SECTION 1. FINDINGS.

    Congress makes the following findings:
            (1) Identification Friend or Foe equipment and accessories 
        are used by the Armed Forces to maintain the superior ability 
        of members of the Armed Forces to operate under the cover of 
        darkness and in inclement conditions, while providing for 
        identification of fellow members.
            (2) Glo-patches and other Identification Friend or Foe 
        equipment and accessories are assigned a demilitarization code 
        of ``D'', which requires the total destruction of the property 
        and components by melting, cutting, tearing, scratching, 
        crushing, breaking, punching, or neutralizing, so as to 
        preclude restoration or repair to a usable condition.
            (3) Under current regulations, Identification Friend or Foe 
        equipment and accessories may not be exported outside of the 
        United States without express permission by the Department of 
        Defense or the Department of State.
            (4) However, between August and October of 2006, 4,800 
        surplus combat uniforms bearing glo-tape patches were 
        inadvertently sold despite a determination by the Department of 
        Defense in July 2006 that the patches had to be removed and 
        destroyed before the uniforms could be sold.
            (5) Subsequent investigation in June 2007 determined that 
        Identification Friend or Foe equipment and accessories were 
        easily obtained at retailers in several areas of the United 
        States.
            (6) On January 20, 2007, between nine and twelve Iraqi 
        insurgents successfully masqueraded as members of the United 
        States Armed Forces while dressed in United States military 
        combat fatigues, and were able to kill one soldier and abduct 
        four other soldiers, highlighting the dangers faced by members 
        of the Armed Forces when the enemy is able to disguise itself 
        as members of the United States Armed Forces.

SEC. 2. PROHIBITION ON SALE OR DONATION BY THE DEPARTMENT OF DEFENSE OF 
              IDENTIFICATION FRIEND OR FOE EQUIPMENT AND ACCESSORIES.

    (a) Prohibition.--Chapter 153 of title 10, United States Code, is 
amended by inserting after section 2572 the following new section:
``Sec. 2573. Prohibition on sale or donation of Identification Friend 
              or Foe equipment and accessories
    ``(a) Prohibition.--The Secretary of Defense may not authorize the 
sale, resale, or donation of equipment or accessories of the Department 
of Defense designated as Identification Friend or Foe equipment or 
accessories.
    ``(b) Exceptions.--The prohibition contained in subsection (a) does 
not apply to the following:
            ``(1) The sale of Identification Friend or Foe equipment or 
        accessories by the Department of Defense, including a 
        nonappropriated fund instrumentalities of the Department, to a 
        member of the armed forces possessing valid military 
        identification for the member's personal use.
            ``(2) The sale or donation of Identification Friend or Foe 
        equipment or accessories to a museum or similar organization 
        located in the United States that is involved in the 
        preservation of equipment of the armed forces for historical 
        purposes, except that no more than one item of each type of 
        Identification Friend or Foe equipment or accessories may be 
        sold or donated to any one such museum or organization.
            ``(3) Such other sale or donation as the Secretary of 
        Defense determines could not result in the Identification 
        Friend or Foe equipment or accessories being acquired by 
        enemies of the United States.
    ``(c) Notice of Prohibition of Sale of IFF Equipment or 
Accessories.--The Secretary of Defense shall require the prohibition 
specified in this section to be prominently and immediately displayed 
on any media that provides for the private purchase of surplus military 
equipment.
    ``(d) Identification Friend or Foe Equipment or Accessory 
Defined.--In this section, the term ``Identification Friend or Foe 
equipment or accessory'' means any system of infrared or reflective 
components designed and manufactured at the request of, and to the 
specifications of, the Department of Defense to be used for the 
identification of a person as a member of the armed forces in poor 
lighting conditions.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
2572 the following new item:

``2573. Prohibition on sale or donation of Identification Friend or Foe 
                            equipment and accessories.''.

SEC. 3. PROHIBITION ON UNAUTHORIZED POSSESSION OF IDENTIFICATION FRIEND 
              OR FOE EQUIPMENT AND ACCESSORIES.

    Section 701 of title 18, United States Code, is amended--
            (1) by striking ``Whoever'' and inserting ``(a) Agency 
        Badges, Identification Cards, or Other Insignia.--Whoever''; 
        and
            (2) by adding at the end the following new subsection:
    ``(b) Military Identification Friend or Foe Equipment or 
Accessories.--Whoever manufactures, sells, or possesses any 
identification friend or foe equipment or accessories, or any colorable 
imitation thereof, except as authorized under regulations made pursuant 
to law, shall be fined under this title or imprisoned not more than six 
months, or both. In this subsection, the term ``Identification Friend 
or Foe equipment or accessory'' means any system of infrared or 
reflective components designed and manufactured at the request of, and 
to the specifications of, the Department of Defense to be used for the 
identification of a person as a member of the armed forces in poor 
lighting conditions.''.

SEC. 4. EFFECTIVE DATE.

    The amendments made by this section shall take effect 30 days after 
the date of the enactment of this Act.
Output: Prohibits the sale or donation of Department of Defense designated as Identification Friend or Foe equipment or accessories, with specified exceptions. Subjects to civil or criminal penalties, or both, persons who manufacture, sell, or possess such items without authorization.