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(2) by adding at the end the following new para-
graph:
‘‘(2) A member may waive receipt of notice on a court
order otherwise required by paragraph (1). The waiver shall
take such form and include such requirements as the Sec-
retary concerned may prescribe.’’.
(b) COPY OF COURT ORDER UPON REQUEST.—Such
subsection is further amended—
(1) in paragraph (1), as designated by subsection
(a)(1) of this section, by striking ‘‘(together with a
copy of such order)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(3) Upon the request of a member, written notice of
a court order under paragraph (1) shall include a copy of
the court order.’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall take effect on the date that is 90 days after
the date of the enactment of this Act, and shall apply with
respect to court orders received on or after such date.
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SEC. 647. RETENTION OF ASSISTIVE TECHNOLOGY AND DE-
VICES BY CERTAIN MEMBERS OF THE ARMED
FORCES AFTER SEPARATION FROM SERVICE.
(a) RETENTION AUTHORIZED.—Chapter 58 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 1154. Retention of assistive technology and devices
provided before separation
‘‘(a) IN GENERAL.—Under regulations prescribed by
the Secretary of Defense, a member of the armed forces who
is provided an assistive technology or assistive technology
device while a member of the armed forces for a severe or
debilitating illness or injury incurred or aggravated by such
member on active duty may retain such assistive technology
or assistive technology device after separation from the
armed forces.
‘‘(b) DEFINITIONS.—In this section, the terms ‘assist-
ive technology’ and ‘assistive technology device’ have the
meaning given such terms in section 3 of the Assistive Tech-
nology Act of 1998 (29 U.S.C. 3002).’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of chapter 58 of such title is amended by add-
ing at the end the following new item:
‘‘1154. Retention of assistive technology and devices provided before separation.’’.
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SEC. 648. RENAMING OF DEATH GRATUITY PAYABLE FOR
DEATHS 
OF 
MEMBERS 
OF 
THE 
ARMED
FORCES AS FALLEN HERO COMPENSATION.
(a) IN GENERAL.—Subchapter II of chapter 75 of title
10, United States Code, is amended as follows:
(1) In section 1475(a), by striking ‘‘have a death
gratuity paid’’ and inserting ‘‘have fallen hero com-
pensation paid’’.
(2) In section 1476(a)—
(A) in paragraph (1), by striking ‘‘a death
gratuity’’ and inserting ‘‘fallen hero compensa-
tion’’; and
(B) in paragraph (2), by striking ‘‘A death
gratuity’’ and inserting ‘‘Fallen hero compensa-
tion’’.
(3) In section 1477(a), by striking ‘‘A death gra-
tuity’’ and inserting ‘‘Fallen hero compensation’’.
(4) In section 1478(a), by striking ‘‘The death
gratuity’’ and inserting ‘‘The amount of fallen hero
compensation’’.
(5) In section 1479(1), by striking ‘‘the death
gratuity’’ and inserting ‘‘fallen hero compensation’’.
(6) In section 1489—
(A) in subsection (a), by striking ‘‘a gra-
tuity’’ in the matter preceding paragraph (1)
and inserting ‘‘fallen hero compensation’’; and
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(B) in subsection (b)(2), by inserting ‘‘or
other assistance’’ after ‘‘lesser death gratuity’’.
(b) CLERICAL AMENDMENTS.—
(1) HEADING AMENDMENTS.—Such subchapter is
further amended by striking ‘‘Death Gratuity:’’
each place it appears in the heading of sections 1475
through 1480 and 1489 and inserting ‘‘Fallen
Hero Compensation:’’.
(2) TABLE OF SECTIONS.—The table of sections
at the beginning of such subchapter is amended by
striking ‘‘Death gratuity:’’ in the items relating to
sections 1474 through 1480 and 1489 and inserting
‘‘Fallen hero compensation:’’.
(c) GENERAL REFERENCES.—Any reference to a death
gratuity payable under subchapter II of chapter 75 of title
10, United States Code, in any law, regulation, document,
paper, or other record of the United States shall be deemed
to be a reference to fallen hero compensation payable under
such subchapter, as amended by this section.
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SEC. 649. EFFECTIVE DATE OF TERMINATION OF PHASE-IN
OF CONCURRENT RECEIPT FOR VETERANS
WITH 
SERVICE-CONNECTED 
DISABILITIES
RATED 
AS 
TOTAL 
BY 
VIRTUE 
OF
UNEMPLOYABILITY.
(a) IN GENERAL.—Section 1414(a)(1) of title 10,
United States Code, is amended by striking ‘‘100 percent’’
the first place it appears and all that follows and inserting
‘‘100 percent and in the case of a qualified retiree receiving
veterans’ disability compensation at the rate payable for
a 100 percent disability by reason of a determination of
individual unemployability, payment of retired pay to such
veteran is subject to subsection (c) only during the period
beginning on January 1, 2004, and ending on December
31, 2004.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on December 31, 2004.
SEC. 650. DETERMINATION OF RETIRED PAY BASE OF GEN-
ERAL AND FLAG OFFICERS BASED ON RATES
OF BASIC PAY PROVIDED BY LAW.
(a) DETERMINATION OF RETIRED PAY BASE.—
(1) IN GENERAL.—Chapter 71 of title 10, United
States Code, is amended by inserting after section
1407 the following new section:
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‘‘§ 1407a. Retired pay base: members who were general
or flag officers
‘‘Notwithstanding any other provision of law, if the
determination of the retired pay base or retainer pay base
under section 1406 or 1407 of this title with respect to a
person who was a commissioned officer in pay grades O–
7 through O–10 involves a rate or rates of basic pay that
were subject to a reduction under section 203(a)(2) of title
37, such determination shall be made utilizing such rate
or rates of basic pay in effect as provided by law rather
than such rate or rates as so reduced under section
203(a)(2) of title 37.’’.
(2) CLERICAL AMENDMENT.—The table of sec-
tions for chapter 71 of such title is amended by in-
serting after the item relating to section 1407 the fol-
lowing new item:
‘‘1407a. Retired pay base: members who were general or flag officers.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on October 1, 2006, and shall
apply with respect to the computation of retired pay for
members of the Armed Forces who retire on or after that
date.
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SEC. 651. INAPPLICABILITY OF RETIRED PAY MULTIPLIER
MAXIMUM PERCENTAGE TO SERVICE OF MEM-
BERS OF THE ARMED FORCES IN EXCESS OF
30 YEARS.
(a) IN GENERAL.—Paragraph (3) of section 1409(b)
of title 10, United States Code, is amended to read as fol-
lows:
‘‘(3) 30 YEARS OF SERVICE.—
‘‘(A) RETIREMENT
BEFORE
JANUARY
1,
2007.—In the case of a member who retires be-
fore January 1, 2007, with more than 30 years
of creditable service, the percentage to be used
under subsection (a) is 75 percent.
‘‘(B) RETIREMENT
AFTER
DECEMBER 31,
2006.—In the case of a member who retires after
December 31, 2006, with more than 30 years of
creditable service, the percentage to be used
under subsection (a) is the sum of—
‘‘(i) 75 percent; and
‘‘(ii) the product (stated as a percent-
age) of—
‘‘(I) 21⁄2; and
‘‘(II) the member’s years of cred-
itable service (as defined in subsection
(c)) in excess of 30 years of creditable
service in any service, regardless of
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when served, under conditions author-
ized for purposes of this subparagraph
during a period designated by the Sec-
retary of Defense for purposes of this
subparagraph.’’.
(b) RETIRED PAY FOR NON-REGULAR SERVICE.—Sec-
tion 12739(c) of such title is amended—
(1) by striking ‘‘The total amount’’ and insert-
ing ‘‘(1) Except as provided in paragraph (2), the
total amount’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) In the case of a person who retires after December
31, 2006, with more than 30 years of service credited to
that person under section 12733 of this title, the total
amount of the monthly retired pay computed under sub-
sections (a) and (b) may not exceed the sum of—
‘‘(A) 75 percent of the retired pay base upon
which the computation is based; and
‘‘(B) the product of—
‘‘(i) the retired pay base upon which the
computation is based; and
‘‘(ii) 21⁄2 percent of the years of service
credited to that person under section 12733 of
this title for service, regardless of when served,
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under conditions authorized for purposes of this
paragraph during a period designated by the
Secretary of Defense for purposes of this para-
graph.’’.
SEC. 652. MODIFICATION OF ELIGIBILITY FOR COMMENCE-
MENT OF AUTHORITY FOR OPTIONAL ANNU-
ITIES FOR DEPENDENTS UNDER THE SUR-
VIVOR BENEFIT PLAN.
(a) IN GENERAL.—Section 1448(d)(2)(B) of title 10,
United States Code, is amended by striking ‘‘who dies after
November 23, 2003’’ and inserting ‘‘who dies after October
7, 2001’’.
(b) APPLICABILITY.—Any annuity payable to a de-
pendent child under subchapter II of chapter 73 of title 10,
United States Code, by reason of the amendment made by
subsection (a) shall be payable only for months beginning
on or after the date of the enactment of this Act.
SEC. 653. COMMENCEMENT OF RECEIPT OF NON-REGULAR
SERVICE RETIRED PAY BY MEMBERS OF THE
READY RESERVE ON ACTIVE FEDERAL STA-
TUS OR ACTIVE DUTY FOR SIGNIFICANT PERI-
ODS.
(a) REDUCED ELIGIBILITY AGE.—Section 12731 of
title 10, United States Code, is amended—
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(1) in subsection (a), by striking paragraph (1)
and inserting the following:
‘‘(1) has attained the eligibility age applicable
under subsection (f) to that person;’’; and
(2) by adding at the end the following new sub-
section:
‘‘(f)(1) Subject to paragraph (2), the eligibility age for
purposes of subsection (a)(1) is 60 years of age.
‘‘(2)(A) In the case of a person who as a member of
the Ready Reserve serves on active duty or performs active
service described in subparagraph (B) after September 11,
2001, the eligibility age for purposes of subsection (a)(1)
shall be reduced below 60 years of age by three months for
each aggregate of 90 days on which such person so performs
in any fiscal year after such date, subject to subparagraph
(C). A day of duty may be included in only one aggregate
of 90 days for purposes of this subparagraph.
‘‘(B)(i) Service on active duty described in this sub-
paragraph is service on active duty pursuant to a call or
order to active duty under a provision of law referred to
in section 101(a)(13)(B) of this title or under section
12301(d) of this title. Such service does not include service
on active duty pursuant to a call or order to active duty
under section 12310 of this title.
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‘‘(ii) Active service described in this subparagraph is
service under a call to active service authorized by the
President or the Secretary of Defense under section 502(f)
of title 32 for purposes of responding to a national emer-
gency declared by the President or supported by Federal
funds.
‘‘(C) The eligibility age for purposes of subsection
(a)(1) may not be reduced below 50 years of age for any
person under subparagraph (A).’’.
(b) CONTINUATION OF AGE 60 AS MINIMUM AGE FOR
ELIGIBILITY OF NON-REGULAR SERVICE RETIREES FOR
HEALTH
CARE.—Section 
1074(b) 
of 
such 
title 
is
amended—
(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) Paragraph (1) does not apply to a member or
former member entitled to retired pay for non-regular serv-
ice under chapter 1223 of this title who is under 60 years
of age.’’.
(c) ADMINISTRATION
OF RELATED PROVISIONS
OF
LAW OR POLICY.—With respect to any provision of law,
or of any policy, regulation, or directive of the executive
branch that refers to a member or former member of the
uniformed services as being eligible for, or entitled to, re-
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tired pay under chapter 1223 of title 10, United States
Code, but for the fact that the member or former member
is under 60 years of age, such provision shall be carried
out with respect to that member or former member by sub-
stituting for the reference to being 60 years of age a ref-
erence to having attained the eligibility age applicable
under subsection (f) of section 12731 of title 10, United
States Code (as added by subsection (a)), to such member
or former member for qualification for such retired pay
under subsection (a) of such section.
(d) EFFECTIVE
DATE
AND
APPLICABILITY.—The
amendment made by subsection (a) shall take effect as of
September 11, 2001, and shall apply with respect to appli-
cations for retired pay that are submitted under section
12731(a) of title 10, United States Code, on or after the
date of the enactment of this Act.
Subtitle E—Other Matters
SEC. 661. AUDIT OF PAY ACCOUNTS OF MEMBERS OF THE
ARMY EVACUATED FROM A COMBAT ZONE
FOR INPATIENT CARE.
(a) AUDIT REQUIRED.—
(1) IN GENERAL.—The Secretary of the Army
shall conduct a complete audit of the pay accounts of
each member of the Army wounded or injured in a
combat zone who was evacuated from a theater of op-
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erations for inpatient care during the period begin-
ning on May 1, 2005, and ending on April 30, 2006.
(2) REPORT.—Not later than 120 days after the
date of the enactment of this Act, the Secretary shall
submit to the congressional defense committees a re-
port on the audit conducted under paragraph (1).
(3) REPORT
ELEMENTS.—The report under
paragraph (2) shall include the following:
(A) A list of each member of the Army de-
scribed in paragraph (1) identified (in a manner
that protects the privacy of members so listed)
by—
(i) date of wound or injury on which
inclusion of such member on the list is
based; and
(ii) grade and unit designation as of
such date.
(B) For each member so listed, a statement
of any underpayment of each of any pay, allow-
ance, or other monetary benefit to which such
member was entitled during the period beginning
on the date of such wound or injury and ending
on April 30, 2006, including basic pay, haz-
ardous duty pay, imminent danger pay, basic
allowance for housing, basic allowance for sub-
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sistence, any family separation allowance, any
tax exclusion for combat duty, and any other
pay, allowance, or monetary benefit to which
such member was entitled during such period.
(C) For each member so listed, a statement
of any disbursements made to correct underpay-
ments made to such member as identified under
subparagraph (B).
(D) For each member so listed, a statement
of any debts to the United States collected or
pending collection from such member.
(E) For each member so listed, a statement
of any reimbursements or debt relief granted to
such member for a debt identified under sub-
paragraph (D).
(F) For each member so listed who has ap-
plied to the United States for a relief of debt—
(i) a description of the nature of the
debt for which relief was applied; and
(ii) a description of the disposition of
the application, including, if granted, the
date of disbursement for relief granted, and,
if denied, the reasons for the denial.
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(G) For each member so listed, a report of
any referral of such member to a collection or
credit agency.
(4) FORM.—The report under paragraph (2)
shall be in unclassified form, but may include a clas-
sified annex.
(b) ASSISTANCE WITH PAY OR ACCOUNT DIFFICUL-
TIES.—
(1) CALL ASSISTANCE CENTER.—Not later than
60 days after the date of the enactment of this Act,
the Secretary of Defense shall establish within the De-
partment of Defense an assistance center, accessible by
toll-free telephone call, through which a covered mem-
ber of the Armed Forces, or the primary next of kin
of such a member in the case of such a member who
dies, may secure assistance in resolving difficulties re-
lating to the military pay or accounts of such mem-
ber.
(2) REQUESTS FOR ASSISTANCE.—A request for
assistance under paragraph (1) may be made—
(A) by a covered member of the Armed
Forces; or
(B) by the primary next of kin on behalf of,
or with respect to, a covered member of the
Armed Forces.
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(3) RESPONSE TO REQUESTS FOR ASSISTANCE.—
The Secretary shall ensure that, in providing assist-
ance under paragraph (1) to a covered member of the
Armed Forces or next of kin of such a member, per-
sonnel of the assistance center established under that
paragraph—
(A) provide an initial response to the re-
quest for assistance under paragraph (2) not
later than 10 days after receipt of such request;
and
(B) provide a final response to the request
for assistance under that paragraph not later
than 30 days after receipt of such request.
(4) COVERED MEMBER OF THE ARMED FORCES
DEFINED.—In this subsection, the term ‘‘covered
member of the Armed Forces’’ means a member of the
Armed Forces wounded or injured in a combat zone
who is evacuated from a theater of operations for in-
patient care.
SEC. 662. PILOT PROGRAM ON TROOPS TO NURSE TEACH-
ERS.
(a) PILOT PROGRAM REQUIRED.—
(1) IN
GENERAL.—The Secretary of Defense
shall, in coordination with the Secretary of Health
and Human Services and the Secretary of Education,
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conduct a pilot program to assess the feasibility and
potential benefits of a program to—
(A) assist nurse corps officers described in
subsection (c) in achieving necessary qualifica-
tions to become nurse educators and in securing
employment as nurse educators at accredited
schools of nursing;
(B) provide scholarships to nurse corps offi-
cers described in subsection (c) in return for con-
tinuing service in the Selected Reserve or other
forms of public service; and
(C) help alleviate the national shortage of
nurse educators and registered nurses.
(2) DURATION.—Except as provided in sub-
section (h), the pilot program shall be conducted dur-
ing the period beginning on January 1, 2007, and
ending on December 31, 2012. A nurse corps officer
may not enter into an agreement to participate in the
pilot program after December 31, 2012.
(3) REGULATIONS.—The pilot program shall be
conducted under regulations prescribed by the Sec-
retary of Defense in consultation with the Secretary
of Health and Human Services and the Secretary of
Education.
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(b) DESIGNATION.—The pilot program required by
subsection (a) shall be known as the ‘‘Troops to Nurse
Teachers Pilot Program’’ (in this section referred to as the
‘‘Program’’).
(c) NURSE CORPS OFFICERS.—A nurse corps officer
described in this subsection is any commissioned officer of
the Armed Forces qualified and designated as an officer in
a Nurse Corps of the Armed Forces who is—
(1) serving in a reserve component of the Armed
Forces;
(2) honorably discharged from the Armed Forces;
or
(3) a retired member of the Armed Forces.
(d) SELECTION OF PARTICIPANTS IN PROGRAM.—
(1) APPLICATION.—An eligible nurse corps offi-
cer seeking to participate in the Program shall submit
to the Secretary of Defense an application therefor.
The application shall be in such form, and contain
such information, as the Secretary may require.
(2) SELECTION.—The Secretary shall select par-
ticipants in the Program from among qualified nurse
corps officers submitting applications therefor under
paragraph (1).
(e) PARTICIPANT AGREEMENT.—
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(1) IN GENERAL.—A nurse corps officer selected
under subsection (d) to participate in the Program
shall enter into an agreement with the Secretary of
Defense relating to participation in the Program.
(2) ELEMENTS.—The agreement of a nurse corps
officer under the program shall, at the election of the
Secretary for purposes of the Program and as appro-
priate with respect to that status of such nurse corps
officer—
(A) require such nurse corps officer, within
such time as the Secretary may require, to ac-
cept an offer of full-time employment as a nurse
educator from an accredited school of nursing for
a period of not less than one year; or
(B) require such nurse corps officer—
(i) within such time as the Secretary
may require, to successfully complete a pro-
gram leading to a master’s degree or doc-
toral degree in a nursing field from an ac-
credited school of nursing or to a doctoral
degree in a related field from an accredited
institution of higher education;
(ii) to serve in the Selected Reserve or
some other form of public service under
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terms and conditions established by the Sec-
retary; and
(iii) upon completion of such program
and service, to accept an offer of full-time
employment as a nurse educator from an
accredited school of nursing for a period of
not less than 3 years.
(f) ASSISTANCE.—
(1) TRANSITION ASSISTANCE.—The Secretary of
Defense may provide a participant in the Program
who enters into an agreement described in subsection
(e)(2)(A) assistance as follows:
(A) Career placement assistance in securing
full-time employment as a nurse educator at an
accredited school of nursing.
(B) A stipend in an amount not to exceed
$5,000 for transition to employment referred to
in paragraph (1), and for educational training
for such employment, for a period not to exceed
two years after entry by such participant into
an agreement under subsection (e).
(2) SCHOLARSHIP ASSISTANCE.—The Secretary
of Defense may provide a participant in the Program
who enters into an agreement described in subsection
(e)(2)(B) scholarship assistance to pursue a degree de-
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scribed in subsection (e)(2)(B)(i) in an amount not to
exceed $30,000 annually for a period of not more
than four years.
(g) TREATMENT OF ASSISTANCE.—A stipend or schol-
arship provided under subsection (f) shall not be taken into
account in determining the eligibility of a participant in
the Program for Federal student financial assistance pro-
vided under title IV of the Higher Education Act of 1965
(20 U.S.C. 1070 et seq.).
(h) ADMINISTRATION AFTER INITIAL PERIOD.—
(1) IN GENERAL.—The termination of the Pro-
gram on December 31, 2012, under subsection (a)(2)
shall not terminate the entitlement to assistance
under the Program of any nurse corps officer entering
into an agreement to participate in the Program
under subsection (e) that continues in force after that
date.
(2) ADMINISTRATION.—The Secretary of Edu-
cation shall undertake any administration of the Pro-
gram that is required after December 31, 2012, in-
cluding responsibility for any funding necessary to
provide assistance under the Program after that date.
(i) REPORT.—
(1) IN
GENERAL.—Not later than three years
after the commencement of the Program, the Secretary
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of Defense shall, in consultation with the Secretary of
Health and Human Services and the Secretary of
Education, submit to Congress a report on the Pro-
gram.
(2) ELEMENTS.—The report shall—
(A) describe the activities undertaken under
the Program; and
(B) include an assessment of the effective-
ness of the Program in—
(i) facilitating the development of
nurse educators;
(ii) encouraging service in the Selected
Reserve and other forms of public service;
and
(iii) helping alleviate the national
shortage of nurse educators and registered
nurses.
(j) DEFINITIONS.—In this section:
(1) NURSE EDUCATOR.—The term ‘‘nurse educa-
tor’’ means a registered nurse who—
(A) is a member of the nursing faculty at
an accredited school of nursing;
(B) holds a graduate degree in nursing from
an accredited school of nursing or a doctoral de-
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gree in a related field from an accredited institu-
tion of higher education;
(C) holds a valid, unrestricted license to
practice nursing from a State; and
(D) has successfully completed additional
course work in education and demonstrates com-
petency in an advanced practice area of nursing.
(2) SCHOOL OF NURSING.—The term ‘‘school of
nursing’’ means a school of nursing (as that term is
defined in section 801 of the Public Health Service
Act (42 U.S.C. 296)) that is accredited (as that term
is defined in section 801(6) of the Public Health Serv-
ice Act).
(k) FUNDING.—From amounts authorized to be appro-
priated for the Department of Defense, $5,000,000 may be
available for the Program.
SEC. 663. EXPANSION AND ENHANCEMENT OF AUTHORITY
TO REMIT OR CANCEL INDEBTEDNESS OF
MEMBERS OF THE ARMED FORCES.
(a) MEMBERS OF THE ARMY.—
(1) COVERAGE OF ALL MEMBERS AND FORMER
MEMBERS.—Subsection (a) of section 4837 of title 10,
United States Code, is amended by striking ‘‘a mem-
ber of the Army’’ and all that follows through ‘‘in an
active status’’ and inserting ‘‘a member of the Army
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(including a member on active duty or a member of
a reserve component in an active status), a retired
member of the Army, or a former member of the
Army’’.
(2) TIME FOR EXERCISE OF AUTHORITY.—Sub-
section (b) of such section is amended—
(A) in paragraph (1), by adding ‘‘or’’ at the
end; and
(B) by striking paragraphs (2) and (3) and
inserting the following new paragraph (2):
‘‘(2) in the case of any other member of the
Army covered by subsection (a), during such period
or periods as the Secretary of Defense may provide in
regulations prescribed by the Secretary of Defense.’’.
(3) REPEAL OF TERMINATION OF MODIFIED AU-
THORITY.—Paragraph (3) of section 683(a) of the Na-
tional Defense Authorization Act for Fiscal Year 2006
(Public Law 109–163; 119 Stat. 3322; 10 U.S.C.
4837 note) is repealed.
(b) MEMBERS OF THE NAVY.—
(1) COVERAGE OF ALL MEMBERS AND FORMER
MEMBERS.—Section 6161 of title 10, United States
Code, is amended by striking ‘‘a member of the Navy’’
and all that follows through ‘‘in an active status’’ and
inserting ‘‘a member of the Navy (including a mem-
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ber on active duty or a member of a reserve compo-
nent in an active status), a retired member of the
Navy , or a former member of the Navy’’.
(2) TIME FOR EXERCISE OF AUTHORITY.—Sub-
section (b) of such section is amended—
(A) in paragraph (1), by adding ‘‘or’’ at the
end; and
(B) by striking paragraphs (2) and (3) and
inserting the following new paragraph (2):
‘‘(2) in the case of any other member of the Navy
covered by subsection (a), during such period or peri-
ods as the Secretary of Defense may provide in regu-
lations prescribed by the Secretary of Defense.’’.
(3) REPEAL OF TERMINATION OF MODIFIED AU-
THORITY.—Paragraph (3) of section 683(b) of the Na-
tional Defense Authorization Act for Fiscal Year 2006
(119 Stat. 3323; 10 U.S.C. 6161 note) is repealed.
(c) MEMBERS OF THE AIR FORCE.—
(1) COVERAGE OF ALL MEMBERS AND FORMER
MEMBERS.—Subsection (a) of section 4837 of title 10,
United States Code, is amended by striking ‘‘a mem-
ber of the Air Force’’ and all that follows through ‘‘in
an active status’’ and inserting ‘‘a member of the Air
Force (including a member on active duty or a mem-
ber of a reserve component in an active status), a re-
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tired member of the Air Force, or a former member
of the Air Force’’.
(2) TIME FOR EXERCISE OF AUTHORITY.—Sub-
section (b) of such section is amended—
(A) in paragraph (1), by adding ‘‘or’’ at the
end; and
(B) by striking paragraphs (2) and (3) and
inserting the following new paragraph (2):
‘‘(2) in the case of any other member of the Air
Force covered by subsection (a), during such period or
periods as the Secretary of Defense may provide in
regulations prescribed by the Secretary of Defense.’’.
(3) REPEAL OF TERMINATION OF MODIFIED AU-
THORITY.—Paragraph (3) of section 683(c) of the Na-
tional Defense Authorization Act for Fiscal Year 2006
(119 Stat. 3324; 10 U.S.C. 9837 note) is repealed.
(d) DEADLINE FOR REGULATIONS.—The Secretary of
Defense shall prescribe the regulations required for purposes
of sections 4837, 6161, and 9837 of title 10, United States
Code, as amended by this section, not later than March 1,
2007.
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SEC. 664. EXCEPTION FOR NOTICE TO CONSUMER REPORT-
ING AGENCIES REGARDING DEBTS OR ERRO-
NEOUS PAYMENTS PENDING A DECISION TO
WAIVE, REMIT, OR CANCEL.
(a) EXCEPTION.—Section 2780(b) of title 10, United
States Code, is amended—
(1) by striking ‘‘The Secretary’’ and inserting
‘‘(1) Except as provided in paragraph (2), the Sec-
retary’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) No disclosure shall be made under paragraph (1)
with respect to an indebtedness while a decision regarding
waiver of collection is pending under section 2774 of this
title, or a decision regarding remission or cancellation is
pending under section 4837, 6161, or 9837 of this title, un-
less the Secretary concerned (as defined in section 101(5)
of title 37), or the designee of such Secretary, determines
that disclosure under that paragraph pending such decision
is in the best interests of the United States.’’.
(b) EFFECTIVE DATE.—
(1) IN
GENERAL.—The amendments made by
this section shall take effect on March 1, 2007.
(2) APPLICATION
TO
PRIOR
ACTIONS.—Para-
graph (2) of section 2780(b) of title 10, United States
Code (as added by subsection (a)), shall not be con-
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strued to apply to or invalidate any action taken
under such section before March 1, 2007.
(c) REPORT.—Not later than March 1, 2007, the Sec-
retary of Defense shall submit to the congressional defense
committees a report on the exercise of the authority in sec-
tion 2780(b) of title 10, United States Code, including—
(1) the total number of members of the Armed
Forces who have been reported to consumer reporting
agencies under such section;
(2) the circumstances under which such author-
ity has been exercised, or waived (as provided in
paragraph (2) of such section (as amended by sub-
section (a))), and by whom;
(3) the cost of contracts for collection services to
recover indebtedness owed to the United States that is
delinquent;
(4) an evaluation of whether or not such con-
tracts, and the practice of reporting military debtors
to collection agencies, has been effective in reducing
indebtedness to the United States; and
(5) such recommendations as the Secretary con-
siders appropriate regarding the continuing use of
such authority with respect to members of the Armed
Forces.
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SEC. 665. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS
FOR OVERPAYMENT OF PAY AND ALLOW-
ANCES.
(a) CLARIFICATION OF PAY AND ALLOWANCES.—Sub-
section (a) of section 2774 of title 10, United States Code,
is amended in the matter preceding paragraph (1) by in-
serting ‘‘(including any bonus or special or incentive pay)’’
after ‘‘pay or allowances’’.
(b) WAIVER
BY SECRETARIES CONCERNED.—Para-
graph (2) of such subsection is amended—
(1) in the matter preceding subparagraph (A),
by inserting ‘‘or the designee of such Secretary’’ after
‘‘title 37,’’; and
(2) in subparagraph (A), by striking ‘‘$1,500’’
and inserting ‘‘$10,000’’.
(c) TIME FOR WAIVER.—Subsection (b)(2) of such sec-
tion is amended by striking ‘‘three years’’ and inserting
‘‘five years’’.
(d) EFFECTIVE DATE.—The amendments made by this
section shall take effect on March 1, 2007.
(e) DEADLINE FOR REVISED STANDARDS.—The Direc-
tor of the Office of Management and Budget and the Sec-
retary of Defense shall prescribe any modifications to the
standards under section 2774 of title 10, United States
Code, that are required or authorized by reason of the
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amendments made by this section not later than March 1,
2007.
SEC. 666. TERMS OF CONSUMER CREDIT EXTENDED TO
SERVICEMEMBER OR SERVICEMEMBER’S DE-
PENDENT.
(a) TERMS OF CONSUMER CREDIT.—Title II of the
Servicemembers Civil Relief Act (50 U.S.C. App. 521 et
seq.) is amended by adding at the end the following new
section:
‘‘SEC. 208. TERMS OF CONSUMER CREDIT.
‘‘(a) INTEREST.—A creditor who extends consumer
credit to a servicemember or a servicemember’s dependent
shall not require the servicemember or the servicemember’s
dependent to pay interest with respect to the extension of
such credit, except as—
‘‘(1) agreed to under the terms of the credit
agreement or promissory note;
‘‘(2) authorized by applicable State or Federal
law; and
‘‘(3) not specifically prohibited by this section.
‘‘(b) ANNUAL PERCENTAGE RATE.—A creditor de-
scribed in subsection (a) shall not impose an annual per-
centage rate greater than 36 percent with respect to the con-
sumer 
credit 
extended 
to 
a 
servicemember 
or 
a
servicemember’s dependent.
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‘‘(c) MANDATORY LOAN DISCLOSURES.—
‘‘(1) INFORMATION REQUIRED.—With respect to
any extension of consumer credit to a servicemember
or a servicemember’s dependent, a creditor shall pro-
vide to the servicemember or the servicemember’s de-
pendent the following information in writing, at or
before the issuance of the credit:
‘‘(A) A statement of the annual percentage
rate applicable to the extension of credit.
‘‘(B) Any disclosures required under the
Truth in Lending Act (15 U.S.C. 1601 et seq.).
‘‘(C) A clear description of the payment ob-
ligations 
of 
the 
servicemember 
or 
the
servicemember’s dependent, as applicable.
‘‘(2) TERMS.—Such disclosures shall be presented
in accordance with terms prescribed by the regula-
tions issued by the Board of Governors of the Federal
Reserve System to implement the Truth in Lending
Act (15 U.S.C. 1601 et seq.).
‘‘(d) LIMITATION.—A creditor described in subsection
(a) shall not automatically renew, repay, refinance, or con-
solidate with the proceeds of other credit extended by the
same creditor any consumer credit extended to a
servicemember or a servicemember’s dependent without—
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‘‘(1) executing new loan documentation signed
by the servicemember or the servicemember’s depend-
ent, as applicable; and
‘‘(2) providing the loan disclosures described in
subsection 
(c) 
to 
the 
servicemember 
or 
the
servicemember’s dependent.
‘‘(e) PREEMPTION.—Except as provided in subsection
(f)(2), this section preempts any State or Federal law, rule,
or regulation, including any State usury law, to the extent
that such laws, rules, or regulations are inconsistent with
this section, except that this section shall not preempt any
such law, rule, or regulation that provides additional pro-
tection to a servicemember or a servicemember’s dependent.
‘‘(f) PENALTIES.—
‘‘(1) MISDEMEANOR.—Any creditor who know-
ingly violates this section shall be fined as provided
in title 18, United States Code, or imprisoned for not
more than one year, or both.
‘‘(2) PRESERVATION OF OTHER REMEDIES.—The
remedies and rights provided under this section are
in addition to and do not preclude any remedy other-
wise available under law to the person claiming relief
under this section, including any award for con-
sequential and punitive damages.
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‘‘(g) DEFINITION.—For purposes of this section, the
term ‘interest’ includes service charges, renewal charges,
fees, or any other charges (except bona fide insurance) with
respect to the extension of consumer credit.’’.
(b) CLERICAL AMENDMENT.—The table of contents of
the Servicemembers Civil Relief Act (50 U.S.C. App. 501)
is amended by inserting after the item relating to section
207 the following new item:
‘‘Sec. 208. Terms of consumer credit’’.
SEC. 667. JOINT FAMILY SUPPORT ASSISTANCE PROGRAM.
(a) PROGRAM REQUIRED.—The Secretary of Defense
shall carry out a joint family support assistance program
for the purpose of providing assistance to families of mem-
bers of the Armed Forces.
(b) LOCATIONS.—
(1) IN GENERAL.—The Secretary shall carry out
the program for at least six regions of the country
through sites established by the Secretary for purposes
of the program in such regions.
(2) LOCATION OF CERTAIN SITES.—At least three
of the sites established under paragraph (1) shall be
located in an area that it geographically isolated
from military installations.
(c) FUNCTIONS.—The Secretary shall provide assist-
ance to families of the members of the Armed Forces under
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the program by providing at each site established for pur-
poses of the program under subsection (b) the following:
(1) Financial, material, and other assistance to
families of members of the Armed Forces.
(2) Mobile support services to families of mem-
bers of the Armed Forces.
(3) Sponsorship of volunteers and family sup-
port professionals for the delivery of support services
to families of members of the Armed Forces.
(4) Coordination of family assistance programs
and activities provided by Military OneSource, Mili-
tary Family Life Consultants, counselors, the Depart-
ment of Defense, other departments and agencies of
the Federal Government, State and local agencies,
and non-profit entities.
(5) Facilitation of discussion on military family
assistance programs, activities, and initiatives be-
tween and among the organizations, agencies, and en-
tities referred to in paragraph (4).
(d) RESOURCES.—
(1) IN GENERAL.—The Secretary shall provide
personnel and other resources necessary for the imple-
mentation and operation of the program at each site
established under subsection (b).
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(2) ACCEPTANCE
OF
CERTAIN
SERVICES.—In
providing resources under paragraph (1), the Sec-
retary may accept and utilize the services of non-Fed-
eral Government volunteers and non-profit entities.
(e) PROCEDURES.—The Secretary shall establish pro-
cedures for the operation of each site established under sub-
section (b) and for the provision of assistance to families
of members of the Armed Forces at such site.
(f) IMPLEMENTATION PLAN.—
(1) PLAN REQUIRED.—Not later than 30 days
after the first obligation of amounts for the program,
the Secretary shall submit to the congressional defense
committees a report setting forth a plan for the imple-
mentation of the program.
(2) ELEMENTS.—The plan required under para-
graph (1) shall include the following:
(A) A description of the actions taken to se-
lect and establish sites for the program under
subsection (b).
(B) A description of the procedures estab-
lished under subsection (d).
(C) A review of proposed actions to be taken
under the program to improve coordination on
family assistance program and activities between
and among the Department of Defense, other de-
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partments and agencies of the Federal Govern-
ment, State and local agencies, and non-profit
entities.
(g) REPORT.—
(1) IN GENERAL.—Not later than 270 days after
the first obligation of amounts for the program, the
Secretary shall submit to the congressional defense
committees a report on the program.
(2) ELEMENTS.—The report shall include the fol-
lowing:
(A) A description of the program, including
each site established for purposes of the program,
the procedures established under subsection (d)
for operations at each such site, and the assist-
ance provided through each such site for families
of members of the Armed Forces.
(B) An assessment of the effectiveness of the
program in providing assistance to families of
members of the Armed Forces.
(C) An assessment of the advisability of ex-
tending the program or making it permanent.
(h) ASSISTANCE TO NON-PROFIT ENTITIES PROVIDING
ASSISTANCE TO MILITARY FAMILIES.—The Secretary may
provide financial, material, and other assistance to non-
profit entities in order to facilitate the provision by such
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entities of assistance to geographically isolated families of
members of the Armed Forces.
(i) SUNSET.—The program required by this section,
and the authority to provide assistance under subsection
(h), shall cease upon the date that is three years after the
first obligation of amounts for the program.
(j) FUNDING.—Of the amount authorized to be appro-
priated by section 301(5) for operation and maintenance
for Defense-wide activities, $5,000,000 may be available for
the program required by this section and the provision of
assistance under subsection (h).
SEC. 668. IMPROVEMENT OF MANAGEMENT OF ARMED
FORCES RETIREMENT HOME.
(a) REDESIGNATION OF CHIEF OPERATING OFFICER
AS CHIEF EXECUTIVE OFFICER.—
(1) IN GENERAL.—Section 1515 of the Armed
Forces Retirement Home Act of 1991 (24 U.S.C. 415)
is amended—
(A) by striking ‘‘Chief Operating Officer’’
each place it appears and inserting ‘‘Chief Exec-
utive Officer’’; and
(B) in subsection (e)(1), by striking ‘‘Chief
Operating Officer’s’’ and inserting ‘‘Chief Execu-
tive Officer’s’’.
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(2) CONFORMING
AMENDMENTS.—Such Act is
further amended by striking ‘‘Chief Operating Offi-
cer’’ each place it appears in a provision as follows
and inserting ‘‘Chief Executive Officer’’:
(A) Section 1511 (24 U.S.C. 411).
(B) Section 1512 (24 U.S.C. 412).
(C) Section 1513(a) (24 U.S.C. 413(a)).
(D) 
Section 
1514(c)(1) 
(24 
U.S.C.
414(c)(1)).
(E) Section 1516(b) (24 U.S.C. 416(b)).
(F) Section 1517 (24 U.S.C. 417).
(G) Section 1518(c) (24 U.S.C. 418(c)).
(H) Section 1519(c) (24 U.S.C. 419(c)).
(I) Section 1521(a) (24 U.S.C. 421(a)).
(J) Section 1522 (24 U.S.C. 422).
(K) Section 1523(b) (24 U.S.C. 423(b)).
(L) Section 1531 (24 U.S.C. 431).
(3) CLERICAL AMENDMENTS.—(A) The heading
of section 1515 of such Act is amended to read as fol-
lows:
‘‘SEC. 1515. CHIEF EXECUTIVE OFFICER.’’.
(B) The table of contents for such Act is amended
by striking the item relating to section 1515 and in-
serting the following new item:
‘‘Sec. 1515. Chief Executive Officer.’’.
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(4) REFERENCES.—Any reference in any law,
regulation, document, record, or other paper of the
United States to the Chief Operating Officer of the
Armed Forces Retirement Home shall be considered to
be a reference to the Chief Executive Officer of the
Armed Forces Retirement Home.
(b) DIRECTOR AND DEPUTY DIRECTOR OF FACILI-
TIES.—
(1) MILITARY DIRECTOR.—Subsection (b)(1) of
section 1517 of such Act (24 U.S.C. 417) is amended
by striking ‘‘a civilian with experience as a con-
tinuing care retirement community professional or’’.
(2) CIVILIAN
DEPUTY
DIRECTOR.—Subsection
(d)(1)(A) of such section is amended by striking ‘‘or
a member’’ and all that follows and inserting ‘‘;
and’’.
(3) EFFECTIVE DATE.—The amendments made
by this subsection shall take effect on the date of the
enactment of this Act, and shall apply with respect to
any vacancy that occur in the position of Director or
Deputy Director of a facility of the Armed Forces Re-
tirement Home that occurs on or after that date.
(c) CLARIFICATION OF MEMBERSHIP ON LOCAL BOARD
OF TRUSTEES.—Section 1516(c)(1)(H) of such Act (24
U.S.C. 416(c)(1)(K)) is amended by inserting before the pe-
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riod at the end the following: ‘‘, who shall be a member
of the Armed Forces serving on active duty in the grade
of brigadier general, or in the case of the Navy, rear admi-
ral (lower half)’’.
Subtitle F—Transition Assistance
for Members of the National
Guard and Reserve Returning
From Deployment in Operation
Iraqi Freedom or Operation En-
during Freedom
SEC. 681. SHORT TITLE.
This subtitle may be cited as the ‘‘Heroes at Home Act
of 2006’’.
SEC. 682. SPECIAL WORKING GROUP ON TRANSITION TO CI-
VILIAN EMPLOYMENT OF MEMBERS OF THE
NATIONAL GUARD AND RESERVE RETURNING
FROM DEPLOYMENT IN OPERATION IRAQI
FREEDOM AND OPERATION ENDURING FREE-
DOM.
(a) WORKING GROUP REQUIRED.—The Secretary of
Defense shall establish within the Department of Defense a
working group to identify and assess the needs of members
of the National Guard and Reserve returning from deploy-
ment in Operation Iraqi Freedom or Operation Enduring
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Freedom in transitioning to civilian employment on their
return from such deployment.
(b) MEMBERS.—The working group established under
subsection (a) shall include a balance of individuals ap-
pointed by the Secretary of Defense from among the fol-
lowing:
(1) Personnel of the Department of Defense.
(2) With the concurrence of the Secretary of Vet-
erans Affairs, personnel of the Department of Vet-
erans Affairs.
(3) With the concurrence of the Secretary of
Labor, personnel of the Department of Labor.
(c) RESPONSIBILITIES.—The working group estab-
lished under subsection (a) shall—
(1) identify and assess the needs of members of
the National Guard and Reserve described in sub-
section (a) in transitioning to civilian employment
on their return from deployment as described in that
subsection, including the needs of—
(A) members who were self-employed before
deployment and seek to return to such employ-
ment after deployment;
(B) members who were students before de-
ployment and seek to return to school or com-
mence employment after deployment;