’’; 
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HR 5122 PCS 
(6) in subsection (f)— 
(A) by striking ‘‘An officer’’ and inserting 
‘‘A retired member’’; and 
(B) by striking ‘‘September 30, 2008’’ and 
inserting ‘‘December 31, 2010’’; and 
(7) by adding at the end the following new sub-
section: 
‘‘(g) HIGH-DEMAND, LOW-DENSITY ASSIGNMENT 
DEFINED.—In this section, the term ‘high-demand, low- 
density military capability’ means a combat, combat sup-
port or service support capability, unit, system, or occupa-
tional specialty that the Secretary of Defense determines 
has funding, equipment, or personnel levels that are sub-
stantially below the levels required to fully meet or sustain 
actual or expected operational requirements set by re-
gional commanders.’’. 
(c) CLERICAL AMENDMENTS.— 
(1) TITLE 37.—The table of sections at the be-
ginning of chapter 5 of title 37, United States Code, 
is amended by adding at the end the following new 
item: 
‘‘329. Incentive bonus: retired members and reserve component members volun-
teering for high-demand, low-density assignments.’’. 
(2) TITLE
10.—(A) The heading of section 
688a of title 10, United States Code, is amended to 
read as follows: 
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HR 5122 PCS 
‘‘§ 688a. Retired members: temporary authority to 
order to active duty in high-demand, low- 
density assignments’’. 
(B) The table of sections at the beginning of 
chapter 39 of such title is amended by striking the 
item relating to section 688a and inserting the fol-
lowing new item: 
‘‘688a. Retired members: temporary authority to order to active duty in high- 
demand, low-density assignments.’’. 
(d) EFFECTIVE DATE.—No agreement may be en-
tered into under section 329 of title 37, United States 
Code, as added by subsection (a), before October 1, 2006. 
(e) LIMITATION
ON FISCAL YEAR 2007 OBLIGA-
TIONS.—During fiscal year 2007, obligations incurred 
under section 329 of title 37, United States Code, as 
added by subsection (a), to provide bonuses or other incen-
tives to retired members and former members of the 
Army, Navy, Air Force, or Marine Corps or to members 
of the reserve components of the Army, Navy, Air Force, 
and Marine Corps may not exceed $5,000,000. 
SEC. 624. ELIMINATION OF INEQUITY IN ELIGIBILITY AND 
PROVISION OF ASSIGNMENT INCENTIVE PAY. 
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of the Army should promptly cor-
rect the pay inequity in the provision of assignment incen-
tive pay under section 307a of title 37, United States 
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HR 5122 PCS 
Code, to members of the Army National Guard and the 
Army Reserve serving on active duty in Afghanistan and 
Iraq that arose from the disparite treatment between— 
(1) those members who previously served under 
a call or order to active duty under section 12302 
of title 10, United States Code, and who are eligible 
for assignment incentive pay; and 
(2) those members who previously served under 
a call or order to active duty under section 12304 
of such title and who are currently ineligible for as-
signment incentive pay. 
(b) REPORT REQUIRED.—Not later than 30 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 ad-
versely affected by the disparate 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 as-
signment incentive pay; and 
(2) containing proposed remedies or courses of 
action to correct this inequity, including allowing 
time served during a call or order to active duty 
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HR 5122 PCS 
under such section 12304 to count toward the time 
needed to qualify for assignment incentive pay. 
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. AUTHORITY TO PAY COSTS ASSOCIATED WITH DE-
LIVERY OF MOTOR VEHICLE TO STORAGE LO-
CATION SELECTED BY MEMBER AND SUBSE-
QUENT REMOVAL OF VEHICLE. 
Subsection (b) of section 2634 of title 10, United 
States Code, is amended— 
(1) by redesignating paragraph (4) as para-
graph (5); and 
(2) by inserting after paragraph (3) the fol-
lowing new paragraph: 
‘‘(4) If a member elects to have a motor vehicle de-
scribed in subsection (a) stored at a location other than 
a storage location approved by the Secretary concerned, 
the delivery and removal costs described in paragraph (3) 
are the only costs that may be paid by the Secretary. The 
delivery or removal costs paid by the Secretary under this 
paragraph may not exceed the total cost that would have 
been incurred by the United States had the storage loca-
tion approved by the Secretary been used to store the 
motor vehicle. The United States is not responsible for any 
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HR 5122 PCS 
costs associated with the actual storage of the motor vehi-
cle at the unapproved location.’’. 
SEC. 632. TRANSPORTATION OF ADDITIONAL MOTOR VEHI-
CLE OF MEMBERS ON CHANGE OF PERMA-
NENT STATION TO OR FROM NONFOREIGN 
AREAS OUTSIDE THE CONTINENTAL UNITED 
STATES. 
(a) AUTHORITY TO TRANSPORT ADDITIONAL MOTOR 
VEHICLE.—Subsection (a) of section 2634 of title 10, 
United States Code, is amended— 
(1) by striking the sentence following paragraph 
(4); 
(2) by redesignating paragraphs (1), (2), (3), 
and (4) as subparagraphs (A), (B), (C), and (D), re-
spectively; 
(3) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(4) by adding at the end the following new 
paragraph: 
‘‘(2) One additional motor vehicle of a member (or 
a dependent of the member) may be transported as pro-
vided in paragraph (1) if— 
‘‘(A) the member is ordered to make a change 
of permanent station to or from a nonforeign area 
outside the continental United States and the mem-
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HR 5122 PCS 
ber has at least one dependent of driving age who 
will use the motor vehicle; or 
‘‘(B) the Secretary concerned determines that a 
replacement for the motor vehicle transported under 
paragraph (1) is necessary for reasons beyond the 
control of the member and is in the interest of the 
United States and the Secretary approves the trans-
portation in advance.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
Such subsection is further amended— 
(1) by striking ‘‘his dependents’’ and inserting 
‘‘a dependent of the member’’; 
(2) by striking ‘‘him’’ and inserting ‘‘the mem-
ber’’; 
(3) by striking ‘‘his)’’ and inserting ‘‘the mem-
ber)’’; 
(4) by striking ‘‘his new’’ and inserting ‘‘the 
member’s new’’; and 
(5) in paragraph (1)(C), as redesignated by 
subsection (a), by striking ‘‘clauses (1) and (2)’’ and 
inserting ‘‘subparagraphs (A) and (B)’’. 
(c) EFFECTIVE DATE.—Paragraph (2)(A) of sub-
section (a) of section 2634 of title 10, United States Code, 
as added by subsection (a)(4), shall apply with respect to 
orders issued on or after the date of the enactment of this 
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HR 5122 PCS 
Act for members of the Armed Forces to make a change 
of permanent station to or from nonforeign areas outside 
the continental United States. 
SEC. 633. TRAVEL AND TRANSPORTATION ALLOWANCES 
FOR TRANSPORTATION OF FAMILY MEMBERS 
INCIDENT TO ILLNESS OR INJURY OF MEM-
BERS. 
Section 411h(b)(1) of title 37, United States Code, 
is amended— 
(1) by striking ‘‘and’’ at the end of subpara-
graph (C); 
(2) by striking the period at the end of sub-
paragraph (D) and inserting ‘‘; and’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(E) a person related to the member as de-
scribed in subparagraph (A), (B), (C), or (D) who 
is also a member of the uniformed services.’’. 
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HR 5122 PCS 
Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. MILITARY SURVIVOR BENEFIT PLAN BENE-
FICIARIES 
UNDER 
INSURABLE 
INTEREST 
COVERAGE. 
(a) AUTHORITY TO ELECT NEW BENEFICIARY.— 
Section 1448(b)(1) of title 10, United States Code, is 
amended— 
(1) by inserting ‘‘or under subparagraph (G) of 
this paragraph’’ in the second sentence of subpara-
graph (E) before the period at the end; and 
(2) by adding at the end the following new sub-
paragraph: 
‘‘(G) ELECTION
OF
NEW
BENEFICIARY 
UPON DEATH OF PREVIOUS BENEFICIARY.— 
‘‘(i) AUTHORITY FOR ELECTION.—If 
the reason for discontinuation in the Plan 
is the death of the beneficiary, the partici-
pant in the Plan may elect a new bene-
ficiary. Any such beneficiary must be a 
natural person with an insurable interest 
in the participant. Such an election may be 
made only during the 180-day period be-
ginning on the date of the death of the 
previous beneficiary. 
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HR 5122 PCS 
‘‘(ii) PROCEDURES.—Such an election 
shall be in writing, signed by the partici-
pant, and made in such form and manner 
as the Secretary concerned may prescribe. 
Such an election shall be effective the first 
day of the first month following the month 
in which the election is received by the 
Secretary. 
‘‘(iii) VITIATION
OF
ELECTION
BY 
PARTICIPANT
WHO
DIES
WITHIN
TWO 
YEARS
OF
ELECTION.—If a person pro-
viding an annuity under a election under 
clause (i) dies before the end of the two- 
year period beginning on the effective date 
of the election— 
‘‘(I) the election is vitiated; and 
‘‘(II) the amount by which the 
person’s retired pay was reduced 
under section 1452 of this title that is 
attributable to the election shall be 
paid in a lump sum to the person who 
would have been the deceased person’s 
beneficiary under the vitiated election 
if the deceased person had died after 
the end of such two-year period.’’. 
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HR 5122 PCS 
(b) CHANGE IN PREMIUM FOR COVERAGE OF NEW 
BENEFICIARY.—Section 1452(c) of such title is amended 
by adding at the end the following new paragraph: 
‘‘(5) RULE FOR DESIGNATION OF NEW INSUR-
ABLE INTEREST BENEFICIARY FOLLOWING DEATH 
OF ORIGINAL BENEFICIARY.—The Secretary of De-
fense shall prescribe in regulations premiums which 
a participant making an election under section 
1448(b)(1)(G) of this title shall be required to pay 
for participating in the Plan pursuant to that elec-
tion. The total amount of the premiums to be paid 
by a participant under the regulations shall be equal 
to the sum of the following: 
‘‘(A) The total additional amount by which 
the retired pay of the participant would have 
been reduced before the effective date of the 
election if the original beneficiary (i) had not 
died and had been covered under the Plan 
through the date of the election, and (ii) had 
been the same number of years younger than 
the participant (if any) as the new beneficiary 
designated under the election. 
‘‘(B) Interest on the amounts by which the 
retired pay of the participant would have been 
so reduced, computed from the dates on which 
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HR 5122 PCS 
the retired pay would have been so reduced at 
such rate or rates and according to such meth-
odology as the Secretary of Defense determines 
reasonable. 
‘‘(C) Any additional amount that the Sec-
retary determines necessary to protect the actu-
arial soundness of the Department of Defense 
Military Retirement Fund against any increased 
risk for the fund that is associated with the 
election.’’. 
(c) TRANSITION.— 
(1) TRANSITION PERIOD.—In the case of a par-
ticipant in the Survivor Benefit Plan who made a 
covered insurable-interest election (as defined in 
paragraph (2)) and whose designated beneficiary 
under that election dies before the date of the enact-
ment of this Act or during the 18-month period be-
ginning on such date, the time period applicable for 
purposes of the limitation in the third sentence of 
subparagraph (G)(i) of section 1448(b)(1) of title 
10, United States Code, as added by subsection (a), 
shall be the two-year period beginning on the date 
of the enactment of this Act (rather than the 180- 
day period specified in that sentence). 
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(2) 
COVERED
INSURABLE-INTEREST
ELEC-
TIONS.—For purposes of paragraph (1), a covered 
insurable-interest election is an election under sec-
tion 1448(b)(1) of title 10, United States Code, 
made before the date of the enactment of this Act, 
or during the 18-month period beginning on such 
date, by a participant in the Survivor Benefit Plan 
to provide an annuity under that plan to a natural 
person with an insurable interest in that person. 
(3) SURVIVOR BENEFIT PLAN.—For purposes 
of this subsection, the term ‘‘Survivor Benefit Plan’’ 
means the program under subchapter II of chapter 
73 of title 10, United States Code. 
SEC. 642. RETROACTIVE PAYMENT OF ADDITIONAL DEATH 
GRATUITY FOR CERTAIN MEMBERS NOT PRE-
VIOUSLY COVERED. 
(a) SPECIFICATION OF ADDITIONAL MEMBERS COV-
ERED.—Section 1478(d)(2) of title 10, United States 
Code, is amended by striking ‘‘May 11, 2005’’ and insert-
ing ‘‘August 31, 2005’’. 
(b) FUNDING.—Amounts for payments under section 
1478(d) of title 10, United States Code, as amended by 
subsection (a), with respect to deaths during the period 
beginning on May 12, 2005, and ending on August 31, 
2005, may be derived from appropriations available to for 
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HR 5122 PCS 
the Department of Defense for fiscal year 2006 or fiscal 
year 2007. 
SEC. 643. EQUITY IN COMPUTATION OF DISABILITY RE-
TIRED PAY FOR RESERVE COMPONENT MEM-
BERS WOUNDED IN ACTION. 
Section 1208(b) of title 10, United States Code, is 
amended by adding at the end the following new sentence: 
‘‘However, in the case of such a member who is retired 
under this chapter, or whose name is placed on the tem-
porary disability retired list under this chapter, because 
of a disability incurred after the date of the enactment 
of this sentence for which the member is awarded the Pur-
ple Heart, the member shall be credited, for the purposes 
of this chapter, with the number of years of service that 
would be counted if computing the member’s years of serv-
ice under section 12732 of this title.’’. 
SEC. 644. STUDY ON RETENTION OF MEMBERS OF THE 
ARMED 
FORCES 
WITHIN 
SPECIAL 
OPER-
ATIONS COMMAND. 
Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to the Committee on Armed Services of the Senate and 
the Committee on Armed Services of the House of Rep-
resentatives a report on means to improve retention of 
members of the Armed Forces who have a special oper-
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HR 5122 PCS 
ations forces designation. The report shall include the fol-
lowing: 
(1) The effect on retention of such members if 
special pays were included in the computation of re-
tired pay for those members with a minimum of 48 
months of Hostile Fire Pay (consecutive or non-
consecutive) at the time of retirement. 
(2) Information on the cost of training of mem-
bers of the Armed Forces who have a special oper-
ations forces designation, with such information dis-
played separately for each such designation and 
shown as aggregate costs of training for such mem-
bers at the 4-year, 8-year, 12-year, 16-year, and 20- 
year points of service. 
(3) A statement, in the case of members of the 
Armed Forces with a special operations forces des-
ignation who have been deployed at least twice, of 
the average amount spent on special operations 
unique training, both predeployment and during de-
ployment. 
(4) For each component of the United States 
Special Operations Command, an estimate of when 
the assigned strength of that component will be not 
less than 90 percent of the authorized strength of 
that component, taking into account anticipated 
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HR 5122 PCS 
growth that is mentioned in the most recent Quad-
rennial Defense Review. 
(5) The average amount of time a member of 
the Armed Forces with a special operations forces 
designation is deployed to areas that warrant Hostile 
Fire Pay. 
(6) 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. 
SEC. 645. SENSE OF CONGRESS CONCERNING ELIGIBILITY 
OF CERTAIN ADDITIONAL DEPENDENT CHIL-
DREN FOR ANNUITIES UNDER MILITARY SUR-
VIVOR BENEFIT PLAN. 
It is the sense of Congress that eligibility for a sur-
viving child annuity in lieu of a surviving spouse annuity 
under the military Survivor Benefit Plan for a child of 
a member of the Armed Forces dying while on active duty 
should be extended so as to cover children of members 
dying after October 7, 2001 (the beginning of Operation 
Enduring Freedom), rather than only children of members 
dying after November 23, 2003. 
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HR 5122 PCS 
Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits 
SEC. 651. TREATMENT OF PRICE SURCHARGES OF TO-
BACCO PRODUCTS AND CERTAIN OTHER 
MERCHANDISE 
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 provided in subparagraph (B), sub-
sections’’; and 
(3) by adding at the end the following new sub-
paragraph: 
‘‘(B) When a military exchange is the vendor of to-
bacco 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 allo-
cated as if the revenue were a uniform sales price sur-
charge described in subsection (d).’’. 
(b) MERCHANDISE TREATED
AS NONCOMMISSARY 
STORE INVENTORY.—Subsection (g) of such section is 
amended— 
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HR 5122 PCS 
(1) by inserting ‘‘(1)’’ before ‘‘Notwith-
standing’’; 
(2) by striking ‘‘Subsections’’ and inserting 
‘‘Except as provided 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 commissary store as noncommissary store inventory, 
any revenue above the cost of procuring the tobacco prod-
ucts shall be allocated as if the revenue were a uniform 
sales price surcharge described in subsection (d).’’. 
SEC. 652. LIMITATION ON USE OF DEPARTMENT OF DE-
FENSE LEASE AUTHORITY TO UNDERMINE 
COMMISSARIES AND EXCHANGES AND OTHER 
MORALE, WELFARE, AND RECREATION PRO-
GRAMS AND NONAPPROPRIATED FUND IN-
STRUMENTALITIES. 
Section 2667(f) of title 10, United States Code, is 
amended by adding at the end the following new para-
graph: 
‘‘(5) Except in the case of a lease under this sub-
section, a lease of real property may not be entered into 
under this section to fascilitate the establishment or oper-
ation of an ancillary supporting facility (as defined in sec-
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HR 5122 PCS 
tion 2871 of this title) if, as determined by the Secretary 
concerned, the facility is to be used for providing merchan-
dise or services in direct competition with— 
‘‘(A) the Army and Air Force Exchange Serv-
ice; 
‘‘(B) the Navy Exchange Service Command; 
‘‘(C) a Marine Corps exchange; 
‘‘(D) the Defense Commissary Agency; or 
‘‘(E) any nonappropriated fund activity of the 
Department of Defense for the morale, welfare, and 
recreation of members of the armed forces.’’. 
SEC. 653. USE OF NONAPPROPRIATED FUNDS TO SUPPLE-
MENT OR REPLACE APPROPRIATED FUNDS 
FOR CONSTRUCTION OF FACILITIES OF EX-
CHANGE STORES SYSTEM AND OTHER NON-
APPROPRIATED FUND INSTRUMENTALITIES, 
MILITARY LODGING FACILITIES, AND COM-
MUNITY FACILITIES. 
(a) IN GENERAL.—Subchapter III of chapter 147 of 
title 10, United States Code, is amended by inserting after 
section 2491c the following new section: 
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HR 5122 PCS 
‘‘§ 2491d. Use of nonappropriated funds to supple-
ment or replace appropriated funds for 
construction of facilities of exchange 
stores system and other nonappropriated 
fund instrumentalities, military lodging 
facilities, and community facilities 
‘‘(a) USE OF NONAPPROPRIATED FUNDS.—The Sec-
retary of Defense may authorize the use of non-
appropriated funds in lieu of or to supplement funds ap-
propriated to the Department of Defense for the construc-
tion of the following: 
‘‘(1) Facilities of the exchange stores system 
and other revenue-generating facilities operated by 
nonappropriated fund instrumentalities of the De-
partment of Defense for the morale, welfare, and 
recreation of members of the armed forces. 
‘‘(2) Facilities of other nonappropriated fund 
instrumentalities of the Department of Defense for 
the morale, welfare, and recreation of members of 
the armed forces. 
‘‘(3) Military lodging facilities used to provide 
temporary lodging to authorized members of the 
armed forces, including temporary duty lodging, per-
manent change of station lodging, recreational lodg-
ing, and military treatment facility lodging. 
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HR 5122 PCS 
‘‘(4) Community facilities intended to supple-
ment mission activities, such as military museums 
and service academy extra-curricular activities, or to 
facilitate private organizations or enterprises, such 
as financial services, memorials, and thrift shop fa-
cilities, on military installations. 
‘‘(b) USE CRITERIA.—The Secretary of Defense may 
prescribe by regulation the criteria under which non-
appropriated funds may be used under subsection (a). 
‘‘(c) CONGRESSIONAL NOTIFICATION.—When a deci-
sion is made to use nonappropriated funds under sub-
section (a), the Secretary of Defense shall submit a report 
to the congressional defense committees containing the 
reasons for using nonappropriated funds in lieu of or to 
supplement appropriated funds and the amount of non-
appropriated funds to be used. The nonappropriated funds 
may be used only after the end of the 21-day period begin-
ning on the date the report is received by such committees 
or, if earlier, the end of the 14-day period beginning on 
the date on which a copy of the report is provided in an 
electronic medium pursuant to section 480 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by insert-
ing after the item relating to section 2491c the end the 
following new item: 
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HR 5122 PCS 
‘‘2491d. Use of nonappropriated funds to supplement or replace appropriated 
funds for construction of facilities of exchange stores system 
and other nonappropriated fund instrumentalities, military 
lodging facilities, and community facilities.’’. 
SEC. 654. REPORT ON COST EFFECTIVENESS OF PUR-
CHASING 
COMMERCIAL 
INSURANCE 
FOR 
COMMISSARY AND EXCHANGE FACILITIES 
AND FACILITIES OF OTHER MORALE, WEL-
FARE, AND RECREATION PROGRAMS AND 
NONAPPROPRIATED FUND INSTRUMENTAL-
ITIES. 
(a) REPORT REQUIRED.—Not later than July 31, 
2007, the Secretary of Defense shall submit to Congress 
a report evaluating the cost effectiveness of the Defense 
Commissary Agency and the nonappropriated fund activi-
ties specified in subsection (b) purchasing commercial in-
surance to protect financial interests in facilities operated 
by the Defense Commissary Agency or those non-
appropriated fund activities. 
(b) COVERED NONAPPROPRIATED FUND ACTIVI-
TIES.—The report shall apply with respect to— 
(1) the Army and Air Force Exchange Service; 
(2) the Navy Exchange Service Command; 
(3) a Marine Corps exchange; and 
(4) any nonappropriated fund activity of the 
Department of Defense for the morale, welfare, and 
recreation of members of the armed forces. 
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HR 5122 PCS 
Subtitle F—Other Matters 
SEC. 661. REPEAL OF ANNUAL REPORTING REQUIREMENT 
REGARDING EFFECTS OF RECRUITMENT AND 
RETENTION INITIATIVES. 
(a) REPEAL.—Section 1015 of title 37, United States 
Code, is repealed. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 19 of title 37, United States 
Code, is amended by striking the item relating to section 
1015. 
SEC. 662. PILOT PROJECT FOR PROVISION OF GOLF CARTS 
ACCESSIBLE FOR DISABLED PERSONS AT 
MILITARY GOLF COURSES. 
(a) PILOT PROJECT REQUIRED.—The Secretary of 
Defense shall conduct a pilot project at a significant num-
ber of military golf courses, to be selected by the Sec-
retary, for the purpose of developing— 
(1) an implementation strategy to make avail-
able, as soon as practicable at all military golf 
courses in the United States, an adequate supply of 
golf carts that are accessible for disabled persons au-
thorized to use such courses; and 
(2) a Department-wide campaign to increase 
the awareness among such disabled persons of the 
availability of accessible golf carts and to promote 
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HR 5122 PCS 
the use of military golf courses by such disabled per-
sons. 
(b) REQUIRED
NUMBER
OF
ACCESSIBLE
GOLF 
CARTS.—The Secretary shall provide at least two acces-
sible golf carts at each pilot project location. 
(c) PILOT PROJECT LOCATIONS.—The military golf 
courses selected to participate in the pilot project shall be 
geographically dispersed, except that at least one of the 
military golf courses shall be in the Washington metropoli-
tan area. The Secretary may not select a military golf 
course to participate in the pilot project if that military 
golf course already has golf carts that are accessible for 
disabled persons. 
(d) DEPARTMENT
OF
DEFENSE
HEALTH
CARE 
AWARENESS.—Military medical treatment facilities shall 
provide information to patients about the pilot project and 
the availability of accessible golf carts at military golf 
courses participating in the pilot project and at other mili-
tary golf courses that already provide accessible golf carts. 
(e) DURATION.—The Secretary shall conduct the 
pilot project for a minimum of one year. 
(f) REPORT REQUIRED.—Not later than 180 days 
after the conclusion of the pilot project, the Secretary shall 
submit a report to Congress containing the results of the 
project and the recommendations of the Secretary regard-
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HR 5122 PCS 
ing how to make an adequate supply of accessible golf 
carts available at all military golf courses in the United 
States. 
SEC. 663. ENHANCED AUTHORITY TO REMIT OR CANCEL IN-
DEBTEDNESS OF MEMBERS OF THE ARMED 
FORCES INCURRED ON ACTIVE DUTY. 
(a) PERIOD OF EXERCISE OF SERVICE SECRETARY 
AUTHORITY AFTER SEPARATION FROM ACTIVE DUTY.— 
Sections 4837(b), 6161(b), and 9837(b) of title 10, United 
States Code, are each amended by striking ‘‘one-year pe-
riod’’ each place it appears and inserting ‘‘five-year pe-
riod’’. 
(b) TWO-YEAR EXTENSION OF ENHANCED AUTHOR-
ITY.—Subsections (a)(3), (b)(3), and (c)(3) of section 683 
of the National Defense Authorization Act for Fiscal Year 
2006 (Public Law 109–163; 119 Stat. 3322) are amended 
by striking ‘‘December 31, 2007’’ in the first sentence and 
inserting ‘‘December 31, 2009’’. 
SEC. 664. PHASED RECOVERY OF OVERPAYMENTS OF PAY 
MADE TO MEMBERS OF THE UNIFORMED 
SERVICES. 
(a) 
PHASE
RECOVERY
REQUIRED; 
MAXIMUM 
MONTHLY INSTALLMENT.—Subsection (c) of section 1007 
of title 37, United States Code, is amended by adding at 
the end the following new paragraph: 
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‘‘(3) If the indebtedness of a member of the uni-
formed services to the United States is due to the overpay-
ment 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.’’. 
(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, in-
curs 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 ill-
ness may not be deducted from the member’s pay until 
after the end of the 90-day period beginning on the date 
on which the member is notified of the overpayment.’’. 
(c) CONFORMING AMENDMENTS.—Such subsection is 
further amended— 
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