Military

June 22, 2006

Ordered to be printed as passed

S 2766 PP

109th CONGRESS

2d Session

S. 2766

AN ACT

To authorize appropriations for fiscal year 2007 for military activities of the Department of Defense, for military construction, and for defense activities of the Department of Energy, to prescribe personnel strengths for such fiscal year for the Armed Forces, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE; FINDINGS.

    (a) Short Title- This Act may be cited as the `John Warner National Defense Authorization Act for Fiscal Year 2007'.

    (b) Findings- Congress makes the following findings:

      (1) Senator John Warner of Virginia was elected a member of the United States Senate on November 7, 1978, for a full term beginning on January 3, 1979. He was subsequently appointed by the Governor of Virginia to fill a vacancy on January 2, 1979, and has served continuously since that date. He was appointed a member of the Committee on Armed Services in January 1979, and has served continuously on the Committee since that date, a period of nearly 28 years. Senator Warner's service on the Committee represents nearly half of its existence since it was established after World War II.

      (2) Senator Warner came to the Senate and the Committee on Armed Services after a distinguished record of service to the Nation, including combat service in the Armed Forces and high civilian office.

      (3) Senator Warner enlisted in the United States Navy upon graduation from high school in 1945, and served until the summer of 1946, when he was discharged as a Petty Officer 3rd Class. He then attended Washington and Lee University on the G.I. Bill. He graduated in 1949 and entered the University of Virginia Law School.

      (4) Upon the outbreak of the Korean War in 1950, Senator Warner volunteered for active duty, interrupting his education to accept a commission in the United States Marine Corps. He served in combat in Korea as a ground officer in the First Marine Air Wing. Following his active service, he remained in the Marine Corps Reserve for several years, attaining the rank of captain.

      (5) Senator Warner resumed his legal education upon returning from the Korean War and graduated from the University of Virginia Law School in 1953. He was selected by the late Chief Judge E. Barrett Prettyman of the United States Court of Appeals for the District of Columbia Circuit as his law clerk. After his service to Judge Prettyman, Senator Warner became an Assistant United States Attorney in the District of Columbia, and later entered private law practice.

      (6) In 1969, the Senate gave its advice and consent to the appointment of Senator Warner as Under Secretary of the Navy. He served in this position until 1972, when he was confirmed and appointed as the 61st Secretary of the Navy since the office was established in 1798. As Secretary, Senator Warner was the principal United States negotiator and signatory of the Incidents at Sea Executive Agreement with the Soviet Union, which was signed in 1972 and remains in effect today. It has served as the model for similar agreements between states covering the operation of naval ships and aircraft in international sea lanes throughout the world.

      (7) Senator Warner left the Department of the Navy in 1974. His next public service was as Director of the American Revolution Bicentennial Commission. In this capacity, he coordinated the celebration of the Nation's founding, directing the Federal role in all 50 States and in over 20 foreign nations.

      (8) Senator Warner has served as chairman of the Committee on Armed Services of the United States Senate from 1999 to 2001, and again since January 2003. He served as ranking minority member of the committee from 1987 to 1993, and again from 2001 to 2003. Senator Warner concludes his service as chairman at the end of the 109th Congress, but will remain a member of the committee.

      (9) This Act is the twenty-eighth annual authorization act for the Department of Defense for which Senator Warner has taken a major responsibility as a member of the Committee on Armed Services of the United States Senate, and the fourteenth for which he has exercised a leadership role as chairman or ranking minority member of the committee.

      (10) Senator Warner, as seaman, Marine officer, Under Secretary and Secretary of the Navy, and member, ranking minority member, and chairman of the Committee on Armed Services, has made unique and lasting contributions to the national security of the United States.

      (11) It is altogether fitting and proper that his Act, the last annual authorization Act for the national defense that Senator Warner manages in and for the United States Senate as chairman of the Committee on Armed Services, be named in his honor, as provided in subsection (a).

SEC. 2. ORGANIZATION OF ACT INTO DIVISIONS; TABLE OF CONTENTS.

    (a) DIVISIONS- This Act is organized into three divisions as follows:

      (1) Division A--Department of Defense Authorizations.

      (2) Division B--Military Construction Authorizations.

      (3) Division C--Department of Energy National Security Authorizations and Other Authorizations.

    (b) TABLE OF CONTENTS- The table of contents for this Act is as follows:

      Sec. 1. Short title; findings.

      Sec. 2. Organization of Act into divisions; table of contents.

      Sec. 3. Congressional defense committees.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

      Sec. 101. Army.

      Sec. 102. Navy and Marine Corps.

      Sec. 103. Air Force.

      Sec. 104. Defense-wide activities.

Subtitle B--Army Programs

      Sec. 111. Limitation on availability of funds for the Joint Network Node.

      Sec. 112. Comptroller General report on the contract for the Future Combat Systems program.

      Sec. 113. Reports on Army Modularity Initiative.

      Sec. 114. Replacement equipment.

Subtitle C--Navy Programs

      Sec. 121. CVN-21 class aircraft carrier procurement.

      Sec. 122. Construction of first two vessels under the next-generation destroyer program.

      Sec. 123. Modification of limitation on total cost of procurement of CVN-77 aircraft carrier.

Subtitle D--Air Force Programs

      Sec. 141. Procurement of Joint Primary Aircraft Training System aircraft after fiscal year 2006.

      Sec. 142. Prohibition on retirement of C-130E/H tactical airlift aircraft.

      Sec. 143. Limitation on retirement of KC-135E aircraft.

      Sec. 144. Limitation on retirement of B-52H bomber aircraft.

      Sec. 145. Retirement of B-52H bomber aircraft.

      Sec. 146. Funding for procurement of F-22A fighter aircraft.

      Sec. 147. Multiyear procurement of F-119 engines for F-22A fighter aircraft.

      Sec. 148. Multi-spectral imaging capabilities.

      Sec. 149. Minuteman III Intercontinental Ballistic Missiles.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

      Sec. 201. Authorization of appropriations.

      Sec. 202. Amount for science and technology.

      Sec. 203. Amount for development and validation of warfighter rapid awareness processing technology.

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec. 211. Independent estimate of costs of the Future Combat Systems.

      Sec. 212. Funding of defense science and technology programs.

      Sec. 213. Hypersonics development.

      Sec. 214. Trident sea-launched ballistic missiles.

      Sec. 215. Arrow ballistic missile defense system.

      Sec. 216. High Energy Laser Low Aspect Target Tracking.

      Sec. 217. Advanced Aluminum Aerostructures Initiative.

      Sec. 218. Legged mobility robotic research.

      Sec. 219. Wideband Digital Airborne Electronic Sensing Array.

      Sec. 220. Science and technology.

Subtitle C--Missile Defense Programs

      Sec. 231. Availability of research, development, test, and evaluation funds for fielding ballistic missile defense capabilities.

      Sec. 232. Policy of the United States on priorities in the development, testing, and fielding of missile defense capabilities.

      Sec. 233. One-year extension of Comptroller General assessments of ballistic missile defense programs.

      Sec. 234. Submittal of plans for test and evaluation of the operational capability of the ballistic missile defense system.

      Sec. 235. Annual reports on transition of ballistic missile defense programs to the military departments.

      Sec. 236. Testing and operations for missile defense.

Subtitle D--Other Matters

      Sec. 251. Extension of requirement for Global Research Watch Program.

      Sec. 252. Expansion and extension of authority to award prizes for advanced technology achievements.

      Sec. 253. Policies and practices on test and evaluation to address emerging acquisition approaches.

      Sec. 254. Development of the propulsion system for the Joint Strike Fighter.

      Sec. 255. Independent cost analyses for Joint Strike Fighter engine program.

      Sec. 256. Sense of Senate on technology sharing of Joint Strike Fighter technology.

      Sec. 257. Report on biometrics programs of the Department of Defense.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

      Sec. 301. Operation and maintenance funding.

      Sec. 302. Working capital funds.

      Sec. 303. Other Department of Defense programs.

Subtitle B--Program Requirements, Restrictions, and Limitations

      Sec. 311. Limitation on availability of funds for the Army Logistics Modernization Program.

      Sec. 312. Availability of funds for exhibits for the national museums of the Armed Forces.

      Sec. 313. Limitation on financial management improvement and audit initiatives within the Department of Defense.

      Sec. 314. Limitation on availability of operation and maintenance funds for the management headquarters of the Defense Information Systems Agency.

      Sec. 315. Expansion of Junior Reserve Officers' Training Corps program.

      Sec. 316. Infantry Combat Equipment.

      Sec. 317. Individual First Aid Kit.

      Sec. 318. Reading for the Blind and Dyslexic program of the Department of Defense.

      Sec. 319. Military training infrastructure improvements at Virginia Military Institute.

      Sec. 320. Environmental documentation for beddown of F-22A aircraft at Holloman Air Force Base, New Mexico.

Subtitle C--Environmental Provisions

      Sec. 331. Response plan for remediation of military munitions.

      Sec. 332. Extension of authority to grant exemptions to certain requirements.

      Sec. 333. Research on effects of ocean disposal of munitions.

      Sec. 334. Clarification of multi-year authority to use base closure funds to fund cooperative agreements under Environmental Restoration Program.

      Sec. 335. Reimbursement of Environmental Protection Agency for certain costs in connection with Moses Lake Wellfield Superfund Site, Moses Lake, Washington.

Subtitle D--Reports

      Sec. 351. Comptroller General report on readiness of the ground forces of the Army and the Marine Corps.

      Sec. 352. National Academy of Sciences study on human exposure to contaminated drinking water at Camp Lejeune, North Carolina.

      Sec. 353. Report on aerial training airspace requirements of the Department of Defense.

      Sec. 354. Report on actions to reduce Department of Defense consumption of petroleum-based fuel.

      Sec. 355. Reports on withdrawal or diversion of equipment from reserve units for support of reserve units being mobilized and other units.

      Sec. 356. Plan to replace equipment withdrawn or diverted from the reserve components of the Armed Forces for Operation Iraqi Freedom or Operation Enduring Freedom.

      Sec. 357. Plan to replace equipment withdrawn or diverted from the reserve components of the Armed Forces for Operation Iraqi Freedom or Operation Enduring Freedom.

      Sec. 358. Report on vehicle-based active protection systems for certain battlefield threats.

      Sec. 359. Report on high altitude aviation training site, Eagle County, Colorado.

      Sec. 360. Report on Air Force safety requirements for Air Force flight training operations at Pueblo Memorial Airport, Colorado.

      Sec. 360A. Report on use of alternative fuels by the Department of Defense.

Subtitle E--Workplace and Depot Issues

      Sec. 361. Minimum capital investment levels for public depots serviced by working capital funds.

      Sec. 362. Permanent exclusion of certain contract expenditures from percentage limitation on the performance of depot-level maintenance.

      Sec. 363. Additional exception to prohibition on contractor performance of firefighting functions.

      Sec. 364. Temporary security guard services for certain work caused by realignment of military installations under the base closure laws.

Subtitle F--Other Matters

      Sec. 371. Recycling of military munitions.

      Sec. 372. Incentives clauses in chemical demilitarization contracts.

      Sec. 373. Extension of Department of Defense telecommunications benefit program.

      Sec. 374. Extension of availability of funds for commemoration of success of the Armed Forces in Operation Enduring Freedom and Operation Iraqi Freedom.

      Sec. 375. Energy efficiency in weapons platforms.

      Sec. 376. Chemical demilitarization program contracting authority.

      Sec. 377. Utilization of fuel cells as back-up power systems in Department of Defense operations.

      Sec. 378. Prepositioning of Department of Defense assets to improve support to civilian authorities.

      Sec. 379. Recovery and availability to corporation for the promotion of rifle practice and firearms safety of certain firearms, ammunition, and parts.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

      Sec. 401. End strengths for active forces.

      Sec. 402. Repeal of requirement for permanent end strength levels to support two major regional contingencies.

Subtitle B--Reserve Forces

      Sec. 411. End strengths for Selected Reserve.

      Sec. 412. End strengths for Reserves on active duty in support of the Reserves.

      Sec. 413. End strengths for military technicians (dual status).

      Sec. 414. Fiscal year 2007 limitation on number of non-dual status technicians.

      Sec. 415. Maximum number of reserve personnel authorized to be on active duty for operational support.

Subtitle C--Authorization of Appropriations

      Sec. 421. Military personnel.

      Sec. 422. Armed Forces Retirement Home.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Part I--Officer Personnel Policy Generally

      Sec. 501. Military status of officers serving in certain intelligence community positions.

      Sec. 502. Extension of temporary reduction of time-in-grade requirement for eligibility for promotion for certain active-duty list officers in grades of first lieutenant and lieutenant (junior grade).

      Sec. 503. Extension of age limits for active-duty general and flag officers.

      Sec. 504. Modification of authorities on senior members of the Judge Advocate General's Corps.

      Sec. 505. Requirement for significant joint experience for officers appointed as Surgeon General of the Army, Navy, and Air Force.

      Sec. 506. Grade and exclusion from active-duty general and flag officer distribution and strength limitations of officer serving as Attending Physician to the Congress.

      Sec. 507. Discretionary separation and retirement of chief warrant officers, W-4, twice failing selection for promotion.

      Sec. 508. Increased mandatory retirement ages for reserve officers.

      Sec. 509. Modification of qualifications for leadership of the Naval Postgraduate School.

Part II--Officer Promotion Policy

      Sec. 515. Promotions.

      Sec. 516. Consideration of adverse information by promotion selection boards in recommendations on officers to be promoted.

      Sec. 517. Expanded authority for removal from reports of selection boards of officers recommended for promotion to grades below general and flag grades.

      Sec. 518. Clarification of nondisclosure requirements applicable to promotion selection board proceedings.

      Sec. 519. Special selection board authorities.

      Sec. 520. Removal from promotion lists of officers returned to the President by the Senate.

      Sec. 521. Report on joint officer promotion boards.

Part III--Joint Officer Management Requirements

      Sec. 526. Modification and enhancement of general authorities on management of joint qualified officers.

      Sec. 527. Modification of promotion policy objectives for joint officers.

      Sec. 528. Applicability of joint duty assignment requirements limited to graduates of National Defense University schools.

      Sec. 529. Modification of definitions relating to jointness.

      Sec. 530. Condition on appointment of commissioned officers to position of Director of National Intelligence or Director of the Central Intelligence Agency.

Subtitle B--Reserve Component Personnel Matters

      Sec. 531. Enhanced flexibility in the management of reserve component personnel.

      Sec. 532. Expansion of activities authorized for Reserves under Weapons of Mass Destruction Civil Support Teams.

      Sec. 533. Modification of authorities relating to the Commission on the National Guard and Reserves.

      Sec. 534. Pilot program on reintegration of members of the National Guard into civilian life after deployment.

Subtitle C--Military Justice and Related Matters

      Sec. 551. Applicability of Uniform Code of Military Justice to members of the Armed Forces ordered to active duty overseas in inactive duty for training status.

      Sec. 552. Clarification of application of Uniform Code of Military Justice during a time of war.

Subtitle D--Education and Training Matters

      Sec. 561. Detail of commissioned officers as students at medical schools.

      Sec. 562. Expansion of eligibility to provide Junior Reserve Officers' Training Corps instruction.

      Sec. 563. Increase in maximum amount of repayment under education loan repayment for officers in specified health professions.

      Sec. 564. Increase in benefits under Health Professions Scholarship and Financial Assistance program.

      Sec. 565. Report on Health Professions Scholarship and Financial Assistance program.

      Sec. 566. Expansion of instruction available at the Naval Postgraduate School for enlisted members of the Armed Forces.

      Sec. 567. Modification of actions to address sexual harassment and sexual violence at the service academies.

      Sec. 568. Department of Defense policy on service academy and ROTC graduates seeking to participate in professional sports before completion of their active-duty service obligations.

      Sec. 569. Review of legal status of Junior ROTC program.

      Sec. 570. Junior Reserve Officers' Training Corps instructor qualifications.

      Sec. 570A. Modification of time limit for use of entitlement to educational assistance for reserve component members supporting contingency operations and other operations.

Subtitle E--Defense Dependents Education Matters

      Sec. 571. Funding for assistance to local educational agencies that benefit dependents of members of the Armed Forces and Department of Defense civilian employees.

      Sec. 572. Impact aid for children with severe disabilities.

      Sec. 573. Plan to assist local educational agencies experiencing growth in enrollment due to force structure changes, relocation of military units, or BRAC.

      Sec. 574. Pilot program on parent education to promote early childhood education for dependent children affected by military deployment or relocation of military units.

Subtitle F--Other Matters

      Sec. 581. Administration of oaths.

      Sec. 582. Military ID cards for retiree dependents who are permanently disabled.

      Sec. 583. Military voting matters.

      Sec. 584. Presentation of Medal of Honor Flag to primary next of kin of Medal of Honor recipients.

      Sec. 585. Modification of effective period of authority to present recognition items for recruitment and retention purposes.

      Sec. 586. Military Severely Injured Center.

      Sec. 587. Sense of Senate on notice to Congress of recognition of members of the Armed Forces for extraordinary acts of bravery, heroism, and achievement.

      Sec. 588. Report on provision of electronic copy of military records on discharge or release of members from the Armed Forces.

      Sec. 589. Purple Heart award eligibility.

      Sec. 590. Comprehensive review on procedures of the Department of Defense on Mortuary Affairs.

      Sec. 591. Report on omission of social security numbers on military identification cards.

      Sec. 592. Funeral ceremonies for veterans.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

      Sec. 601. Fiscal year 2007 increase in military basic pay and reform of basic pay rates.

      Sec. 602. Increase in maximum rate of basic pay for general and flag officer grades.

      Sec. 603. Clarification of effective date of prohibition on compensation for correspondence courses.

      Sec. 604. One-year extension of prohibition against requiring certain injured members to pay for meals provided by military treatment facilities.

      Sec. 605. Additional housing allowance for Reserves on active duty in support of a contingency operation.

      Sec. 606. Extension of temporary continuation of housing allowance for dependents of members dying on active duty to spouses who are members of the uniformed services.

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 certain bonus and special pay authorities for certain health care professionals.

      Sec. 613. Extension of special pay and bonus authorities for nuclear officers.

      Sec. 614. Extension of authorities relating to payment of other bonuses and special pays.

      Sec. 615. Increase in special pay for Selected Reserve health care professionals in critically short wartime specialties.

      Sec. 616. Expansion and enhancement of accession bonus authorities for certain officers in health care specialities.

      Sec. 617. Increase in nuclear career accession bonus for nuclear-qualified officers.

      Sec. 618. Modification of certain authorities applicable to the targeted shaping of the Armed Forces.

      Sec. 619. Extension of pilot program on contributions to Thrift Savings Plan for initial enlistees in the Army.

      Sec. 620. Accession bonus for members of the Armed Forces appointed as commissioned officers after completing officer candidate school.

      Sec. 621. Enhancement of bonus to encourage members of the Army to refer other persons for enlistment in the Army.

Subtitle C--Travel and Transportation Allowances

      Sec. 631. Expansion of payment of replacement value of personal property damaged during transport at government expense.

Subtitle D--Retired Pay and Survivor Benefits

      Sec. 641. Modification of Department of Defense contributions to Military Retirement Fund and government contributions to Medicare-Eligible Retiree Health Care Fund.

      Sec. 642. Repeal of requirement of reduction of SBP survivor annuities by dependency and indemnity compensation.

      Sec. 643. Effective date of paid-up coverage under Survivor Benefit Plan.

      Sec. 644. Expansion of conditions for direct payment of divisible retired pay.

      Sec. 645. Authority for cost of living adjustments of retired pay treated as divisible property.

      Sec. 646. Notice and copy to members of court orders on payment of retired pay.

      Sec. 647. Retention of assistive technology and devices by certain members of the Armed Forces after separation from service.

      Sec. 648. Renaming of death gratuity payable for deaths of members of the Armed Forces as fallen hero compensation.

      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.

      Sec. 650. Determination of retired pay base of general and flag officers based on rates of basic pay provided by law.

      Sec. 651. Inapplicability of retired pay multiplier maximum percentage to service of members of the Armed Forces in excess of 30 years.

      Sec. 652. Modification of eligibility for commencement of authority for optional annuities for dependents under the survivor benefit plan.

      Sec. 653. Commencement of receipt of non-regular service retired pay by members of the Ready Reserve on active Federal status or active duty for significant periods.

Subtitle E--Other Matters

      Sec. 661. Audit of pay accounts of members of the Army evacuated from a combat zone for inpatient care.

      Sec. 662. Pilot Program on Troops to Nurse Teachers.

      Sec. 663. Expansion and enhancement of authority to remit or cancel indebtedness of members of the Armed Forces.

      Sec. 664. Exception for notice to consumer reporting agencies regarding debts or erroneous payments pending a decision to waive, remit, or cancel.

      Sec. 665. Enhancement of authority to waive claims for overpayment of pay and allowances.

      Sec. 666. Terms of consumer credit extended to servicemember or servicemember's dependent.

      Sec. 667. Joint family support assistance program.

      Sec. 668. Improvement of management of Armed Forces Retirement Home.

Subtitle F--Transition Assistance for Members of the National Guard and Reserve Returning From Deployment in Operation Iraqi Freedom or Operation Enduring Freedom

      Sec. 681. Short title.

      Sec. 682. Special working group on transition to civilian employment of members of the National Guard and Reserve returning from deployment in Operation Iraqi Freedom and Operation Enduring Freedom.

      Sec. 683. Office for employers and employment assistance organizations.

      Sec. 684. Additional responsibilities of Department of Defense task force on mental health relating to mental health of members of the National Guard and Reserve deployed in Operation Iraqi Freedom and Operation Enduring Freedom.

      Sec. 685. Grants on assistance in community-based settings for members of the National Guard and Reserve and their families after deployment in Operation Iraqi Freedom and Operation Enduring Freedom.

      Sec. 686. Longitudinal study on traumatic brain injury incurred by members of the Armed Forces in Operation Iraqi Freedom and Operation Enduring Freedom.

      Sec. 687. Training curricula for family caregivers on care and assistance for members and former members of the Armed Forces with traumatic brain injury incurred in Operation Iraqi Freedom and Operation Enduring Freedom.

TITLE VII--HEALTH CARE

Subtitle A--Benefits Matters

      Sec. 701. Improved procedures for cancer screening for women.

      Sec. 702. National mail-order pharmacy program.

      Sec. 703. Availability under TRICARE of anesthesia for children in connection with dental procedures for which dental anesthesia is inappropriate.

      Sec. 704. TRICARE coverage for forensic examinations following sexual assaults and domestic violence.

      Sec. 705. Prohibition on increase in fiscal year 2007 in enrollment fees for coverage under TRICARE Prime.

      Sec. 706. Limitation on fiscal year 2007 increase in premiums for coverage under TRICARE of members of reserve components who commit to continued service in Selected Reserve after release from active duty.

      Sec. 707. Temporary prohibition on increase in copayments under retail pharmacy system of pharmacy benefits program.

      Sec. 708. Expansion of eligibility of members of the Selected Reserve for coverage under TRICARE.

Subtitle B--Planning, Programming, and Management

      Sec. 721. Treatment of TRICARE Retail Pharmacy Network under Federal procurement of pharmaceuticals.

      Sec. 722. Relationship between the TRICARE program and employer-sponsored group health care plans.

      Sec. 723. Enrollment in the TRICARE program.

      Sec. 724. Incentive payments for the provision of services under the TRICARE program in medically underserved areas.

      Sec. 725. Standardization of claims processing under TRICARE program and Medicare program.

      Sec. 726. Requirements for support of military treatment facilities by civilian contractors under TRICARE.

      Sec. 727. Uniform standards for access to health care services for wounded or injured servicemembers.

      Sec. 728. Disease and chronic care management.

      Sec. 729. Post-deployment health assessments for members of the Armed Forces returning from deployment in support of a contingency operation.

      Sec. 730. Mental Health Self-Assessment Program.

      Sec. 731. Additional authorized option periods for extension of current contracts under TRICARE.

      Sec. 732. Military vaccination matters.

      Sec. 733. Enhanced mental health screening and services for members of the Armed Forces.

      Sec. 734. Education, training, and supervision of personnel providing special education services under extended benefits under TRICARE.

Subtitle C--Studies and Reports

      Sec. 741. Pilot projects on early diagnosis and treatment of Post Traumatic Stress Disorder and other mental health conditions.

      Sec. 742. Annual reports on certain medical malpractice cases.

      Sec. 743. Comptroller General study on Department of Defense pharmacy benefits program.

      Sec. 744. Comptroller General audits of Department of Defense health care costs and cost-saving measures.

      Sec. 745. Review of Department of Defense medical quality improvement program.

      Sec. 746. Study of health effects of exposure to depleted uranium.

Subtitle D--Other Matters

      Sec. 761. Extension of limitation on conversion of military medical and dental positions to civilian medical and dental positions.

      Sec. 762. Transfer of custody of the Air Force health study assets to Medical Follow-Up Agency.

      Sec. 763. Sense of Senate on the Transformational Medical Technology Initiative of the Department of Defense.

TITLE VIII--ACQUISITION POLICY, ACQUISITION MANAGEMENT, AND RELATED MATTERS

Subtitle A--Acquisition Policy and Management

      Sec. 801. Additional certification requirements for major defense acquisition programs.

      Sec. 802. Extension and enhancement of Defense Acquisition Challenge Program.

      Sec. 803. Baseline description and unit cost reports for major defense acquisition programs.

      Sec. 804. Major automated information system programs.

      Sec. 805. Adjustment of original baseline estimate for major defense acquisition programs experiencing cost growth resulting from damage caused by Hurricanes Katrina, Rita, and Wilma.

      Sec. 806. Internal controls for procurements on behalf of the Department of Defense by certain non-defense agencies.

      Sec. 807. Regulations on use of fixed-price contracts in development programs.

      Sec. 808. Availability of funds for performance-based logistics contracts for weapon systems logistics support.

      Sec. 809. Quality control in procurement of ship critical safety items and related services.

      Sec. 810. Three-year extension of requirement for reports on commercial price trend analyses of the Department of Defense.

      Sec. 811. Pilot program on time-certain development in acquisition of major weapon systems.

      Sec. 812. Government performance of critical acquisition functions.

Subtitle B--Defense Industrial Base Matters

      Sec. 821. Removal of hand and measuring tools from certain requirements.

      Sec. 822. Applicability of certain requirements regarding specialty metals.

      Sec. 823. Waiver authority for domestic source or content requirements.

      Sec. 824. Repeal of requirement for identification of essential military items and military system essential item breakout list.

      Sec. 825. Consistency with United States obligations under trade agreements.

Subtitle C--Defense Contractor Matters

      Sec. 841. Requirements for defense contractors relating to certain former Department of Defense officials.

      Sec. 842. Lead systems integrators.

      Sec. 843. Linking of award and incentive fees to acquisition outcomes.

      Sec. 844. Prohibition on excessive pass-through charges.

      Sec. 845. Report on Department of Defense contracting with contractors or subcontractors employing members of the Selective Reserve.

Subtitle D--Program Manager Matters

      Sec. 861. Program manager empowerment and accountability.

      Sec. 862. Tenure and accountability of program managers for program development periods.

      Sec. 863. Tenure and accountability of program managers for program execution periods.

      Sec. 864. Department of Defense plan for contingency program management.

      Sec. 865. Comptroller General report.

Subtitle E--Other Matters

      Sec. 871. Clarification of authority to carry out certain prototype projects.

      Sec. 872. One-year extension of special temporary contract closeout authority.

      Sec. 873. One-year extension of inapplicability of certain laws to contracting with employers of persons with disabilities.

      Sec. 874. Pilot program on expanded use of mentor-protege authority.

TITLE IX--DEPARTMENT OF DEFENSE ORGANIZATION AND MANAGEMENT

Subtitle A--Duties and Functions of Department of Defense Officers and Organizations

      Sec. 901. United States Military Cancer Institute.

      Sec. 902. Senior acquisition executive for special operations within staff of the Assistant Secretary of Defense for Special Operations and Low Intensity Conflict.

      Sec. 903. United States Marine Band and United States Marine Drum and Bugle Corps.

      Sec. 904. Military deputies to the assistant secretaries of the military departments for acquisition, logistics, and technology matters.

Subtitle B--Space Activities

      Sec. 911. Establishment of operationally responsive space capabilities.

      Sec. 912. Extension of authority for pilot program on provision of space surveillance network services to non-United States Government entities.

      Sec. 913. Independent review and assessment of Department of Defense organization and management for national security in space.

Subtitle C--Other Matters

      Sec. 921. Department of Defense policy on unmanned systems.

      Sec. 922. Executive Schedule level IV for Deputy Under Secretary of Defense for Logistics and Materiel Readiness.

      Sec. 923. Three-year extension of joint incentives program on sharing of health care resources by the Department of Defense and Department of Veterans Affairs.

      Sec. 924. Sense of Senate on nomination of individual to serve as Director of Operational Test and Evaluation on a permanent basis.

      Sec. 925. Inclusion of homeland defense and civil support missions of the National Guard and Reserves in the Quadrennial Defense Review.

      Sec. 926. Reforms to the Defense Travel System to a Fee-For-Use-of-Service System.

      Sec. 927. Report on incorporation of elements of the reserve components into the Special Forces.

Subtitle D--National Guard Bureau Matters

      Sec. 931. Short title.

      Sec. 932. Expanded authority of Chief of the National Guard Bureau and expanded functions of the National Guard Bureau.

      Sec. 933. Requirement that position of Deputy Commander of the United States Northern Command be filled by a qualified National Guard officer.

TITLE X--GENERAL PROVISIONS

Subtitle A--Financial Matters

      Sec. 1001. Transfer authority.

      Sec. 1002. Authorization of additional emergency supplemental appropriations for fiscal year 2006.

      Sec. 1003. Reduction in certain authorizations due to savings relating to lower inflation.

      Sec. 1004. Increase in fiscal year 2006 general transfer authority.

      Sec. 1005. United States contribution to NATO common-funded budgets in fiscal year 2007.

      Sec. 1006. Modification of date of submittal of OMB/CBO report on scoring of outlays.

      Sec. 1007. Prohibition on parking of funds.

      Sec. 1008. Incorporation of Classified Annex.

      Sec. 1009. Reports to Congress and notice to public on earmarks in funds available to the Department of Defense.

Subtitle B--Naval Vessels

      Sec. 1011. Repeal of requirement for 12 operational aircraft carriers within the Navy.

      Sec. 1012. Approval of transfer of naval vessels to foreign nations by vessel class.

      Sec. 1013. Naming of CVN-78 Aircraft Carrier as the U.S.S. Gerald Ford.

      Sec. 1014. Authority to donate SS ARTHUR M. HUDDELL to the Government of Greece.

Subtitle C--Counterdrug Matters

      Sec. 1021. Extension of availability of funds for unified counterdrug and counterterrorism campaign in Colombia.

      Sec. 1022. Extension of authority of Department of Defense to provide additional support for counterdrug activities of other governmental agencies.

      Sec. 1023. Extension and expansion of certain authorities to provide additional support for counterdrug activities.

      Sec. 1024. Operation Bahamas, Turks & Caicos.

Subtitle D--Defense Intelligence and Related Matters

      Sec. 1031. Two-year extension of authority to engage in commercial activities as security for intelligence collection activities.

      Sec. 1032. Annual report on intelligence oversight activities of the Department of Defense.

      Sec. 1033. Administration of pilot project on Civilian Linguist Reserve Corps.

      Sec. 1034. Improvement of authorities on the National Security Education Program.

      Sec. 1035. Collection by National Security Agency of service charges for certification or validation of information assurance products.

      Sec. 1036. Funding for a certain military intelligence program.

Subtitle E--Defense Against Terrorism and Related Security Matters

      Sec. 1041. Enhancement of authority to pay monetary rewards for assistance in combating terrorism.

      Sec. 1042. Use of the Armed Forces in major public emergencies.

      Sec. 1043. Treatment under Freedom of Information Act of certain confidential information shared with State and local personnel.

      Sec. 1044. Temporary National Guard support for securing the southern land border of the United States.

Subtitle F--Miscellaneous Authorities on Availability and Use of Funds

      Sec. 1051. Acceptance and retention of reimbursement from non-Federal sources to defray Department of Defense costs of conferences.

      Sec. 1052. Minimum annual purchase amounts for airlift from carriers participating in the Civil Reserve Air Fleet.

      Sec. 1053. Increased flexibility in use of funds for Joint Staff exercises.

      Sec. 1054. Strengthening the Special Inspector General for Iraq Reconstruction.

Subtitle G--Report Matters

      Sec. 1061. Report on clarification of prohibition on cruel, inhuman, or degrading treatment or punishment.

      Sec. 1062. Reports on members of the Armed Forces and civilian employees of the Department of Defense serving in the Legislative Branch.

      Sec. 1063. Additional element in annual report on chemical and biological warfare defense.

      Sec. 1064. Report on Local Boards of Trustees of the Armed Forces Retirement Home.

      Sec. 1065. Repeal of certain report requirements.

      Sec. 1066. Report on incentives to encourage certain members and former members of the Armed Forces to serve in the Bureau of Customs and Border Protection.

      Sec. 1067. Report on reporting requirements applicable to the Department of Defense.

      Sec. 1068. Report on technologies for neutralizing or defeating threats to military rotary wing aircraft from portable air defense systems and rocket propelled grenades.

      Sec. 1069. Reports on Department of Justice efforts to investigate and prosecute cases of contracting abuse in Iraq, Afghanistan, and throughout the war on terror.

      Sec. 1070. Report on biodefense staffing and training requirements in support of national biosafety laboratories.

      Sec. 1070A. Annual report on acquisitions of articles, materials, and supplies manufactured outside the United States.

      Sec. 1070B. Annual report on foreign sales of significant military equipment manufactured inside the United States.

      Sec. 1070C. Report on feasibility of establishing regional combatant command for Africa.

      Sec. 1070D. Annual reports on expanded use of unmanned aerial vehicles in the National Airspace System.

Subtitle H--Technical and Conforming Amendments

      Sec. 1071. Uniform definition of national security system for certain Department of Defense purposes.

      Sec. 1072. Conforming amendment relating to redesignation of Defense Communications Agency as Defense Information Systems Agency.

      Sec. 1073. Technical amendment.

Subtitle I--Other Matters

      Sec. 1081. National Foreign Language Coordination Council.

      Sec. 1082. Support of successor organizations of the disestablished Interagency Global Positioning System Executive Board.

      Sec. 1083. Quadrennial Defense Review.

      Sec. 1084. Sense of Congress on the commendable actions of the Armed Forces.

      Sec. 1085. Budgeting for ongoing military operations.

      Sec. 1086. Court security improvements.

      Sec. 1087. Sense of the Senate on destruction of chemical weapons.

      Sec. 1088. Improved accountability for competitive contracting in hurricane recovery.

      Sec. 1089. Protection of certain disclosures of information by Federal employees.

      Sec. 1090. Sense of Congress regarding the men and women of the Armed Forces of the United States in Iraq.

      Sec. 1091. Extension of returning worker exemption.

      Sec. 1092. Limitation on the United States share of assessments for United Nations peacekeeping operations.

      Sec. 1093. Termination of program.

      Sec. 1094. Patent term extensions for the badges of the American Legion, the American Legion Women's Auxiliary, and the Sons of the American Legion.

      Sec. 1095. Availability of funds for South County Commuter Rail Project, Providence, Rhode Island.

      Sec. 1096. Sense of Congress on Iraq summit.

TITLE XI--DEPARTMENT OF DEFENSE CIVILIAN PERSONNEL POLICY

      Sec. 1101. Accrual of annual leave for members of the uniformed services on terminal leave performing dual employment.

      Sec. 1102. Strategy for improving the senior management, functional, and technical workforce of the Department of Defense.

      Sec. 1103. Authority to equalize allowances, benefits, and gratuities of personnel on official duty in Iraq and Afghanistan.

      Sec. 1104. Programs for use of leave by caregivers for family members of individuals performing certain military service.

      Sec. 1105. Three-year extension of authority for experimental personnel management program for scientific and technical personnel.

TITLE XII--MATTERS RELATING TO OTHER NATIONS

Subtitle A--General Matters

      Sec. 1201. Expansion of humanitarian and civic assistance to include communications and information capacity.

      Sec. 1202. Modification of authorities relating to the Regional Defense Counterterrorism Fellowship Program.

      Sec. 1203. Logistic support of allied forces for combined operations.

      Sec. 1204. Exclusion of petroleum, oil, and lubricants from limitations on amount of liabilities the United States may accrue under acquisition and cross-servicing agreements.

      Sec. 1205. Temporary authority to use acquisition and cross-servicing agreements to loan significant military equipment to foreign forces in Iraq and Afghanistan for personnel protection and survivability.

      Sec. 1206. Modification of authorities relating to the building of the capacity of foreign military forces.

      Sec. 1207. Participation of the Department of Defense in multinational military centers of excellence.

      Sec. 1208. Distribution of education and training materials and information technology to enhance interoperability.

      Sec. 1209. United States' policy on the nuclear programs of Iran.

      Sec. 1210. Modification of limitations on assistance under the American Servicemembers' Protection Act of 2002.

      Sec. 1211. Sense of the Congress commending the Government of Iraq for affirming its position of no amnesty for terrorists who attack United States Armed Forces.

      Sec. 1212. Sense of Congress on the granting of amnesty to persons known to have killed members of the Armed Forces in Iraq.

      Sec. 1213. Annual reports on United States contributions to the United Nations.

      Sec. 1214. North Korea.

      Sec. 1215. Comprehensive strategy for Somalia.

      Sec. 1216. Intelligence on Iran.

      Sec. 1217. Reports on implementation of the Darfur Peace Agreement.

Subtitle B--Report Matters

      Sec. 1221. Report on increased role and participation of multinational partners in the United Nations Command in the Republic of Korea.

      Sec. 1222. Report on interagency operating procedures for stabilization and reconstruction operations.

      Sec. 1223. Repeal of certain report requirements.

      Sec. 1224. Reports on the Darfur Peace Agreement.

TITLE XIII--COOPERATIVE THREAT REDUCTION WITH STATES OF THE FORMER SOVIET UNION

      Sec. 1301. Specification of Cooperative Threat Reduction programs and funds.

      Sec. 1302. Funding allocations.

      Sec. 1303. Extension of temporary authority to waive limitation on funding for chemical weapons destruction facility in Russia.

      Sec. 1304. Removal of certain restrictions on provision of cooperative threat reduction assistance.

TITLE XIV--AUTHORIZATION FOR INCREASED COSTS DUE TO OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM

      Sec. 1401. Purpose.

      Sec. 1402. Army procurement.

      Sec. 1403. Marine Corps procurement.

      Sec. 1404. Air Force procurement.

      Sec. 1405. Operation and maintenance.

      Sec. 1406. Defense Health Program.

      Sec. 1407. Military personnel.

      Sec. 1408. Joint Improvised Explosive Device Defeat Fund.

      Sec. 1409. Classified programs.

      Sec. 1410. Iraq Freedom Fund.

      Sec. 1411. Treatment as additional authorizations.

      Sec. 1412. Transfer authority.

      Sec. 1413. Availability of funds.

      Sec. 1414. Amount for procurement of hemostatic agents for use in the field.

      Sec. 1415. Our Military Kids youth support program.

      Sec. 1416. Joint Advertising, Market Research and Studies program.

      Sec. 1417. Report.

      Sec. 1418. Submittal to Congress of Department of Defense supplemental and cost of war execution reports.

      Sec. 1419. Limitation on availability of funds for certain purposes relating to Iraq.

DIVISION B--MILITARY CONSTRUCTION AUTHORIZATIONS

      Sec. 2001. Short title.

TITLE XXI--ARMY

      Sec. 2101. Authorized Army construction and land acquisition projects.

      Sec. 2102. Family housing.

      Sec. 2103. Improvements to military family housing units.

      Sec. 2104. Authorization of appropriations, Army.

TITLE XXII--NAVY

      Sec. 2201. Authorized Navy construction and land acquisition projects.

      Sec. 2202. Family housing.

      Sec. 2203. Improvements to military family housing units.

      Sec. 2204. Authorization of appropriations, Navy.

      Sec. 2205. Modification of authority to carry out certain fiscal year 2006 projects.

TITLE XXIII--AIR FORCE

      Sec. 2301. Authorized Air Force construction and land acquisition projects.

      Sec. 2302. Family housing.

      Sec. 2303. Improvements to military family housing units.

      Sec. 2304. Authorization of appropriations, Air Force.

      Sec. 2305. Modification of authority to carry out certain fiscal year 2006 project.

TITLE XXIV--DEFENSE AGENCIES

      Sec. 2401. Authorized Defense Agencies construction and land acquisition projects.

      Sec. 2402. Family housing.

      Sec. 2403. Energy conservation projects.

      Sec. 2404. Authorization of appropriations, Defense Agencies.

      Sec. 2405. Modification of authority to carry out certain fiscal year 2006 projects.

TITLE XXV--NORTH ATLANTIC TREATY ORGANIZATION SECURITY INVESTMENT PROGRAM

      Sec. 2501. Authorized NATO construction and land acquisition projects.

      Sec. 2502. Authorization of appropriations, NATO.

TITLE XXVI--GUARD AND RESERVE FORCES FACILITIES

      Sec. 2601. Authorized Guard and Reserve construction and land acquisition projects.

TITLE XXVII--EXPIRATION AND EXTENSION OF AUTHORIZATIONS

      Sec. 2701. Expiration of authorizations and amounts required to be specified by law.

      Sec. 2702. Extension of authorizations of certain fiscal year 2004 projects.

      Sec. 2703. Extension of authorizations of certain fiscal year 2003 projects.

      Sec. 2704. Effective date.

TITLE XXVIII--GENERAL PROVISIONS

Subtitle A--Military Construction Program and Military Family Housing Changes

      Sec. 2801. Three-year extension of temporary, limited authority to use operation and maintenance funds for construction projects outside the United States.

      Sec. 2802. Authority to carry out military construction projects in connection with industrial facility investment program.

      Sec. 2803. Modification of notification requirements related to cost variation authority.

      Sec. 2804. Consideration of local comparability of floor areas in construction, acquisition, and improvement of military unaccompanied housing.

      Sec. 2805. Increase in thresholds for unspecified minor military construction projects.

      Sec. 2806. Inclusion of military transportation and support systems in energy savings program.

      Sec. 2807. Repeal of authority to convey property at closed or realigned military installations to support military construction.

      Sec. 2808. Repeal of requirement to determine availability of suitable alternative housing for acquisition in lieu of construction of new family housing.

      Sec. 2809. Updating foreign currency fluctuation adjustment for certain military family housing leases in Korea.

      Sec. 2810. Pilot projects for acquisition or construction of military unaccompanied housing.

      Sec. 2811. Certification required for certain military construction projects.

      Sec. 2812. Modification of land acquisition authority, Perquimans County, North Carolina.

      Sec. 2813. Naming of research laboratory at Air Force Rome Research Site, Rome, New York, in honor of Sherwood L. Boehlert, a member of the House of Representatives.

      Sec. 2814. Naming of administration building at Joint Systems Manufacturing Center in Lima, Ohio, after Michael G. Oxley, a member of the House of Representatives.

      Sec. 2815. Naming of military family housing facility at Fort Carson, Colorado, in honor of Joel Hefley, a member of the House of Representatives.

      Sec. 2816. Authority to occupy United States Southern Command family housing.

Subtitle B--Real Property and Facilities Administration

      Sec. 2821. Consolidation of easement provisions.

      Sec. 2822. Authority to grant restrictive easements for conservation and environmental restoration purposes.

      Sec. 2823. Consolidation of provisions relating to transfers of real property within the Department of Defense and to other Federal agencies.

      Sec. 2824. Authority to use excess property as exchange under agreements to limit encroachments on military training, testing, and operations.

      Sec. 2825. Modification of utility system authority and related reporting requirements.

      Sec. 2826. Increase in authorized maximum lease term for certain structures and real property relating to structures in foreign countries.

      Sec. 2827. Modification of land transfer authority, Potomac Annex, District of Columbia.

      Sec. 2828. Reports on Army training ranges.

      Sec. 2829. Use of renewable energy to meet electricity needs.

      Sec. 2830. Naming of Navy and Marine Corps Reserve Center at Rock Island, Illinois, in honor of Lane Evans, a Member of the House of Representatives.

Subtitle C--Base Closure and Realignment

      Sec. 2831. Defense economic adjustment program: research and technical assistance.

      Sec. 2832. Extension of eligibility for community planning assistance related to certain military facilities not under Department of Defense jurisdiction.

      Sec. 2833. Modification of deposit requirements in connection with lease proceeds received at military installations approved for closure or realignment after January 1, 2005.

      Sec. 2834. Report on Air Force and Air National Guard bases affected by 2005 round of defense base closure and realignment.

Subtitle D--Land Conveyances

      Sec. 2841. Land conveyance, Radford Army Ammunition Plant, Virginia.

      Sec. 2842. Modifications to land conveyance authority, Engineering Proving Ground, Fort Belvoir, Virginia.

      Sec. 2843. Land conveyances, Omaha, Nebraska.

Subtitle E--Other Matters

      Sec. 2851. Rickenbacker Airport, Columbus, Ohio.

      Sec. 2852. Highway projects, Detroit, Michigan.

      Sec. 2853. Fox Point Hurricane Barrier, Providence, Rhode Island.

      Sec. 2854. Land conveyance, Hopkinton, New Hampshire.

      Sec. 2855. Federal funding for fixed guideway projects.

DIVISION C--DEPARTMENT OF ENERGY NATIONAL SECURITY AUTHORIZATIONS AND OTHER AUTHORIZATIONS

TITLE XXXI--DEPARTMENT OF ENERGY NATIONAL SECURITY PROGRAMS

Subtitle A--National Security Programs

      Sec. 3101. National Nuclear Security Administration.

      Sec. 3102. Defense environmental cleanup.

      Sec. 3103. Other defense activities.

      Sec. 3104. Defense nuclear waste disposal.

Subtitle B--Other Matters

      Sec. 3111. Notice and wait requirement applicable to certain third party financing arrangements.

      Sec. 3112. Utilization of international contributions to the Global Threat Reduction Initiative.

      Sec. 3113. Utilization of international contributions to the Second Line of Defense Core Program.

      Sec. 3114. Extension of Facilities and Infrastructure Recapitalization Program.

      Sec. 3115. Two-year extension of authority for appointment of certain scientific, engineering, and technical personnel.

      Sec. 3116. Extension of deadline for transfer of lands to Los Alamos County, New Mexico, and of lands in trust for the Pueblo of San Ildefonso.

      Sec. 3117. Limitations on availability of funds for Waste Treatment and Immobilization Plant.

      Sec. 3118. Limitation on availability of funds for implementation of the Russian Surplus Fissile Materials Disposition Program.

      Sec. 3119. Limitation on availability of funds for construction of MOX Fuel Fabrication Facility.

      Sec. 3120. Technical correction related to authorization of appropriations for fiscal year 2006.

      Sec. 3121. Education of future nuclear engineers.

TITLE XXXII--DEFENSE NUCLEAR FACILITIES SAFETY BOARD

      Sec. 3201. Authorization.

TITLE XXXIII--NATIONAL DEFENSE STOCKPILE

      Sec. 3301. Transfer of government-furnished uranium stored at Sequoyah Fuels Corporation, Gore, Oklahoma.

TITLE XXXIV--NAVAL PETROLEUM RESERVES

      Sec. 3401. Completion of equity finalization process for Naval Petroleum Reserve Numbered 1.

SEC. 3. CONGRESSIONAL DEFENSE COMMITTEES.

    For purposes of this Act, the term `congressional defense committees' has the meaning given that term in section 101(a)(16) of title 10, United States Code.

DIVISION A--DEPARTMENT OF DEFENSE AUTHORIZATIONS

TITLE I--PROCUREMENT

Subtitle A--Authorization of Appropriations

SEC. 101. ARMY.

    Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Army as follows:

      (1) For aircraft, $3,457,329,000.

      (2) For missiles, $1,428,859,000.

      (3) For weapons and tracked combat vehicles, $2,849,743,000.

      (4) For ammunition, $2,036,785,000.

      (5) For other procurement, $7,729,602,000.

SEC. 102. NAVY AND MARINE CORPS.

    (a) NAVY- Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Navy as follows:

      (1) For aircraft, $10,704,155,000.

      (2) For weapons, including missiles and torpedoes, $2,587,020,000.

      (3) For shipbuilding and conversion, $12,058,553,000.

      (4) For other procurement, $5,045,516,000.

    (b) MARINE CORPS- Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Marine Corps in the amount of $1,300,213,000.

    (c) NAVY AND MARINE CORPS AMMUNITION- Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement of ammunition for the Navy and the Marine Corps in the amount of $809,943,000.

SEC. 103. AIR FORCE.

    Funds are hereby authorized to be appropriated for fiscal year 2007 for procurement for the Air Force as follows:

      (1) For aircraft, $12,004,096,000.

      (2) For missiles, $4,224,145,000.

      (3) For ammunition, $1,076,749,000.

      (4) For other procurement, $15,434,586,000.

SEC. 104. DEFENSE-WIDE ACTIVITIES.

    Funds are hereby authorized to be appropriated for fiscal year 2007 for Defense-wide procurement in the amount of $2,980,498,000.

Subtitle B--Army Programs

SEC. 111. LIMITATION ON AVAILABILITY OF FUNDS FOR THE JOINT NETWORK NODE.

    (a) LIMITATION- Of the amount authorized to be appropriated by section 101(5) for other procurement for the Army and available for purposes of the procurement of the Joint Network Node, not more than 50 percent of such amount may be available for such purposes until the Secretary of the Army submits to the congressional defense committees a report on the strategy of the Army for the convergence of the Joint Network Node, the Warfighter Information Network--Tactical, and the Mounted Battle Command On-the-Move communications programs.

    (b) ELEMENTS- The report described in subsection (a) shall include a description of the acquisition plan required for the convergence described in that subsection, including the implementation plan, schedule, and funding of such acquisition plan.

    (c) DEADLINE- The report described in subsection (a) shall be submitted under that subsection, if at all, not later than March 15, 2007.

SEC. 112. COMPTROLLER GENERAL REPORT ON THE CONTRACT FOR THE FUTURE COMBAT SYSTEMS PROGRAM.

    (a) REPORT REQUIRED- Not later than March 15, 2007, the Comptroller General of the United States shall submit to the congressional defense committees a report on the participation and activities of the lead systems integrator in the Future Combat Systems (FCS) program under the contract of the Army for the Future Combat Systems.

    (b) ELEMENTS- The report required by subsection (a) shall include the following:

      (1) A description of the responsibilities of the lead systems integrator in managing the Future Combat Systems program under the contract for the Future Combat Systems, and an assessment of the manner in which such responsibilities differ from the typical responsibilities of a lead systems integrator under acquisition contracts of the Department of Defense.

      (2) A description and assessment of the responsibilities of the Army in managing the Future Combat Systems program, including oversight of the activities of the lead systems integrator and the decisions made by the lead systems integrator.

      (3) An assessment of the manner in which the Army--

        (A) ensures that the lead systems integrator meets goals for the Future Combat Systems in a timely manner; and

        (B) evaluates the extent to which such goals are met.

      (4) An identification of the mechanisms in place to ensure the protection of the interests of the United States in the Future Combat Systems program.

      (5) An identification of the mechanisms in place to mitigate organizational conflicts of interests with respect to competition on Future Combat Systems technologies and equipment under subcontracts under the Future Combat Systems program.

SEC. 113. REPORTS ON ARMY MODULARITY INITIATIVE.

    (a) REPORT BY SECRETARY OF THE ARMY-

      (1) REPORT REQUIRED- Not later than March 15, 2007, the Secretary of the Army shall submit to the congressional defense committees a report on the modularity initiative of the Army.

      (2) ELEMENTS- The report required by this subsection shall include the following:

        (A) A description of the manner in which the Army distinguishes costs under the modularity initiative from costs of modernization and reset.

        (B) An identification, by line item, of the amount of funds expended to date on the modularity initiative.

        (C) An identification, by line item, of the amount of funds the Army has budgeted and programmed to date on the modularity initiative.

        (D) A detailed description on how modularity equipment will be allocated to the regular components and reserve components of the Armed Forces by 2011, and a description of any anticipated shortfalls in such allocation.

        (E) A plan for further testing and evaluation of modular designs, and a summary of any lessons learned to date from modular brigades that have been established, deployed to Iraq, or both.

    (b) ANNUAL COMPTROLLER GENERAL REPORTS-

      (1) REPORTS REQUIRED- The Comptroller General of the United States shall submit to the congressional defense committees each year, not later than 45 days after the date on which the budget of the President is submitted to Congress for a fiscal year under section 1105 of title 31, United States Code, a report on the assessment of the Comptroller General on the following:

        (A) The progress of the Army in equipping and manning modular units in the regular components and reserve components of the Armed Forces.

        (B) The use of funds by the Army for the modularity initiative.

        (C) The progress of the Army in conducting further testing and evaluations of designs under the modularity initiative.

      (2) FIRST REPORT- The first report required under this subsection shall be submitted in conjunction with the budget for fiscal year 2008.

SEC. 114. REPLACEMENT EQUIPMENT.

    (a) Priority- Priority for the distribution of new and combat serviceable equipment, with associated support and test equipment for acting and reserve component forces, shall be given to units scheduled for mission deployment, employment first, or both regardless of component.

    (b) Allocation- In the amounts authorized to be appropriated by section 101(5) for the procurement of replacement equipment, subject to subsection (a), priority for the distribution of Army National Guard equipment described in subsection (a) may be given to States that have experienced a major disaster, as determined under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121-5206), and may require replacement equipment to respond to future emergencies/disasters only after distribution of new and combat serviceable equipment has been made in accordance with subsection (a).

Subtitle C--Navy Programs

SEC. 121. CVN-21 CLASS AIRCRAFT CARRIER PROCUREMENT.

    (a) Availability of Funds for CVN-21 Class Aircraft Carriers- Amounts authorized to be appropriated to Shipbuilding and Conversion, Navy, for purposes of the construction of CVN-21 class aircraft carriers shall be available in the fiscal year for which authorized to be appropriated and the succeeding three fiscal years.

    (b) AMOUNT AUTHORIZED FROM SCN ACCOUNT FOR FISCAL YEAR 2007- Of the amount authorized to be appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding and Conversion, Navy, $834,100,000 shall be available for advance procurement with respect to the CVN-21 class aircraft carriers designated CVN-78, CVN-79, and CVN-80.

    (c) CONTRACT AUTHORITY-

      (1) ADVANCE PROCUREMENT- The Secretary of the Navy may enter into a contract during fiscal year 2007 for advance procurement with respect to the CVN-21 class aircraft carriers designated CVN-79 and CVN-80.

      (2) CONSTRUCTION- In the fiscal year immediately following the last fiscal year of the contract for advance procurement for a CVN-21 class aircraft carrier referred to in paragraph (1), the Secretary may enter into a contract for the construction of such aircraft carrier to be funded in the fiscal year of such contract for construction and the succeeding three fiscal years.

    (d) CONDITION FOR OUT-YEAR CONTRACT PAYMENTS- A contract entered into under subsection (b) shall provide that any obligation of the United States to make a payment under the contract for any subsequent fiscal year is subject to the availability of appropriations for that purpose for such subsequent fiscal year.

SEC. 122. CONSTRUCTION OF FIRST TWO VESSELS UNDER THE NEXT-GENERATION DESTROYER PROGRAM.

    (a) AVAILABILITY OF FUNDS- Of the amount authorized to be appropriated by section 102(a)(3) for fiscal year 2007 for Shipbuilding and Conversion, Navy, $2,568,000,000 may be available for the construction of the first two vessels under the next-generation destroyer program.

    (b) CONTRACT AUTHORITY-

      (1) IN GENERAL- The Secretary of the Navy may in accordance with section 2306b of title 10, United States Code, enter into a multiyear contract beginning with the fiscal year 2007 program year for procurement of each of the first two vessels under the next-generation destroyer program.

      (2) LIMITATION- Not more than one contract described in paragraph (1) may be awarded under that paragraph to a single surface-combatant shipyard.

      (3) DURATION ON PROCUREMENT- Each contract under paragraph (1) shall contemplate funding for the procurement of a vessel under such contract in fiscal years 2007 and 2008.

      (4) CONDITION ON OUT-YEAR CONTRACT PAYMENTS- A contract entered into under paragraph (1) shall provide that any obligation of the United States to make a payment under such contract for any fiscal year after fiscal year 2007 is subject to the availability of appropriations for that purpose for such fiscal year.

SEC. 123. MODIFICATION OF LIMITATION ON TOTAL COST OF PROCUREMENT OF CVN-77 AIRCRAFT CARRIER.

    Section 122(f)(1) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1650) is amended by striking `$4,600,000,000 (such amount being the estimated cost for the procurement of the CVN-77 aircraft carrier in the March 1997 procurement plan)' and inserting `$6,057,000,000'.

Subtitle D--Air Force Programs

SEC. 141. PROCUREMENT OF JOINT PRIMARY AIRCRAFT TRAINING SYSTEM AIRCRAFT AFTER FISCAL YEAR 2006.

    Any Joint Primary Aircraft Training System (JPATS) aircraft procured after fiscal year 2006 shall be procured through a contract under part 15 of the Federal Acquisition Regulation (FAR), relating to acquisition of items by negotiated contract (48 C.F.R. 15.000 et seq.), rather than through a contract under part 12 of the Federal Acquisition Regulation, relating to acquisition of commercial items (48 C.F.R. 12.000 et seq.).

SEC. 142. PROHIBITION ON RETIREMENT OF C-130E/H TACTICAL AIRLIFT AIRCRAFT.

    The Secretary of the Air Force shall not retire any C-130E/H tactical airlift aircraft of the Air Force in fiscal year 2007.

SEC. 143. LIMITATION ON RETIREMENT OF KC-135E AIRCRAFT.

    The Secretary of the Air Force shall ensure that the number, if any, of KC-135E aircraft of the Air Force that is retired in fiscal year 2007 does not exceed 29 such aircraft.

SEC. 144. LIMITATION ON RETIREMENT OF B-52H BOMBER AIRCRAFT.

    The Secretary of the Air Force shall ensure that the number, if any, of B-52H bomber aircraft of the Air Force that is retired in fiscal year 2007 does not exceed 18 such aircraft.

SEC. 145. RETIREMENT OF B-52H BOMBER AIRCRAFT.

    (a) LIMITATION ON RETIREMENT PENDING REPORT ON BOMBER FORCE STRUCTURE- No funds authorized to be appropriated for the Department of Defense may be obligated or expended for retiring or dismantling any of the 93 B-52H bomber aircraft in service in the Air Force as of June 1, 2006, until 30 days after the Secretary of the Air Force transmits to the Committees on Armed Services of the Senate and the House of Representatives a report on the bomber force structure of the Air Force meeting the requirements of subsection (b).

    (b) ELEMENTS-

      (1) IN GENERAL- A report under subsection (a) shall set forth the following:

        (A) The plan of the Air Force for the modernization of the B-52H bomber aircraft fleet.

        (B) The plans of the Air Force for the modernization of the balance of the bomber force structure.

        (C) The amount and type of bombers in the bomber force structure that is appropriate to meet the requirements of the national security strategy of the United States.

        (D) A justification of the cost and projected savings of any reductions to the B-52H bomber aircraft fleet as a result of the retirement or dismantlement of the B-52H bomber aircraft covered by the report.

        (E) The life expectancy of each bomber aircraft to remain in the bomber force structure.

        (F) The date by which any new bomber aircraft must reach initial operational capability and the capabilities of the bomber force structure that would be replaced or superseded by any new bomber aircraft.

      (2) AMOUNT AND TYPE OF BOMBER FORCE STRUCTURE DEFINED- In this subsection, the term `amount and type of bomber force structure' means the number of B-2 bomber aircraft, B-52H bomber aircraft, and B-1 bomber aircraft that are required to carry out the national security strategy of the United States.

    (c) PREPARATION OF REPORT- A report under this section shall be prepared and submitted by the Institute of Defense Analysis to the Secretary of the Air Force for transmittal by the Secretary in accordance with subsection (a).

SEC. 146. FUNDING FOR PROCUREMENT OF F-22A FIGHTER AIRCRAFT.

    (a) Prohibition on Use of Incremental Funding- The Secretary of the Air Force shall not use incremental funding for the procurement of F-22A fighter aircraft.

    (b) Multiyear Procurement- The Secretary of the Air Force may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear contract beginning with the fiscal year 2007 program year for procurement of not more than 60 F-22A fighter aircraft.

SEC. 147. MULTIYEAR PROCUREMENT OF F-119 ENGINES FOR F-22A FIGHTER AIRCRAFT.

    The Secretary of the Air Force may, in accordance with section 2306b of title 10, United States Code, enter into a multiyear contract beginning with the fiscal year 2007 program year for procurement of the following:

      (1) Not more than 120 F-119 engines for F-22A fighter aircraft.

      (2) Not more than 13 spare F-119 engines for F-22A fighter aircraft.

SEC. 148. MULTI-SPECTRAL IMAGING CAPABILITIES.

    (a) Findings- The Senate makes the following findings:

      (1) The budget of the President for fiscal year 2007, as submitted to Congress under section 1105(a) of title 31, United States Code, and the current Future-Years Defense Program adopts an Air Force plan to retire the remaining fleet of U-2 aircraft by 2011.

      (2) This retirement would eliminate the multi-spectral capability provided by the electro-optical/infrared (EO/IR) Senior Year Electro-optical Reconnaissance System (SYERS-2) high-altitude imaging system.

      (3) The system referred to in paragraph (2) provides high-resolution, long-range, day-and-night image intelligence.

      (4) The infrared capabilities of the system referred to in paragraph (2) can defeat enemy efforts to use camouflage or concealment, as well as provide images through poor visibility and smoke.

      (5) Although the Air Force has previously recognized the military value of Senior Year Electro-optical Reconnaissance System sensors, the Air Force has no plans to migrate this capability to any platform remaining in the fleet.

      (6) The Air Force could integrate such capabilities onto the Global Hawk platform to retain this capability for combatant commanders.

      (7) The Nation risks a loss of an important intelligence gathering capability if this capability is not transferred to another platform.

    (b) Sense of Senate- It is the sense of the Senate that the Air Force should investigate ways to retain the multi-spectral imaging capabilities provided by the Senior Year Electro-optical Reconnaissance System high-altitude imaging system after the retirement of the U-2 aircraft fleet.

    (c) Report Requirement- The Secretary of the Air Force shall submit to the congressional defense committees, at the same time the budget of the President for fiscal year 2008 is submitted to Congress under section 1105(a) of title 31, United States Code, a plan for migrating the capabilities provided by the Senior Year Electro-optical Reconnaissance System high-altitude imaging system from the U-2 aircraft to the Global Hawk platform before the retirement of the U-2 aircraft fleet in 2011.

SEC. 149. MINUTEMAN III INTERCONTINENTAL BALLISTIC MISSILES.

    (a) Findings- Congress makes the following findings:

      (1) In the Joint Explanatory Statement of the Committee of Conference on H.R. 1815, the National Defense Authorization Act for Fiscal Year 2006, the conferees state that the policy of the United States `is to deploy a force of 500 ICBMs'. The conferees further note `that unanticipated strategic developments may compel the United States to make changes to this force structure in the future.'.

      (2) The Quadrennial Defense Review (QDR) conducted under section 118 of title 10, United States Code, in 2005 finds that maintaining a robust nuclear deterrent `remains a keystone of United States national power'. However, notwithstanding that finding and without providing any specific justification for the recommendation, the Quadrennial Defense Review recommends reducing the number of deployed Minuteman III Intercontinental Ballistic Missiles (ICBMs) from 500 to 450 beginning in fiscal year 2007. The Quadrennial Defense Review also fails to identify what unanticipated strategic developments compelled the United States to reduce the Intercontinental Ballistic Missile force structure.

      (3) The commander of the Strategic Command, General James Cartwright, testified before the Committee on Armed Services of the Senate that the reduction in deployment of Minuteman III Intercontinental Ballistic Missiles is required so that the 50 missiles withdrawn from the deployed force could be used for test assets and spares to extend the life of the Minuteman III Intercontinental Ballistic Missile well into the future. If spares are not modernized, the Air Force may not have sufficient replacement missiles to sustain the force size.

    (b) Modernization of Intercontinental Ballistic Missiles Required- The Air Force shall modernize Minuteman III Intercontinental Ballistic Missiles in the United States inventory as required to maintain a sufficient supply of launch test assets and spares to sustain the deployed force of such missiles through 2030.

    (c) Limitation on Termination of Modernization Program Pending Report- No funds authorized to be appropriated for the Department of Defense may be obligated or expended for the termination of any Minuteman III ICBM modernization program, or for the withdrawal of any Minuteman III Intercontinental Ballistic Missile from the active force, until 30 days after the Secretary of Defense submits to the congressional defense committees a report setting forth the following:

      (1) A detailed strategic justification for the proposal to reduce the Minuteman III Intercontinental Ballistic Missile force from 500 to 450 missiles, including an analysis of the effects of the reduction on the ability of the United States to assure allies and dissuade potential competitors.

      (2) A detailed analysis of the strategic ramifications of continuing to equip a portion of the Minuteman III Intercontinental Ballistic Missile force with multiple independent warheads rather than single warheads as recommended by past reviews of the United States nuclear posture.

      (3) An assessment of the test assets and spares required to maintain a force of 500 deployed Minuteman III Intercontinental Ballistic Missiles through 2030.

      (4) An assessment of the test assets and spares required to maintain a force of 450 deployed Minuteman III Intercontinental Ballistic Missiles through 2030.

      (5) An inventory of currently available Minuteman III Intercontinental Ballistic Missile test assets and spares.

      (6) A plan to sustain and complete the modernization of all deployed and spare Minuteman III Intercontinental Ballistic Missiles, a test plan, and an analysis of the funding required to carry out modernization of all deployed and spare Minuteman III Intercontinental Ballistic Missiles.

      (7) An assessment of whether halting upgrades to the Minuteman III Intercontinental Ballistic Missiles withdrawn from the deployed force would compromise the ability of those missiles to serve as test assets.

      (8) A description of the plan of the Department of Defense for extending the life of the Minuteman III Intercontinental Ballistic Missile force beyond fiscal year 2030.

    (d) Remote Visual Assessment-

      (1) ADDITIONAL AMOUNT FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, AIR FORCE- The amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force is hereby increased by $5,000,000.

      (2) AVAILABILITY OF AMOUNT- Of the amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force, as increased by paragraph (1), $5,000,000 may be available for ICBM Security Modernization (PE #0604851) for Remote Visual Assessment for security for silos for intercontinental ballistic missiles (ICBMs).

      (3) OFFSET- The amount authorized to be appropriated by section 103(2) for procurement of missiles for the Air Force is hereby reduced by $5,000,000, with the amount of the reduction to be allocated to amounts available for the Evolved Expendable Launch Vehicle.

    (e) ICBM Modernization Program Defined- In this section, the term `ICBM Modernization program' means each of the following for the Minuteman III Intercontinental Ballistic Missile:

      (1) The Guidance Replacement Program (GRP).

      (2) The Propulsion Replacement Program (PRP).

      (3) The Propulsion System Rocket Engine (PSRE) program.

      (4) The Safety Enhanced Reentry Vehicle (SERV) program.

TITLE II--RESEARCH, DEVELOPMENT, TEST, AND EVALUATION

Subtitle A--Authorization of Appropriations

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 for the use of the Department of Defense for research, development, test, and evaluation as follows:

      (1) For the Army, $11,151,009,000.

      (2) For the Navy, $17,451,823,000.

      (3) For the Air Force, $24,400,857,000.

      (4) For Defense-wide activities, $21,160,459,000, of which $181,520,000 is authorized for the Director of Operational Test and Evaluation.

SEC. 202. AMOUNT FOR SCIENCE AND TECHNOLOGY.

    (a) AMOUNT FOR PROJECTS- Of the total amount authorized to be appropriated by section 201, $11,468,959,000 shall be available for science and technology projects.

    (b) SCIENCE AND TECHNOLOGY DEFINED- In this section, the term `science and technology project' means work funded in program elements for defense research, development, test, and evaluation under Department of Defense budget activities 1, 2, or 3.

SEC. 203. AMOUNT FOR DEVELOPMENT AND VALIDATION OF WARFIGHTER RAPID AWARENESS PROCESSING TECHNOLOGY.

    (a) Increase in Amount for Research, Development, Test, and Evaluation for the Navy- The amount authorized to be appropriated by section 201(2) for research, development, test, and evaluation for the Navy is hereby increased by $4,000,000.

    (b) Availability of Amount- Of the amount authorized to be appropriated by section 201(2) for research, development, test, and evaluation for the Navy, as increased by subsection (a), $4,000,000 may be available for the development, validation, and demonstration of warfighter rapid awareness processing technology for distributed operations within the Marine Corps Landing Force Technology program.

    (c) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby decreased by $4,000,000, due to unexpended obligations, if available.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 211. INDEPENDENT ESTIMATE OF COSTS OF THE FUTURE COMBAT SYSTEMS.

    (a) LIMITATION ON AVAILABILITY OF FUNDS FOR CERTAIN ACTIVITIES- Of the amount authorized to be appropriated by this title and available for the Future Combat Systems (FCS) for purposes of system of systems engineering and program management for the Future Combat Systems, an amount equal to $500,000,000 of such amount may not be obligated and expended for such purposes until the Secretary of Defense submits to the congressional defense committees the report required by subsection (b)(4).

    (b) INDEPENDENT ESTIMATE REQUIRED-

      (1) IN GENERAL- The Secretary of Defense shall provide for the preparation of an independent estimate of the anticipated costs of systems development and demonstration with respect to the Future Combat Systems.

      (2) CONDUCT OF ESTIMATE- The estimate required by this subsection shall be prepared by a federally funded research and development center selected by the Secretary for purposes of this subsection.

      (3) MATTERS TO BE ADDRESSED- The independent estimate prepared under this subsection shall address costs of research, development, test, and evaluation, and costs of procurement, for--

        (A) the system development and demonstration phase of the core Future Combat Systems;

        (B) the Future Combat Systems technologies to be incorporated into the equipment of the current force of the Army (often referred to as `spinouts');

        (C) the installation kits for the incorporation of such technologies into such equipment;

        (D) the systems treated as complementary systems for the Future Combat Systems;

        (E) science and technology initiatives that support the Future Combat Systems program; and

        (F) any pass-through charges anticipated to be assessed by the lead systems integrator of the Future Combat Systems and its major subcontractors.

      (4) SUBMITTAL TO CONGRESS- Upon completion of the independent estimate required by this subsection, the Secretary shall submit to the congressional defense committees a report on the estimate.

      (5) DEADLINE FOR SUBMITTAL- The report described in paragraph (4) shall be submitted not later than the date of the submittal to Congress of the budget of the President for fiscal year 2008 (as submitted to Congress under section 1105(a) of title 31, United States Code).

    (c) PASS-THROUGH CHARGE DEFINED- In this section, the term `pass-through charge' has the meaning given that term in section 805(c)(5) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3373).

SEC. 212. FUNDING OF DEFENSE SCIENCE AND TECHNOLOGY PROGRAMS.

    (a) EXTENSION OF FUNDING OBJECTIVE- Subsection (b) of section 212 of the National Defense Authorization Act for Fiscal Year 2000 (10 U.S.C. 2501 note) is amended by striking `through 2009' and inserting `through 2012'.

    (b) ACTIONS FOLLOWING FAILURE TO COMPLY WITH OBJECTIVE- Such section is further amended by adding at the end the following new subsection:

    `(c) ACTIONS FOLLOWING FAILURE TO COMPLY WITH OBJECTIVE- (1) If the proposed budget for a fiscal year covered by subsection (b) fails to comply with the objective set forth in that subsection, the Secretary of Defense shall submit to the congressional defense committees--

      `(A) a detailed, prioritized list, including estimates of required funding, of highly-rated, peer-reviewed science and technology projects received by the Department through competitive solicitations and broad agency announcements which--

        `(i) are not funded solely due to lack of resources, but

        `(ii) represent science and technology opportunities that support the research and development programs and goals of the military departments and the Defense Agencies; and

      `(B) a report, in both classified and unclassified form, containing an analysis and evaluation of international research and technology capabilities, including an identification of any technology areas in which the United States will not have global technical leadership within the next five years, in each of the technology areas described in the following plans:

        `(i) The most current Joint Warfighting Science and Technology Plan required by section 270 of the National Defense Authorization Act for Fiscal Year 1997 (10 U.S.C. 2501 note).

        `(ii) The Defense Technology Area Plan of the Department of Defense.

        `(iii) The Basic Research Plan of the Department of Defense.

    `(2)(A) The list required by paragraph (1)(A) for a fiscal year in which the budget for such fiscal year fails to comply with the objective in subsection (b) shall be submitted together with the Department of Defense budget justification materials submitted to Congress under section 1105 of title 31, United States Code, with the budget for the next fiscal year.

    `(B) The report required by paragraph (1)(B) for a fiscal year in which the budget for such fiscal year fails to comply with the objective in subsection (b) shall be submitted not later than the six months after the submittal of the Department of Defense budget justification materials that are submitted to Congress under section 1105 of title 31, United States Code, with the budget for the next fiscal year.'.

SEC. 213. HYPERSONICS DEVELOPMENT.

    (a) ESTABLISHMENT OF JOINT TECHNOLOGY OFFICE ON HYPERSONICS- The Secretary of Defense shall establish within the Office of the Secretary of Defense a joint technology office on hypersonics. The office shall carry out the program required under subsection (b), and shall have such other responsibilities relating to hypersonics as the Secretary shall specify.

    (b) PROGRAM ON HYPERSONICS- The joint technology office established under subsection (a) shall carry out a program for the development of hypersonics for defense purposes.

    (c) RESPONSIBILITIES- In carrying out the program required by subsection (b), the joint technology office established under subsection (a) shall do the following:

      (1) Coordinate and integrate the research, development, test, and evaluation programs and system demonstration programs of the Department of Defense on hypersonics.

      (2) Undertake appropriate actions to ensure--

        (A) close and continuous integration of the programs on hypersonics of the military departments with the programs on hypersonics of the Defense Agencies; and

        (B) coordination of the programs referred to in subparagraph (A) with the programs on hypersonics of the National Aeronautics and Space Administration.

      (3) Approve demonstration programs on hypersonic systems.

      (4) Ensure that any demonstration program on hypersonic systems that is carried out in any year after its approval under paragraph (3) is carried out only if certified under subsection (e) as being consistent with the roadmap under subsection (d).

    (d) ROADMAP-

      (1) ROADMAP REQUIRED- The joint technology office established under subsection (a) shall, in coordination with the Joint Staff and the National Aeronautics and Space Administration, develop a roadmap for the hypersonics programs of the Department of Defense.

      (2) ELEMENTS- The roadmap shall include the following matters:

        (A) Short-term, mid-term, and long-term goals for the Department of Defense on hypersonics which shall be consistent with the missions and anticipated requirements of the Department over the applicable period.

        (B) Acquisition transition plans for hypersonics.

        (C) Anticipated mission requirements for hypersonics.

        (D) A schedule for meeting such goals, including the activities and funding anticipated to be required for meeting such goals.

      (3) SUBMITTAL TO CONGRESS- The Secretary shall submit the roadmap to the congressional defense committees at the same time as the submittal to Congress of the budget for fiscal year 2008 (as submitted pursuant to section 1105 of title 31, United States Code).

    (e) ANNUAL REVIEW AND CERTIFICATION OF FUNDING-

      (1) ANNUAL REVIEW- The joint technology office established under subsection (a) shall conduct on an annual basis a review of the funding available for research, development, test, and evaluation and demonstration programs of the Department of Defense on hypersonics in order to determine whether or not such funding and programs are consistent with the roadmap developed under subsection (d).

      (2) CERTIFICATION- The joint technology office shall, as a result of each review under paragraph (1), certify to the Secretary whether or not the funding and programs subject to such review are consistent with the roadmap developed under subsection (d).

      (3) TERMINATION- The requirements of this subsection shall terminate after the submittal to Congress of the budget for fiscal year 2012 pursuant to section 1105 of title 31, United States Code.

    (f) REPORTS TO CONGRESS- If, as a result of a review under subsection (e), funding or a program on hypersonics is certified under that subsection not to be consistent with the roadmap developed under subsection (d), the Secretary shall submit to Congress a report on such funding or program, as the case may be, together with a statement of the actions to be taken to make such funding or program, as the case may be, consistent with the roadmap.

    (g) HYPERSONICS DEFINED- In this section, the term `hypersonics' means aircraft and missiles capable of travelling at speeds in excess of Mach 5.

SEC. 214. TRIDENT SEA-LAUNCHED BALLISTIC MISSILES.

    (a) LIMITATION ON AVAILABILITY OF FUNDS-

      (1) IN GENERAL- Except as provided in paragraph (2), none of the funds authorized to be appropriated by this Act for the Conventional Trident Modification (CTM) program may be obligated or expended for the development or modification of the Trident D-5 sea-launched ballistic missile until 30 days after the date on which the report required by subsection (b) is submitted to the congressional defense committees.

      (2) EXCEPTION- Paragraph (1) shall not apply with respect to amounts authorized to be appropriated by section 201(2) for research, development, test, and evaluation, Navy, and available for Advanced Conventional Strike Capability (PE #64327N) in an amount not to exceed $32,000,000.

    (b) REPORT-

      (1) REPORT REQUIRED- The Secretary of Defense shall, in consultation with the Secretary of State, submit to the congressional defense committees a report setting forth a proposal to replace nuclear warheads on twenty-four Trident D-5 sea-launched ballistic missiles with conventional kinetic warheads for deployment on submarines that carry Trident sea-launched ballistic missiles.

      (2) ELEMENTS- The report required by paragraph (1) shall include the following:

        (A) A description of the types of scenarios, types of targets, and circumstances in which a conventional sea-launched ballistic missile would be used.

        (B) A discussion of the weapon systems or weapons, whether current or planned, that could be used as an alternative for each of the scenarios, target types, and circumstances set forth under subparagraph (A), and a statement of any reason why each is not a suitable alternative to a conventional sea-launched ballistic missile.

        (C) A description of the command and control arrangements for conventional sea-launched ballistic missiles, including launch authority and the use of Permissive Action Links (PALs).

        (D) An assessment of the capabilities of other countries to detect and track the launch of a conventional or nuclear sea-launched ballistic missile.

        (E) An assessment of the capabilities of other countries to discriminate between the launch of a nuclear sea-launched ballistic missile and a conventional sea-launched ballistic missile, other than in a testing scenario.

        (F) An assessment of the notification and other protocols that would have to be in place prior to using any conventional sea-launched ballistic missile and a plan for entering into such protocols.

        (G) An assessment of the adequacy of the intelligence that would be needed to support an attack involving conventional sea-launched ballistic missiles.

        (H) A description of the total program cost, including the procurement costs of additional D-5 missiles, of the conventional Trident sea-launched ballistic missile program, by fiscal year.

        (I) An analysis and assessment of the implications for ballistic missile proliferation if the United States decides to go forward with the conventional Trident sea-launched ballistic missile program or any other conventional long range ballistic missile program.

        (J) An analysis and assessment of the implications for the United States missile defense system if other countries utilize long range conventional ballistic missiles.

        (K) An analysis of any problems created by the ambiguity that results from the use of the same ballistic missile for both conventional and nuclear warheads.

        (L) An analysis and assessment of the methods that other countries might use to resolve the ambiguities associated with a nuclear or conventional sea-launched ballistic missile.

        (M) An analysis, by the Secretary of State, of the international, treaty, and other concerns that would be associated with the use of a conventional sea-launched ballistic missile and recommendations for measures to mitigate or eliminate such concerns.

        (N) A joint statement by the Secretary of Defense and the Secretary of State on how to ensure that the use of a conventional sea-launched ballistic missile will not result in an intentional, inadvertent, mistaken, or accidental reciprocal or responsive launch of a nuclear strike by any other country.

    (c) AVAILABILITY OF FUNDS FOR REPORT- Of the amounts authorized to be appropriated by this Act (other than the amounts covered by the limitation in subsection (a)), $20,000,000 may be available to prepare the report required by subsection (b).

SEC. 215. ARROW BALLISTIC MISSILE DEFENSE SYSTEM.

    Of the amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities and available for ballistic missile defense--

      (1) $65,000,000 may be available for coproduction of the Arrow ballistic missile defense system; and

      (2) $63,702,000 may be available for the Arrow System Improvement Program.

SEC. 216. HIGH ENERGY LASER LOW ASPECT TARGET TRACKING.

    (a) Additional Amount for Research, Development, Test, and Evaluation, Army- The amount authorized to be appropriated by section 201(1) for research, development, test, and evaluation for the Army is hereby increased by $5,000,000.

    (b) Availability of Amount-

      (1) IN GENERAL- Of the amount authorized to be appropriated by section 201(1) for research, development, test, and evaluation for the Army, as increased by subsection (a), $5,000,000 may be available for the Department of Defense High Energy Laser Test Facility for High Energy Laser Low Aspect Target Tracking (HEL-LATT) test series done jointly with the Navy.

      (2) CONSTRUCTION WITH OTHER AMOUNTS- The amount available under paragraph (1) for the purpose set forth in that paragraph is in addition to any amounts available under this Act for that purpose.

    (c) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby reduced by $5,000,000, due to unexpended obligations, if available.

SEC. 217. ADVANCED ALUMINUM AEROSTRUCTURES INITIATIVE.

    (a) Additional Amount for Research, Development, Test, and Evaluation, Air Force- The amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force is hereby increased by $2,000,000.

    (b) Availability of Amount- Of the amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force, as increased by subsection (a), $2,000,000 may be available for Aerospace Technology Development and Demonstration (PE #603211F) for the Advanced Aluminum Aerostructures Initiative (A3I).

    (c) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby decreased by $2,000,000, due to unexpended obligations, if available.

SEC. 218. LEGGED MOBILITY ROBOTIC RESEARCH.

    (a) Additional Amount for Research, Development, Test, and Evaluation, Army- The amount authorized to be appropriated by section 201(1) for research, development, test, and evaluation for the Army is hereby increased by $1,000,000.

    (b) Availability of Amount- Of the amount authorized to be appropriated by section 201(1) for research, development, test, and evaluation for the Army, as increased by subsection (a), $1,000,000 may be available for Combat Vehicle and Automotive Technology (PE #602601A) for legged mobility robotic research for military applications.

    (c) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby decreased by $1,000,000, due to unexpended obligations, if available

SEC. 219. WIDEBAND DIGITAL AIRBORNE ELECTRONIC SENSING ARRAY.

    (a) Additional Amount for Research, Development, Test, and Evaluation, Air Force- The amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force is hereby increased by $3,000,000.

    (b) Availability of Amount- Of the amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force, as increased by subsection (a), $3,000,000 may be available for Wideband Digital Airborne Electronic Sensing Array (PE #0602204F).

    (c) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby reduced by $3,000,000, due to unexpended obligations, if available.

SEC. 220. SCIENCE AND TECHNOLOGY.

    (a) Army Support for University Research Initiatives-

      (1) ADDITIONAL AMOUNT FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, ARMY- The amount authorized to be appropriated by section 201(1) for research, development, test, and evaluation for the Army is hereby increased by $10,000,000.

      (2) AVAILABILITY OF AMOUNT- Of the amount authorized to be appropriated by section 201(1) for research, development, test, and evaluation for the Army, as increased by paragraph (1), $10,000,000 may be available for program element PE 0601103A for University Research Initiatives.

    (b) Navy Support for University Research Initiatives-

      (1) ADDITIONAL AMOUNT FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, NAVY- The amount authorized to be appropriated by section 201(2) for research, development, test, and evaluation for the Navy is hereby increased by $10,000,000.

      (2) AVAILABILITY OF AMOUNT- Of the amount authorized to be appropriated by section 201(2) for research, development, test, and evaluation for the Navy, as increased by paragraph (1), $10,000,000 may be available for program element PE 0601103N for University Research Initiatives.

    (c) Air Force Support for University Research Initiatives-

      (1) ADDITIONAL AMOUNT FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, AIR FORCE- The amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force is hereby increased by $10,000,000.

      (2) AVAILABILITY OF AMOUNT- Of the amount authorized to be appropriated by section 201(3) for research, development, test, and evaluation for the Air Force, as increased by paragraph (1), $10,000,000 may be available for program element PE 0601103F for University Research Initiatives.

    (d) Computer Science and Cybersecurity-

      (1) ADDITIONAL AMOUNT FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, DEFENSE-WIDE- The amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities is hereby increased by $10,000,000.

      (2) AVAILABILITY OF AMOUNT- Of the amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities, as increased by paragraph (1), $10,000,000 may be available for program element PE 0601101E for the Defense Advanced Research Projects Agency University Research Program in Computer Science and Cybersecurity.

    (e) SMART National Defense Education Program-

      (1) ADDITIONAL AMOUNT FOR RESEARCH, DEVELOPMENT, TEST, AND EVALUATION, DEFENSE-WIDE- The amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities is hereby increased by $5,000,000.

      (2) AVAILABILITY OF AMOUNT- Of the amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities, as increased by paragraph (1), $5,000,000 may be available for program element PE 0601120D8Z for the SMART National Defense Education Program.

    (f) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby reduced by $45,000,000, due to unexpended obligations, if available.

Subtitle C--Missile Defense Programs

SEC. 231. AVAILABILITY OF RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FUNDS FOR FIELDING BALLISTIC MISSILE DEFENSE CAPABILITIES.

    Upon approval by the Secretary of Defense, funds authorized to be appropriated for fiscal year 2008 for the use of the Department of Defense for research, development, test, and evaluation and available for the Missile Defense Agency may be used for the development and fielding of ballistic missile defense capabilities.

SEC. 232. POLICY OF THE UNITED STATES ON PRIORITIES IN THE DEVELOPMENT, TESTING, AND FIELDING OF MISSILE DEFENSE CAPABILITIES.

    (a) FINDINGS- Congress makes the following findings:

      (1) In response to the threat posed by ballistic missiles, President George W. Bush in December 2002 directed the Secretary of Defense to proceed with the fielding of an initial set of missile defense capabilities in 2004 and 2005.

      (2) According to assessments by the intelligence community of the United States, North Korea tested in 2005 a new solid propellant short-range ballistic missile and is likely developing intermediate-range and intercontinental ballistic missile capabilities that could someday reach as far as the United States with a nuclear payload.

      (3) According to assessments by the intelligence community of the United States, Iran continued in 2005 to test its medium range ballistic missile, and the danger that Iran will acquire a nuclear weapon and integrate it with a ballistic missile Iran already possesses is a reason for immediate concern.

    (b) POLICY- It is the policy of the United States that the Department of Defense accord a priority within the missile defense program to the development, testing, fielding, and improvement of effective near-term missile defense capabilities, including the ground-based midcourse defense system, the Aegis ballistic missile defense system, the Patriot PAC-3 system, the Terminal High Altitude Area Defense system, and the sensors necessary to support such systems.

SEC. 233. ONE-YEAR EXTENSION OF COMPTROLLER GENERAL ASSESSMENTS OF BALLISTIC MISSILE DEFENSE PROGRAMS.

    Section 232(g) of the National Defense Authorization Act for Fiscal Year 2002 (10 U.S.C. 2431 note) is amended--

      (1) in paragraph (1), by striking `through 2007' and inserting `through 2008'; and

      (2) in paragraph (2), by striking `through 2008' and inserting `through 2009'.

SEC. 234. SUBMITTAL OF PLANS FOR TEST AND EVALUATION OF THE OPERATIONAL CAPABILITY OF THE BALLISTIC MISSILE DEFENSE SYSTEM.

    Section 234(a) of the National Defense Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3174; 10 U.S.C. 2431 note) is amended by adding at the end the following new paragraph:

      `(3) SUBMITTAL TO CONGRESS- Each plan prepared under this subsection and approved by the Director of Operational Test and Evaluation shall be submitted to the congressional defense committees not later than 30 days after the date of the approval of such plan by the Director.'.

SEC. 235. ANNUAL REPORTS ON TRANSITION OF BALLISTIC MISSILE DEFENSE PROGRAMS TO THE MILITARY DEPARTMENTS.

    (a) REPORT REQUIRED- Not later than March 1, 2007, and annually thereafter through 2013, the Under Secretary of Defense for Acquisition, Technology, and Logistics shall submit to the congressional defense committees a report on the plans of the Department of Defense for the transition of missile defense programs from the Missile Defense Agency to the military departments.

    (b) SCOPE OF REPORTS- Each report required by subsection (a) shall cover the period covered by the future-years defense program that is submitted under section 221 of title 10, United States Code, in the year in which such report is submitted.

    (c) ELEMENTS- Each report required by subsection (a) shall include the following:

      (1) An identification of--

        (A) the missile defense programs planned to be transitioned from the Missile Defense Agency to the military departments; and

        (B) the missile defense programs, if any, not planned for transition to the military departments.

      (2) The schedule for transition of each missile defense program planned to be transitioned to a military department, and an explanation of such schedule.

      (3) A description of the status of the plans and agreements of the Missile Defense Agency and the military departments on the transition of missile defense programs to the military departments.

      (4) An identification of the entity (whether the Missile Defense Agency, a military department, or both) that will be responsible for funding each missile defense program to be transitioned to a military department, and at what date.

      (5) A description of the type of funds that will be used (whether funds for research, development, test, and evaluation, procurement, military construction, or operation and maintenance) for each missile defense program to be transitioned to a military department.

      (6) An explanation of the number of systems planned for procurement for each missile defense program to be transitioned to a military department, and the schedule for procurement of each such system.

SEC. 236. TESTING AND OPERATIONS FOR MISSILE DEFENSE.

    (a) Additional Amount for Missile Defense Agency- Of the amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities, the amount that is available for the Missile Defense Agency is hereby increased by $45,000,000.

    (b) Availability of Amount- Of the amount authorized to be appropriated by section 201(4) for research, development, test, and evaluation for Defense-wide activities and available for the Missile Defense Agency, as increased by subsection (a), $45,000,000 may be available for Ballistic Missile Defense Midcourse Defense Segment (PE #63882C)--

      (1) to accelerate the ability to conduct concurrent test and missile defense operations; and

      (2) to increase the pace of realistic flight testing of the ground-based midcourse defense system.

    (c) Supplement- Amounts available under subsection (b) for the program element referred to in that subsection are in addition to any other amounts available in this Act for that program element.

    (d) Offset- The amount authorized to be appropriated by section 421 for military personnel is hereby reduced by $45,000,000, due to unexpended obligations.

Subtitle D--Other Matters

SEC. 251. EXTENSION OF REQUIREMENT FOR GLOBAL RESEARCH WATCH PROGRAM.

    Section 2365(f) of title 10, United States Code, is amended by striking `September 30, 2006' and inserting `September 30, 2011'.

SEC. 252. EXPANSION AND EXTENSION OF AUTHORITY TO AWARD PRIZES FOR ADVANCED TECHNOLOGY ACHIEVEMENTS.

    (a) EXPANSION-

      (1) IN GENERAL- Subsection (a) of section 2374a of title 10, United States Code, is amended--

        (A) by striking `Director of the Defense Advanced Research Projects Agency' and inserting `Director of Defense Research and Engineering and the Service Acquisition Executives of the military departments'; and

        (B) by striking `a program' and inserting `programs'.

      (2) CONFORMING AMENDMENTS- (A) Subsection (b) of such section is amended by striking `The program' and inserting `Any program'.

      (B) Subsection (d) of such section is amended--

        (i) by striking `The program' and inserting `A program'; and

        (ii) by striking `the Director' and inserting `an official referred to in that subsection'.

    (b) EXTENSION- Subsection (f) of such section is amended by striking `September 30, 2007' and inserting `September 30, 2011'.

    (c) MODIFICATION OF REPORTING REQUIREMENT- Subsection (e) of such section is amended to read as follows:

    `(e) ANNUAL REPORT- (l) Not later than March 1 each year, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the activities undertaken during the preceding fiscal year under the authority in subsection (a).

    `(2) The report for a fiscal year under this subsection shall include the following:

      `(A) A description of the proposed goals of the competitions established under each program under subsection (a), including the areas of research, technology development, or prototype development to be promoted by such competitions and the relationship of such areas to the military missions of the Department of Defense.

      `(B) An analyses of why the utilization of the authority in subsection (a) was the preferable method of achieving the goals described in subparagraph (A) as opposed to other authorities available to the Department, such as contracts, grants, and cooperative agreements.

      `(C) The total amount of cash prizes awarded under each program, including a description of the manner in which the amounts of cash prizes awarded and claimed were allocated among the accounts of the Department for recording as obligations and expenditures.

      `(D) The methods used for the solicitation and evaluation of submissions under each program, together with an assessment of the effectiveness of such methods.

      `(E) A description of the resources, including personnel and funding, used in the execution of each program, together with a detailed description of the activities for which such resources were used and an accounting of how funding for execution was allocated among the accounts of the Department for recording as obligations and expenditures.

      `(F) A description of any plans to transition the technologies or prototypes developed as a result of each program into an acquisition program of the Department.'.

SEC. 253. POLICIES AND PRACTICES ON TEST AND EVALUATION TO ADDRESS EMERGING ACQUISITION APPROACHES.

    (a) REPORTS ON CERTAIN DETERMINATIONS TO PROCEED BEYOND LOW-RATE INITIAL PRODUCTION- Section 2399(b) of title 10, United States Code, is amended--

      (1) by redesignating paragraph (5) as paragraph (6); and

      (2) by inserting after paragraph (4) the following new paragraph (5):

    `(5) If, before a final decision is made within the Department of Defense to proceed with a major defense acquisition program beyond low-rate initial production, a decision is made within the Department to proceed to operational use of the program or allocate funds available for procurement for the program, the Director shall submit to the Secretary of Defense and the congressional defense committees the report with respect to the program under paragraph (2) as soon as practicable after the decision under this paragraph is made.'.

    (b) REVIEW AND REVISION OF POLICIES AND PRACTICES-

      (1) REVIEW- The Under Secretary of Defense for Acquisition, Technology, and Logistics and the Director of Operational Test and Evaluation shall review Department of Defense policies and practices on test and evaluation in order to--

        (A) reaffirm the test and evaluation principles that guide traditional acquisition programs; and

        (B) determine how best to apply such principles to emerging acquisition approaches.

      (2) REVISED GUIDANCE- If the Under Secretary determines as a result of the review under paragraph (1) that a revision of the policies and practices referred to in that paragraph is necessary in light of emerging approaches to acquisitions, the Under Secretary and the Director shall jointly issue new or revised guidance for the Department of Defense on test and evaluation to address that determination.

    (c) ISSUES TO BE ADDRESSED- In carrying out subsection (b), the Under Secretary shall address policies and practices on test and evaluation in order to--

      (1) ensure the performance of test and evaluation activities with regard to--

        (A) items that are acquired pursuant to the authority for rapid acquisition and deployment of items in section 806 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (10 U.S.C. 2302 note);

        (B) programs that are conducted pursuant to the authority for spiral development in section 803 of the Bob Stump National Defense Authorization Act for Fiscal Year 2003 (Public Law 107-314; 116 Stat. 2603; 10 U.S.C. 2430 note), or other authority for the conduct of incremental acquisition programs;

        (C) systems that are acquired pursuant to time-certain development programs; and

        (D) equipment that is not subject to the operational test and evaluation requirements in section 2399 of title 10, United States Code, but which may require limited operational test and evaluation for the purpose of ensuring the safety and survivability of such equipment and personnel using such equipment; and

      (2) ensure the appropriate use, if any, of operational test and evaluation resources to assess technology readiness levels for the purpose of section 2366a of title 10, United States Code, and other applicable technology readiness requirements.

    (d) FUNDING MATTERS- The Director of the Defense Test Resource Management Center shall ensure that the strategic plan for Department of Defense test and evaluation resources developed pursuant to section 196 of title 10, United States Code--

      (1) reflects any testing needs of the Department of Defense that are identified as a result of activities under subsection (b); and

      (2) includes an assessment of the test and evaluation facilities, resources, and budgets that will be required to meet such needs.

    (e) REPORT TO CONGRESS- Not later than nine months after the date of the enactment of this Act, the Under Secretary shall submit to the congressional defense committees a report on the review conducted under paragraph (1) of subsection (b), including any new or revised guidance issued pursuant to paragraph (2) of that subsection.

    (f) TIME-CERTAIN DEVELOPMENT PROGRAM DEFINED- In this section, the term `time-certain development program' means a development program that is assigned a specific length of time in which milestone events will be accomplished by contract, which length of time may be not more than 6 years from milestone B to initial operational capability.

SEC. 254. DEVELOPMENT OF THE PROPULSION SYSTEM FOR THE JOINT STRIKE FIGHTER.

    (a) IN GENERAL- The Secretary of Defense shall provide for the development of the propulsion system for the F-35 fighter aircraft (commonly referred to as the `Joint Strike Fighter') by a means elected by the Secretary from among the following:

      (1) Through the continuing development and sustainment of two interchangeable propulsion systems for the F-35 fighter aircraft by two separate contractors throughout the life cycle of the aircraft.

      (2) Through a one-time firm fixed price contract for a selected propulsion system for the F-35 fighter aircraft for the life cycle of the aircraft following the Initial Service Release of the F-35 fighter aircraft propulsion system in fiscal year 2008.

    (b) NOTICE OF CHANGE IN DEVELOPMENT- The Secretary may not carry out any modification of the procurement program for the F-35 fighter aircraft that would result in the development of the propulsion system for such aircraft in a manner other than as elected by the Secretary under subsection (a) until the Secretary notifies the congressional defense committees of such modification.

SEC. 255. INDEPENDENT COST ANALYSES FOR JOINT STRIKE FIGHTER ENGINE PROGRAM.

    (a) COST ANALYSES-

      (1) ANALYSES REQUIRED- The Secretary of Defense (acting through the cost analysis improvement group of the Office of the Secretary of Defense), a federally funded research and development center (FFRDC) selected by the Secretary for purposes of this section, and the Comptroller General of the United States shall each perform three detailed and comprehensive cost analyses of the engine program for the F-35 fighter aircraft (commonly referred to as the `Joint Strike Fighter').

      (2) ELEMENTS- Each official or entity performing cost analyses under paragraph (1) shall perform a cost analysis of each of the following:

        (A) An alternative under which the F-35 fighter aircraft is capable of using the F135 engine only.

        (B) An alternative under which the F-35 fighter aircraft is capable of using either the F135 engine or the F136 engine.

        (C) Any other alternative, whether secured through a competitive or sole-source bidding process, that would reduce cost, improve program schedule, and improve performance and reliability of the F-35 fighter aircraft program.

    (b) REPORTS-

      (1) REPORTS REQUIRED- Not later than March 15, 2007, the Secretary, the federally funded research and development center selected under subsection (a), and the Comptroller General shall each submit to the congressional defense committees a report on the three independent cost analyses performed by such official or entity under subsection (a).

      (2) REPORT ELEMENTS- Each report under paragraph (1) shall include the following:

        (A) A statement of the key assumptions utilized in performing each cost analysis covered by such report.

        (B) A discussion of the methodology and techniques utilized in performing each cost analysis.

        (C) For each alternative under subsection (a)(2)--

          (i) a comparison of the life-cycle costs, including costs in current and constant dollars and a net-present-value analysis, with the other alternatives under that subsection; and

          (ii) an estimate of--

            (I) the supply, maintenance, and other operations manpower required to support such alternative;

            (II) the number of flight hours required to achieve engine maturity, and the year in which engine maturity is anticipated to be achieved; and

            (III) the total number of engines anticipated to be procured over the lifetime of the F-35 fighter aircraft program.

        (D) A discussion of the acquisition strategies used for the acquisition of engines for other tactical fighter aircraft, including the F-15, F-16, F-18, and F-22 fighter aircraft, and an assessment of the experience in terms of cost, schedule, and performance under the acquisition programs for such engines.

        (E) A comparison in terms of performance, savings, maintainability, reliability, and technical innovation of the acquisition programs for engines for tactical fighter aircraft carried out on a sole-source basis with the acquisition programs for tactical fighter aircraft carried out on a competitive basis.

        (F) Such conclusions and recommendations in light of the cost analyses as the official or entity submitting such report considers appropriate.

      (3) CERTIFICATION OF FFRDC AND COMPTROLLER GENERAL- In submitting the report required by this subsection, the federally funded research and development center and the Comptroller General shall each also submit a certification as to whether the federally funded research and development center or the Comptroller General, as the case may be, had access to sufficient information to enable the federally funded research and development center or the Comptroller General, as the case may be, to make informed judgments on the matters required to be included in the report.

    (c) LIFE-CYCLE COSTS DEFINED- In this section, the term `life-cycle costs' includes--

      (1) the elements of costs that would be considered for a life-cycle cost analysis for a major defense acquisition program, such as procurement of engines, procurement of spare engines, and procurement of engine components and parts; and

      (2) good-faith estimates of routine engine costs, such as performance upgrades and component improvement, that historically have occurred in tactical fighter engine programs.

SEC. 256. SENSE OF SENATE ON TECHNOLOGY SHARING OF JOINT STRIKE FIGHTER TECHNOLOGY.

    It is the sense of the Senate that the Secretary of Defense should share technology with regard to the Joint Strike Fighter between the United States Government and the Government of the United Kingdom consistent with the national security interests of both nations.

SEC. 257. REPORT ON BIOMETRICS PROGRAMS OF THE DEPARTMENT OF DEFENSE.

    (a) Report- The Secretary of Defense shall submit to Congress, at the same time as the submittal of the budget of the President for fiscal year 2008 (as submitted under section 1105(a) of title 31, United States Code) a report on the biometrics programs of the Department of Defense.

    (b) Elements- The report shall address the following:

      (1) Whether the Department should modify the current executive agent management structure for the biometrics programs.

      (2) The requirements for the biometrics programs to meet needs throughout the Department of Defense.

      (3) A description of programs currently fielded to meet requirements in Iraq and Afghanistan.

      (4) An assessment of the adequacy of fielded programs to meet operational requirements.

      (5) An assessment of programmatic or capability gaps in meeting future requirements.

      (6) The actions being taken within the Executive Branch to coordinate and integrate requirements, programs, and resources among the departments and agencies of the Executive Branch with a role in using or developing biometrics capabilities.

    (c) Biometrics Defined- In this section, the term `biometrics' means an identity management program or system that utilizes distinct personal attributes, including DNA, facial features, irises, retinas, signatures, or voices, to identify individuals.

TITLE III--OPERATION AND MAINTENANCE

Subtitle A--Authorization of Appropriations

SEC. 301. OPERATION AND MAINTENANCE FUNDING.

    Funds are hereby authorized to be appropriated for fiscal year 2007 for the use of the Armed Forces and other activities and agencies of the Department of Defense for expenses, not otherwise provided for, for operation and maintenance, in amounts as follows:

      (1) For the Army, $24,795,580,000.

      (2) For the Navy, $31,130,784,000.

      (3) For the Marine Corps, $3,905,262,000.

      (4) For the Air Force, $31,251,107,000.

      (5) For Defense-wide activities, $20,106,756,000.

      (6) For the Army Reserve, $2,139,702,000.

      (7) For the Naval Reserve, $1,288,764,000.

      (8) For the Marine Corps Reserve, $211,911,000.

      (9) For the Air Force Reserve, $2,575,100,000.

      (10) For the Army National Guard, $4,857,728,000.

      (11) For the Air National Guard, $5,318,717,000.

      (12) For the United States Court of Appeals for the Armed Forces, $11,721,000.

      (13) For Environmental Restoration, Army, $463,794,000.

      (14) For Environmental Restoration, Navy, $304,409,000.

      (15) For Environmental Restoration, Air Force, $423,871,000.

      (16) For Environmental Restoration, Defense-wide, $18,431,000.

      (17) For Environmental Restoration, Formerly Used Defense Sites, $282,790,000.

      (18) For the Overseas Contingency Operations Transfer Fund, $10,000,000.

      (19) For Cooperative Threat Reduction programs, $372,128,000.

      (20) For Overseas Humanitarian Disaster and Civic Aid, $63,204,000.

SEC. 302. WORKING CAPITAL FUNDS.

    Funds are hereby authorized to be appropriated for fiscal year 2007 for the use of the Armed Forces and other activities and agencies of the Department of Defense for providing capital for working capital and revolving funds in amounts as follows:

      (1) For the Defense Working Capital Funds, $1,364,498,000.

      (2) For the National Defense Sealift Fund, $1,071,932,000.

SEC. 303. OTHER DEPARTMENT OF DEFENSE PROGRAMS.

    (a) DEFENSE HEALTH PROGRAM- Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2007 for expenses, not otherwise provided for, for the Defense Health Program, $20,915,321,000, of which--

      (1) $20,381,863,000 is for Operation and Maintenance;

      (2) $135,603,000 is for Research, Development, Test, and Evaluation; and

      (3) $397,855,000 is for Procurement.

    (b) CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE-

      (1) IN GENERAL- Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2007 for expenses, not otherwise provided for, for Chemical Agents and Munitions Destruction, Defense, $1,277,304,000, of which--

        (A) $1,046,290,000 is for Operation and Maintenance; and

        (B) $231,014,000 is for Research, Development, Test, and Evaluation.

      (2) AVAILABILITY- Amounts authorized to be appropriated under paragraph (1) are authorized for--

        (A) the destruction of lethal chemical agents and munitions in accordance with section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521); and

        (B) the destruction of chemical warfare materiel of the United States that is not covered by section 1412 of such Act.

    (c) DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE-WIDE- Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2007 for expenses, not otherwise provided for, for Drug Interdiction and Counter-Drug Activities, Defense-wide, $926,890,000.

    (d) DEFENSE INSPECTOR GENERAL- Funds are hereby authorized to be appropriated for the Department of Defense for fiscal year 2007 for expenses, not otherwise provided for, for the Office of the Inspector General of the Department of Defense, $216,297,000, of which--

      (1) $214,897,000 is for Operation and Maintenance; and

      (2) $1,400,000 is for Procurement.

Subtitle B--Program Requirements, Restrictions, and Limitations

SEC. 311. LIMITATION ON AVAILABILITY OF FUNDS FOR THE ARMY LOGISTICS MODERNIZATION PROGRAM.

    Of the funds authorized to be appropriated for the Department of Defense by this division and available for the Army Logistics Modernization Program (LMP), not more than $6,900,000 may be obligated or expended for the development, fielding, or operation of the program until the Chairman of the Defense Business Systems Modernization Committee certifies to the congressional defense committees each of the following:

      (1) That the program is essential to the national security of the United States or to the efficient management of the Department of Defense.

      (2) That there is no alternative to the system under the program which will provide equal or greater capability at a lower cost.

      (3) That the estimated costs, and the proposed schedule and performance parameters, for the program and system are reasonable.

      (4) That the management structure for the program is adequate to manage and control program costs.

SEC. 312. AVAILABILITY OF FUNDS FOR EXHIBITS FOR THE NATIONAL MUSEUMS OF THE ARMED FORCES.

    (a) NATIONAL MUSEUM OF THE UNITED STATES ARMY- Of the amounts authorized to be appropriated by section 301(1) for operation and maintenance for the Army, $3,000,000 may be available to the Secretary of the Army for education and training purposes to contract with the Army Historical Foundation for the acquisition, installation, and maintenance of exhibits at the facility designated by the Secretary as the National Museum of the United States Army.

    (b) NATIONAL MUSEUM OF THE UNITED STATES NAVY- Of the amounts authorized to be appropriated by section 301(2) for operation and maintenance for the Navy, $3,000,000 may be available to the Secretary of the Navy for education and training purposes to contract with the Naval Historical Foundation for the acquisition, installation, and maintenance of exhibits at the facility designated by the Secretary as the National Museum of the United States Navy.

    (c) NATIONAL MUSEUM OF THE MARINE CORPS AND HERITAGE CENTER- Of the amounts authorized to be appropriated by section 301(3) for operation and maintenance for the Marine Corps, $3,000,000 may be available to the Secretary of the Navy for education and training purposes to contract with the United States Marine Corps Heritage Foundation for the acquisition, installation, and maintenance of exhibits at the National Museum of the Marine Corps and Heritage Center.

    (d) NATIONAL MUSEUM OF THE UNITED STATES AIR FORCE- Of the amounts authorized to be appropriated by section 301(4) for operation and maintenance for the Air Force, $3,000,000 may be available to the Secretary of the Air Force for education and training purposes to contract with the Air Force Museum Foundation for the acquisition, installation, and maintenance of exhibits at the facility designated by the Secretary as the National Museum of the United States Air Force.

    (e) REIMBURSEMENT-

      (1) AUTHORITY TO ACCEPT REIMBURSEMENT- During any fiscal year after fiscal year 2006, the Secretary of a military department may accept from any non-profit entity authorized to support the national museum of the applicable Armed Force amounts to reimburse such Secretary for amounts obligated and expended by such Secretary from amounts available to such Secretary under this section.

      (2) TREATMENT- Amounts accepted as reimbursement under paragraph (1) shall be credited to the account that was used to cover the costs incurred by the Secretary of the military department concerned under this section. Amounts so credited shall be merged with amounts in such account, and shall be available for the same purposes, and subject to the same conditions and limitations, as amounts in such account.

SEC. 313. LIMITATION ON FINANCIAL MANAGEMENT IMPROVEMENT AND AUDIT INITIATIVES WITHIN THE DEPARTMENT OF DEFENSE.

    (a) LIMITATION- The Secretary of Defense may not obligate or expend any funds for the purpose of any financial management improvement activity relating to the preparation, processing, or auditing of financial statements until the Secretary submits to the congressional defense committees a written determination that each activity proposed to be funded is--

      (1) consistent with the financial management improvement plan of the Department of Defense required by section 376(a)(1) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 190-163; 119 Stat. 3213); and

      (2) likely to improve internal controls or otherwise result in sustained improvements in the ability of the Department to produce timely, reliable, and complete financial management information.

    (b) EXCEPTION- The limitation in subsection (a) shall not apply to an activity directed exclusively at assessing the adequacy of internal controls and remediating any inadequacy identified pursuant to such assessment.

SEC. 314. LIMITATION ON AVAILABILITY OF OPERATION AND MAINTENANCE FUNDS FOR THE MANAGEMENT HEADQUARTERS OF THE DEFENSE INFORMATION SYSTEMS AGENCY.

    Of the amount authorized to be appropriated by this title and available for purposes of the operation and maintenance of the management headquarters of the Defense Information Systems Agency, not more than 50 percent may be available for such purposes until the Secretary of Defense submits to Congress the report on the acquisition strategy of the Department of Defense for commercial satellite communications services required by section 818(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-136; 119 Stat. 3385).

SEC. 315. EXPANSION OF JUNIOR RESERVE OFFICERS' TRAINING CORPS PROGRAM.

    (a) IN GENERAL- The Secretaries of the military departments shall take appropriate actions to increase the number of secondary educational institutions at which a unit of the Junior Reserve Officers' Training Corps is organized under chapter 102 of title 10, United States Code.

    (b) EXPANSION TARGETS- In increasing under subsection (a) the number of secondary educational institutions at which a unit of the Junior Reserve Officers' Training Corps is organized, the Secretaries of the military departments shall seek to organize units at an additional number of institutions as follows:

      (1) In the case of Army units, 15 institutions.

      (2) In the case of Navy units, 10 institutions.

      (3) In the case of Marine Corps units, 15 institutions.

      (4) In the case of Air Force units, 10 institutions.

SEC. 316. INFANTRY COMBAT EQUIPMENT.

    Of the amount authorized to be appropriated by section 301(8) for operation and maintenance for the Marine Corps Reserve, $2,500,000 may be available for Infantry Combat Equipment (ICE).

SEC. 317. INDIVIDUAL FIRST AID KIT.

    Of the amount authorized to be appropriated by section 301(8) for operation and maintenance for the Marine Corps Reserve, $1,500,000 may be available for the Individual First Aid Kit (IFAK).

SEC. 318. READING FOR THE BLIND AND DYSLEXIC PROGRAM OF THE DEPARTMENT OF DEFENSE.

    (a) Defense Dependents- Of the amount authorized to be appropriated by section 301(5) for operation and maintenance for Defense-wide activities, $500,000 may be available for the Reading for the Blind and Dyslexic program of the Department of Defense for defense dependents of elementary and secondary school age in the continental United States and overseas.

    (b) Severely Wounded or Injured Members of the Armed Forces- Of the amount authorized to be appropriated by section 1405(5) for operation and maintenance for Defense-wide activities, $500,000 may be available for the Reading for the Blind and Dyslexic program of the Department of Defense for severely wounded or injured members of the Armed Forces.

SEC. 319. MILITARY TRAINING INFRASTRUCTURE IMPROVEMENTS AT VIRGINIA MILITARY INSTITUTE.

    Of the amount authorized to be appropriated by section 301(1) for operation and maintenance for the Army, $2,900,000 may be available to the Virginia Military Institute for military training infrastructure improvements to provide adequate field training of all Armed Forces Reserve Officer Training Corps.

SEC. 320. ENVIRONMENTAL DOCUMENTATION FOR BEDDOWN OF F-22A AIRCRAFT AT HOLLOMAN AIR FORCE BASE, NEW MEXICO.

    The Secretary of the Air Force shall prepare environmental documentation per the requirements of the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) for the beddown of F-22A aircraft at Holloman Air Force Base, New Mexico, as replacements for the retiring F-117A aircraft.

Subtitle C--Environmental Provisions

SEC. 331. RESPONSE PLAN FOR REMEDIATION OF MILITARY MUNITIONS.

    (a) Performance Goals for Remediation- The Department of Defense shall set the following remediation goals:

      (1) To complete, by not later than September 30, 2007, preliminary assessments of unexploded ordnance, discarded military munitions, and munitions constituents at all active installations and formerly used defense sites.

      (2) To complete, by not later than September 30, 2010, site inspections of unexploded ordnance, discarded military munitions, and munitions constituents at all active installations and formerly used defense sites.

      (3) To achieve, by not later than September 30, 2009, a remedy in place or response complete for unexploded ordnance, discarded military munitions, and munitions constituents at all military installations closed or realigned as part of a round of defense base closure and realignment occurring prior to the 2005 round.

      (4) To achieve, by a time certain established by the Secretary, a remedy in place or response complete for unexploded ordnance, discarded military munitions, and munitions constituents at all active installations and formerly used defense sites (other than operational ranges) and all military installations realigned or closed under the 2005 round of defense base closure and realignment.

    (b) Response Plan Required-

      (1) IN GENERAL- Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a comprehensive plan for addressing the remediation of unexploded ordnance, discarded military munitions, and munitions constituents at current and former defense sites (other than operational ranges).

      (2) Content- The plan required by paragraph (1) shall include--

        (A) a schedule, including interim goals, for achieving the goals described in paragraphs (1) through (3) of subsection (a), based upon the Munitions Response Site Prioritization Protocol established by the Department of Defense;

        (B) such interim goals as the Secretary determines feasible for efficiently achieving the goal required under paragraph (4) of such subsection; and

        (C) an estimate of the funding required to achieve the goals established pursuant to such subsection and the interim goals established pursuant to subparagraphs (A) and (B).

      (3) Updates- (A) The Secretary shall, not later than March 15 of 2008, 2009, and 2010, submit to the congressional defense committees an update of the plan required under paragraph (1). Each update may be included in the report on environmental restoration activities submitted to Congress under section 2706(a) of title 10, United States Code, that is submitted in the year in which such update is submitted.

      (B) The Secretary may include in an update submitted under subparagraph (A) any adjustment to the remediation goals established under subsection (a) that the Secretary determines necessary to respond to unforeseen circumstances.

    (c) REPORT ON REUSE STANDARDS AND PRINCIPLES- Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the status of the efforts of the Department of Defense to achieve agreement with relevant regulatory agencies on appropriate reuse standards or principles, including--

      (1) a description of any standards or principles that have been agreed upon; and

      (2) a discussion of any issues that remain in disagreement (including the impact that any such disagreement is likely to have on the ability of the Department of Defense to carry out the plan).

    (d) Definitions- In this section, the terms `unexploded ordnance', `discarded military munitions', `munitions constituents', `operational range', and `defense site' have the meaning given such terms in section 2710(e) of title 10, United States Code.

    (e) Conforming Repeal- Section 313 of the National Defense Authorization Act for Fiscal Year 2002 (Public Law 107-107; 115 Stat. 1051; 10 U.S.C. 2706 note) is repealed.

SEC. 332. EXTENSION OF AUTHORITY TO GRANT EXEMPTIONS TO CERTAIN REQUIREMENTS.

    (a) AMENDMENT TO TOXIC SUBSTANCES CONTROL ACT- Section 6(e)(3) of the Toxic Substances Control Act (15 U.S.C. 2605(e)(3)) is amended--

      (1) in subparagraph (A), by striking `subparagraphs (B) and (C)' and inserting `subparagraphs (B), (C), and (D)';

      (2) in subparagraph (B), by striking `but not more than 1 year from the date it is granted' and inserting `but not more than 1 year from the date it is granted, except as provided in subparagraph (D)'; and

      (3) by adding at the end the following new subparagraph:

        `(D) The Administrator may grant an exemption pursuant to subparagraph (B) for a period of up to 3 years for the purpose of authorizing the Secretary of Defense and the Secretaries of the military departments to provide for the transportation into the customs territory of the United States of polychlorinated biphenyls generated by or under the control of the Department of Defense for purposes of their disposal, treatment, or storage in the customs territory of the United States.'.

    (b) SUNSET DATE- The amendments made by subsection (a) shall cease to have effect on September 30, 2012. The termination of the authority to grant exemptions pursuant to such amendments shall not effect the validity of any exemption granted prior to such date.

    (c) REPORT- Not later than March 1, 2011, the Secretary of Defense shall submit to the Committee on Armed Services and the Committee on Environment and Public Works of the Senate and the Committee on Armed Services and the Committee on Energy and Commerce of the House of Representatives a report on the status of polychlorinated biphenyls generated by or under the control of the Department of Defense outside the United States. The report shall address, at a minimum--

      (1) the remaining volume of such polychlorinated biphenyls that may require transportation into the customs territory of the United States for disposal, treatment, or storage; and

      (2) the efforts that have been made by the Department of Defense and other Federal agencies to reduce such volume by--

        (A) reducing the volume of polychlorinated biphenyls generated by or under the control of the Department of Defense outside the United States; or

        (B) developing alternative options for the disposal, treatment, or storage of such polychlorinated biphenyls.

SEC. 333. RESEARCH ON EFFECTS OF OCEAN DISPOSAL OF MUNITIONS.

    (a) IDENTIFICATION OF DISPOSAL SITES-

      (1) HISTORICAL REVIEW- The Secretary of Defense, in cooperation with the Commandant of the Coast Guard, the Administrator of the National Oceanic and Atmospheric Administration, and the heads of other relevant Federal agencies, shall conduct a historical review of available records to determine the number, size, and probable locations of sites where the Armed Forces disposed of military munitions in coastal waters. The historical review shall, to the extent possible, identify the types of munitions at individual sites.

      (2) INTERIM REPORTS- The Secretary of Defense shall periodically, but no less often than annually, release any new information obtained during the historical review conducted under paragraph (1). The Secretary may withhold from public release the exact nature and locations of munitions the potential unauthorized retrieval of which could pose a significant threat to the national defense or public safety.

      (3) INCLUSION OF INFORMATION IN ANNUAL REPORT ON ENVIRONMENTAL RESTORATION ACTIVITIES- The Secretary shall include the information obtained pursuant to the review conducted under paragraph (1) in the annual report on environmental restoration activities submitted to Congress under section 2706 of title 10, United States Code.

      (4) FINAL REPORT- The Secretary shall complete the historical review required under paragraph (1) and submit a final report on the findings of such review in the annual report on environmental restoration activities submitted to Congress for fiscal year 2009.

    (b) IDENTIFICATION OF NAVIGATIONAL AND SAFETY HAZARDS-

      (1) IDENTIFICATION OF HAZARDS- The Secretary of Defense shall provide available information to the Secretary of Commerce to assist the National Oceanic and Atmospheric Administration in preparing nautical charts and other navigational materials for coastal waters that identify known or potential hazards posed by disposed military munitions to private activities, including commercial shipping and fishing operations.

      (2) CONTINUATION OF INFORMATION ACTIVITIES- The Secretary of Defense shall continue activities to inform potentially affected users of the ocean environment, particularly fishing operations, of the possible hazards from contact with disposed military munitions and the proper methods to mitigate such hazards.

    (c) RESEARCH-

      (1) IN GENERAL- The Secretary of Defense shall continue to conduct research on the effects on the ocean environment and those who use it of military munitions disposed of in coastal waters.

      (2) SCOPE- Research under paragraph (1) shall include--

        (A) the sampling and analysis of ocean waters and sea beds at or adjacent to military munitions disposal sites selected pursuant to paragraph (3) to determine whether the disposed military munitions have caused or are causing contamination of such waters or sea beds;

        (B) investigation into the long-term effects of seawater exposure on disposed military munitions, particularly effects on chemical munitions;

        (C) investigation into the impacts any such contamination may have on the ocean environment and those who use it, including public health risks;

        (D) investigation into the feasibility of removing or otherwise remediating the military munitions; and

        (E) the development of effective safety measures for dealing with such military munitions.

      (3) RESEARCH CRITERIA- In conducting the research required by this subsection, the Secretary shall ensure that the sampling, analysis, and investigations are conducted at representative sites, taking into account factors such as depth, water temperature, nature of the military munitions present, and relative proximity to onshore populations. In conducting such research, the Secretary shall select at least two representative sites each in the areas of the Atlantic coast, the Pacific coast (including Alaska), and the Hawaiian Islands.

      (4) AUTHORITY TO MAKE GRANTS AND ENTER INTO COOPERATIVE AGREEMENTS- In conducting research under this subsection, the Secretary may make grants to, and enter into cooperative agreements with, qualified research entities.

    (d) MONITORING- If the historical review required by subsection (a) or the research required by subsection (c) indicates that contamination is being released into the ocean waters from disposed military munitions at a particular site or that the site poses a significant public health or safety risk, the Secretary shall institute appropriate monitoring mechanisms at that site and report to the congressional defense committees on any additional measures that may be necessary to address the release or risk, as applicable.

    (e) DEFINITIONS- In this section:

      (1) The term `coastal waters' means that part of the ocean extending from the coast line of the United States to the outer boundary of the outer Continental Shelf.

      (2) The term `coast line' has the meaning given that term in section 2(c) of the Submerged Lands Act (43 U.S.C. 1301(c)).

      (3) The term `outer Continental Shelf' has the meaning given that term in section 2(a) of the Outer Continental Shelf Lands Act (43 U.S.C. 1331(a)).

SEC. 334. CLARIFICATION OF MULTI-YEAR AUTHORITY TO USE BASE CLOSURE FUNDS TO FUND COOPERATIVE AGREEMENTS UNDER ENVIRONMENTAL RESTORATION PROGRAM.

    Section 2701 of title 10, United States Code, is amended by adding at the end the following new sentence: `This two-year limitation does not apply to agreements funded through the Department of Defense Base Closure Account 1990 or the Department of Defense Base Closure Account 2005 established by sections 2906 and 2906A, respectively, of the Defense Base Closure and Realignment Act of 1990 (part A of title XXIX of Public Law 101-510; 10 U.S.C. 2687 note).'.

SEC. 335. REIMBURSEMENT OF ENVIRONMENTAL PROTECTION AGENCY FOR CERTAIN COSTS IN CONNECTION WITH MOSES LAKE WELLFIELD SUPERFUND SITE, MOSES LAKE, WASHINGTON.

    (a) AUTHORITY TO REIMBURSE- (1) Using funds described in subsection (b), the Secretary of Defense may transfer not more than $111,114.03 to the Moses Lake Wellfield Superfund Site 10-6J Special Account.

    (2) The payment under paragraph (1) is to reimburse the Environmental Protection Agency for its costs incurred in overseeing a remedial investigation/feasibility study performed by the Department of the Army under the Defense Environmental Restoration Program at the former Larson Air Force Base, Moses Lake Superfund Site, Moses Lake, Washington.

    (3) The reimbursement described in paragraph (2) is provided for in the interagency agreement entered into by the Department of the Army and the Environmental Protection Agency for the Moses Lake Wellfield Superfund Site in March 1999.

    (b) SOURCE OF FUNDS- Any payment under subsection (a) shall be made using funds authorized to be appropriated by section 301(17) for operation and maintenance for Environmental Restoration, Formerly Used Defense Sites.

    (c) USE OF FUNDS- The Environmental Protection Agency shall use the amount transferred under subsection (a) to pay costs incurred by the Agency at the Moses Lake Wellfield Superfund Site.

Subtitle D--Reports

SEC. 351. COMPTROLLER GENERAL REPORT ON READINESS OF THE GROUND FORCES OF THE ARMY AND THE MARINE CORPS.

    (a) REPORT REQUIRED-

      (1) IN GENERAL- Not later than March 1, 2007, the Comptroller General of the United States shall submit to the congressional defense committees a report on the readiness of the active component and reserve component ground forces of the Army and the Marine Corps.

      (2) ONE OR MORE REPORTS- In complying with the requirements of this section, the Comptroller General may submit a single report addressing all the elements specified in subsection (b) or two or more reports addressing any combination of such elements. If the Comptroller General submits more than one report under this section, all such reports shall be submitted not later than the date specified in paragraph (1).

    (b) ELEMENTS- The elements specified in this subsection include the following:

      (1) An analysis of the current readiness status of each of the active component and reserve component ground forces of the Army and the Marine Corps, including a description of any major deficiency identified, an analysis of the trends in readiness of such forces during not less than the ten years preceding the report, and a comparison of the current readiness indicators of such ground forces with historical patterns.

      (2) An assessment of the ability of the Army and the Marine Corps to provide trained and ready forces for ongoing operations as well as other commitments assigned to the Army and the Marine Corps in defense planning documents.

      (3) An analysis of the availability of equipment for training by units of the Army and the Marine Corps in the United States in configurations comparable to the equipment being used by units of the Army and the Marine Corps, as applicable, in ongoing operations.

      (4) An analysis of the current and projected requirement for repair or replacement of equipment of the Army and the Marine Corps due to ongoing operations, and the impact of such required repair or replacement of equipment on the availability of equipment for training.

      (5) An assessment of the current personnel tempo of Army and Marine Corps forces, including--

        (A) a comparison of such tempos to historical trends;

        (B) an identification of particular occupational specialties that are experiencing unusually high or low deployment rates; and

        (C) an analysis of retention rates in the occupational specialties identified under subparagraph (B).

      (6) An assessment of the efforts of the Army and the Marine Corps to mitigate the impact of high operational tempos, including cross-leveling of personnel and equipment or cross training of personnel or units for new or additional mission requirements.

      (7) A description of the current policy of the Army and the Marine Corps with respect to the mobilization of reserve component personnel, together with an analysis of the number of reserve component personnel in each of the Army and the Marine Corps that are projected to be available for deployment under such policy.

    (c) FORM OF REPORT- Any report submitted under subsection (a) shall be submitted in both classified and unclassified form.

SEC. 352. NATIONAL ACADEMY OF SCIENCES STUDY ON HUMAN EXPOSURE TO CONTAMINATED DRINKING WATER AT CAMP LEJEUNE, NORTH CAROLINA.

    (a) Study Required-

      (1) IN GENERAL- Not later than 60 days after the date of the enactment of this Act, the Secretary of Navy shall enter into an agreement with the National Academy of Sciences to conduct a comprehensive review and evaluation of the available scientific and medical evidence regarding associations between pre-natal, child, and adult exposure to drinking water contaminated with trichloroethylene (TCE) and tetrachloroethylene (PCE) at Camp Lejeune, North Carolina, as well as other pre-natal, child, and adult exposures to levels of trichloroethylene and tetrachloroethylene similar to those experienced at Camp Lejeune, and birth defects or diseases and any other adverse health effects.

      (2) ELEMENTS- In conducting the review and evaluation, the Academy shall review and summarize the scientific and medical evidence and assess the strength of that evidence in establishing a link or association between exposure to trichloroethylene and tetrachloroethylene and each birth defect or disease suspected to be associated with such exposure. For each birth defect or disease reviewed, the Academy shall determine, to the extent practicable with available scientific and medical data, whether--

        (A) a statistical association with such contaminant exposures exists; and

        (B) there exist plausible biological mechanisms or other evidence of a causal relationship between contaminant exposures and the birth defect or disease.

      (3) SCOPE OF REVIEW- In conducting the review and evaluation, the Academy shall include a review and evaluation of--

        (A) the toxicologic and epidemiologic literature on adverse health effects of trichloroethylene and tetrachloroethylene, including epidemiologic and risk assessment reports from government agencies;

        (B) recent literature reviews by the National Research Council, Institute of Medicine, and other groups;

        (C) the completed and on-going Agency for Toxic Substances Disease Registry (ATSDR) studies on potential trichloroethylene and tetrachloroethylene exposure at Camp Lejeune; and

        (D) published meta-analyses.

      (4) PEER REVIEW- The Academy shall obtain the peer review of the report prepared as a result of the review and evaluation under applicable Academy procedures.

      (5) SUBMITTAL- The Academy shall submit the report prepared as a result of the review and evaluation to the Secretary and Congress not later than 18 months after entering into the agreement for the review and evaluation under paragraph (1).

    (b) Notice on Exposure-

      (1) NOTICE REQUIRED- Upon completion of the current epidemiological study by the Agency for Toxic Substances Disease Registry, known as the Exposure to Volatile Organic Compounds in Drinking Water and Specific Birth Defects and Childhood Cancers, United States Marine Corps Base Camp Lejeune, North Carolina, the Commandant of the Marine Corps shall take appropriate actions, including the use of national media such as newspapers, television, and the Internet, to notify former Camp Lejeune residents and employees who may have been exposed to drinking water impacted by trichloroethylene and tetrachloroethylene of the results of the study.

      (2) ELEMENTS- The information provided by the Commandant of the Marine Corps under paragraph (1) shall be prepared in conjunction with the Agency for Toxic Substances Disease Registry and shall include a description of sources of additional information relating to such exposure, including, but not be limited to, the following:

        (A) A description of the events resulting in exposure to contaminated drinking water at Camp Lejeune.

        (B) A description of the duration and extent of the contamination of drinking water at Camp Lejeune.

        (C) The known and suspected health effects of exposure to the drinking water impacted by trichloroethylene and tetrachloroethylene at Camp Lejeune.

SEC. 353. REPORT ON AERIAL TRAINING AIRSPACE REQUIREMENTS OF THE DEPARTMENT OF DEFENSE.

    (a) Findings- Congress makes the following findings:

      (1) Access to and use of available and unfettered aerial training airspace is critical for preserving aircrew warfighting proficiency and the ability to test, evaluate, and improve capabilities of both personnel and equipment within the most realistic training environments possible.

      (2) The growth of civilian and commercial aviation traffic and the rapid expansion of commercial and general air traffic lanes across the continental United States has left few remaining areas of the country available for realistic air combat training or expansion of existing training areas.

      (3) Many Military Operating Areas (MOAs) originally established in what was once open and uncongested airspace are now encroached upon by a heavy volume of commercial and general air traffic, making training more difficult and potentially hazardous.

      (4) Some aerial training areas in the upper great plains, western States, and Gulf coast remain largely free from encroachment and available for increased use, expansion, and preservation for the future.

    (b) Sense of Congress- It is the sense of Congress that the Department of Defense should--

      (1) establish a policy to identify military aerial training areas that are projected to remain viable and free from encroachment well into the 21st century;

      (2) determine aerial training airspace requirements to meet future training and airspace requirements of current and next generation military aircraft; and

      (3) undertake all necessary actions in a timely manner, including coordination with the Federal Aviation Administration, to preserve and, if necessary, expand those areas of airspace to meet present and future training requirements.

    (c) Report- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report setting forth a proposed plan to preserve and, if necessary, expand available aerial training airspace to meet the projected needs of the Department of Defense for such airspace through 2025.

SEC. 354. REPORT ON ACTIONS TO REDUCE DEPARTMENT OF DEFENSE CONSUMPTION OF PETROLEUM-BASED FUEL.

    (a) Report Required- Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the actions taken, and to be taken, by the Department of Defense to reduce the consumption by the Department of petroleum-based fuel.

    (b) Elements- The report shall include the status of implementation by the Department of the requirements of the following:

      (1) The Energy Policy Act of 2005 (Public Law 109-58).

      (2) The Energy Policy Act of 1992. (Public Law 102-486)

      (3) Executive Order 13123.

      (4) Executive Order 13149.

      (5) Any other law, regulation, or directive relating to the consumption by the Department of petroleum-based fuel.

SEC. 355. REPORTS ON WITHDRAWAL OR DIVERSION OF EQUIPMENT FROM RESERVE UNITS FOR SUPPORT OF RESERVE UNITS BEING MOBILIZED AND OTHER UNITS.

    (a) Findings- Congress makes the following findings:

      (1) The National Guard continues to provide invaluable resources to meet national security, homeland defense, and civil emergency mission requirements.

      (2) Current military operations, transnational threats, and domestic emergencies will increase the use of the National Guard for both military support to civilian authorities and to execute the military strategy of the United States.

      (3) To meet the demand for certain types of equipment for continuing United States military operations, the Army has required Army National Guard Units to leave behind many items for use by follow-on forces.

      (4) The Governors of every State and 2 Territories expressed concern in February 2006 that units returning from deployment overseas without adequate equipment would have trouble carrying out their homeland security and domestic disaster duties.

      (5) The Department of Defense estimates that it has directed the Army National Guard to leave overseas more than 75,000 items valued at approximately $1,760,000,000 to support Operation Enduring Freedom and Operation Iraqi Freedom.

      (6) Department of Defense Directive 1225.6 requires a replacement and tracking plan be developed within 90 days for equipment of the reserve components of the Armed Forces that is transferred to the active components of the Armed Forces.

      (7) In October 2005, the Government Accountability Office found that the Department of Defense can only account for about 45 percent of such equipment and has not developed a plan to replace such equipment.

      (8) The Government Accountability Office also found that without a completed and implemented plan to replace all National Guard equipment left overseas, Army National Guard units will likely face growing equipment shortages and challenges in regaining readiness for future missions.

    (b) Reports on Withdrawal or Diversion of Equipment From Reserve Units for Support of Reserve Units Being Mobilized and Other Units-

      (1) IN GENERAL- Chapter 1007 of title 10, United States Code, is amended by inserting after section 10208 the following new section:

`Sec. 10208a. Mobilization: reports on withdrawal or diversion of equipment from Reserve units for support of Reserve units being mobilized and other units

    `(a) Report Required on Withdrawal or Diversion of Equipment- Not later than 90 days after withdrawing or diverting equipment from a unit of the Reserve to a unit of the Reserve being ordered to active duty under section 12301, 12302, or 12304 of this title, or to a unit or units of a regular component of the armed forces, for purposes of the discharge of the mission of such unit or units, the Secretary concerned shall submit to the Secretary of Defense a status report on the withdrawal or diversion of equipment.

    `(b) Elements- Each status report under subsection (a) on equipment withdrawn or diverted shall include the following:

      `(1) A plan to recapitalize or replace such equipment within the unit from which withdrawn or diverted.

      `(2) If such equipment is to remain in a theater of operations while the unit from which withdrawn or diverted returns to the United States, a plan to provide such unit with recapitalized or replacement equipment appropriate to ensure the continuation of the readiness training of such unit.

      `(3) A signed memorandum of understanding between the active or reserve component to which withdrawn or diverted and the reserve component from which withdrawn or diverted that specifies--

        `(A) how such equipment will be tracked; and

        `(B) when such equipment will be returned to the component from which withdrawn or diverted.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1007 of such title is amended by inserting after the item relating to section 10208 the following new item:

      `10208a. Mobilization: reports on withdrawal or diversion of equipment from Reserve units for support of Reserve units being mobilized and other units.'.

SEC. 356. PLAN TO REPLACE EQUIPMENT WITHDRAWN OR DIVERTED FROM THE RESERVE COMPONENTS OF THE ARMED FORCES FOR OPERATION IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

    (a) Plan Required- Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a plan to replace equipment withdrawn or diverted from units of the reserve components of the Armed Forces for use in Operation Iraqi Freedom or Operation Enduring Freedom.

    (b) Elements- The plan required by subsection (a) shall--

      (1) identify the equipment to be recapitalized or acquired to replace the equipment described in subsection (a);

      (2) specify a schedule for recapitalizing or acquiring the equipment identified under paragraph (1), which schedule shall take into account applicable depot workload and acquisition considerations, including production capacity and current production schedules; and

      (3) specify the funding to be required to recapitalize or acquire the equipment identified under paragraph (1).

SEC. 357. PLAN TO REPLACE EQUIPMENT WITHDRAWN OR DIVERTED FROM THE RESERVE COMPONENTS OF THE ARMED FORCES FOR OPERATION IRAQI FREEDOM OR OPERATION ENDURING FREEDOM.

    (a) Plan Required- Not later than 90 days after the date of the enactment of this Act, the Secretary shall submit to the congressional defense committees a plan to replace equipment withdrawn or diverted from units of the reserve components of the Armed Forces for use in Operation Iraqi Freedom or Operation Enduring Freedom.

    (b) Elements- The plan required by subsection (a) shall--

      (1) identify the equipment to be recapitalized or acquired to replace the equipment described in subsection (a);

      (2) specify a schedule for recapitalizing or acquiring the equipment identified under paragraph (1), which schedule shall take into account applicable depot workload and acquisition considerations, including production capacity and current production schedules; and

      (3) specify the funding to be required to recapitalize or acquire the equipment identified under paragraph (1).

SEC. 358. REPORT ON VEHICLE-BASED ACTIVE PROTECTION SYSTEMS FOR CERTAIN BATTLEFIELD THREATS.

    (a) Independent Assessment- The Secretary of Defense shall enter into a contract with an appropriate entity independent of the United States Government to conduct an assessment of various foreign and domestic technological approaches to vehicle-based active protection systems for defense against both chemical energy and kinetic energy top-attack and direct fire threats, including anti-tank missiles and rocket propelled grenades, mortars, and other similar battlefield threats.

    (b) Report-

      (1) REPORT REQUIRED- The contract required by subsection (a) shall require the entity entering in to such contract to submit to the Secretary of Defense, and to the congressional defense committees, not later than 180 days after the date of the enactment of this Act, a report on the assessment required by that subsection.

      (2) ELEMENTS- The report required under paragraph (1) shall include--

        (A) a detailed comparative analysis and assessment of the technical approaches covered by the assessment under subsection (a), including the feasibility, military utility, cost, and potential short-term and long-term development and deployment schedule of such approaches; and

        (B) any other elements specified by the Secretary in the contract under subsection (a).

SEC. 359. REPORT ON HIGH ALTITUDE AVIATION TRAINING SITE, EAGLE COUNTY, COLORADO.

    (a) Report Required- Not later than December 15, 2006, the Secretary of the Army shall submit to the congressional defense committees a report on the High Altitude Aviation Training Site (HAATS) in Eagle County, Colorado.

    (b) Elements- The report required by subsection (a) shall include the following:

      (1) A description of the type of high altitude aviation training being conducted at the High Altitude Aviation Training Site, including the number of pilots who receive such training on an annual basis and the types of aircraft used in such training.

      (2) A description of the number and type of helicopters required at the High Altitude Aviation Training Site to provide the high altitude aviation training needed to sustain the war strategies contained in the 2006 Quadrennial Defense Review, assuming that priority is afforded in the provision of such training to commanders, instructor pilots, aviation safety officers, and deploying units.

      (3) A thorough evaluation of accident rates for deployed helicopter pilots of the Army who receive high altitude aviation training at the High Altitude Aviation Training Site, and accident rates for deployed Army helicopter pilots who did not receive such training, including the following:

        (A) An estimate (set forth as a range) of the number of accidents attributable to power management.

        (B) The number of accidents occurring in a combat environment.

        (C) The number of accidents occurring in a non-combat environment.

      (4) An evaluation of the inventory and availability of Army aircraft for purposes of establishing an appropriate schedule for the assignment of a CH-47 aircraft to the High Altitude Aviation Training Site, if the Chief of Staff of the Army determines there is value in conducting such training at the HAATS.

      (5) A description of the status of any efforts to ensure that all helicopter aircrews deployed to the area of responsibility of the Central Command (CENTCOM AOR) are qualified in mountain flight and power management prior to deployment, including the locations where such training occurred, with particular focus on the status of such efforts with respect to aircrews to be deployed in support of Operation Enduring Freedom.

    (c) Tracking System- The Secretary shall implement a system for tracking those pilots that have attended a school with an established program of instruction for high altitude aviation operations training. The system should, if practical, utilize an existing system that permits the query of pilot flight experience and training.

SEC. 360. REPORT ON AIR FORCE SAFETY REQUIREMENTS FOR AIR FORCE FLIGHT TRAINING OPERATIONS AT PUEBLO MEMORIAL AIRPORT, COLORADO.

    (a) REPORT REQUIRED- Not later than February 15, 2007, the Secretary of the Air Force shall submit to the congressional defense committees a report on Air Force safety requirements for Air Force flight training operations at Pueblo Memorial Airport, Colorado.

    (b) ELEMENTS- The report required by subsection (a) shall include the following:

      (1) A description of the Air Force flying operations at Pueblo Memorial Airport.

      (2) An assessment of the impact of Air Force operations at Pueblo Memorial Airport on non-Air Force activities at the airport.

      (3) A description of the requirements necessary at Pueblo Memorial Airport to ensure safe Air Force flying operations, including continuous availability of fire protection, crash rescue, and other emergency response capabilities.

      (4) An assessment of the necessity of providing for a continuous fire-fighting capability at Pueblo Memorial Airport.

      (5) A description and analysis of alternatives for Air Force flying operations at Pueblo Memorial Airport, including the cost and availability of such alternatives.

      (6) An assessment of whether Air Force funding is required to assist the City of Pueblo, Colorado, in meeting Air Force requirements for safe Air Force flight operations at Pueblo Memorial Airport, and if required, the Air Force plan to provide the funds to the city.

SEC. 360A. REPORT ON USE OF ALTERNATIVE FUELS BY THE DEPARTMENT OF DEFENSE.

    (a) Study- The Secretary of Defense shall conduct a study on the use of alternative fuels by the Armed Forces and the Defense Agencies, including any measures that can be taken to increase the use of such fuels by the Department of Defense and the Defense Agencies.

    (b) Elements- The study shall address each matter set forth in paragraphs (1) through (7) of section 357(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3207) with respect to alternative fuels (rather than to the fuels specified in such paragraphs).

    (c) Report-

      (1) IN GENERAL- Not later than 180 days after the date of the enactment of this Act, the Secretary shall submit to the Committees on Armed Services of the Senate and the House of Representatives a report on the study conducted under this section.

      (2) MANNER OF SUBMITTAL- The report required by this subsection may be incorporated into, or provided as an annex to, the study required by section 357(c) of the National Defense Authorization Act for Fiscal Year 2006.

    (d) Alternative Fuels Defined- In this section, the term `alternative fuels' means biofuels, biodiesel, renewable diesel, ethanol that contain less than 85 percent ethyl alcohol, and cellulosic ethanol.

Subtitle E--Workplace and Depot Issues

SEC. 361. MINIMUM CAPITAL INVESTMENT LEVELS FOR PUBLIC DEPOTS SERVICED BY WORKING CAPITAL FUNDS.

    (a) MINIMUM INVESTMENT LEVELS- Section 2208 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(s) MINIMUM CAPITAL INVESTMENT FOR PUBLIC DEPOTS SERVICED BY WORKING CAPITAL FUNDS- (1) Each public depot that is serviced by a working capital fund shall invest in its capital budget each fiscal year an amount equal to not less than six percent of the actual total revenue of the public depot for the previous fiscal year.

    `(2) The Secretary of Defense may waive the requirement in paragraph (1) with respect to a particular public depot for a fiscal year if the Secretary determines that the waiver is necessary for reasons of national security and notifies the congressional defense committees of the reasons for the waiver.

    `(3)(A) Each year, not later than 45 days after the President submits to Congress the budget for a fiscal year under section 1105 of title 31, the Secretary shall submit to the congressional defense committees budget justification documents summarizing the level of capital investment at each public depot serviced by working capital funds as of the end of the previous fiscal year.

    `(B) Each report under this paragraph shall include the following:

      `(i) A specification of the statutory, regulatory, or operational impediments, if any, to achieving the requirement in paragraph (1) with respect to each public depot described in that paragraph.

      `(ii) A description of the benchmarks established by each public depot and working capital fund for capital investment and the relationship of the benchmarks to applicable performance measurement methods used in the private sector.

      `(iii) If the requirement set out in paragraph (1) is not met for any public depot in the previous fiscal year, a statement of the reasons why and a plan of actions to meet the requirement for such public depot in the fiscal year beginning in the year in which such report is submitted.

    `(4) In this subsection, the terms `total revenue' and `capital budget' have the meaning given such terms in Department of Defense Financial Management Regulation 7000.14-R of June 2004.'.

    (b) EFFECTIVE DATE- The amendment made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to fiscal years beginning on or after that date.

SEC. 362. PERMANENT EXCLUSION OF CERTAIN CONTRACT EXPENDITURES FROM PERCENTAGE LIMITATION ON THE PERFORMANCE OF DEPOT-LEVEL MAINTENANCE.

    Section 2474(f)(1) of title 10, United States Code, is amended by striking `entered into during fiscal years 2003 through 2009'.

SEC. 363. ADDITIONAL EXCEPTION TO PROHIBITION ON CONTRACTOR PERFORMANCE OF FIREFIGHTING FUNCTIONS.

    Section 2465(b) of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(5) A contract for the performance of firefighting functions to--

        `(A) fight wildland fires such as range or forest fires; and

        `(B) perform wildland fire management, including the conduct of hazardous fuels treatments to reduce wildland fire risks (including prescribed fire and mechanical treatments).'.

SEC. 364. TEMPORARY SECURITY GUARD SERVICES FOR CERTAIN WORK CAUSED BY REALIGNMENT OF MILITARY INSTALLATIONS UNDER THE BASE CLOSURE LAWS.

    (a) AUTHORITY FOR TEMPORARY SERVICES- Notwithstanding section 2465 of title 10, United States Code, the Secretary of the military department concerned may, for a period not to exceed one year at any single military installation, contract for security guard services at military installations approved for realignment under a base closure law when such services are required for the safe and secure relocation of either of the following:

      (1) Military munitions and munitions-related equipment.

      (2) High-value items in temporary storage areas.

    (b) DEFINITIONS- In this section:

      (1) The term `base closure law' has the meaning given such term in section 101(a)(17) of title 10, United States Code.

      (2) The term `military munitions' has the meaning given such term in section 101(e)(4) of title 10, United States Code.

    (c) EXPIRATION- The authority to enter into a contract under subsection (a) shall expire on September 15, 2011.

Subtitle F--Other Matters

SEC. 371. RECYCLING OF MILITARY MUNITIONS.

    (a) IN GENERAL- Chapter 443 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 4690. Sale of recyclable munitions materials

    `(a) AUTHORITY FOR PROGRAM- (1) The Secretary of the Army may carry out a program to--

      `(A) sell recyclable munitions materials resulting from the demilitarization of conventional military munitions; and

      `(B) use the proceeds of sale for reclamation, recycling, and reuse of conventional military munitions.

    `(2) The program authorized by this section may be known as the `Military Munitions Recycling Program'.

    `(b) GEOGRAPHIC LIMITATION- The program authorized by subsection (a) may only be carried out in the United States and its possessions.

    `(c) METHOD OF SALE- (1) Except as provided in paragraph (2), the Secretary shall use competitive procedures to sell recyclable munitions materials under the program authorized by this section.

    `(2) The Secretary may use procedures other than competitive procedures to sell recyclable munitions materials under the program authorized by this section in any case in which the Secretary determines there is only one potential buyer of the items being offered for sale.

    `(3) The provisions of title 40 concerning disposal of property are not applicable to sales of materials under the program authorized by this section.

    `(d) USE OF PROCEEDS- (1) Proceeds from the sale of recyclable munitions materials under the program authorized by this section shall be credited to the Ammunition Demilitarization Account within the Procurement of Ammunition, Army, Account.

    `(2) Amounts credited to the Ammunition Demilitarization Account under paragraph (1) shall be available solely for purposes of reclamation, recycling, and reuse of conventional military munitions, including for research and development for such purposes and for the procurement of equipment for such purposes.

    `(3) Funds credited to the Ammunition Demilitarization Account under paragraph (1) in a fiscal year shall be available for obligation under paragraph (2) during the fiscal year in which the funds are so credited and for three fiscal years thereafter.

    `(4) Funds credited to the Ammunition Demilitarization Account under paragraph (1) that are not obligated under paragraph (2) within the period of availability under paragraph (3) shall, at the end of such period, be deposited into the Treasury as miscellaneous receipts.

    `(e) REGULATIONS- The Secretary shall prescribe regulations on the operation of the program authorized by this section. The regulations shall be consistent with the Solid Waste Disposal Act (42 U.S.C. 6901 et seq.) and any regulations prescribed thereunder.'.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 443 of such title is amended by adding at the end the following new item:

      `4690. Sale of recyclable munitions materials.'.

SEC. 372. INCENTIVES CLAUSES IN CHEMICAL DEMILITARIZATION CONTRACTS.

    (a) IN GENERAL-

      (1) AUTHORITY TO INCLUDE CLAUSES IN CONTRACTS- The Secretary of Defense may, for the purpose specified in paragraph (2), authorize the inclusion of an incentives clause in any contract for the destruction of the United States stockpile of lethal chemical agents and munitions carried out pursuant to section 1412 of the Department of Defense Authorization Act, 1986 (50 U.S.C. 1521).

      (2) PURPOSE- The purpose of a clause referred to in paragraph (1) is to provide the contractor for a chemical demilitarization facility an incentive to accelerate the safe elimination of the United States chemical weapons stockpile and to reduce the total cost of the Chemical Demilitarization Program by providing incentive payments for the early completion of destruction operations and the closure of such facility.

    (b) INCENTIVES CLAUSES-

      (1) IN GENERAL- An incentives clause under this section shall permit the contractor for the chemical demilitarization facility concerned the opportunity to earn incentive payments for the completion of destruction operations and facility closure activities within target incentive ranges specified in such clause.

      (2) LIMITATION ON INCENTIVE PAYMENTS- The maximum incentive payment under an incentives clause with respect to a chemical demilitarization facility may not exceed amounts as follows:

        (A) In the case of an incentive payment for the completion of destruction operations within the target incentive range specified in such clause, $110,000,000.

        (B) In the case of an incentive payment for the completion of facility closure activities within the target incentive range specified in such clause, $55,000,000.

      (3) TARGET RANGES- An incentives clause in a contract under this section shall specify the target incentive ranges of costs for completion of destruction operations and facility closure activities, respectively, as jointly agreed upon by the contracting officer and the contractor concerned. An incentives clause shall require a proportionate reduction in the maximum incentive payment amounts in the event that the contractor exceeds an agreed-upon target cost if such excess costs are the responsibility of the contractor.

      (4) CALCULATION OF INCENTIVE PAYMENTS- The amount of the incentive payment earned by a contractor for a chemical demilitarization facility under an incentives clause under this section shall be based upon a determination by the Secretary on how early in the target incentive range specified in such clause destruction operations or facility closure activities, as the case may be, are completed.

      (5) CONSISTENCY WITH EXISTING OBLIGATIONS- The provisions of any incentives clause under this section shall be consistent with the obligation of the Secretary of Defense under section 1412(c)(1)(A) of the Department of Defense Authorization Act, 1986 to provide for maximum protection for the environment, the general public, and the personnel who are involved in the destruction of the lethal chemical agents and munitions.

      (6) ADDITIONAL TERMS AND CONDITIONS- In negotiating the inclusion of an incentives clause in a contract under this section, the Secretary may include in such clause such additional terms and conditions as the Secretary considers appropriate.

    (c) ADDITIONAL LIMITATION ON PAYMENTS-

      (1) PAYMENT CONDITIONAL ON PERFORMANCE- No payment may be made under an incentives clause under this section unless the Secretary determines that the contractor concerned has satisfactorily performed its duties under such incentives clause.

      (2) PAYMENT CONTINGENT ON APPROPRIATIONS- An incentives clause under this section shall specify that the obligation of the Government to make payment under such incentives clause is subject to the availability of appropriations for that purpose. Amounts appropriated for Chemical Agents and Munitions Destruction, Defense, shall be available for payments under incentives clauses under this section.

SEC. 373. EXTENSION OF DEPARTMENT OF DEFENSE TELECOMMUNICATIONS BENEFIT PROGRAM.

    (a) Termination at End of Contingency Operation- Subsection (c) of section 344 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1449), as amended by section 341 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1857), is further amended by striking `terminate on September 30, 2006' and inserting `terminate with respect to a contingency operation on the date that is 60 days after the date on which the Secretary determines that the contingency operation has ended'.

    (b) Application to Other Contingency Operations- Such section is further amended--

      (1) in subsection (a), by striking `Operation Iraqi Freedom and Operation Enduring Freedom' and inserting `a contingency operation'; and

      (2) by adding at the end the following new subsection:

    `(g) Contingency Operation Defined- In this section, the term `contingency operation' has the meaning given that term in section 101(a)(13) of title 10, United States Code. The term includes Operation Iraqi Freedom and Operation Enduring Freedom.'.

    (c) Extension to Hospitalized Members- Subsection (a) of such section is further amended--

      (1) by striking `As soon as possible after the date of the enactment of this Act, the' and inserting `The'; and

      (2) by adding at the end the following new sentence: `As soon as possible after the date of the enactment of the National Defense Authorization Act for Fiscal Year 2007, the Secretary shall extend such telecommunications benefit to members of the Armed Forces who, although no longer covered by the preceding sentence, are hospitalized as a result of wounds or other injuries incurred while serving in direct support of a contingency operation.'.

    (d) REPORT ON IMPLEMENTATION OF MODIFIED BENEFITS- Not later than 90 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report describing the status of the efforts of the Department of Defense to implement the modifications of the Department of Defense telecommunications benefit required by section 344 of the National Defense Authorization Act for Fiscal Year 2004 that result from the amendments made by this section.

SEC. 374. EXTENSION OF AVAILABILITY OF FUNDS FOR COMMEMORATION OF SUCCESS OF THE ARMED FORCES IN OPERATION ENDURING FREEDOM AND OPERATION IRAQI FREEDOM.

    Section 378(b)(2) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3214) is amended by striking `fiscal year 2006' and inserting `fiscal years 2006 and 2007'.

SEC. 375. ENERGY EFFICIENCY IN WEAPONS PLATFORMS.

    (a) Policy- It shall be the policy of the Department of Defense to improve the fuel efficiency of weapons platforms, consistent with mission requirements, in order to--

      (1) enhance platform performance;

      (2) reduce the size of the fuel logistics systems;

      (3) reduce the burden high fuel consumption places on agility;

      (4) reduce operating costs; and

      (5) dampen the financial impact of volatile oil prices.

    (b) Report Required-

      (1) IN GENERAL- Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the progress of the Department of Defense in implementing the policy established by subsection (a).

      (2) ELEMENTS- The report shall include the following:

        (A) An assessment of the feasibility of designating a senior Department of Defense official to be responsible for implementing the policy established by subsection (a).

        (B) A summary of the recommendations made as of the time of the report by--

          (i) the Energy Security Integrated Product Team established by the Secretary of Defense in April 2006;

          (ii) the Defense Science Board Task Force on Department of Defense Energy Strategy established by the Under Secretary of Defense for Acquisition, Technology and Logistics on May 2, 2006; and

          (iii) the January 2001 Defense Science Board Task Force report on Improving Fuel Efficiency of Weapons Platforms.

        (C) For each recommendation summarized under subparagraph (B)--

          (i) the steps that the Department has taken to implement such recommendation;

          (ii) any additional steps the Department plans to take to implement such recommendation; and

          (iii) for any recommendation that the Department does not plan to implement, the reasons for the decision not to implement such recommendation.

        (D) An assessment of the extent to which the research, development, acquisition, and logistics guidance and directives of the Department for weapons platforms are appropriately designed to address the policy established by subsection (a).

        (E) An assessment of the extent to which such guidance and directives are being carried out in the research, development, acquisition, and logistics programs of the Department.

        (F) A description of any additional actions that, in the view of the Secretary, may be needed to implement the policy established by subsection (a).

SEC. 376. CHEMICAL DEMILITARIZATION PROGRAM CONTRACTING AUTHORITY.

    (a) Multiyear Contracting Authority- The Secretary of Defense may carry out responsibilities under section 1412(a) of the Department of Defense Authorization Act, 1986 (Public Law 99-145; 50 U.S.C. 1521(a)) through multiyear contracts entered into before the date of the enactment of this Act.

    (b) Availability of Funds- Contracts entered into under subsection (a) shall be funded through annual appropriations for the destruction of chemical agents and munitions.

SEC. 377. UTILIZATION OF FUEL CELLS AS BACK-UP POWER SYSTEMS IN DEPARTMENT OF DEFENSE OPERATIONS.

    The Secretary of Defense shall consider the utilization of fuel cells as replacements for current back-up power systems in a variety of Department of Defense operations and activities, including in telecommunications networks, perimeter security, and remote facilities, in order to increase the operational longevity of back-up power systems and stand-by power systems in such operations and activities.

SEC. 378. PREPOSITIONING OF DEPARTMENT OF DEFENSE ASSETS TO IMPROVE SUPPORT TO CIVILIAN AUTHORITIES.

    (a) Prepositioning Authorized- The Secretary of Defense may provide for the prepositioning of prepackaged or preidentified basic response assets, such as medical supplies, food and water, and communications equipment, in order to improve Department of Defense support to civilian authorities.

    (b) Reimbursement- To the extent required by section 1535 of title 31, United States Code (popularly known as the `Economy Act'), or other applicable law, the Secretary shall require reimbursement of the Department of Defense for costs incurred in the prepositioning of basic response assets under subsection (a).

    (c) Limitation- Basic response assets may not be prepositioned under subsection (a) if the prepositioning of such assets will adversely affect the military preparedness of the United States.

    (d) Procedures and Guidelines- The Secretary may develop procedures and guidelines applicable to the prepositioning of basic response assets under this section.

SEC. 379. RECOVERY AND AVAILABILITY TO CORPORATION FOR THE PROMOTION OF RIFLE PRACTICE AND FIREARMS SAFETY OF CERTAIN FIREARMS, AMMUNITION, AND PARTS.

    (a) In General- Subchapter II of chapter 407 of title 36, United States Code, is amended by inserting after the item relating to section 40728 the following new section:

`Sec. 40728A. Recovery and availability of excess firearms, ammunition, and parts granted to foreign countries

    `(a) Recovery- The Secretary of the Army may recover from any country to which a grant of rifles, ammunition, repair parts, or other supplies described in section 40731(a) of this title is made under section 505 of the Foreign Assistance Act of 1961 (22 U.S.C. 2314) any such rifles, ammunition, repair parts, or supplies that are excess to the needs of such country.

    `(b) Cost of Recovery- (1) Except as provided in paragraph (2), the cost of recovery of any rifles, ammunition, repair parts, or supplies under subsection (a) shall be treated as incremental direct costs incurred in providing logistical support to the corporation for which reimbursement shall be required as provided in section 40727(a) of this title.

    `(2) The Secretary may require the corporation to pay costs of recovery described in paragraph (1) in advance of incurring such costs. Amounts so paid shall not be subject to the provisions of section 3302 of title 31, but shall be administered in accordance with the last sentence of section 40727(a) of this title.

    `(c) Availability- Any rifles, ammunition, repair parts, or supplies recovered under subsection (a) shall be available for transfer to the corporation in accordance with the provisions of section 40728 of this title under such additional terms and conditions as the Secretary shall prescribe for purposes of this section.'.

    (b) Clerical Amendment- The table of sections at the beginning of chapter 407 of such title is amended by inserting after the item relating to section 40728 the following new item:

`40728A. Recovery and availability of excess firearms, ammunition, and parts granted to foreign countries.'.

TITLE IV--MILITARY PERSONNEL AUTHORIZATIONS

Subtitle A--Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    The Armed Forces are authorized strengths for active duty personnel as of September 30, 2007, as follows:

      (1) The Army, 512,400.

      (2) The Navy, 340,700.

      (3) The Marine Corps, 180,000.

      (4) The Air Force, 334,200.

SEC. 402. REPEAL OF REQUIREMENT FOR PERMANENT END STRENGTH LEVELS TO SUPPORT TWO MAJOR REGIONAL CONTINGENCIES.

    (a) REPEAL- Section 691 of title 10, United States Code, is repealed.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 39 of such title is amended by striking the item relating to section 691.

Subtitle B--Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) In General- The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 2007, as follows:

      (1) The Army National Guard of the United States, 350,000.

      (2) The Army Reserve, 200,000.

      (3) The Navy Reserve, 71,300.

      (4) The Marine Corps Reserve, 39,600.

      (5) The Air National Guard of the United States, 107,000.

      (6) The Air Force Reserve, 74,900.

      (7) The Coast Guard Reserve, 10,000.

    (b) Adjustments- The end strengths prescribed by subsection (a) for the Selected Reserve of any reserve component shall be proportionately reduced by--

      (1) the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year; and

      (2) the total number of individual members not in units organized to serve as units of the Selected Reserve of such component who are on active duty (other than for training or for unsatisfactory participation in training) without their consent at the end of the fiscal year.

    Whenever such units or such individual members are released from active duty during any fiscal year, the end strength prescribed for such fiscal year for the Selected Reserve of such reserve component shall be increased proportionately by the total authorized strengths of such units and by the total number of such individual members.

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 2007, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

      (1) The Army National Guard of the United States, 27,441.

      (2) The Army Reserve, 15,416.

      (3) The Navy Reserve, 12,564.

      (4) The Marine Corps Reserve, 2,261.

      (5) The Air National Guard of the United States, 13,206.

      (6) The Air Force Reserve, 2,707.

SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS (DUAL STATUS).

    The minimum number of military technicians (dual status) as of the last day of fiscal year 2007 for the reserve components of the Army and the Air Force (notwithstanding section 129 of title 10, United States Code) shall be the following:

      (1) For the Army Reserve, 7,912.

      (2) For the Army National Guard of the United States, 26,050.

      (3) For the Air Force Reserve, 10,124.

      (4) For the Air National Guard of the United States, 23,255.

SEC. 414. FISCAL YEAR 2007 LIMITATION ON NUMBER OF NON-DUAL STATUS TECHNICIANS.

    (a) Limitations-

      (1) NATIONAL GUARD- Within the limitation provided in section 10217(c)(2) of title 10, United States Code, the number of non-dual status technicians employed by the National Guard as of September 30, 2007, may not exceed the following:

        (A) For the Army National Guard of the United States, 1,600.

        (B) For the Air National Guard of the United States, 350.

      (2) ARMY RESERVE- The number of non-dual status technicians employed by the Army Reserve as of September 30, 2007, may not exceed 595.

      (3) AIR FORCE RESERVE- The number of non-dual status technicians employed by the Air Force Reserve as of September 30, 2007, may not exceed 90.

    (b) Non-Dual Status Technicians Defined- In this section, the term `non-dual status technician' has the meaning given that term in section 10217(a) of title 10, United States Code.

SEC. 415. MAXIMUM NUMBER OF RESERVE PERSONNEL AUTHORIZED TO BE ON ACTIVE DUTY FOR OPERATIONAL SUPPORT.

    During fiscal year 2007, the maximum number of members of the reserve components of the Armed Forces who may be serving at any time on full-time operational support duty under section 115(b) of title 10, United States Code, is the following:

      (1) The Army National Guard of the United States, 17,000.

      (2) The Army Reserve, 13,000.

      (3) The Navy Reserve, 6,200.

      (4) The Marine Corps Reserve, 3,000.

      (5) The Air National Guard of the United States, 16,000.

      (6) The Air Force Reserve, 14,000.

Subtitle C--Authorization of Appropriations

SEC. 421. MILITARY PERSONNEL.

    There is hereby authorized to be appropriated to the Department of Defense for military personnel for fiscal year 2007 a total of $112,043,468,000. The authorization in the preceding sentence supersedes any other authorization of appropriations (definite or indefinite) for such purpose for fiscal year 2007.

SEC. 422. ARMED FORCES RETIREMENT HOME.

    There is hereby authorized to be appropriated for fiscal year 2007 from the Armed Forces Retirement Home Trust Fund the sum of $54,846,000 for the operation of the Armed Forces Retirement Home.

TITLE V--MILITARY PERSONNEL POLICY

Subtitle A--Officer Personnel Policy

Part I--Officer Personnel Policy Generally

SEC. 501. MILITARY STATUS OF OFFICERS SERVING IN CERTAIN INTELLIGENCE COMMUNITY POSITIONS.

    Section 528 of title 10, United States Code, is amended by adding at the end the following new subsections:

    `(e) MILITARY STATUS- An officer of the Armed Forces, while serving in a position covered by this section--

      `(1) shall not be subject to supervision or control by the Secretary of Defense or by any officer or employee of the Department of Defense, except as directed by the Secretary or the Secretary's designee concerning reassignment from such position; and

      `(2) shall not exercise, by reason of the officer's status as an officer, any supervision or control with respect to any of the military or civilian personnel of the Department of Defense except as otherwise authorized by law.

    `(f) EFFECT OF APPOINTMENT- Except as provided in subsection (e), the appointment of an officer of the Armed Forces to a position covered by this section shall not affect the status, position, rank, or grade of such officer in the Armed Forces, or any emolument, perquisite, right, privilege, or benefit incident to or arising out of such status, position, rank, or grade.

    `(g) MILITARY PAY AND ALLOWANCES- (1) An officer of the Armed Forces on active duty who is appointed to a position covered by this section shall, while serving in such position and while remaining on active duty, continue to receive military pay and allowances, and shall not receive the pay prescribed for such position.

    `(2) Funds from which pay and allowances under paragraph (1) are paid shall be reimbursed from the following:

      `(A) Funds available to the Director of the Central Intelligence Agency, for positions within the Central Intelligence Agency.

      `(B) Funds available to the Director of National Intelligence, for positions within the Office of the Director of National Intelligence.'.

SEC. 502. EXTENSION OF TEMPORARY REDUCTION OF TIME-IN-GRADE REQUIREMENT FOR ELIGIBILITY FOR PROMOTION FOR CERTAIN ACTIVE-DUTY LIST OFFICERS IN GRADES OF FIRST LIEUTENANT AND LIEUTENANT (JUNIOR GRADE).

    Section 619(a)(1)(B) of title 10, United States Code, is amended by striking `October 1, 2005' and inserting `October 1, 2008'.

SEC. 503. EXTENSION OF AGE LIMITS FOR ACTIVE-DUTY GENERAL AND FLAG OFFICERS.

    (a) RESTATEMENT AND MODIFICATION OF CURRENT AGE LIMITS- Section 1251 of title 10, United States Code, is amended to read as follows:

`Sec. 1251. Regular commissioned officers; exceptions

    `(a) AGE LIMITS FOR GENERAL AND FLAG OFFICERS- (1) Unless retired or separated earlier, each regular commissioned officer of the Army, Air Force, or Marine Corps serving in a grade at or above brigadier general, or rear admiral (lower half) in the case of an officer in the Navy, shall be retired on the first day of the month following the month in which the officer becomes 64 years of age.

    `(2) Notwithstanding paragraph (1), the Secretary of Defense may defer the retirement of an officer serving in a position that carries a grade above major general or rear admiral, but such a deferment may not extend beyond the first day of the month following the month in which the officer becomes 66 years of age.

    `(3) Notwithstanding paragraphs (1) and (2), the President may defer the retirement of an officer serving in a position that carries a grade above major general or rear admiral, but such a deferment may not extend beyond the first day of the month following the month in which the officer becomes 68 years of age.

    `(b) AGE LIMITS FOR OTHER OFFICERS- Unless retired or separated earlier, each regular commissioned officer of the Army, Air Force, or Marine Corps other than an officer covered by section 1252 of this title or a commissioned warrant officer) serving in a grade below brigadier general, or rear admiral (lower half) in the case of an officer in the Navy, shall be retired on the first day of the month following the month in which the officer becomes 62 years of age.

    `(c) DEFERRED RETIREMENT OF HEALTH PROFESSIONS OFFICERS- (1) The Secretary of the military department concerned may, subject to subsection (e), defer the retirement under subsection (b) of a health professions officer if during the period of the deferment the officer will be performing duties consisting primarily of providing patient care or performing other clinical duties.

    `(2) For purposes of this subsection, a health professions officer is--

      `(A) a medical officer;

      `(B) a dental officer; or

      `(C) an officer in the Army Nurse Corps, an officer in the Navy Nurse Corps, or an officer in the Air Force designated as a nurse.

    `(d) DEFERRED RETIREMENT OF CHAPLAINS- The Secretary of the military department concerned may, subject to subsection (e), defer the retirement under subsection (b) of an officer who is appointed or designated as a chaplain if the Secretary determines that such deferral is in the best interest of the military department concerned.

    `(e) LIMITATION ON DEFERRAL OF RETIREMENTS- (1) Except as provided in paragraph (2), a deferment under subsection (c) or (d) may not extend beyond the first day of the month following the month in which the officer becomes 68 years of age.

    `(2) The Secretary of the military department concerned may extend a deferment under subsection (c) or (d) beyond the day referred to in paragraph (1) if the Secretary determines that extension of the deferment is necessary for the needs of the military department concerned. Such an extension shall be made on a case-by-case basis and shall be for such period as the Secretary considers appropriate.'.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 63 of such title is amended by striking the item relating to section 1251 and inserting the following new item:

      `1251. Regular commissioned officers; exceptions.'.

SEC. 504. MODIFICATION OF AUTHORITIES ON SENIOR MEMBERS OF THE JUDGE ADVOCATE GENERAL'S CORPS.

    (a) DEPARTMENT OF THE ARMY-

      (1) GRADE OF JUDGE ADVOCATE GENERAL- Subsection (a) of section 3037 of title 10, United States Code, is amended by striking the third sentence and inserting the following new sentence: `The Judge Advocate General, while so serving, has the grade of lieutenant general.'.

      (2) REDESIGNATION OF ASSISTANT JUDGE ADVOCATE GENERAL AS DEPUTY JUDGE ADVOCATE GENERAL- Such section is further amended--

        (A) in subsection (a), by striking `Assistant Judge Advocate General' each place it appears and inserting `Deputy Judge Advocate General'; and

        (B) in subsection (d), by striking `Assistant Judge Advocate General' and inserting `Deputy Judge Advocate General'.

      (3) CONFORMING AND CLERICAL AMENDMENTS- (A) The heading of such section is amended by striking `Assistant Judge Advocate General' and inserting `Deputy Judge Advocate General'.

      (B) The table of sections at the beginning of chapter 305 of such title is amended in the item relating to section 3037 by striking `Assistant Judge Advocate General' and inserting `Deputy Judge Advocate General'.

    (b) GRADE OF JUDGE ADVOCATE GENERAL OF THE NAVY- Section 5148(b) of such title is amended in subsection by striking the last sentence and inserting the following new sentence: `The Judge Advocate General, while so serving, has the grade of vice admiral or lieutenant general, as appropriate.'.

    (c) GRADE OF JUDGE ADVOCATE GENERAL OF THE AIR FORCE- Section 8037(a) of such title is amended by striking the last sentence and inserting the following new sentence: `The Judge Advocate General, while so serving, has the grade of lieutenant general.'.

    (d) EXCLUSION FROM ACTIVE-DUTY GENERAL AND FLAG OFFICER STRENGTH AND DISTRIBUTION LIMITATIONS- Section 525(b) of such title is amended by adding at the end the following new paragraph:

    `(9) An officer while serving as the Judge Advocate General of the Army, the Judge Advocate General of the Navy, or the Judge Advocate General of the Air Force is in addition to the number that would otherwise be permitted for that officer's armed force for officers serving on active duty in grades above major general or rear admiral under paragraph (1) or (2), as applicable.'.

SEC. 505. REQUIREMENT FOR SIGNIFICANT JOINT EXPERIENCE FOR OFFICERS APPOINTED AS SURGEON GENERAL OF THE ARMY, NAVY, AND AIR FORCE.

    (a) RESTATEMENT AND STANDARDIZATION OF AUTHORITIES ON SURGEON GENERAL OF THE ARMY-

      (1) IN GENERAL- Chapter 305 of title 10, United States Code, is amended by inserting after section 3036 the following new section:

`Sec. 3036a. Surgeon General: appointment; grade

    `(a) SURGEON GENERAL- There is a Surgeon General of the Army who is appointed by the President, by and with the advice and consent of the Senate, from officers in any corps of the Army Medical Department.

    `(b) GRADE- The Surgeon General, while so serving, has the grade of lieutenant general.

    `(c) TERM OF OFFICE- An officer appointed as Surgeon General normally holds office for four years.

    `(d) JOINT EXPERIENCE REQUIRED FOR APPOINTMENT- (1) The Secretary of Defense may not recommend an officer to the President for appointment as Surgeon General unless the officer is determined by the Chairman of the Joint Chiefs of Staff, in accordance with criteria and as a result of a process established by the Chairman, to have significant joint experience.

    `(2) Until October 1, 2010, the Secretary of Defense may waive the limitation in paragraph (1) with respect to the recommendation of an officer as Surgeon General if--

      `(A) the Secretary of the Army requests the waiver; and

      `(B) in the judgment of the Secretary of Defense--

        `(i) the officer is qualified for service as Surgeon General; and

        `(ii) the waiver is necessary for the good of the Army.

    `(3) Any waiver under paragraph (2) shall be made on a case-by-case basis.'.

      (2) CONFORMING AMENDMENT- Section 3036(b) of such title is amended in the flush matter following paragraph (2) by striking the second sentence.

      (3) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 305 of such title is amended by inserting after the item relating to section 3036 the following new item:

      `3036a. Surgeon General: appointment; grade.'.

    (b) SURGEON GENERAL OF THE NAVY-

      (1) IN GENERAL- Section 5137 of such title is amended--

        (A) by redesignating subsection (b) as subsection (c); and

        (B) by inserting after subsection (a) the following new subsection (b):

    `(b) JOINT EXPERIENCE REQUIRED FOR APPOINTMENT AS CHIEF- (1) The Secretary of Defense may not recommend an officer to the President for appointment as Surgeon General unless the officer is determined by the Chairman of the Joint Chiefs of Staff, in accordance with criteria and as a result of a process established by the Chairman, to have significant joint experience.

    `(2) Until October 1, 2010, the Secretary of Defense may waive the limitation in paragraph (1) with respect to the recommendation of an officer as Surgeon General if--

      `(A) the Secretary of the Navy requests the waiver; and

      `(B) in the judgment of the Secretary of Defense--

        `(i) the officer is qualified for service as Surgeon General; and

        `(ii) the waiver is necessary for the good of the Navy.

    `(3) Any waiver under paragraph (2) shall be made on a case-by-case basis.'.

      (2) TECHNICAL AMENDMENTS- Such section is further amended--

        (A) in subsection (a), by inserting `CHIEF- ' after `(a)'; and

        (B) in subsection (c), as redesignated by paragraph (1)(A) of this subsection, by inserting `DEPUTY CHIEF- ' after `(c)'.

    (c) SURGEON GENERAL OF THE AIR FORCE- The text of section 8036 of such title is amended to read as follows:

    `(a) SURGEON GENERAL- There is a Surgeon General of the Air Force who is appointed by the President, by and with the advice and consent of the Senate, from officers of the Air Force who are in the Air Force medical department.

    `(b) GRADE- The Surgeon General, while so serving, has the grade of lieutenant general.

    `(c) JOINT EXPERIENCE REQUIRED FOR APPOINTMENT- (1) The Secretary of Defense may not recommend an officer to the President for appointment as Surgeon General unless the officer is determined by the Chairman of the Joint Chiefs of Staff, in accordance with criteria and as a result of a process established by the Chairman, to have significant joint experience.

    `(2) Until October 1, 2010, the Secretary of Defense may waive the limitation in paragraph (1) with respect to the recommendation of an officer as Surgeon General if--

      `(A) the Secretary of the Air Force requests the waiver; and

      `(B) in the judgment of the Secretary of Defense--

        `(i) the officer is qualified for service as Surgeon General; and

        `(ii) the waiver is necessary for the good of the Air Force.

    `(3) Any waiver under paragraph (2) shall be made on a case-by-case basis.'.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 2008, and shall apply with respect to appointments to the position of Surgeon General of the Army, Surgeon General of the Navy, and Surgeon General of the Air Force that are made on or after that date.

SEC. 506. GRADE AND EXCLUSION FROM ACTIVE-DUTY GENERAL AND FLAG OFFICER DISTRIBUTION AND STRENGTH LIMITATIONS OF OFFICER SERVING AS ATTENDING PHYSICIAN TO THE CONGRESS.

    (a) GRADE-

      (1) REGULAR OFFICER- (A) Chapter 41 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 722. Attending Physician to the Congress: grade

    `A general officer serving as Attending Physician to the Congress, while so serving, holds the grade of major general. A flag officer serving as Attending Physician to the Congress, while so serving, holds the grade of rear admiral.'.

      (B) The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `722. Attending Physician to the Congress: grade.'.

      (2) RESERVE OFFICER- (A) Section 12210 of such title is amended by striking `who holds' and all that follows and inserting `holds the reserve grade of major general or rear admiral, as appropriate.'.

      (B) The heading of such section is amended to read as follows:

`Sec. 12210. Attending Physician to the Congress: reserve grade'.

      (C) The table of sections at the beginning of chapter 1205 of such title is amended by striking the item relating to section 12210 and inserting the following new item:

      `12210. Attending Physician to the Congress: reserve grade.'.

    (b) DISTRIBUTION LIMITATIONS- Section 525 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(f) An officer while serving as Attending Physician to the Congress is in addition to the number that would otherwise be permitted for that officer's armed force for officers serving on active duty in grades above brigadier general or rear admiral (lower half) under subsection (a).'.

    (c) ACTIVE-DUTY STRENGTH LIMITATIONS- Section 526 of such title is amended by adding at the end the following new subsection:

    `(f) EXCLUSION OF ATTENDING PHYSICIAN TO THE CONGRESS- The limitations of this section do not apply to the general or flag officer who is serving as Attending Physician to the Congress.'.

SEC. 507. DISCRETIONARY SEPARATION AND RETIREMENT OF CHIEF WARRANT OFFICERS, W-4, TWICE FAILING SELECTION FOR PROMOTION.

    (a) IN GENERAL- Section 580(a) of title 10, United States Code, is amended--

      (1) in paragraph (1), by inserting `, except as provided in paragraph (5),' after `shall';

      (2) by redesignating paragraphs (5) and (6) as paragraphs (6) and (7), respectively; and

      (3) by inserting after paragraph (4) the following new paragraph (5):

    `(5) In the case of a warrant officer described in paragraph (1) who is in the grade of chief warrant officer, W-4, the retirement or separation of such member under this subsection shall be subject to the discretion of the Secretary concerned.'.

    (b) ELIGIBILITY FOR PROMOTION- Paragraph (6) of such section, as redesignated by subsection (a)(2) of this section, is further amended--

      (1) by striking `A warrant officer' and inserting `(A) Except as provided in subparagraph (B), a warrant officer'; and

      (2) by adding at the end the following new subparagraph:

    `(B) A warrant officer who is retained on active duty pursuant to an exercise of the authority in paragraph (5) is eligible for further consideration for promotion while remaining on active duty.'.

SEC. 508. INCREASED MANDATORY RETIREMENT AGES FOR RESERVE OFFICERS.

    (a) MAJOR GENERALS AND REAR ADMIRALS-

      (1) INCREASED AGE- Section 14511 of title 10, United States Code, is amended by striking `62 years' and inserting `64 years'.

      (2) CONFORMING AMENDMENT- The heading of such section is amended to read as follows:

`Sec. 14511. Separation at age 64: major generals and rear admirals'.

    (b) BRIGADIER GENERALS AND REAR ADMIRALS (LOWER HALF)-

      (1) INCREASED AGE- Section 14510 of such title is amended by striking `60 years' and inserting `62 years'.

      (2) CONFORMING AMENDMENT- The heading of such section is amended to read as follows:

`Sec. 14510. Separation at age 62: brigadier generals and rear admirals (lower half)'.

    (c) Officers Below Brigadier General or Rear Admiral (Lower Half)-

      (1) INCREASED AGE- Section 14509 of such title is amended by striking `60 years' and inserting `62 years'.

      (2) CONFORMING AMENDMENT- The heading of such section is amended to read as follows:

`Sec. 14509. Separation at age 62: reserve officers in grades below brigadier general or rear admiral (lower half)'.

    (d) CERTAIN OTHER OFFICERS-

      (1) INCREASED AGE- Section 14512 of such title is amended by striking `64 years' both places it appears and inserting `66 years'.

      (2) CONFORMING AMENDMENT- The heading of such section is amended to read as follows:

`Sec. 14512. Separation at age 66: officers holding certain offices'.

    (e) CONFORMING AMENDMENTS- Section 14508 of such title is amended--

      (1) in subsection (c), by striking `60 years' and inserting `62 years'; and

      (2) in subsection (d), by striking `62 years' and inserting `64 years'.

    (f) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1407 of such title is amended by striking the items relating to sections 14509, 14510, 14511, and 14512 and inserting the following new items:

      `14509. Separation at age 62: reserve officers in grades below brigadier general or rear admiral (lower half).

      `14510. Separation at age 62: brigadier generals and rear admirals (lower half).

      `14511. Separation at age 64: major generals and rear admirals.

      `14512. Separation at age 66: officers holding certain offices.'.

SEC. 509. MODIFICATION OF QUALIFICATIONS FOR LEADERSHIP OF THE NAVAL POSTGRADUATE SCHOOL.

    Section 7042(a) of title 10, United States Code, is amended--

      (1) in paragraph (1)(A)--

        (A) by inserting `active-duty or retired' after `An';

        (B) by inserting `or Marine Corps' after `Navy';

        (C) by inserting `or colonel, respectively' after `captain'; and

        (D) by inserting `or assigned' after `detailed';

      (2) in paragraph (2), by inserting `and the Commandant of the Marine Corps' after `Operations'; and

      (3) in paragraph (4)(A)--

        (A) by inserting `(unless such individual is a retired officer of the Navy or Marine Corps in a grade not below the grade of captain or colonel, respectively)' after `in the case of a civilian';

        (B) by inserting `active-duty or retired' after `in the case of an'; and

        (C) by inserting `or Marine Corps' after `Navy'.

Part II--Officer Promotion Policy

SEC. 515. PROMOTIONS.

    (a) OFFICERS ON ACTIVE-DUTY LIST-

      (1) CLARIFICATION OF APPROVAL OF SELECTION BOARD REPORTS- Subsection (a)(1) of section 624 of title 10, United States Code, is amended by inserting `or a delegate of the President' after `the President'.

      (2) DATE OF ESTABLISHMENT OF PROMOTION LIST- Such subsection is further amended by adding at the end the following new sentence: `For promotions that occur by and with the advice and consent of the Senate, a promotion list shall be treated as being established for purposes of this chapter on the date on which the list is received by the Senate for consideration.'.

      (3) UNIFORM PROCEDURES FOR DELAYS OF APPOINTMENT UPON PROMOTION- Subsection (d) of such section is amended--

        (A) in paragraph (1), by striking `prescribed by the Secretary concerned' and inserting `prescribed by the Secretary of Defense'; and

        (B) in paragraph (2), by striking `prescribed by the Secretary concerned' and inserting `prescribed by the Secretary of Defense'.

      (4) ADDITIONAL BASIS FOR DELAY OF APPOINTMENT- Subsection (d)(1) of such section is further amended--

        (A) in subparagraph (C), by striking `or' at the end;

        (B) in subparagraph (D), by striking the period at the end and inserting `; or';

        (C) by inserting after subparagraph (D) the following new subparagraph (E):

      `(E) substantiated adverse information about the officer that is material to the decision to appoint the officer is under review by the Secretary of Defense or the Secretary concerned.'; and

        (D) in the flush matter following subparagraph (E), as inserted by subparagraph (C) of this paragraph--

          (i) by striking `or if the officer is acquitted' and inserting `if the officer is acquitted'; and

          (ii) by inserting after `brought against him,' the following: `or if after a review of substantiated adverse information about the officer regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion,'.

      (5) ADDITIONAL BASIS FOR DELAY IN APPOINTMENT FOR LACK OF QUALIFICATIONS- Subsection (d)(2) of such section is further amended--

        (A) in the first sentence, by inserting before `is mentally, physically,' the following: `has not met the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, or'; and

        (B) in the second sentence, by striking `If the Secretary concerned later determines that the officer is qualified for promotion to such grade' and inserting `If it is later determined by a civilian official of the Department of Defense (not below the level of Secretary of a military department) that the officer is qualified for promotion to such grade and, after a review of adverse information regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion to such grade'.

    (b) OFFICERS ON RESERVE ACTIVE-STATUS LIST-

      (1) CLARIFICATION OF APPROVAL OF SELECTION BOARD REPORTS- Subsection (a) of section 14308 of title 10, United States Code, is amended by inserting `or a delegate of the President' after `the President'.

      (2) DATE OF ESTABLISHMENT OF PROMOTION LIST- Such subsection is further amended by adding at the end the following new sentence: `For promotions that occur by and with the advice and consent of the Senate, a promotion list shall be treated as being established for purposes of this chapter on the date on which the list is received by the Senate for consideration.'.

      (3) UNIFORM PROCEDURES FOR DELAYS OF APPOINTMENT UPON PROMOTION- Section 14311 of such title is amended--

        (A) in subsection (a)(1), by striking `Secretary of the military department concerned' and inserting `Secretary of Defense'; and

        (B) in subsection (b), by striking `Secretary of the military department concerned' and inserting `Secretary of Defense'.

      (4) ADDITIONAL BASIS FOR ORIGINAL DELAY OF APPOINTMENT- Section 14311(a) of such title is further amended--

        (A) in paragraph (1), by adding at the end the following new subparagraph:

      `(E) Substantiated adverse information about the officer that is material to the decision to appoint the officer is under review by the Secretary of Defense or the Secretary concerned.'; and

        (B) in paragraph (2)--

          (i) by striking `or if the officer is acquitted' and inserting `if the officer is acquitted'; and

          (ii) by inserting after `brought against him,' the following: `or if after a review of substantiated adverse information about the officer regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion,'.

      (5) ADDITIONAL BASIS FOR DELAY IN APPOINTMENT FOR LACK OF QUALIFICATIONS- Section 14311(b) of such section is further amended--

        (A) in the first sentence, by inserting before `is mentally, physically,' the following: `has not met the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, or'; and

        (B) in the second sentence, by striking `If the Secretary concerned later determines that the officer is qualified for promotion to the higher grade' and inserting `If it is later determined by a civilian official of the Department of Defense (not below the level of Secretary of a military department) that the officer is qualified for promotion to the higher grade and, after a review of adverse information regarding the requirement for exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable, the officer is determined to be among the officers best qualified for promotion to the higher grade'.

    (c) DEADLINE FOR UNIFORM REGULATIONS ON DELAY OF PROMOTIONS- The Secretary of Defense shall prescribe the regulations required by section 624(d) of title 10, United States Code (as amended by subsection (a)(3) of this section), and the regulations required by section 14311 of title 10, United States Code (as amended by subsection (b)(3) of this section), not later than March 1, 2008.

    (d) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to officers on promotion lists established on or after that date.

SEC. 516. CONSIDERATION OF ADVERSE INFORMATION BY PROMOTION SELECTION BOARDS IN RECOMMENDATIONS ON OFFICERS TO BE PROMOTED.

    (a) OFFICERS ON ACTIVE-DUTY LIST- Section 616(c) of title 10, United States Code, is amended--

      (1) in paragraph (1), by striking `and' at the end;

      (2) in paragraph (2), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new paragraph:

      `(3) a majority of the members of the board, after consideration by all members of the board of any adverse information about the officer that is provided to the board under section 615 of this title, finds that the officer is among the officers best qualified for promotion to meet the needs of the armed force concerned consistent with the requirement of exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable.'.

    (b) OFFICERS ON RESERVE-ACTIVE STATUS LIST- Section 14108(b) of such title is amended--

      (1) in the heading, by striking `MAJORITY REQUIRED' and inserting `ACTIONS REQUIRED';

      (2) in paragraph (1), by striking `and' at the end;

      (3) in paragraph (2), by striking the period at the end and inserting `; and'; and

      (4) by adding at the end the following new paragraph:

      `(3) a majority of the members of the board, after consideration by all members of the board of any adverse information about the officer that is provided to the board under section 14107 of this title, finds that the officer is among the officers best qualified for promotion to meet the needs of the armed force concerned consistent with the requirement of exemplary conduct set forth in section 3583, 5947, or 8583 of this title, as applicable.'.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to promotion selection boards convened on or after that date.

SEC. 517. EXPANDED AUTHORITY FOR REMOVAL FROM REPORTS OF SELECTION BOARDS OF OFFICERS RECOMMENDED FOR PROMOTION TO GRADES BELOW GENERAL AND FLAG GRADES.

    (a) OFFICERS ON ACTIVE-DUTY LIST- Section 618(d) of title 10, United States Code, is amended--

      (1) by striking `The name' and inserting `(1) Except as provided in paragraph (2), the name'; and

      (2) by adding at the end the following new paragraph:

    `(2) In the case of an officer recommended by a selection board for promotion to a grade below brigadier general or rear admiral (lower half), the name of the officer may also be removed from the report of the selection board by the Secretary of Defense or the Deputy Secretary of Defense.'.

    (b) OFFICERS ON RESERVE-ACTIVE STATUS LIST- Section 14111(b) of such title is amended--

      (1) by striking `The name' and inserting `(1) Except as provided in paragraph (2), the name'; and

      (2) by adding at the end the following new paragraph:

    `(2) In the case of an officer recommended by a selection board for promotion to a grade below brigadier general or rear admiral (lower half), the name of the officer may also be removed from the report of the selection board by the Secretary of Defense or the Deputy Secretary of Defense.'.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to promotion selection boards convened on or after that date.

SEC. 518. CLARIFICATION OF NONDISCLOSURE REQUIREMENTS APPLICABLE TO PROMOTION SELECTION BOARD PROCEEDINGS.

    (a) SELECTION BOARD PROCEEDINGS FOR ACTIVE DUTY OFFICERS- Subsection (f) of section 618 of title 10, United States Code, is amended to read as follows:

    `(f)(1) Proceedings of a selection board convened under section 611 of this title shall not be disclosed to any person not a member of the board.

    `(2) Discussions and deliberations of a selection board described in paragraph (1), and any written or documentary records thereof, shall--

      `(A) be immune from legal process;

      `(B) not be admitted as evidence; and

      `(C) not be used for any purpose in any action, suit, or judicial or administrative proceeding without the consent of the Secretary of the military department concerned.'.

    (b) SELECTION BOARD PROCEEDINGS FOR RESERVE OFFICERS-

      (1) IN GENERAL- Section 14104 of such title is amended to read as follows:

`Sec. 14104. Nondisclosure of board proceedings

    `(a) IN GENERAL- The proceedings of a selection board convened under section 14101 of this title shall not be disclosed to any person not a member of the board.

    `(b) DISCUSSIONS AND DELIBERATIONS- Discussions and deliberations of a selection board described in subsection (a), and any written or documentary records thereof, shall--

      `(1) be immune from legal process;

      `(2) not be admitted as evidence; and

      `(3) not be used for any purpose in any action, suit, or judicial or administrative proceeding without the consent of the Secretary of the military department concerned.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1403 of such title is amended by striking the item relating to section 14104 and inserting the following new item:

      `14104. Nondisclosure of board proceedings.'.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to the proceedings of any promotion selection board, whether convened before, on, or after such date.

SEC. 519. SPECIAL SELECTION BOARD AUTHORITIES.

    (a) OFFICERS ON ACTIVE-DUTY LIST-

      (1) BOARDS FOR ADMINISTRATIVE ERROR AVAILABLE ONLY TO OFFICERS IN OR ABOVE PROMOTION ZONE- Subsection (a)(1) of section 628 of title 10, United States Code, is amended by inserting `from in or above the promotion zone' after `for selection for promotion'.

      (2) ACTIONS TREATABLE AS MATERIAL UNFAIRNESS- Subsection (b)(1)(A) of such section is amended by inserting `in a matter material to the decision of the board' after `contrary to law'.

    (b) OFFICERS ON RESERVE ACTIVE-STATUS LIST- Section 14502(b)(1)(A) of such title is amended by inserting `in a matter material to the decision of the board' after `contrary to law'.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on March 1, 2007, and shall apply with respect to promotion selection boards convened on or after that date.

SEC. 520. REMOVAL FROM PROMOTION LISTS OF OFFICERS RETURNED TO THE PRESIDENT BY THE SENATE.

    (a) OFFICERS ON ACTIVE-DUTY LIST-

      (1) CLARIFICATION OF REMOVAL AUTHORITY- Subsection (a) of section 629 of title 10, United States Code, is amended by inserting `or a delegee of the President' after `The President'.

      (2) REMOVAL FOLLOWING RETURN- Such section is further amended--

        (A) by redesignating subsection (c) as subsection (d);

        (B) by inserting after subsection (b) the following new subsection (c):

    `(c)(1) If an officer or group of officers on a list of officers approved for promotion by the President and submitted to the Senate for consideration is returned by the Senate to the President pursuant to the rules and procedures of the Senate, the officer or group of officers, as the case may be, shall automatically be removed from the list at the end of the 365-day period beginning on the date of such return.

    `(2) Prior to the end of the 365-day period referred to in paragraph (1), the President may extend by an additional 365 days the period specified in that paragraph for the removal of an officer or group of officers from a list of officers approved for promotion by the President.

    `(3) The President may, during the period specified in paragraph (1), as extended (if at all) under paragraph (2), resubmit to the Senate any officer or group of officers removed under paragraph (1) from a list of officers approved for promotion by the President.

    `(4) If an officer or group of officers resubmitted to the Senate under paragraph (3) is returned by the Senate to the President pursuant to the rules and procedures of the Senate, the officer or group of officers, as the case may be, shall automatically be removed from the list of officers approved for promotion by the President.'; and

        (C) in paragraph (1) of subsection (d), as redesignated by paragraph (1) of this subsection, by striking `or (b)' and inserting `(b), or (c)'.

    (b) OFFICERS ON RESERVE ACTIVE STATUS LIST-

      (1) CLARIFICATION OF REMOVAL AUTHORITY- Subsection (a) of section 14310 of such title is amended by inserting `or a delegee of the President' after `The President'.

      (2) REMOVAL FOLLOWING RETURN- Such section is further amended--

        (A) by redesignating subsection (c) as subsection (d);

        (B) by inserting after subsection (b) the following new subsection (c):

    `(c) REMOVAL FOLLOWING RETURN BY THE SENATE TO THE PRESIDENT- (1) If an officer or group of officers on a list of officers approved for promotion by the President and submitted to the Senate for consideration is returned by the Senate to the President pursuant to the rules and procedures of the Senate, the officer or group of officers, as the case may be, shall automatically be removed from the list at the end of the 365-day period beginning on the date of such return.

    `(2) Prior to the end of the 365-day period referred to in paragraph (1), the President may extend by an additional 365 days the period specified in that paragraph for the removal of an officer or group of officers from a list of officers approved for promotion by the President.

    `(3) The President may, during the period specified in paragraph (1), as extended (if at all) under paragraph (2), resubmit to the Senate any officer or group of officers removed under paragraph (1) from a list of officers approved for promotion by the President.

    `(4) If an officer or group of officers resubmitted to the Senate under paragraph (3) is returned by the Senate to the President pursuant to the rules and procedures of the Senate, the officer or group of officers, as the case may be, shall automatically be removed from the list of officers approved for promotion by the President.'; and

        (C) in subsection (d), as redesignated by paragraph (1) of this subsection, by striking `or (b)' and inserting `(b), or (c)'.

    (c) EFFECTIVE DATE-

      (1) IN GENERAL- The amendments made by this section shall take effect on January 1, 2007.

      (2) APPLICABILITY TO CERTAIN OFFICERS- The amendments made by this section shall not apply to any officer on the active-duty list or reserve active status list whose name is on a promotion list or report of a selection board on the date of the enactment of this Act. Any officer whose name is on a promotion list as of the date of the enactment of this Act following the return of the officer's nomination to the President by the Senate and who is eligible as of that date for retirement for years of service shall be retired not later than October 1, 2008.

SEC. 521. REPORT ON JOINT OFFICER PROMOTION BOARDS.

    (a) Report Required- Not later than June 1, 2007, the Secretary of Defense shall submit to the Committee on Armed Services of the Senate and House of Representatives a report on the desirability and feasibility of conducting joint officer promotion selection boards.

    (b) Elements- The report under subsection (a) shall include--

      (1) a discussion of the limitations in existing officer career paths and promotion procedures that might warrant the conduct of joint officer promotion selection boards;

      (2) an identification of the requirements for officers for which joint officer promotion selection boards would be advantageous;

      (3) recommendations on methods to demonstrate how joint officer promotion selection boards might be structured, and an evaluation of the feasibility of such methods; and

      (4) any proposals for legislative action that the Secretary considers appropriate.

Part III--Joint Officer Management Requirements

SEC. 526. MODIFICATION AND ENHANCEMENT OF GENERAL AUTHORITIES ON MANAGEMENT OF JOINT QUALIFIED OFFICERS.

    (a) REDESIGNATION OF APPLICABILITY OF POLICIES TOWARD JOINT QUALIFICATION- Subsection (a) of section 661 of title 10, United States Code, is amended by striking the last sentence and inserting the following new sentence: `For purposes of this chapter, officers to be managed by such policies, procedures, and practices are referred to as `joint qualified'.'.

    (b) NUMBERS AND DESIGNATION- Subsection (b) of such section is amended--

      (1) in the heading, by striking `SELECTION' and inserting `DESIGNATION';

      (2) in paragraph (1), by striking `of officers with the joint specialty' and inserting `and levels of joint qualified officers';

      (3) in paragraph (2)--

        (A) by striking `selected for the joint specialty' and inserting `designated as joint qualified officers'; and

        (B) by striking the second and third sentences and inserting the following new sentence: `Officers considered for joint qualification shall--

      `(A) meet criteria prescribed by the Secretary of Defense; and

      `(B) be those officers who are serving in the grade of captain or, in the case of the Navy, lieutenant, or a higher grade.'; and

      (4) in paragraph (3)--

        (A) by striking `select officers for the joint specialty' and inserting `designate officers as joint qualified officers'; and

        (B) by striking `the Deputy Secretary of Defense' and inserting `the Under Secretary of Defense for Personnel and Readiness'.

    (c) EDUCATION AND EXPERIENCE REQUIREMENTS- Subsection (c) of such section is amended to read as follows:

    `(c) EDUCATION AND EXPERIENCE REQUIREMENTS- (1) An officer may not be designated as a joint qualified officer until the officer--

      `(A)(i) successfully completes an appropriate program at a joint professional military education school; and

      `(ii) successfully completes a full tour of duty in a joint duty assignment (as described in section 664(f) of this title (other than in paragraph (2) of such section)); or

      `(B) under regulations and policy prescribed by the Secretary of Defense, successfully demonstrates a mastery of knowledge, skills, and abilities in joint matters.

    `(2)(A) In the case of an officer who has completed two full tours of duty in a joint duty assignment (as described in section 664(f) of this title) and demonstrates a mastery of knowledge, skills, and abilities on joint matters, the Secretary of Defense may waive the requirement that the officer have successfully completed a program of education referred to in paragraph (1)(A)(i) if the Secretary determines that the types of joint duty experiences completed by the officer have been of sufficient breadth to prepare the officer adequately for the highest level of joint qualification.

    `(B) The authority of the Secretary of Defense to grant a waiver under subparagraph (A) may be delegated only to the Under Secretary of Defense for Personnel and Readiness.

    `(C)(i) A waiver under subparagraph (A) may be granted only on a case-by-case basis.

    `(ii) A waiver under subparagraph (A) may be granted only under circumstances justifying variation from the requirements of paragraph (1) for designation of an officer for the highest level of joint qualification as specified by the Secretary of Defense.

    `(iii) In the case of a general or flag officer, a waiver under subparagraph (A) may be granted only under circumstances described in clause (ii) and circumstances in which the waiver is necessary to meet a critical need of the Armed Forces, as determined by the Chairman of the Joint Chiefs of Staff.

    `(iv) In the case of officers in grades below brigadier general or rear admiral (lower half), the total number of waivers granted under subparagraph (A) for officers in the same pay grade during a fiscal year may not exceed 10 percent of the total number of officers in that pay grade selected for the highest level of joint qualification during that fiscal year.

    `(D) There may not be more than 32 general and flag officers on active duty at the same time who were selected for the joint specialty or highest level of joint qualification while holding a general or flag officer grade and for whom a waiver was granted under subparagraph (A).'.

    (d) NUMBER OF JOINT DUTY ASSIGNMENTS- Subsection (d) of such section is amended to read as follows:

    `(d) NUMBER OF JOINT DUTY ASSIGNMENTS- (1) The Secretary of Defense shall ensure that approximately one-half of the joint duty assignment positions in grades above major or, in the case of the Navy, lieutenant commander are filled at any time by officers who have the highest level of joint qualification.

    `(2) The Secretary of Defense, with the advice of the Chairman of the Joint Chiefs of Staff, shall designate an appropriate number of joint duty assignment positions as critical joint duty assignment positions. A position may be designated as a critical joint duty assignment position only if the duties and responsibilities of the position make it important that the occupant be particularly trained in, and oriented toward, joint matters.

    `(3)(A) Except as provided in subparagraph (B), a position designated under paragraph (2) may be held only by an officer who has the highest level of joint qualification.

    `(B) The Secretary of Defense may waive the requirement in subparagraph (A) with respect to the assignment of an officer to a position designated under paragraph (1). Any such waiver shall be granted on a case-by-case basis. The authority of the Secretary to grant such a waiver may be delegated only to the Chairman of the Joint Chiefs of Staff.

    `(4) The Secretary of Defense shall ensure that, of those joint duty assignment positions that are filled by general or flag officers, a substantial portion are among those positions that are designated under paragraph (2) as critical joint duty assignment positions.'.

    (e) CAREER GUIDELINES- Subsection (e) of such section is amended by striking `officers with the joint specialty' and inserting `officers who are joint qualified officers'.

    (f) TREATMENT OF CERTAIN SERVICE- Subsection (f) of such section is amended by striking `(including section 619(e)(1) of this title)'.

    (g) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 38 of such title is amended by striking the item relating to section 661 and inserting the following new item:

      `661. Management policies for joint qualified officers.'.

SEC. 527. MODIFICATION OF PROMOTION POLICY OBJECTIVES FOR JOINT OFFICERS.

    Section 662(a) of title 10, United States Code, is amended--

      (1) in paragraph (1), by inserting `and' after the semicolon; and

      (2) by striking paragraphs (2) and (3) and inserting the following new paragraph (2):

      `(2) officers who are serving in or have served in joint duty assignments are expected, as a group, to be promoted to the next higher grade at a rate not less than the rate for all officers of the same armed force in the same grade and competitive category.'.

SEC. 528. APPLICABILITY OF JOINT DUTY ASSIGNMENT REQUIREMENTS LIMITED TO GRADUATES OF NATIONAL DEFENSE UNIVERSITY SCHOOLS.

    (a) APPLICABILITY- Section 663 of title 10, United States Code, is amended--

      (1) in subsection (a), by striking `a joint professional military education school' and inserting `a school within the National Defense University'; and

      (2) in subsection (b)--

        (A) in paragraph (1), by striking `a joint professional military education school' and inserting `a school within the National Defense University'; and

        (B) in paragraph (2), by striking `a joint professional military education school' and inserting `a school referred to in paragraph (1)'.

    (b) DEFINITION- Such section is further amended by adding at the end the following new subsection:

    `(c) SCHOOL WITHIN THE NATIONAL DEFENSE UNIVERSITY- For purposes of this section, a school within the National Defense University includes a school as follows:

      `(1) The National War College.

      `(2) The Industrial College of the Armed Forces.

      `(3) The Joint Advanced Warfighting School.

      `(4) The Joint Forces Staff College.'.

SEC. 529. MODIFICATION OF DEFINITIONS RELATING TO JOINTNESS.

    (a) MODIFICATION OF DEFINITION OF `JOINT MATTERS'- Subsection (a) of section 668 of title 10, United States Code, is amended to read as follows:

    `(a) JOINT MATTERS- In this chapter, the term `joint matters' means matters involving the integrated use of military forces relating to national military strategy, strategic and contingency planning, and command and control of operations under unified command that may be conducted under unified action on land, sea, or air, in space, or in the information environment with participants from multiple armed forces, the armed forces and other departments and agencies of the United States Government, the armed forces and the military forces or agencies of other countries, the armed forces and non-governmental persons or entities, or any combination thereof.'.

    (b) MODIFICATION OF DEFINITION OF `JOINT DUTY ASSIGNMENT'- Paragraph (1) of subsection (b) of such section is amended by striking `and shall exclude' and all that follows and inserting a period.

    (c) RESTATEMENT OF DEFINITION OF `CRITICAL OCCUPATIONAL SPECIALTY'-

      (1) IN GENERAL- Section 668 of such title is further amended by adding at the end the following new subsection:

    `(d) CRITICAL OCCUPATIONAL SPECIALTY- In this chapter, the term `critical occupational specialty' means a military occupational specialty within a combat arm of the Army, or an equivalent arm of the Navy, Air Force, and Marine Corps, that is designated by the Secretary of Defense as a critical occupational specialty because such combat arm is experiencing a severe shortage of trained officers in that military occupational specialty.'.

      (2) CONFORMING AMENDMENTS- The following provisions of such title are each amended by striking `under section 661(c)(2) of this title':

        (A) Section 664(c)(2).

        (B) Section 667(3).

SEC. 530. CONDITION ON APPOINTMENT OF COMMISSIONED OFFICERS TO POSITION OF DIRECTOR OF NATIONAL INTELLIGENCE OR DIRECTOR OF THE CENTRAL INTELLIGENCE AGENCY.

    (a) Condition-

      (1) IN GENERAL- Chapter 32 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 529. Condition on appointment to certain positions: Director of National Intelligence; Director of the Central Intelligence Agency

    `As a condition of appointment to the position of Director of National Intelligence or Director of the Central Intelligence Agency, an officer shall acknowledge that upon termination of service in such position the officer shall be retired in accordance with section 1253 of this title.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 32 of such title is amended by adding at the end the following new item:

      `529. Condition on appointment to certain positions: Director of National Intelligence; Director of the Central Intelligence Agency.'.

    (b) Retirement-

      (1) IN GENERAL- Chapter 63 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 1253. Mandatory retirement: Director of National Intelligence; Director of the Central Intelligence Agency

    `Upon termination of the appointment of an officer to the position of Director of National Intelligence or Director of the Central Intelligence Agency, the Secretary of the military department concerned shall retire the officer under any provision of this title under which the officer is eligible to retire.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 63 of such title is amended by adding at the end the following new item:

      `1253. Mandatory retirement: Director of National Intelligence; Director of the Central Intelligence Agency.'.

    (c) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to appointments of commissioned officers of the Armed Forces to the position of Director of National Intelligence or Director of the Central Intelligence Agency on or after that date.

Subtitle B--Reserve Component Personnel Matters

SEC. 531. ENHANCED FLEXIBILITY IN THE MANAGEMENT OF RESERVE COMPONENT PERSONNEL.

    (a) CLARIFICATION OF DEFINITION OF `ACTIVE GUARD AND RESERVE DUTY' UNDER TITLE 10, UNITED STATES CODE- Section 101(d)(6)(A) of title 10, United States Code, is amended--

      (1) by striking `or full-time National Guard duty' the first place it appears;

      (2) by striking `to active duty or' and inserting `to';

      (3) by striking `Guard, pursuant' and inserting `Guard pursuant'; and

      (4) by inserting a comma before `for a period'.

    (b) EXPANSION OF ACTIVE GUARD AND RESERVE DUTY TO INCLUDE SUPPORT OF RESERVE COMPONENT OPERATIONS AND ADDITIONAL INSTRUCTION AND TRAINING- Section 12310 of title 10, United States Code, is amended--

      (1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively;

      (2) by striking subsections (a) and (b) and inserting the following new subsections:

    `(a) ACTIVE GUARD AND RESERVE DUTY- The Secretary concerned may order a Reserve ordered to or retained on active duty under section 12301(d) of this title to perform active Guard and Reserve duty.

    `(b) ADDITIONAL DUTIES- A Reserve on active duty as described in subsection (a) who is performing active Guard and Reserve duty pursuant to an order under that subsection may be assigned additional duties (to the extent such duties do not interfere with the performance by the Reserve of active Guard and Reserve duty under that subsection) as follows:

      `(1) Supporting operations or missions assigned in whole or in part to the reserve components.

      `(2) Supporting operations or missions performed or to be performed by--

        `(A) a unit composed of elements from more than one component of the same armed force; or

        `(B) a joint forces unit that includes--

          `(i) one or more reserve component units; or

          `(ii) a member of a reserve component whose reserve component assignment is in a position in an element of the joint forces unit.

      `(3) Advising the Secretary of Defense, the Secretaries of the military departments, the Joint Chiefs of Staff, and the commanders of the combatant commands on reserve component matters.

      `(4) Instructing or training members of the armed forces on active duty, members of foreign military forces (under authorities and limitations applicable to the provision of such instruction or training by members of the Armed Forces on active duty), Department of Defense contractor personnel, and Department of Defense civilian employees.

    `(c) GRADE WHEN ORDERED TO ACTIVE DUTY- A Reserve ordered to active duty under subsection (a) shall be ordered in his reserve grade. While so serving, he continues to be eligible for promotion as a Reserve, if he is otherwise qualified.'; and

      (3) in paragraph (1) of subsection (d), as so redesignated--

        (A) by striking `Notwithstanding subsection (b), a Reserve' and inserting `A Reserve'; and

        (B) by striking `functions' and inserting `duty'.

    (c) Expansion of Duties of Military Technicians (Dual Status)-

      (1) GENERAL DUTIES- Section 10216(a)(1)(C) of such title is amended by striking `administration and' and inserting `organizing, administering, instructing, or'.

      (2) SUPPORT OF RESERVE COMPONENT OPERATIONS AND ADDITIONAL INSTRUCTION AND TRAINING- Chapter 1007 of such title is amended by inserting after section 10216 the following new section:

`Sec. 10216a. Military technicians (dual status): additional duties

    `A military technician (dual status) who is employed under section 3101 of title 5 may perform additional duties (to the extent such duties do not interfere with the performance by the military technician of duties assigned under section 10216(a)(1)(C) of this title) as follows:

      `(1) Supporting operations or missions assigned in whole or in part to the military technician's unit.

      `(2) Supporting operations or missions performed or to be performed by--

        `(A) a unit composed of elements from more than one component of the military technician's armed force; or

        `(B) a joint forces unit that includes--

          `(i) one or more units of the military technician's reserve component; or

          `(ii) a member of the military technician's reserve component whose reserve component assignment is in a position in an element of the joint forces unit.

      `(3) Instructing or training members of the Armed Forces on active duty, members of foreign military forces (under authorities and limitations applicable to the provision of such instruction or training by members of the Armed Forces on active duty), Department of Defense contractor personnel, and Department of Defense civilian employees.'.

      (3) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 1007 of such title is amended by inserting after the item relating to section 10216 the following new item:

      `10216a. Military technicians (dual status): additional duties.'.

    (d) ORDER OF NATIONAL GUARD MEMBERS TO PERFORM NATIONAL GUARD ACTIVE GUARD AND RESERVE DUTY AND ADDITIONAL DUTIES-

      (1) DEFINITION OF `NATIONAL GUARD ACTIVE GUARD AND RESERVE DUTY'- Section 101 of title 32, United States Code, is amended by adding at the end the following:

      `(20)(A) `National Guard active Guard and Reserve duty' means full-time National Guard duty performed by a member of the National Guard pursuant to an order to full-time National Guard duty, for a period of 180 consecutive days or more for the purpose of organizing, administering, recruiting, instructing, or training the reserve components.

      `(B) Such term does not include the following:

        `(i) Duty performed as a member of the Reserve Forces Policy Board under section 10301 of title 10.

        `(ii) Duty performed as a property and fiscal officer under section 708 of this title.

        `(iii) Duty performed for the purpose of interdiction and counter-drug activities for which funds have been provided under section 112 of this title.

        `(iv) Duty performed as a general or flag officer.

        `(v) Service as a State director of the Selective Service System under section 10(b)(2) of the Military Selective Service Act (50 U.S.C. App. 460(b)(2)).'.

      (2) ORDER TO PERFORM DUTY- Chapter 3 of such title is amended by adding at the end the following new section:

`Sec. 328. National Guard active Guard and Reserve duty; additional duties

    `(a) AUTHORITY TO ORDER TO DUTY- The Governor of his State or Territory or Puerto Rico, or commanding general of the District of Columbia National Guard, as the case may be, with the consent of the Secretary concerned, may order a member of the National Guard to perform National Guard active Guard and Reserve duty.

    `(b) NATURE OF DUTY- (1) A member of the National Guard may be ordered to perform duty under subsection (a)--

      `(A) without his consent, but with the pay and allowances provided by law; or

      `(B) with his consent, either with or without pay and allowances.

    `(2) Duty without pay shall be considered for all purposes as if it were duty with pay.

    `(c) DUTIES- A member of the National Guard performing duty under subsection (a) may perform the following additional duties (to the extent such duties do not interfere with the performance by the member of National Guard active Guard and Reserve duty under that subsection) as follows:

      `(1) Support of operations or missions undertaken by the member's unit at the request of the President or the Secretary of Defense.

      `(2) Support of Federal training operations or Federal training missions assigned in whole or in part to the member's unit.

      `(3) Instructing or training members of the Armed Forces on active duty, members of foreign military forces (under authorities and limitations applicable to the provision of such instruction or training by members of the Armed Forces on active duty), Department of Defense contractor personnel, and Department of Defense civilian employees.'.

      (3) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `328. National Guard active Guard and Reserve duty; additional duties.'.

    (e) EXPANSION OF DUTIES OF NATIONAL GUARD TECHNICIANS- Section 709(a) of such title is amended--

      (1) in paragraph (1)--

        (A) by striking `administration and' and inserting `organizing, administering, instructing, or'; and

        (B) by striking `and' at the end;

      (2) in paragraph (2), by striking the period at the end and inserting `; and'; and

      (3) by adding at the end the following new paragraph:

      `(3) the performance of additional duties (to the extent such duties do not interfere with the performance by the technician of duties under paragraphs (1) and (2)) as follows:

        `(A) Support of operations or missions undertaken by the technician's unit at the request of the President or the Secretary of Defense.

        `(B) Support of Federal training operations or Federal training missions assigned in whole or in part to the technician's unit.

        `(C) Instructing or training members of the Armed Forces on active duty, members of foreign military forces (under authorities and limitations applicable to the provision of such instruction or training by members of the Armed Forces on active duty), Department of Defense contractor personnel, and Department of Defense civilian employees.'.

SEC. 532. EXPANSION OF ACTIVITIES AUTHORIZED FOR RESERVES UNDER WEAPONS OF MASS DESTRUCTION CIVIL SUPPORT TEAMS.

    (a) IN GENERAL- Subsection (d) of section 12310 of title 10, United States Code, as redesignated and amended by section 531(b) of this Act, is further amended--

      (1) in paragraph (1)--

        (A) in subparagraph (A)--

          (i) by inserting `in the United States, Canada, or the United Mexican States' after `title)'; and

          (ii) by striking `or' at the end;

        (B) in subparagraph (B)--

          (i) by inserting `, Canada, or the United Mexican States' after `United States'; and

          (ii) by striking the period at the end and inserting a semicolon; and

        (C) by adding at the end the following new subparagraphs:

      `(C) the intentional or unintentional release of nuclear, biological, radiological, or toxic or poisonous chemical materials in the United States, Canada, or the United Mexican States that results, or could result, in catastrophic loss of life or property; or

      `(D) a natural or manmade disaster in the United States, Canada, or the United Mexican States that results, or could result, in catastrophic loss of life or property.'; and

      (2) by striking paragraph (3) and inserting the following new paragraph (3):

    `(3)(A) A Reserve may perform duties described in subparagraph (A), (B), or (C) of paragraph (1)--

      `(i) only while assigned to a reserve component civil support team; and

      `(ii) if performing those duties in Canada or the United Mexican States, only after being ordered to active duty under this title.

    `(B) A Reserve may perform the duties described in paragraph (1)(D)--

      `(i) only while assigned to a reserve component civil support team;

      `(ii) only with the approval of the Secretary of Defense; and

      `(iii) if performing those duties in Canada or the United Mexican States, only after being ordered to active duty under this title.

    `(C) Any duties described in paragraph (1) that are performed in Canada or the United Mexican States may occur, with consultation of the Secretary of State, at any distance beyond the borders of the United States with such country as is agreed to by appropriate authorities in such country.'.

    (b) DEFINITION OF `UNITED STATES'- Such subsection is further amended by adding at the end the following new paragraph:

    `(7) In this subsection, the term `United States' means each of the several States, the District of Columbia, Puerto Rico, Guam, and the Virgin Islands.'.

    (c) CONFORMING AMENDMENTS- Such subsection is further amended--

      (1) in the heading, by inserting `, TERRORIST ATTACK, AND NATURAL OR MANMADE DISASTER' after `MASS DESTRUCTION';

      (2) in paragraph (5), by striking `rapid assessment element team' and inserting `civil support team'; and

      (3) in paragraph (6)(B), by striking `paragraph (3)(B)' and inserting `that paragraph'.

SEC. 533. MODIFICATION OF AUTHORITIES RELATING TO THE COMMISSION ON THE NATIONAL GUARD AND RESERVES.

    (a) ANNUITIES AND PAY OF MEMBERS ON FEDERAL REEMPLOYMENT- Subsection (e) of section 513 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1882), as amended by section 516 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3237), is further amended by adding at the end the following new paragraph:

    `(3) If warranted by circumstances described in subparagraph (A) or (B) of section 8344(i)(1) of title 5, United States Code, or by circumstances described in subparagraph (A) or (B) of section 8468(f)(1) of such title, as applicable, the chairman of the Commission may exercise, with respect to the members of the Commission, the same waiver authority as would be available to the Director of the Office of Personnel Management under such section.'.

    (b) FINAL REPORT- Subsection (f)(2) of such section 513 is amended by striking `one year' and inserting `18 months'.

    (c) EFFECTIVE DATE- The amendments made by this section shall be effective on October 28, 2004, as if included in the enactment of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005. The amendment made by subsection (a) shall apply to members of the Commission on the National Guard and Reserves appointed on or after that date.

SEC. 534. PILOT PROGRAM ON REINTEGRATION OF MEMBERS OF THE NATIONAL GUARD INTO CIVILIAN LIFE AFTER DEPLOYMENT.

    (a) PILOT PROGRAM REQUIRED- The Secretary of the Army shall carry out a pilot program to assess the feasibility and advisability of utilizing the mechanisms specified in this section to facilitate the reintegration of members of the National Guard into civilian life after their return from deployment overseas.

    (b) LIMITATION ON LOCATION- The pilot program required by subsection (a) may only be carried out in a State that has a National Guard brigade that is returning from deployment overseas during the period of the pilot program.

    (c) PROGRAM ELEMENTS- The mechanisms under the pilot program required by subsection (a) shall include the following:

      (1) INITIAL REINTEGRATION TRAINING- Training (to be known as `initial reintegration training') of members of the National Guard described in subsection (a) to facilitate the reintegration of such members with their families and communities after their return from deployment as described in that subsection. Such training shall be conducted immediately after the return of such members from such deployment. Participation in such training shall be voluntary.

      (2) 30-day reintegration training- Training (to be known as `30-day reintegration training') of members of the National Guard described in subsection (a) to assist such members in identifying the signs and symptoms of combat stress. Such training shall be conducted approximately 30 days after provision of training under paragraph (1). Participation in such training shall be voluntary.

      (3) 60-day reintegration training- Training (to be known as `60-day reintegration training') of members of the National Guard described in subsection (a) to assist such members in matters relating to combat stress, including chemical dependency, anger management, and gambling abuse. Such training shall be conducted approximately 30 days after provision of training under paragraph (2). Participation in such training shall be voluntary.

      (4) 90-day reintegration training- Training (to be known as `90-day reintegration training') of members of the National Guard described in subsection (a) to ensure a thorough physical and mental health assessment of such members after deployment as described in that subsection. Such training shall be conducted approximately 30 days after provision of training under paragraph (3). Participation in such training shall be voluntary.

      (5) EDUCATIONAL MATERIALS- The development and distribution of educational materials for families of members of the National Guard described in subsection (a), and for the communities in which such members and families reside, on matters relating to the reintegration of such members into civilian life after their return from deployment overseas.

    (d) REPORT- Not later than one year after the commencement of the pilot program required by subsection (a), the Secretary shall submit to the congressional defense committees a report on the pilot program. The report shall include--

      (1) a description of the activities undertaken under the pilot program;

      (2) an assessment of the effectiveness of such mechanisms in facilitating the reintegration of members of the National Guard into civilian life after their return from deployment overseas; and

      (3) such recommendations for legislative or administrative action as the Secretary considers appropriate in light of the pilot program.

    (e) FUNDING- Of the amount authorized to be appropriated by section 301(10) for operation and maintenance for the Army National Guard, $6,663,000 may be available for the pilot program required by subsection (a).

Subtitle C--Military Justice and Related Matters

SEC. 551. APPLICABILITY OF UNIFORM CODE OF MILITARY JUSTICE TO MEMBERS OF THE ARMED FORCES ORDERED TO ACTIVE DUTY OVERSEAS IN INACTIVE DUTY FOR TRAINING STATUS.

    Not later than March 1, 2007, the Secretaries of the military departments shall prescribe regulations, or amend current regulations, in order to provide that officers and enlisted personnel of the Armed Forces who are ordered to active duty at locations overseas in an inactive duty for training status are subject to the jurisdiction of the Uniform Code of Military Justice, pursuant to the provisions of section 802(a)(3) of title 10, United States Code (article 2(a)(3) of the Uniform Code of Military Justice), continuously from the commencement of execution of such orders to the conclusion of such orders.

SEC. 552. CLARIFICATION OF APPLICATION OF UNIFORM CODE OF MILITARY JUSTICE DURING A TIME OF WAR.

    Paragraph (10) of section 802(a) of title 10, United States Code (article 2(a) of the Uniform Code of Military Justice), is amended by striking `war' and inserting `declared war or a contingency operation'.

Subtitle D--Education and Training Matters

SEC. 561. DETAIL OF COMMISSIONED OFFICERS AS STUDENTS AT MEDICAL SCHOOLS.

    (a) IN GENERAL- Chapter 101 of title 10, United States Code, is amended by inserting after section 2004 the following new section:

`Sec. 2004a. Detail of commissioned officers as students at medical schools

    `(a) DETAIL AUTHORIZED- The Secretary of each military department may detail commissioned officers of the Armed Forces as students at accredited medical schools or schools of osteopathy located in the United States for a period of training leading to the degree of doctor of medicine. No more than 25 officers from each military department may commence such training in any single fiscal year.

    `(b) ELIGIBILITY FOR DETAIL- To be eligible for detail under subsection (a), an officer must be a citizen of the United States and must--

      `(1) have served on active duty for a period of not less than two years nor more than six years and be in the pay grade 0-3 or below as of the time the training is to begin; and

      `(2) sign an agreement that unless sooner separated the officer will--

        `(A) complete the educational course of medical training;

        `(B) accept transfer or detail as a medical officer within the military department concerned when the officer's training is completed; and

        `(C) agree to serve on active duty following completion of training for a period of two years for each year or part thereof of the officer's medical training under subsection (a).

    `(c) SELECTION OF OFFICERS FOR DETAIL- Officers detailed for medical training under subsection (a) shall be selected on a competitive basis by the Secretary of the military department concerned.

    `(d) RELATION OF SERVICE OBLIGATIONS TO OTHER SERVICE OBLIGATIONS- Any service obligation incurred by an officer under an agreement entered into under subsection (b) shall be in addition to any service obligation incurred by the officer under any other provision of law or agreement.

    `(e) EXPENSES- Expenses incident to the detail of officers under this section shall be paid from any funds appropriated for the military department concerned.

    `(f) FAILURE TO COMPLETE PROGRAM- (1) An officer who is dropped from a program of medical training to which detailed under subsection (a) for deficiency in conduct or studies, or for other reasons, may be required to perform active duty in an appropriate military capacity in accordance with the active duty obligation imposed on the officer under regulations issued by the Secretary of Defense for purposes of this section.

    `(2) In no case shall an officer be required to serve on active duty under this subsection for any period in excess of one year for each year or part thereof the officer participated in the program.

    `(g) LIMITATION ON DETAILS- (1) No agreement detailing an officer of the Armed Forces to an accredited medical school or school of osteopathy may be entered into during any period in which the President is authorized by law to induct persons into the Armed Forces involuntarily.

    `(2) Nothing in this subsection shall affect any agreement entered into during any period when the President is not authorized by law to so induct persons into the Armed Forces.'.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 101 of such title is amended by inserting after the item relating to section 2004 the following new item:

      `2004a. Detail of commissioned officers as students at medical schools.'.

SEC. 562. EXPANSION OF ELIGIBILITY TO PROVIDE JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTION.

    (a) ELIGIBILITY OF RETIRED MEMBERS OF NATIONAL GUARD AND RESERVES- Section 2031 of title 10, United States Code, is amended by adding at the end the following new subsection:

    `(e) Instead of, or in addition to, the detailing of active duty officers and noncommissioned officers under subsection (c)(1), and the employment of retired officers, noncommissioned officers, and members of the Fleet Reserve and Fleet Marine Corps Reserve under subsection (d), the Secretary of the military department concerned may authorize qualified institutions to employ as administrators and instructors in the program retired officers and noncommissioned officers who qualify for retired pay for non-regular service under section 12731 of this title (other than those who qualify for age under subsection (a)(1) of such section) whose qualifications are approved by the Secretary and the institution concerned and who request such employment, subject to the following:

      `(1) The Secretary shall pay to the institution an amount equal to one-half of the amount paid to the member by the institution for any period up to a maximum of one-half of the difference between the retired or retainer pay for an active duty officer or noncommissioned offer of the same grade and years of service for such period and the active duty pay and allowances which the member would have received for such period if on active duty. Amounts may be paid with respect to members under this subsection after such members reach the age of 60. Payments by the Secretary under this paragraph shall be made from funds appropriated for that purpose.

      `(2) Notwithstanding any other provision of law, such a member is not, while so employed, considered to be on active duty or inactive duty training for any purpose.'.

    (b) CLARIFICATION OF STATUS OF RETIRED MEMBERS CURRENTLY PROVIDING INSTRUCTION- Subsection (d) of such section is amended in the matter preceding paragraph (1) by striking `and noncommissioned officers, and members of the Fleet Reserve and Fleet Marine Corps Reserve' and inserting `, noncommissioned officers, and members of the Fleet Reserve and Fleet Marine Corps Reserve who are drawing retired or retained pay'.

SEC. 563. INCREASE IN MAXIMUM AMOUNT OF REPAYMENT UNDER EDUCATION LOAN REPAYMENT FOR OFFICERS IN SPECIFIED HEALTH PROFESSIONS.

    (a) INCREASE IN MAXIMUM AMOUNT- Section 2173(e)(2) of title 10, United States Code, is amended by striking `$22,000' and inserting `$60,000'.

    (b) EFFECTIVE DATE-

      (1) IN GENERAL- The amendment made by subsection (a) shall take effect on October 1, 2006, and shall apply with respect agreements entered into under section 2173 of title 10, United States Code, on or after that date.

      (2) PROHIBITION ON ADJUSTMENT- The adjustment required by the second sentence of section 2173(e)(2) of title 10, United States Code, to be made on October 1, 2006, shall not be made.

SEC. 564. INCREASE IN BENEFITS UNDER HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    (a) STIPEND- Section 2121(d) of title 10, United States Code, is amended--

      (1) by striking `the rate of $579 per month' and inserting `in an amount not to exceed $30,000 per year'; and

      (2) by striking `That rate' and inserting `The maximum amount of the stipend'.

    (b) ANNUAL GRANT- Section 2127(e) of such title is amended--

      (1) by striking `$15,000' and inserting `in an amount not to exceed $45,000'; and

      (2) by striking `The amount' and inserting `The maximum amount'.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 2006.

    (d) PROHIBITION ON ADJUSTMENTS IN 2007- No adjustment under subsection (d) of section 2122 of title 10, United States Code, in the maximum amount of the stipend payable under such section 2122, and no adjustment under subsection (e) of section 2127 of such title in the maximum amount of the annual grant payable under such section 2127, shall be made in 2007.

SEC. 565. REPORT ON HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM.

    (a) REPORT REQUIRED- Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the health professions scholarship and financial assistance program for active service under subchapter I of chapter 105 of title 10, United States Code.

    (b) ELEMENTS- The report required by subsection (a) shall include the following:

      (1) An assessment of the success of each military department in achieving its recruiting goals under the health professions scholarship and financial assistance program for active service during each of fiscal years 2000 through 2006.

      (2) If any military department failed to achieve its recruiting goals under the program during any fiscal year covered by paragraph (1), an explanation of the failure of the military department to achieve such goal during such fiscal year.

      (3) An assessment of the adequacy of the stipend authorized by section 2121(d) of title 10, United States Code, in meeting the objectives of the program.

      (4) Such recommendations for legislative or administrative action as the Secretary considers appropriate to enhance the effectiveness of the program in meeting the annual recruiting goals of the military departments for medical personnel covered by the program.

SEC. 566. EXPANSION OF INSTRUCTION AVAILABLE AT THE NAVAL POSTGRADUATE SCHOOL FOR ENLISTED MEMBERS OF THE ARMED FORCES.

    (a) CERTIFICATE PROGRAMS AND COURSES- Subparagraph (C) of subsection (a)(2) of section 7045 of title 10, United States Code, is amended by striking `Navy or Marine Corps' and inserting `armed forces'.

    (b) GRADUATE LEVEL INSTRUCTION- Such subsection is further amended--

      (1) by redesignating subparagraph (D) as subparagraph (E);

      (2) by inserting after subparagraph (C) the following new subparagraph (D):

    `(D)(i) The Secretary may, pursuant to regulations prescribed by the Secretary, permit an eligible enlisted member of the armed forces to receive graduate level instruction at the Naval Postgraduate School in a program leading to a master's degree in a technical, analytical, or engineering curricula.

    `(ii) To be eligible for instruction under this subparagraph, an enlisted member shall hold a baccalaureate degree granted by an institution of higher education.

    `(iii) Instruction shall be provided under this subparagraph on a space-available basis.

    `(iv) An enlisted member who successfully completes a course of instruction under this subparagraph may be awarded a master's degree under section 7048 of this title.

    `(v) The regulations prescribed under clause (i) may include criteria for eligibility of enlisted members for instruction under this subparagraph and obligations for further service in the armed forces by enlisted members relating to receipt of such instruction.'; and

      (3) in subparagraph (E), as so redesignated, by striking `and (C)' and inserting `(C), and (D)'.

    (c) CONFORMING AMENDMENT- Subsection (b)(2) of such section is amended by striking `(a)(2)(D)' and inserting `(a)(2)(E)'.

    (d) REPEAL OF CERTAIN REQUIREMENTS ON INSTRUCTION- Section 526 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163) is amended by striking subsections (c) and (d).

SEC. 567. MODIFICATION OF ACTIONS TO ADDRESS SEXUAL HARASSMENT AND SEXUAL VIOLENCE AT THE SERVICE ACADEMIES.

    (a) CLARIFICATION OF SCOPE OF ACTIONS- Section 527 of the National Defense Authorization Act for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1468; 10 U.S.C. 4331 note) is amended--

      (1) in subsection (a)--

        (A) in the subsection caption, by inserting `SEXUAL' before `VIOLENCE'; and

        (B) in paragraph (1)--

          (i) in subparagraph (A), by striking `personnel of' and inserting `cadets at';

          (ii) in subparagraph (B), by striking `personnel of' and inserting `midshipmen at'; and

          (iii) in subparagraph (C), by striking `personnel of' and inserting `cadets at';

      (2) by inserting `sexual' before `violence' each place it appears; and

      (3) by striking `academy personnel' each place it appears and inserting `cadets or midshipmen'.

    (b) ASSESSMENTS OF ACADEMY POLICIES-

      (1) ADMINISTRATION OF ASSESSMENTS- Subsection (b) of such section is further amended--

        (A) in paragraph (1)--

          (i) by striking `to conduct' and inserting `to provide'; and

          (ii) by inserting `(to be administered by the Department of Defense)' after `an assessment'; and

        (B) in paragraph (2), by striking `shall conduct' and inserting `shall provide for the conduct of'.

      (2) SCHEDULE FOR ASSESSMENTS- Such subsection is further amended--

        (A) in the subsection caption, by striking `ANNUAL ASSESSMENT' and inserting `ASSESSMENTS REQUIRED';

        (B) in paragraph (1), by inserting `specified in paragraph (2)' after `each program year'; and

        (C) in paragraph (2), by striking `2007, and 2008' and inserting `2008, and 2010'.

    (c) REPORTS ON ACTIVITIES ON CAMPUS- Subsection (c) of such section is further amended--

      (1) in the subsection caption, by striking `ANNUAL REPORT' and inserting `REPORTS';

      (2) in paragraph (1), by striking `2007, and 2008' and inserting `2008, and 2010';

      (3) in paragraph (2)--

        (A) in the matter preceding subparagraph (A), by striking `The annual report' and inserting `The report'; and

        (B) in subparagraph (D), by striking `each of the subsequent academy program years' and inserting `each other academy program year covered by this subsection'; and

      (4) in paragraphs (3) and (4), by striking `the annual' and inserting `each'.

    (d) CONFORMING AMENDMENT- The heading of such section is amended to read as follows:

`SEC. 527. ACTIONS TO ADDRESS SEXUAL HARASSMENT AND SEXUAL VIOLENCE AT THE SERVICE ACADEMIES.'.

SEC. 568. DEPARTMENT OF DEFENSE POLICY ON SERVICE ACADEMY AND ROTC GRADUATES SEEKING TO PARTICIPATE IN PROFESSIONAL SPORTS BEFORE COMPLETION OF THEIR ACTIVE-DUTY SERVICE OBLIGATIONS.

    (a) POLICY REQUIRED-

      (1) IN GENERAL- Not later than July 1, 2007, the Secretary of Defense shall prescribe the policy of the Department of Defense on--

        (A) whether to authorize graduates of the service academies and the Reserve Officers' Training Corps to participate in professional sports before the completion of their obligations for service on active duty as commissioned officers; and

        (B) if so, the obligations for service on active duty as commissioned officers of such graduates who participate in professional sports before the satisfaction of the obligations referred to in subparagraph (A).

      (2) REVIEW OF CURRENT POLICIES- In prescribing the policy, the Secretary shall review current policies, practices, and regulations of the military departments on the obligations for service on active duty as commissioned officers of graduates of the service academies and the Reserve Officers' Training Corps, including policies on authorized leaves of absence and policies under excess leave programs.

      (3) CONSIDERATIONS- In prescribing the policy, the Secretary shall take into account the following:

        (A) The compatibility of participation in professional sports (including training for professional sports) with service on active duty in the Armed Forces or as a member of a reserve component of the Armed Forces.

        (B) The benefits for the Armed Forces of waiving obligations for service on active duty for cadets, midshipmen, and commissioned officers in order to permit such individuals to participate in professional sports.

        (C) The manner in which the military departments have resolved issues relating to the participation of personnel in professional sports, including the extent of and any reasons for, differences in the resolution of such issues by such departments.

        (D) The recoupment of the costs of education provided by the service academies or under the Reserve Officers' Training Corps program if graduates of the service academies or the Reserve Officers' Training Corps, as the case may be, do not complete the period of obligated service to which they have agreed by reason of participation in professional sports.

        (E) Any other matters that the Secretary considers appropriate.

    (b) ELEMENTS OF POLICY- The policy prescribed under subsection (a) shall address the following matters:

      (1) The eligibility of graduates of the service academies and the Reserve Officers' Training Corps for a reduction in the obligated length of service on active duty as a commissioned officer otherwise required of such graduates on the basis of their participation in professional sports.

      (2) Criteria for the treatment of an individual as a participant or potential participant in professional sports.

      (3) The effect on obligations for service on active duty as a commissioned officer of any unsatisfied obligations under prior enlistment contracts or other forms of advanced education assistance.

      (4) Any authorized variations in the policy that are warranted by the distinctive requirements of a particular Armed Force.

      (5) The eligibility of individuals for medical discharge or disability benefits as a result of injuries incurred while participating in professional sports.

      (6) A prospective effective date for the policy and for the application of the policy to individuals serving on such effective date as a commissioned officer, cadet, or midshipman.

    (c) APPLICATION OF POLICY TO ARMED FORCES- Not later than December 1, 2007, the Secretary of each military department shall prescribe regulations, or modify current regulations, in order to implement the policy prescribed by the Secretary of Defense under subsection (a) with respect to the Armed Forces under the jurisdiction of such Secretary.

SEC. 569. REVIEW OF LEGAL STATUS OF JUNIOR ROTC PROGRAM.

    (a) Review- The Secretary of Defense shall conduct a review of the 1976 legal opinion issued by the General Counsel of the Department of Defense regarding instruction of non-host unit students participating in Junior Reserve Officers' Training Corps programs. The review shall consider whether changes to law after the issuance of that opinion allow in certain circumstances for the arrangement for assignment of instructors that provides for the travel of an instructor from one educational institution to another once during the regular school day for the purposes of the Junior Reserve Officers' Training Corps program as an authorized arrangement that enhances administrative efficiency in the management of the program. If the Secretary, as a result of the review, determines that such authority is not available, the Secretary should also consider whether such authority should be available and whether there should be authority to waive the restrictions under certain circumstances.

    (b) Report- The Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report containing the results of the review not later than 180 days after the date of the enactment of this Act.

    (c) Interim Authority- A current institution that has more than 70 students and is providing support to another educational institutional with more than 70 students and has been providing for the assignment of instructors from one school to the other may continue to provide such support until 180 days following receipt of the report under subsection (b).

SEC. 570. JUNIOR RESERVE OFFICERS' TRAINING CORPS INSTRUCTOR QUALIFICATIONS.

    (a) In General- Chapter 102 of title 10, United States Code, is amended by adding at the end the following new section:

`Sec. 2033. Instructor qualifications

    `(a) In General- In order for a retired officer or noncommissioned officer to be employed as an instructor in the program, the officer must be certified by the Secretary of the military department concerned as a qualified instructor in leadership, wellness and fitness, civics, and other courses related to the content of the program, according to the qualifications set forth in subsection (b)(2) or (c)(2), as appropriate.

    `(b) Senior Military Instructors-

      `(1) ROLE- Senior military instructors shall be retired officers of the armed forces and shall serve as instructional leaders who oversee the program.

      `(2) QUALIFICATIONS- A senior military instructor shall have the following qualifications:

        `(A) Professional military qualification, as determined by the Secretary of the military department concerned.

        `(B) Award of a baccalaureate degree from an institution of higher learning.

        `(C) Completion of secondary education teaching certification requirements for the program as established by the Secretary of the military department concerned.

        `(D) Award of an advanced certification by the Secretary of the military department concerned in core content areas based on--

          `(i) accumulated points for professional activities, services to the profession, awards, and recognitions;

          `(ii) professional development to meet content knowledge and instructional skills; and

          `(iii) performance evaluation of competencies and standards within the program through site visits and inspections.

    `(c) Non-Senior Military Instructors-

      `(1) ROLE- Non-senior military instructors shall be retired noncommissioned officers of the armed forces and shall serve as instructional leaders and teach independently of, but share program responsibilities with, senior military instructors.

      `(2) QUALIFICATIONS- A non-senior military instructor shall demonstrate a depth of experience, proficiency, and expertise in coaching, mentoring, and practical arts in executing the program, and shall have the following qualifications:

        `(A) Professional military qualification, as determined by the Secretary of the military department concerned.

        `(B) Award of an associates degree from an institution of higher learning within 5 years of employment.

        `(C) Completion of secondary education teaching certification requirements for the program as established by the Secretary of the military department concerned.

        `(D) Award of an advanced certification by the Secretary of the military department concerned in core content areas based on--

          `(i) accumulated points for professional activities, services to the profession, awards, and recognitions;

          `(ii) professional development to meet content knowledge and instructional skills; and

          `(iii) performance evaluation of competencies and standards within the program through site visits and inspections.'.

    (b) Clerical Amendment- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      `2033. Instructor qualifications.'.

SEC. 570A. MODIFICATION OF TIME LIMIT FOR USE OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE FOR RESERVE COMPONENT MEMBERS SUPPORTING CONTINGENCY OPERATIONS AND OTHER OPERATIONS.

    (a) Modification- Section 16164(a) of title 10, United States Code, is amended by striking `this chapter while serving--' and all that follows and inserting `this chapter--

      `(1) while the member is serving--

        `(A) in the Selected Reserve of the Ready Reserve, in the case of a member called or ordered to active service while serving in the Selected Reserve; or

        `(B) in the Ready Reserve, in the case of a member ordered to active duty while serving in the Ready Reserve (other than the Selected Reserve); and

      `(2) in the case of a person who separates from the Selected Reserve of the Ready Reserve after completion of a period of active service described in section 16163 of this title and completion of a service contract under other than dishonorable conditions, during the 10-year period beginning on the date on which the person separates from the Selected Reserve.'.

    (b) Conforming Amendment- Paragraph (2) of section 16165(a) of such title is amended to read as follows:

      `(2) when the member separates from the Ready Reserve as provided in section 16164(a)(1) of this title, or upon completion of the period provided for in section 16164(a)(2) of this title, as applicable.'.

    (c) Effective Date- The amendments made by this section shall take effect on October 28, 2004, as if included in the enactment of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375), to which such amendments relate.

Subtitle E--Defense Dependents Education Matters

SEC. 571. FUNDING FOR ASSISTANCE TO LOCAL EDUCATIONAL AGENCIES THAT BENEFIT DEPENDENTS OF MEMBERS OF THE ARMED FORCES AND DEPARTMENT OF DEFENSE CIVILIAN EMPLOYEES.

    (a) FUNDING FOR FISCAL YEAR 2007- Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities--

      (1) $30,000,000 shall be available only for the purpose of providing assistance to local educational agencies under section 572(a) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3271; 20 U.S.C. 7703b); and

      (2) $10,000,000 shall be available only for the purpose of providing assistance to local educational agencies under section 572(b) of that Act.

    (b) TREATMENT OF FUNDING FOR NOTIFICATION PURPOSES- The funding provided under subsection (a) for fiscal year 2007 shall be treated as funding for that fiscal year for purposes of the notification of local educational agencies required by section 572(c) of the National Defense Authorization Act for Fiscal Year 2006 (119 Stat. 3272).

    (c) Transition of Military Dependents From Military to Civilian Schools-

      (1) IN GENERAL- The Secretary of Defense shall work collaboratively with the Secretary of Education in any efforts to ease the transition of dependents of members of the Armed Forces from attendance in Department of Defense dependent schools to civilian schools in systems operated by local educational agencies.

      (2) UTILIZATION OF EXISTING RESOURCES- In working with the Secretary of Education under paragraph (1), the Secretary of Defense may utilize funds authorized to be appropriated for operation and maintenance for Defense-wide activities to share expertise and experience of the Department of Defense Education Activity with local educational agencies as dependents of members of the Armed Forces make the transition from attendance at Department of Defense dependent schools to attendance at civilian schools in systems operated by such local educational agencies, including such transitions resulting from defense base closure and realignment, global rebasing, and force restructuring.

      (3) DEFINITIONS- In this subsection:

        (A) The term `expertise and experience', with respect to the Department of Defense Education Activity, means resources of such activity relating to--

          (i) academic strategies which result in increased academic achievement;

          (ii) curriculum development consultation and materials;

          (iii) teacher training resources and materials;

          (iv) access to virtual and distance learning technology capabilities and related applications for teachers; and

          (v) such other services as the Secretary of Defense considers appropriate to improve the academic achievement of such students.

        (B) The term `local educational agency' has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

      (4) EXPIRATION- The authority of the Secretary of the Defense under this subsection shall expire on September 30, 2011.

SEC. 572. IMPACT AID FOR CHILDREN WITH SEVERE DISABILITIES.

    Of the amount authorized to be appropriated pursuant to section 301(5) for operation and maintenance for Defense-wide activities, $5,000,000 shall be available for payments under section 363 of the Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 (as enacted into law by Public Law 106-398; 114 Stat. 1654A-77; 20 U.S.C. 7703a).

SEC. 573. PLAN TO ASSIST LOCAL EDUCATIONAL AGENCIES EXPERIENCING GROWTH IN ENROLLMENT DUE TO FORCE STRUCTURE CHANGES, RELOCATION OF MILITARY UNITS, OR BRAC.

    (a) PLAN REQUIRED- Not later than January 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report setting forth a plan to provide assistance to local educational agencies that experience growth in the enrollment of military dependent students as a result of any of the following events:

      (1) Force structure changes.

      (2) The relocation of a military unit.

      (3) The closure or realignment of military installations pursuant to defense base closure and realignment under the base closure laws.

    (b) ELEMENTS- The report required by subsection (a) shall include the following:

      (1) An identification, current as of the date of the report, of the total number of military dependent students who are anticipated to be arriving at or departing from military installations as a result of any event described in subsection (a), including--

        (A) an identification of the military installations affected by such arrivals and departures;

        (B) an estimate of the number of such students arriving at or departing from each such installation; and

        (C) the anticipated schedule of such arrivals and departures.

      (2) Such recommendations as the Office of Economic Adjustment of the Department of Defense considers appropriate for means of assisting affected local educational agencies in accommodating increases in enrollment of military dependent students as a result of any such event.

      (3) A plan for outreach to be conducted to affected local educational agencies, commanders of military installations, and members of the Armed Forces and civilian personnel of the Department of Defense regarding information on the assistance to be provided under the plan under subsection (a).

    (c) UPDATE- Not later than July 1, 2007, and every six months thereafter through January 1, 2011, the Secretary shall submit to the congressional defense committees an update of the report required by subsection (a). Each update shall include an update of each matter required under subsection (b) current as of the date of such update.

    (d) DEFINITIONS- In this section:

      (1) The term `base closure law' has the meaning given that term in section 101 of title 10, United States Code.

      (2) The term `local educational agency' has the meaning given that term in section 8013(9) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7713(9)).

      (3) The term `military dependent students' refers to--

        (A) elementary and secondary school students who are dependents of members of the Armed Forces; and

        (B) elementary and secondary school students who are dependents of civilian employees of the Department of Defense.

SEC. 574. PILOT PROGRAM ON PARENT EDUCATION TO PROMOTE EARLY CHILDHOOD EDUCATION FOR DEPENDENT CHILDREN AFFECTED BY MILITARY DEPLOYMENT OR RELOCATION OF MILITARY UNITS.

    (a) PILOT PROGRAM REQUIRED- The Secretary of Defense shall carry out a pilot program on the provision of educational and support tools to the parents of preschool-age children--

      (1) whose parent or parents serve as members of the Armed Forces on active duty (including members of the Selected Reserve on active duty pursuant to a call or order to active duty of 180 days or more); and

      (2) who are affected by the deployment of their parent or parents or the relocation of the military unit of which their parent or parents are a member.

    (b) PURPOSE- The purpose of the pilot program is to develop models for improving the capability of military child and youth programs on or near military installations to provide assistance to military parents with young children through a program of activities focusing on the unique needs of children described in subsection (a).

    (c) DURATION OF PROGRAM- The pilot program shall commence on October 1, 2007, and shall conclude on September 30, 2010.

    (d) SCOPE OF PROGRAM- The pilot program shall utilize one or more models (demonstrated through research) of universal access of parents of children described in subsection (a) to assistance under the pilot program in order to achieve the following goals:

      (1) The identification and mitigation of specific risk factors for such children related to military life.

      (2) The maximization of the educational readiness of such children.

    (e) LOCATIONS-

      (1) IN GENERAL- The pilot program shall be carried out at military installations selected by the Secretary for purposes of this section from among military installations whose military personnel are experiencing significant transition or deployment or which are undergoing transition as a result of the relocation or activation of military units or activities relating to defense base closure and realignment.

      (2) SELECTION OF CERTAIN INSTALLATIONS- At least one of the installations selected by the Secretary under paragraph (1) shall be an installation that permits the meaningful evaluation of a model under subsection (d) that provides outreach to parents in families with a parent who is a member of the National Guard or Reserve, which families live more than 40 miles from the installation so selected.

    (f) GOALS OF PARTICIPATING INSTALLATIONS- Appropriate personnel at each military installation selected for participation in the pilot program shall develop goals, and specific outcome measures with respect to such goals, for the conduct of the pilot program at such installation.

    (g) EVALUATION-

      (1) EVALUATION REQUIRED- Upon completion of the pilot program at a military installation, the personnel referred to in subsection (f) at such installation shall conduct an evaluation and assessment of the success of the pilot program at such installation in meeting the goals developed under that subsection.

      (2) REPORT- Upon completion of the evaluations under paragraph (1) for all military installations participating in the pilot program, the Secretary of Defense shall submit to the congressional defense committees a report on such evaluations. The report shall describe the results of such evaluations, and may include such recommendations for legislative or administrative action as the Secretary considers appropriate in light of such evaluations, including recommendations for the continuation of the pilot program.

    (h) GUIDELINES- The Secretary shall issue guidelines applicable to the pilot program, including guidelines on the goals to be developed under subsection (f), specific outcome measures, and guidelines on the selection of curriculum and the conduct of developmental screening under the pilot program.

    (i) FUNDING- Of the amounts authorized to be appropriated by section 301(1) for operation and maintenance for the Army, $1,500,000 shall be available to carry out the pilot program in fiscal year 2007.

Subtitle F--Other Matters

SEC. 581. ADMINISTRATION OF OATHS.

    (a) IN GENERAL- Section 502 of title 10, United States Code, is amended by striking the flush matter at the end and inserting the following new flush matter:

    `This oath may be taken before the President, the Vice President, the Secretary of Defense, any commissioned officer of any armed force, or any other person designated under regulations prescribed by the Secretary of Defense.'.

    (b) CONFORMING AMENDMENT- Section 1031 of such title is amended by striking `Any commissioned officer' and all that follows through `on active duty,' and inserting `The President, the Vice President, the Secretary of Defense, any commissioned officer of an armed force, or any other person designated under regulations prescribed by the Secretary of Defense'.

SEC. 582. MILITARY ID CARDS FOR RETIREE DEPENDENTS WHO ARE PERMANENTLY DISABLED.

    (a) IN GENERAL- Subsection (a) of section 1060b of title 10, United States Code, is amended to read as follows:

    `(a) ISSUANCE OF PERMANENT ID CARD- (1) In issuing military ID cards to retiree dependents, the Secretary concerned shall issue a permanent ID card (not subject to renewal) to any such retiree dependent as follows:

      `(A) A retiree dependent who has attained 75 years of age.

      `(B) A retiree dependent who is permanently disabled.

    `(2) A permanent ID card shall be issued to a retiree dependent under paragraph (1)(A) upon the expiration, after the retiree dependent attains 75 years of age, of any earlier, renewable military card or, if earlier, upon the request of the retiree dependent after attaining age 75.'.

    (b) CONFORMING AND CLERICAL AMENDMENTS-

      (1) HEADING AMENDMENT- The heading of such section is amended to read as follows:

`Sec. 1060b. Military ID cards: dependents and survivors of retirees'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 53 of such title is amended by striking the item relating to section 1060b and inserting the following new item:

      `1060b. Military ID cards: dependents and survivors of retirees.'.

SEC. 583. MILITARY VOTING MATTERS.

    (a) REPEAL OF PERIODIC INSPECTOR GENERAL INSTALLATION VISITS FOR ASSESSMENT OF VOTING ASSISTANCE PROGRAMS- Section 1566 of title 10, United States Code, is amended--

      (1) by striking subsection (d); and

      (2) by redesignating subsections (e) through (i) as subsections (d) through (h), respectively.

    (b) COMPTROLLER GENERAL REPORT- Not later than March 1, 2007, the Comptroller General of the United States shall submit to Congress a report containing the assessment of the Comptroller General with respect to the following:

      (1) The programs and activities undertaken by the Department of Defense to facilitate voter registration, transmittal of ballots to absentee voters, and voting utilizing electronic means of communication (such as electronic mail and fax transmission) for military and civilian personnel covered by the Uniformed and Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.).

      (2) The progress of the Department of Defense and the Election Assistance Commission in developing a secure, deployable system for Internet-based electronic voting pursuant to the amendment made by section 567 of the Ronald W. Reagan National Defense Authorization Act for Fiscal Year 2005 (Public Law 108-375; 118 Stat. 1919).

    (c) Use of Electronic Voting Technology-

      (1) CONTINUATION OF INTERIM VOTING ASSISTANCE SYSTEM- The Secretary of Defense shall continue the Interim Voting Assistance System (IVAS) ballot request program with respect to all absent uniformed services voters (as defined under section 107(1) of the Uniformed Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff-6(1))), overseas employees of the Department of Defense, and the dependents of such voters and employees, for the general election and all elections through December 31, 2006.

      (2) REPORTS-

        (A) IN GENERAL- Not later than 30 days after the date of the regularly scheduled general election for Federal office for November 2006, the Secretary of Defense shall submit to the congressional defense committees a report setting forth--

          (i) an assessment of the success of the implementation of the Interim Voting Assistance System ballot request program carried out under paragraph (1);

          (ii) recommendations for continuation of the Interim Voting Assistance System and for improvements to that system; and

          (iii) an assessment of available technologies and other means of achieving enhanced use of electronic and Internet-based capabilities under the Interim Voting Assistance System.

        (B) FUTURE ELECTIONS- Not later than May 15, 2007, the Secretary of Defense shall submit to the congressional defense committees a report detailing plans for expanding the use of electronic voting technology for individuals covered under the Uniformed Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff et seq.) for elections through November 30, 2010.

SEC. 584. PRESENTATION OF MEDAL OF HONOR FLAG TO PRIMARY NEXT OF KIN OF MEDAL OF HONOR RECIPIENTS.

    (a) ARMY RECIPIENTS- Section 3755 of title 10, United States Code, is amended--

      (1) by inserting `(a) PRESENTATION TO MEDAL OF HONOR RECIPIENTS- ' before `The President'; and

      (2) by striking `after October 23, 2002'; and

      (3) by adding at the end the following new subsection:

    `(b) PRESENTATION TO PRIMARY NEXT OF KIN- The President may provide for the presentation of a Medal of Honor Flag to the primary living next of kin (as designated by the Secretary of Defense in regulations prescribed for purposes of this section) of a deceased medal of honor recipient described in subsection (a).'.

    (b) NAVY AND MARINE CORPS RECIPIENTS- Section 6257 of such title is amended--

      (1) by inserting `(a) IN GENERAL- ' before `The President'; and

      (2) by striking `after October 23, 2002'; and

      (3) by adding at the end the following new subsection:

    `(b) PRESENTATION TO PRIMARY NEXT OF KIN- The President may provide for the presentation of a Medal of Honor Flag to the primary living next of kin (as designated by the Secretary of Defense in regulations prescribed for purposes of this section) of a deceased medal of honor recipient described in subsection (a).'.

    (c) AIR FORCE RECIPIENTS- Section 8755 of such title is amended--

      (1) by inserting `(a) IN GENERAL- ' before `The President'; and

      (2) by striking `after October 23, 2002'; and

      (3) by adding at the end the following new subsection:

    `(b) PRESENTATION TO PRIMARY NEXT OF KIN- The President may provide for the presentation of a Medal of Honor Flag to the primary living next of kin (as designated by the Secretary of Defense in regulations prescribed for purposes of this section) of a deceased medal of honor recipient described in subsection (a).'.

    (d) COAST GUARD RECIPIENTS- Section 505 of title 14, United States Code, is amended--

      (1) by inserting `(a) IN GENERAL- ' before `The President'; and

      (2) by striking `after October 23, 2002'; and

      (3) by adding at the end the following new subsection:

    `(b) PRESENTATION TO PRIMARY NEXT OF KIN- The President may provide for the presentation of a Medal of Honor Flag to the primary living next of kin (as designated by the Secretary of Homeland Security in regulations prescribed for purposes of this section) of a deceased medal of honor recipient described in subsection (a).'.

SEC. 585. MODIFICATION OF EFFECTIVE PERIOD OF AUTHORITY TO PRESENT RECOGNITION ITEMS FOR RECRUITMENT AND RETENTION PURPOSES.

    Subsection (d) of section 2261 of title 10, United States Code, is amended to read as follows:

    `(d) EFFECTIVE PERIOD- The authority under this section shall be in effect during the period of any war or national emergency declared by the President or Congress.'.

SEC. 586. MILITARY SEVERELY INJURED CENTER.

    (a) CENTER REQUIRED- In support of the comprehensive policy on the provision of assistance to severely wounded or injured servicemembers required by section 563 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3269; 10 U.S.C. 113 note), the Secretary of Defense shall establish within the Department of Defense a center to augment and support the programs and activities of the military departments for the provision of such assistance, including the programs of the military departments referred to in subsection (c).

    (b) DESIGNATION- The center established under subsection (a) shall be known as the `Military Severely Injured Center' (in this section referred to as the `Center').

    (c) PROGRAMS OF THE MILITARY DEPARTMENTS- The programs of the military departments referred to in this subsection are as follows:

      (1) The Army Wounded Warrior Support Program.

      (2) The Navy Safe Harbor Program.

      (3) The Palace HART Program of the Air Force.

      (4) The Marine for Life Injured Support Program of the Marine Corps.

    (d) ACTIVITIES OF CENTER-

      (1) IN GENERAL- The Center shall carry out such programs and activities to augment and support the programs and activities of the military departments for the provision of assistance through individual case management to severely wounded or injured servicemembers and their families as the Secretary of Defense, in consultation with the Secretaries of the military departments and the heads of other appropriate departments and agencies of the Federal Government (including the Department of Labor and the Department of Veterans Affairs), shall assign the Center.

      (2) DATABASE- The activities of the Center under this subsection shall include the establishment and maintenance of a central database of information for purposes of tracking severely wounded or injured servicemembers.

    (e) RESOURCES- The Secretary of Defense shall allocate to the Center such personnel and other resources as the Secretary of Defense, in consultation with the Secretaries of the military departments, considers appropriate in order to permit the Center to carry out effectively the programs and activities assigned to the Center under subsection (d).

SEC. 587. SENSE OF SENATE ON NOTICE TO CONGRESS OF RECOGNITION OF MEMBERS OF THE ARMED FORCES FOR EXTRAORDINARY ACTS OF BRAVERY, HEROISM, AND ACHIEVEMENT.

    It is the sense of the Senate that the Secretary of Defense or the Secretary of the military department concerned should, upon awarding a medal to a member of the Armed Forces or otherwise commending or recognizing a member of the Armed Forces for an act of extraordinary heroism, bravery, achievement, or other distinction, notify the Committee on Armed Services of the Senate and House of Representatives, the Senators from the State in which such member resides, and the Member of the House of Representatives from the district in which such member resides of such extraordinary award, commendation, or recognition.

SEC. 588. REPORT ON PROVISION OF ELECTRONIC COPY OF MILITARY RECORDS ON DISCHARGE OR RELEASE OF MEMBERS FROM THE ARMED FORCES.

    (a) Report Required- Not later than 120 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report on the feasibility and advisability of providing an electronic copy of military records (including all military service, medical, and other military records) to members of the Armed Forces on their discharge or release from the Armed Forces.

    (b) Elements- The report required by subsection (a) shall include the following:

      (1) An estimate of the costs of the provision of military records as described in subsection (a).

      (2) An assessment of providing military records as described in that subsection through the distribution of a portable, readily accessible medium (such as a computer disk or other similar medium) containing such records.

      (3) A description and assessment of the mechanisms required to ensure the privacy of members of the Armed Forces in providing military records as described in that subsection.

      (4) An assessment of the benefits to the members of the Armed Forces of receiving their military records as described in that subsection.

      (5) If the Secretary determines that providing military records to members of the Armed Forces as described in that subsection is feasible and advisable, a plan (including a schedule) for providing such records to members of the Armed Forces as so described in order to ensure that each member of the Armed Forces is provided such records upon discharge or release from the Armed Forces.

      (6) Any other matter to relating to the provision of military records as described in that subsection that the Secretary considers appropriate.

SEC. 589. PURPLE HEART AWARD ELIGIBILITY.

    (a) FINDINGS- Congress makes the following findings:

      (1) The Purple Heart is the oldest military decoration in the world in present use.

      (2) The Purple Heart was established on August 7, 1782, during the Revolutionary War, when General George Washington issued an order establishing the Honorary Badge of Distinction, otherwise known as the Badge of Military Merit.

      (3) The award of the Purple Heart ceased with the end of the Revolutionary War, but was revived in 1932, the 200th anniversary of George Washington's birth, out of respect for his memory and military achievements by War Department General Orders No. 3, dated February 22, 1932.

      (4) The criteria for the award was originally announced in War Department Circular dated February 22, 1932, and revised by Presidential Executive Order 9277, dated December 3, 1942; Executive Order 10409, dated February 12, 1952; Executive Order 11016, dated April 25, 1962; and Executive Order 12464, dated February 23, 1984.

      (5) The Purple Heart is awarded in the name of the President of the United States as Commander in Chief to members of the Armed Forces who qualify under criteria set forth by Presidential Executive Order.

    (b) DETERMINATION- As part of the review and report required in subsection (d), the President shall make a determination on expanding eligibility to all deceased servicemembers held as a prisoner of war after December 7, 1941, and who meet the criteria establishing eligibility for the prisoner-of-war medal under section 1128 of title 10, but who do not meet the criteria establishing eligibility for the Purple Heart.

    (c) REQUIREMENTS- In making the determination described in subsection (b), the President shall take into consideration--

      (1) the brutal treatment endured by thousands of POWs incarcerated by enemy forces;

      (2) that many service members died due to starvation, abuse, the deliberate withholding of medical treatment for injury or disease, or other causes which do not currently meet the criteria for award of the Purple Heart;

      (3) the views of veteran organizations, including the Military Order of the Purple Heart;

      (4) the importance and gravity that has been assigned to determining all available facts prior to a decision to award the Purple Heart; and

      (5) the views of the Secretary of Defense and the Joint Chiefs of Staff.

    (d) REPORT- Not later than March 1, 2007, the President shall provide the Committees on Armed Services of the Senate and House of Representatives a report on the advisability of modifying the criteria for the award of the Purple Heart to authorize the award of the Purple Heart to military members who die in captivity under unknown circumstances or as a result of conditions and treatment which currently do not qualify the decedent for award of the Purple Heart; and for military members who survive captivity as prisoners of war, but die thereafter as a result of disease or disability incurred during captivity.

SEC. 590. COMPREHENSIVE REVIEW ON PROCEDURES OF THE DEPARTMENT OF DEFENSE ON MORTUARY AFFAIRS.

    (a) Report- As soon as practicable after the completion of the comprehensive review of the procedures of the Department of Defense on mortuary affairs, the Secretary of Defense shall submit to the congressional defense committees a report on the review.

    (b) Additional Elements- In conducting the comprehensive review described in subsection (a), the Secretary shall also address, in addition to any other matters covered by the review, the following:

      (1) The utilization of additional or increased refrigeration (including icing) in combat theaters in order to enhance preservation of remains.

      (2) The relocation of refrigeration assets further forward in the field.

      (3) Specific time standards for the movement of remains from combat units.

      (4) The forward location of autopsy and embalming operations.

      (5) Any other matters that the Secretary considers appropriate in order to speed the return of remains to the United States in a non-decomposed state.

    (c) Additional Element of Policy on Casualty Assistance to Survivors of Military Decedents- Section 562(b) of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3267; 10 U.S.C. 1475 note) is amended by adding at the end the following new paragraph:

      `(12) The process by which the Department of Defense, upon request, briefs survivors of military decedents on the cause of, and any investigation into, the death of such military decedents and on the disposition and transportation of the remains of such decedents, which process shall--

        `(A) provide for the provision of such briefings by fully qualified Department personnel;

        `(B) ensure briefings take place as soon as possible after death and updates are provided in a timely manner when new information becomes available;

        `(C) ensure that--

          `(i) such briefings and updates relate the most complete and accurate information available at the time of such briefings or updates, as the case may be; and

          `(ii) incomplete or unverified information is identified as such during the course of such briefings or updates; and

        `(D) include procedures by which such survivors shall, upon request, receive updates or supplemental information on such briefings or updates from qualified Department personnel.'.

SEC. 591. REPORT ON OMISSION OF SOCIAL SECURITY NUMBERS ON MILITARY IDENTIFICATION CARDS.

    (a) Report- Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to Congress a report setting forth the assessment of the Secretary of the feasibility of utilizing military identification cards that do not contain, display or exhibit the Social Security Number of the individual identified by such military identification card.

    (b) Military Identification Card Defined- In this section, the term `military identification card' has the meaning given the term `military ID card' in section 1060b(b)(1) of title 10, United States Code.

SEC. 592. FUNERAL CEREMONIES FOR VETERANS.

    (a) Support for Ceremonies by Details Consisting Solely of Members of Veterans and Other Organizations-

      (1) SUPPORT OF CEREMONIES- Section 1491 of title 10, United States Code, is amended--

        (A) by redesignating subsections (e), (f), (g), and (h) as subsections (f), (g), (h), and (i), respectively; and

        (B) by inserting after subsection (d) the following new subsection (e):

    `(e) Support for Funeral Honors Details Composed of Members of Veterans Organizations- (1) Subject to such regulations and procedures as the Secretary of Defense may prescribe, the Secretary of the military department of which a veteran was a member may support the conduct of funeral honors for such veteran that are provided solely by members of veterans organizations or other organizations referred to in subsection (b)(2).

    `(2) The provision of support under this subsection is subject to the availability of appropriations for that purpose.

    `(3) The support provided under this subsection may include the following:

      `(A) Reimbursement for costs incurred by organizations referred to in paragraph (1) in providing funeral honors, including costs of transportation, meals, and similar costs.

      `(B) Payment to members of such organizations providing such funeral honors of the daily stipend prescribed under subsection (d)(2).'.

      (2) CONFORMING AMENDMENTS- Such section is further amended--

        (A) in subsection (d)(2), by inserting `and subsection (e)' after `paragraph (1)(A)'; and

        (B) in paragraph (1) of section (f), as redesignated by subsection (a)(1) of this section, by inserting `(other than a requirement in subsection (e)' after `pursuant to this section'.

    (b) Use of Excess M-1 Rifles for Ceremonial and Other Purposes- Section 4683 of such title is amended--

      (1) in subsection (a), by adding at the end the following new paragraph:

    `(3) Rifles loaned or donated under paragraph (1) may be used by an eligible designee for funeral ceremonies of a member or former member of the armed forces and for other ceremonial purposes.';

      (2) in subsection (c), by inserting after `accountability' the following: `, provided that such conditions do not unduly hamper eligible designees from participating in funeral ceremonies of a member or former member of the armed forces or other ceremonies';

      (3) in subsection (d)--

        (A) in paragraph (2), by striking `; or' and inserting `or fire department;';

        (B) in paragraph (3), by striking the period at the end and inserting `; or'; and

        (C) by adding at the end the following new paragraph:

      `(4) any other member in good standing of an organization described in paragraphs (1), (2), or (3).'; and

      (4) by adding at the end the following new subsection:

    `(e) Eligible Designee Defined- In this section, the term `eligible designee' means a designee of an eligible organization who--

      `(1) is a spouse, son, daughter, nephew, niece, or other family relation of a member or former member of the armed forces;

      `(2) is at least 18 years of age; and

      `(3) has successfully completed a formal firearm training program or a hunting safety program.'.

TITLE VI--COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A--Pay and Allowances

SEC. 601. FISCAL YEAR 2007 INCREASE IN MILITARY BASIC PAY AND REFORM OF BASIC PAY RATES.

    (a) WAIVER OF SECTION 1009 ADJUSTMENT- The adjustment to become effective during fiscal year 2007 required 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) JANUARY 1, 2007, INCREASE IN BASIC PAY- Effective on January 1, 2007, the rates of monthly basic pay for members of the uniformed services are increased by 2.2 percent.

    (c) REFORM OF 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:
MONTHLY BASIC PAY
COMMISSIONED OFFICERS 1 
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-10 2         $0.00      $0.00      $0.00      $0.00      $0.00 
O-9             0.00       0.00       0.00       0.00       0.00 
O-8         8,453.10   8,729.70   8,913.60   8,964.90   9,194.10 
O-7         7,023.90   7,350.00   7,501.20   7,621.20   7,838.40 
O-6         5,206.20   5,719.20   6,094.50   6,094.50   6,117.60 
O-5         4,339.80   4,888.80   5,227.50   5,291.10   5,502.00 
O-4         3,744.60   4,334.70   4,623.90   4,688.40   4,956.90 
O-3 3       3,292.20   3,732.30   4,028.40   4,392.00   4,602.00 
O-2 3       2,844.30   3,239.70   3,731.40   3,857.40   3,936.60 
O-1 3       2,469.30   2,569.80   3,106.50   3,106.50   3,106.50 
              Over 8    Over 10    Over 12    Over 14    Over 16 
O-10 2         $0.00      $0.00      $0.00      $0.00      $0.00 
O-9             0.00       0.00       0.00       0.00       0.00 
O-8         9,577.20   9,666.30  10,030.20  10,134.30  10,447.80 
O-7         8,052.90   8,301.30   8,548.80   8,797.20   9,577.20 
O-6         6,380.10   6,414.60   6,414.60   6,779.10   7,423.80 
O-5         5,628.60   5,906.40   6,110.10   6,373.20   6,776.40 
O-4         5,244.60   5,602.80   5,882.40   6,076.20   6,187.50 
O-3 3       4,833.30   4,982.70   5,228.40   5,355.90   5,355.90 
O-2 3       3,936.60   3,936.60   3,936.60   3,936.60   3,936.60 
O-1 3       3,106.50   3,106.50   3,106.50   3,106.50   3,106.50 
             Over 18    Over 20    Over 22    Over 24    Over 26 
O-10 2         $0.00 $13,659.00 $13,725.90 $14,011.20 $14,508.60 
O-9             0.00  11,946.60  12,118.50  12,367.20  12,801.30 
O-8        10,900.80  11,319.00  11,598.30  11,598.30  11,598.30 
O-7        10,236.00  10,236.00  10,236.00  10,236.00  10,287.90 
O-6         7,802.10   8,180.10   8,395.20   8,613.00   9,035.70 
O-5         6,968.10   7,158.00   7,373.10   7,373.10   7,373.10 
O-4         6,252.30   6,252.30   6,252.30   6,252.30   6,252.30 
O-3 3       5,355.90   5,355.90   5,355.90   5,355.90   5,355.90 
O-2 3       3,936.60   3,936.60   3,936.60   3,936.60   3,936.60 
O-1 3       3,106.50   3,106.50   3,106.50   3,106.50   3,106.50 
             Over 28    Over 30    Over 32    Over 34    Over 36 
O-10 2    $14,508.60 $15,234.00 $15,234.00 $15,995.70 $15,995.70 
O-9        12,801.30  13,441.50  13,441.50  14,113.50  14,113.50 
O-8        11,598.30  11,888.40  11,888.40  12,185.70  12,185.70 
O-7        10,287.90  10,493.70  10,493.70  10,493.70  10,493.70 
O-6         9,035.70   9,216.30   9,216.30   9,216.30   9,216.30 
O-5         7,373.10   7,373.10   7,373.10   7,373.10   7,373.10 
O-4         6,252.30   6,252.30   6,252.30   6,252.30   6,252.30 
O-3 3       5,355.90   5,355.90   5,355.90   5,355.90   5,355.90 
O-2 3       3,936.60   3,936.60   3,936.60   3,936.60   3,936.60 
O-1 3       3,106.50   3,106.50   3,106.50   3,106.50   3,106.50 
O-1 3       3,106.50   3,106.50                                  
-----------------------------------------------------------------
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 $4,392.00 $4,602.00 
O-2E           0.00      0.00      0.00  3,857.40  3,936.60 
O-1E           0.00      0.00      0.00  3,106.50  3,317.70 
             Over 8   Over 10   Over 12   Over 14   Over 16 
O-3E      $4,833.00 $4,982.70 $5,228.40 $5,435.40 $5,554.20 
O-2E       4,062.00  4,273.50  4,437.00  4,558.80  4,558.80 
O-1E       3,440.10  3,565.50  3,688.80  3,857.40  3,857.40 
            Over 18   Over 20   Over 22   Over 24   Over 26 
O-3E      $5,715.90 $5,715.90 $5,715.90 $5,715.90 $5,715.90 
O-2E       4,558.80  4,558.80  4,558.80  4,558.80  4,558.80 
O-1E       3,857.40  3,857.40  3,857.40  3,857.40  3,857.40 
            Over 28   Over 30   Over 32   Over 34   Over 36 
O-3E      $5,715.90 $5,715.90 $5,715.90 $5,715.90 $5,715.90 
O-2E       4,558.80  4,558.80  4,558.80  4,558.80  4,558.80 
O-1E       3,857.40  3,857.40  3,857.40  3,857.40  3,857.40 
O-1E       3,857.40  3,857.40                               
------------------------------------------------------------
WARRANT OFFICERS
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        3,402.00  3,660.00  3,765.00  3,868.50  4,046.40 
W-3        3,106.80  3,236.40  3,369.00  3,412.80  3,552.00 
W-2        2,749.20  3,009.30  3,089.40  3,144.60  3,322.80 
W-1        2,413.20  2,672.40  2,742.90  2,890.50  3,065.10 
             Over 8   Over 10   Over 12   Over 14   Over 16 
W-5           $0.00     $0.00     $0.00     $0.00     $0.00 
W-4        4,222.20  4,400.70  4,669.20  4,904.40  5,128.20 
W-3        3,825.90  4,110.90  4,245.30  4,400.40  4,560.30 
W-2        3,600.00  3,737.10  3,872.40  4,037.70  4,166.70 
W-1        3,322.20  3,442.20  3,610.20  3,775.50  3,905.10 
            Over 18   Over 20   Over 22   Over 24   Over 26 
W-5           $0.00 $6,049.50 $6,356.40 $6,585.00 $6,838.20 
W-4        5,310.90  5,489.70  5,752.20  5,967.60  6,213.60 
W-3        4,847.70  5,042.40  5,158.50  5,282.10  5,450.10 
W-2        4,284.00  4,423.80  4,515.90  4,589.40  4,589.40 
W-1        4,024.50  4,170.00  4,170.00  4,170.00  4,170.00 
            Over 28   Over 30   Over 32   Over 34   Over 36 
W-5       $6,838.20 $7,180.20 $7,180.20 $7,539.30 $7,539.30 
W-4        6,213.60  6,337.80  6,337.80  6,337.80  6,337.80 
W-3        5,450.10  5,450.10  5,450.10  5,450.10  5,450.10 
W-2        4,589.40  4,589.40  4,589.40  4,589.40  4,589.40 
W-1        4,170.00  4,170.00  4,170.00  4,170.00  4,170.00 
W-1        4,170.00  4,170.00                               
------------------------------------------------------------
ENLISTED MEMBERS 1 
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-9 2           $0.00     $0.00     $0.00     $0.00     $0.00 
E-8              0.00      0.00      0.00      0.00      0.00 
E-7          2,339.10  2,553.00  2,650.80  2,780.70  2,881.50 
E-6          2,023.20  2,226.00  2,324.40  2,419.80  2,519.40 
E-5          1,854.00  1,977.90  2,073.30  2,171.40  2,323.80 
E-4          1,699.50  1,786.50  1,883.10  1,978.50  2,062.80 
E-3          1,534.20  1,630.80  1,729.20  1,729.20  1,729.20 
E-2          1,458.90  1,458.90  1,458.90  1,458.90  1,458.90 
E-1        3 1,301.40  1,301.40  1,301.40  1,301.40  1,301.40 
               Over 8   Over 10   Over 12   Over 14   Over 16 
E-9 2           $0.00 $4,110.60 $4,203.90 $4,321.20 $4,459.50 
E-8          3,364.80  3,513.90  3,606.00  3,716.40  3,835.80 
E-7          3,055.20  3,152.70  3,326.70  3,471.00  3,569.70 
E-6          2,744.10  2,831.40  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          2,062.80  2,062.80  2,062.80  2,062.80  2,062.80 
E-3          1,729.20  1,729.20  1,729.20  1,729.20  1,729.20 
E-2          1,458.90  1,458.90  1,458.90  1,458.90  1,458.90 
E-1          1,301.40  1,301.40  1,301.40  1,301.40  1,301.40 
              Over 18   Over 20   Over 22   Over 24   Over 26 
E-9 2       $4,598.40 $4,821.60 $5,010.30 $5,209.20 $5,512.80 
E-8          4,051.80  4,161.30  4,347.30  4,450.50  4,704.90 
E-7          3,674.40  3,715.50  3,852.00  3,925.20  4,204.20 
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          2,062.80  2,062.80  2,062.80  2,062.80  2,062.80 
E-3          1,729.20  1,729.20  1,729.20  1,729.20  1,729.20 
E-2          1,458.90  1,458.90  1,458.90  1,458.90  1,458.90 
E-1          1,301.40  1,301.40  1,301.40  1,301.40  1,301.40 
              Over 28   Over 30   Over 32   Over 34   Over 36 
E-9 2       $5,512.80 $5,788.50 $5,788.50 $6,078.00 $6,078.00 
E-8          4,704.90  4,799.10  4,799.10  4,799.10  4,799.10 
E-7          4,204.20  4,204.20  4,204.20  4,204.20  4,204.20 
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          2,062.80  2,062.80  2,062.80  2,062.80  2,062.80 
E-3          1,729.20  1,729.20  1,729.20  1,729.20  1,729.20 
E-2          1,458.90  1,458.90  1,458.90  1,458.90  1,458.90 
E-1          1,301.40  1,301.40  1,301.40  1,301.40  1,301.40 
E-1          1,301.40  1,301.40                               
--------------------------------------------------------------

SEC. 602. INCREASE IN MAXIMUM RATE OF BASIC PAY FOR GENERAL AND FLAG OFFICER GRADES.

    (a) INCREASE- Section 203(a)(2) of title 37, United States Code, is amended by striking `level III of the Executive Schedule' and inserting `level II of the Executive Schedule'.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on January 1, 2007, and shall apply with respect to months beginning on or after that date.

SEC. 603. CLARIFICATION OF EFFECTIVE DATE OF PROHIBITION ON COMPENSATION FOR CORRESPONDENCE COURSES.

    Section 206(d) of title 37, United States Code, is amended by adding at the end the following new paragraph:

    `(3) The prohibition in this subsection (including the prohibition as it relates to a member of the National Guard while not in Federal service) shall apply to--

      `(A) any work or study performed on or after September 7, 1962; and

      `(B) any claim based on such work or study arising after that date.'.

SEC. 604. ONE-YEAR EXTENSION OF PROHIBITION AGAINST REQUIRING CERTAIN INJURED MEMBERS TO PAY FOR MEALS PROVIDED BY MILITARY TREATMENT FACILITIES.

    (a) EXTENSION- Section 402(h)(3) of title 37, United States Code, is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (b) REPORT ON ADMINISTRATION OF PROHIBITION- Not later than February 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the administration of section 402(h)(3) of title 37, United States Code (as amended by subsection (a)). The report shall include--

      (1) a description and assessment of the mechanisms used by the military departments to implement the prohibition contained in such section; and

      (2) such recommendations as the Secretary considers appropriate regarding making such prohibition permanent.

SEC. 605. ADDITIONAL HOUSING ALLOWANCE FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF A CONTINGENCY OPERATION.

    (a) IN GENERAL- 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;

      (2) by inserting after paragraph (1) the following new paragraph (2):

    `(2)(A) Under regulations prescribed by the Secretary of Defense and the Secretary of Homeland Security with respect to the Coast Guard when it is not operating as a service in the Department of the Navy, the Secretary concerned may authorize payment of a housing allowance to a member described in paragraph (1) at a monthly rate equal to the rate of the basic allowance for housing under subsection (b) or the overseas basic allowance for housing under subsection (c), whichever applies to that location, for members of the regular components at that location in the same grade without dependents.

    `(B) A member may concurrently receive a basic allowance for housing under paragraph (1) and a housing allowance under this paragraph, but may not receive the portion of the allowance, if any, authorized under section 404 of this title for lodging expenses if a housing allowance is authorized to be paid under this paragraph.'; and

      (3) in paragraph (3), as so redesignated, by striking `Paragraph (1)' and inserting `Paragraphs (1) and (2)'.

    (b) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect on October 1, 2006, and shall apply with respect to months beginning on or after that date.

SEC. 606. EXTENSION OF TEMPORARY CONTINUATION OF HOUSING ALLOWANCE FOR DEPENDENTS OF MEMBERS DYING ON ACTIVE DUTY TO SPOUSES WHO ARE MEMBERS OF THE UNIFORMED SERVICES.

    (a) IN GENERAL- Section 403(l) of title 37, United States Code, is amended--

      (1) by redesignating paragraph (3) as paragraph (4);

      (2) by inserting after paragraph (2) the following new paragraph (3):

    `(3) A member of the uniformed services who is the spouse of a deceased member described in paragraph (2) may be paid a basic allowance for housing as provided for in that paragraph. An allowance paid under this paragraph is in addition to any other pay and allowances to which the member of the uniformed services is entitled under any other provision of law.'; and

      (3) in paragraph (4), as so redesignated, by striking `(2)' and inserting `(2) or (3)'.

    (b) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 2006, and shall apply with respect to deaths occurring on or after that date.

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 amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (b) SELECTED RESERVE AFFILIATION OR ENLISTMENT BONUS- Section 308c(i) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED TO CERTAIN HIGH PRIORITY UNITS- Section 308d(c) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (d) READY RESERVE ENLISTMENT BONUS FOR PERSONS WITHOUT PRIOR SERVICE- Section 308g(f)(2) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (e) READY RESERVE ENLISTMENT AND REENLISTMENT BONUS FOR PERSONS WITH PRIOR SERVICE- Section 308h(e) of such title is amended by striking `December 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 inserting `December 31, 2007'.

SEC. 612. EXTENSION OF CERTAIN BONUS AND SPECIAL PAY AUTHORITIES FOR CERTAIN HEALTH CARE PROFESSIONALS.

    (a) NURSE OFFICER CANDIDATE ACCESSION PROGRAM- 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 CERTAIN HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED RESERVE- Section 16302(d) of such title is 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 ANESTHETISTS- Section 302e(a)(1) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (e) SPECIAL PAY FOR SELECTED RESERVE HEALTH PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES- 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 `December 31, 2006' and inserting `December 31, 2007'.

SEC. 613. EXTENSION OF SPECIAL PAY AND BONUS AUTHORITIES FOR NUCLEAR OFFICERS.

    (a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS 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 AUTHORITIES RELATING TO PAYMENT OF OTHER BONUSES AND SPECIAL PAYS.

    (a) AVIATION OFFICER RETENTION BONUS- Section 301b(a) of title 37, United States Code, is amended by striking `December 31, 2006' and inserting `December 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 MEMBERS- Section 308(g) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (d) ENLISTMENT BONUS- Section 309(e) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (e) RETENTION BONUS FOR MEMBERS WITH CRITICAL MILITARY SKILLS OR ASSIGNED TO HIGH PRIORITY UNITS- 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 CRITICAL SKILLS- Section 324(g) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (g) INCENTIVE BONUS FOR CONVERSION TO MILITARY OCCUPATIONAL SPECIALTY TO EASE PERSONNEL SHORTAGE- Section 326(g) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2007'.

    (h) INCENTIVE BONUS FOR TRANSFER BETWEEN THE ARMED FORCES- Section 327(h) of such title is amended by striking `December 31, 2006' and inserting `December 31, 2009'.

SEC. 615. INCREASE IN SPECIAL PAY FOR SELECTED RESERVE HEALTH CARE PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIALTIES.

    INCREASE IN SPECIAL PAY- Section 302g(a) of title 37, United States Code, is amended by striking `$10,000' and inserting `$25,000'.

    (b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect on October 1, 2006, and shall apply to written agreements entered into under section 302g of title 37, United States Code, on or after that date.

SEC. 616. EXPANSION AND ENHANCEMENT OF ACCESSION BONUS AUTHORITIES FOR CERTAIN OFFICERS IN HEALTH CARE SPECIALITIES.

    (a) INCREASE IN ACCESSION BONUS FOR DENTAL OFFICERS- Section 302h(a)(2) of title 37, United States Code, is amended by striking `$30,000' and inserting `$200,000'.

    (b) ACCESSION BONUS FOR MEDICAL OFFICERS IN CRITICALLY SHORT WARTIME SPECIALITIES- Chapter 5 of title 37, United States Code, is amended by inserting after section 302j the following new section:

`Sec. 302k. Special pay: accession bonus for medical officers in critically short wartime specialties

    `(a) ACCESSION BONUS AUTHORIZED- (1) A person who is a graduate of an accredited school of medicine or osteopathy in a specialty described in subsection (c) and who executes a written agreement described in subsection (d) to accept a commission as an officer of the Armed Forces and remain on active duty for a period of not less than four consecutive years may, upon the acceptance of the agreement by the Secretary concerned, be paid an accession bonus in the amount determined by the Secretary concerned.

    `(2) The amount of an accession bonus under paragraph (1) may not exceed $400,000.

    `(b) LIMITATION ON ELIGIBILITY FOR BONUS- A person may not be paid a bonus under subsection (a) if--

      `(1) the person, in exchange for an agreement to accept an appointment as an officer, received financial assistance from the Department of Defense to pursue a course of study in medicine or osteopathy; or

      `(2) the Secretary concerned determines that the person is not qualified to become and remain certified as a doctor or osteopath in a specialty described in subsection (c).

    `(c) COVERED SPECIALTIES- A specialty described in this subsection is a specialty designated by regulations as a critically short wartime specialty.

    `(d) AGREEMENT- The agreement referred to in subsection (a) shall provide that, consistent with the needs of the armed service concerned, the person executing the agreement will be assigned to duty, for the period of obligated service covered by the agreement, as an officer of the Medical Corps of the Army or the Navy or as an officer of the Air Force designated as a medical officer in a specialty described in subsection (c).

    `(e) REPAYMENT- A person who, after executing an agreement under subsection (a) is not commissioned as an officer of the armed forces, does not become licensed as a doctor or osteopath, as the case may be, or does not complete the period of active duty in a specialty specified in the agreement, shall be subject to the repayment provisions of section 303a(e) of this title.

    `(f) TERMINATION OF AUTHORITY- No agreement under this section may be entered into after December 31, 2007.'.

    (c) ACCESSION BONUS FOR DENTAL SPECIALIST OFFICERS IN CRITICALLY SHORT WARTIME SPECIALITIES- Chapter 5 of title 37, United States Code, as amended by subsection (b), is further amended by inserting after section 302k the following new section:

`Sec. 302l. Special pay: accession bonus for dental specialist officers in critically short wartime specialties

    `(a) ACCESSION BONUS AUTHORIZED- (1) A person who is a graduate of an accredited dental school in a specialty described in subsection (c) and who executes a written agreement described in subsection (d) to accept a commission as an officer of the Armed Forces and remain on active duty for a period of not less than four consecutive years may, upon the acceptance of the agreement by the Secretary concerned, be paid an accession bonus in the amount determined by the Secretary concerned.

    `(2) The amount of an accession bonus under paragraph (1) may not exceed $400,000.

    `(b) LIMITATION ON ELIGIBILITY FOR BONUS- A person may not be paid a bonus under subsection (a) if--

      `(1) the person, in exchange for an agreement to accept an appointment as an officer, received financial assistance from the Department of Defense to pursue a course of study in dentistry; or

      `(2) the Secretary concerned determines that the person is not qualified to become and remain certified as a dentist in a specialty described in subsection (c).

    `(c) COVERED SPECIALTIES- A specialty described in this subsection is a specialty designated by regulations as a critically short wartime specialty.

    `(d) AGREEMENT- The agreement referred to in subsection (a) shall provide that, consistent with the needs of the armed service concerned, the person executing the agreement will be assigned to duty, for the period of obligated service covered by the agreement, as an officer of the Dental Corps of the Army or the Navy or as an officer of the Air Force designated as a dental officer in a specialty described in subsection (c).

    `(e) REPAYMENT- A person who, after executing an agreement under subsection (a) is not commissioned as an officer of the armed forces, does not become licensed as a dentist or does not complete the period of active duty in a specialty specified in the agreement, shall be subject to the repayment provisions of section 303a(e) of this title.

    `(f) COORDINATION WITH OTHER ACCESSION BONUS AUTHORITY- A person eligible to execute an agreement under both subsection (a) and section 302h of this title shall elect which authority to execute the agreement under. A person may not execute an agreement under both subsection (a) and such section 302h.

    `(g) TERMINATION OF AUTHORITY- No agreement under this section may be entered into after December 31, 2007.'.

    (d) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 5 of such title is amended by inserting after the item relating to section 302j the following new item:

      `302k. Special pay: accession bonus for medical officers in critically short wartime specialties.

      `302l. Special pay: accession bonus for dental specialist officers in critically short wartime specialties.'.

    (e) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 2006.

SEC. 617. INCREASE IN NUCLEAR CAREER ACCESSION BONUS FOR NUCLEAR-QUALIFIED OFFICERS.

    (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 subsection (a) shall take effect on October 1, 2006, and shall apply with respect to agreements under section 312b of title 37, United States Code, entered into on or after that date.

SEC. 618. MODIFICATION OF CERTAIN AUTHORITIES APPLICABLE TO THE TARGETED SHAPING OF THE ARMED FORCES.

    (a) VOLUNTARY SEPARATION PAY AND BENEFITS.

      (1) INCREASE IN MAXIMUM AMOUNT OF PAY- Subsection (f) of section 1175a of title 10, United States Code, is amended by striking `two times' and inserting `four times'.

      (2) EXTENSION OF AUTHORITY- Subsection (k)(1) of such section is amended by striking `December 31, 2008' and inserting `December 31, 2012'.

      (3) REPEAL OF LIMITATION ON APPLICABILITY- Subsection (b) of section 643 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3310; 10 U.S.C. 1175a note) is repealed.

    (b) RELAXATION OF LIMITATION ON SELECTIVE EARLY RETIREMENT- Section 638(a)(2) of title 10, United States Code, is amended by adding at the end the following new sentence: `However, during the period beginning on October 1, 2006, and ending on December 31, 2012, such number may be more than 30 percent of the number of officers considered in each competitive category, but may not be more than 30 percent of the number of officers considered in each grade.'.

    (c) ENHANCED AUTHORITY FOR SELECTIVE EARLY RETIREMENT AND EARLY DISCHARGES-

      (1) RENEWAL OF AUTHORITY- Subsection (a) of section 638a of title 10, United States Code, is amended by inserting `and during the period beginning on October 1, 2006, and ending on December 31, 2012,' after `December 31, 2001,'.

      (2) RELAXATION OF LIMITATION ON SELECTIVE EARLY RETIREMENT- Subsection (c)(1) of such section is amended by adding at the end the following new sentence: `However, during the period beginning on October 1, 2006, and ending on December 31, 2012, such number may be more than 30 percent of the number of officers considered in each competitive category, but may not be more than 30 percent of the number of officers considered in each grade.'.

      (3) RELAXATION OF LIMITATION ON SELECTIVE EARLY DISCHARGE- Subsection (d)(2) of such section is amended--

        (A) in subparagraph (A), by inserting before the semicolon the following: `, except that during the period beginning on October 1, 2006, and ending on December 31, 2012, such number may be more than 30 percent of the officers considered in each competitive category, but may not be more than 30 percent of the number of officers considered in each grade'; and

        (B) in subparagraph (B), by inserting before the period the following: `, except that during the period beginning on October 1, 2006, and ending on December 31, 2012, such number may be more than 30 percent of the officers considered in each competitive category, but may not be more than 30 percent of the number of officers considered in each grade'.

    (d) INCREASE IN AMOUNT OF INCENTIVE BONUS FOR TRANSFER BETWEEN ARMED FORCES- Section 327(d)(1) of title 37, United States Code, is amended by striking `$2,500' and inserting `$10,000'.

SEC. 619. EXTENSION OF PILOT PROGRAM ON CONTRIBUTIONS TO THRIFT SAVINGS PLAN FOR INITIAL ENLISTEES IN THE ARMY.

    (a) EXTENSION- Subsection (a) of section 606 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3287; 37 U.S.C. 211 note) is amended by striking `During fiscal year 2006' and inserting `During the period beginning on January 6, 2006, and ending on December 31, 2008'.

    (b) REPORT DATE- Subsection (d)(1) of such section is amended by striking `February 1, 2007' and inserting `February 1, 2008'.

SEC. 620. ACCESSION BONUS FOR MEMBERS OF THE ARMED FORCES APPOINTED AS COMMISSIONED OFFICERS AFTER COMPLETING OFFICER CANDIDATE SCHOOL.

    (a) Accession Bonus Authorized-

      (1) IN GENERAL- Chapter 5 of title 37, United States Code, is amended by adding at the end the following new section:

`Sec. 329. Special pay: accession bonus for officer candidates

    `(a) Accession Bonus Authorized- Under regulations prescribed by the Secretary concerned, a person who, during the period beginning on October 1, 2006, and ending on December 31, 2007, executes a written agreement described in subsection (b) may, upon acceptance of the agreement by the Secretary concerned, be paid an accession bonus in an amount not to exceed $8,000 determined by the Secretary concerned.

    `(b) Agreement- A written agreement described in this subsection is a written agreement by a person--

      `(1) to complete officer candidate school;

      `(2) to accept a commission or appointment as an officer of the armed forces; and

      `(3) to serve on active duty as a commissioned officer for a period specified in such agreement.

    `(c) Payment Method- Upon acceptance of a written agreement under subsection (a) by the Secretary concerned, the total amount of the accession bonus payable under the agreement becomes fixed. The agreement shall specify whether the accession bonus will be paid in a lump sum or installments.

    `(d) Repayment- A person who, having received all or part of the bonus under a written agreement under subsection (a), does not complete the total period of active duty as a commissioned officer as specified in such agreement shall be subject to the repayment provisions of section 303a(e) of this title.'.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 5 of such title is amended by adding at the end the following new item:

      `329. Special pay: accession bonus for officer candidates.'.

      (3) EFFECTIVE DATE- The amendments made by this subsection shall take effect on October 1, 2006.

    (b) Authority for Payment of Bonus Under Earlier Agreements-

      (1) IN GENERAL- The Secretary of the Army may pay a bonus to a person who, during the period beginning on April 1, 2005, and ending on April 6, 2006, executed an agreement to enlist for the purpose of attending officer candidate school and receive a bonus under section 309 of title 37, United States Code, and who has completed the terms of the agreement required for payment of the bonus.

      (2) LIMITATION ON AMOUNT- The amount of the bonus payable to a person under this subsection may not exceed $8,000.

      (3) CONSTRUCTION WITH ENLISTMENT BONUS- The bonus payable under this subsection is in addition to a bonus payable under section 309 of title 37, United States Code, or any other provision of law.

SEC. 621. ENHANCEMENT OF BONUS TO ENCOURAGE MEMBERS OF THE ARMY TO REFER OTHER PERSONS FOR ENLISTMENT IN THE ARMY.

    (a) Individuals Eligible for Bonus- Subsection (a) of section 645 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 `a member of the Army, whether in the regular component of the Army or in the Army National Guard or Army Reserve,' and inserting `an individual referred to in paragraph (2)'; and

      (3) by adding at the end the following new paragraph:

      `(2) INDIVIDUALS ELIGIBLE FOR BONUS- Subject to subsection (c), the following individuals 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.

        `(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 retired pay.

        `(E) A civilian employee of the Department of the Army.'.

    (b) Amount of Bonus- Subsection (d) of such section is amended to read as follows:

    `(d) Amount of Bonus- The amount of the bonus payable for a referral under subsection (a) may not exceed $2,000. The amount shall be payable in two lump sums as provided in subsection (e).'.

    (c) Payment of Bonus- Subsection (e) of such section is amended to read as follows:

    `(e) Payment- A bonus payable for a referral of a person under subsection (a) shall be paid as follows:

      `(1) Not more than $1,000 shall be paid upon the commencement of basic training by the person referred.

      `(2) Not more than $1,000 shall be paid upon the completion of basic training and individual advanced training by the person referred.'.

    (d) Coordination With Receipt of Retired Pay- Such section is further amended--

      (1) by redesignating subsection (g) as subsection (h); and

      (2) by inserting after subsection (f) the following new subsection (g):

    `(g) Coordination With Receipt of Retired Pay- A bonus paid under this section to a member of the Army in a retired status is in addition to any compensation to such member is entitled under title 10, 37, or 38, United States Code, or under any other provision of law.'.

    (e) Effective Date- The amendments made by this section shall take effect on the date of the enactment of this Act, and shall apply with respect to bonuses payable under section 645 of the National Defense Authorization Act for Fiscal Year 2006, as amended by this section, on or after that date.

Subtitle C--Travel and Transportation Allowances

SEC. 631. EXPANSION OF PAYMENT OF REPLACEMENT VALUE OF PERSONAL PROPERTY DAMAGED DURING TRANSPORT AT GOVERNMENT EXPENSE.

    (a) COVERAGE OF PROPERTY OF CIVILIAN EMPLOYEES OF DEPARTMENT OF DEFENSE- Subsection (a) of section 2636a of title 10, United States Code, is amended by inserting `or civilian employees of the Department of Defense' after `members of the armed forces'.

    (b) REQUIREMENT FOR PAYMENT- Effective March 1, 2008, such subsection is further amended by striking `may include' and inserting `shall include'.

    (c) REQUIREMENT FOR DEDUCTION UPON FAILURE OF CARRIER TO SETTLE- Subsection (b) of such section is amended by striking `may be deducted' and inserting `shall be deducted'.

    (d) CERTIFICATION ON FAMILIES FIRST PROGRAM- The Secretary of Defense shall submit to the congressional defense committees a report containing the certifications of the Secretary on the following matters with respect to the program of the Department of Defense known as `Families First':

      (1) Whether there is an alternative to the system under the program that would provide equal or greater capability at less cost.

      (2) Whether the estimates on costs, and the anticipated schedule and performance parameters, for the program and system are reasonable.

      (3) Whether the management structure for the program is adequate to manage and control program costs.

    (e) COMPTROLLER GENERAL REPORTS ON FAMILIES FIRST PROGRAM-

      (1) REVIEW- The Comptroller General of the United States shall conduct a review and assessment of the progress of the Department of Defense in implementing the Families First program.

      (2) ELEMENTS- In conducting the review and assessment required by paragraph (1), the Comptroller General shall--

        (A) assess the progress of the Department in achieving the goals of the Families First program, including progress in the development and deployment of the Defense Personal Property System;

        (B) assess the organization, staffing, resources, and capabilities of the Defense Personal Property System Project Management Office established on April 7, 2006;

        (C) evaluate the growth in cost of the program since the previous assessment of the program by the Comptroller General, and estimate the current annual cost of the Defense Personal Property System and each component of that system; and

        (D) assess the feasibility of implementing processes and procedures, pending the satisfactory development of the Defense Personal Property System, which would achieve the goals of the program of providing improved personal property management services to members of the Armed Forces.

      (3) REPORTS- The Comptroller General shall submit to the Committees on Armed Services of the Senate and the House of Representatives reports as follows:

        (A) An interim report on the review and assessment required by paragraph (1) not later than December 1, 2006.

        (B) A final report on the review and assessment by not later than June 1, 2007.

Subtitle D--Retired Pay and Survivor Benefits

SEC. 641. MODIFICATION OF DEPARTMENT OF DEFENSE CONTRIBUTIONS TO MILITARY RETIREMENT FUND AND GOVERNMENT CONTRIBUTIONS TO MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND.

    (a) DEPARTMENT OF DEFENSE MILITARY RETIREMENT FUND-

      (1) DETERMINATION OF CONTRIBUTIONS- Section 1465 of title 10, United States Code, is amended--

        (A) in subsection (b)(1)--

          (i) in subparagraph (A)(ii)--

            (I) by striking `(other than active duty for training)';

            (II) by striking `(other than full-time National Guard duty for training only)'; and

            (III) by inserting before the period at the end the following: `, except that amounts expected to be paid to members who would be excluded from counting for active-duty end strength purposes by section 115(i) of this title for duty covered by such section shall be excluded'; and

          (ii) in subparagraph (B)(ii)--

            (I) by striking `Ready Reserve' and inserting `Selected Reserve'; and

            (II) by striking `and other than members on full-time National Guard duty other than for training) who are' and inserting `) for duty'; and

        (B) in subsection (c)(1)--

          (i) in subparagraph (A)--

            (I) by striking `(other than active duty for training)';

            (II) by striking `(other than full-time National Guard duty for training only)'; and

            (III) by inserting `other than members who would be excluded from counting for active-duty end strength purposes by section 115(i) of this title for duty covered by such section,' after `full-time National Guard duty,'; and

          (ii) in subparagraph (B)--

            (I) by striking `Ready Reserve' and inserting `Selected Reserve'; and

            (II) by striking `and other than members on full-time National Guard duty other than for training) who are' and inserting `) for duty'.

      (2) PAYMENTS- Section 1466(a) of such title is amended--

        (A) in paragraph (1)(B)--

          (i) by striking `(other than active duty for training)';

          (ii) by striking `(other than full-time National Guard duty for training only)'; and

          (iii) by inserting before the period at the end the following: `, except that amounts accrued for that month by members who would be excluded from counting for active-duty end strength purposes by section 115(i) of this title for duty covered by such section shall be excluded'; and

        (B) in paragraph (2)(B)--

          (i) by striking `Ready Reserve' and inserting `Selected Reserve'; and

          (ii) by striking `and other than members on full-time National Guard duty other than for training) who are' and inserting `) for duty'.

    (b) DEPARTMENT OF DEFENSE MEDICARE-ELIGIBLE RETIREE HEALTH CARE FUND-

      (1) EXCLUSION OF CADETS AND MIDSHIPMEN FROM TREATMENT ON ACTIVE DUTY- Section 1111(b) of such title is amended by adding at the end the following new paragraph:

      `(5) The term `members of the uniformed services on active duty' does not include a cadet at the United States Military Academy, the United States Air Force Academy, or the United States Coast Guard Academy, or a midshipman at the United States Naval Academy.'.

      (2) DETERMINATION OF CONTRIBUTIONS- Section 1115 of such title is amended--

        (A) in subsection (b)--

          (i) in paragraph (1)(B)--

            (I) by striking `(other than active duty for training)';

            (II) by striking `(other than full-time National Guard duty for training only)'; and

            (III) by inserting before the period at the end the following: `, other than members who would be excluded from counting for active-duty end strength purposes by section 115(i) of this title for duty covered by such section'; and

          (ii) in paragraph (2)(B)--

            (I) by striking `Ready Reserve' and inserting `Selected Reserve'; and

            (II) by striking `other than members on full-time National Guard duty other than for training)'; and

        (B) in subsection (c)(1)--

          (i) in subparagraph (A)--

            (I) by striking `(other than active duty for training)';

            (II) by striking `(other than full-time National Guard duty for training only)'; and

            (III) by inserting before the semicolon the following: `, other than members who would be excluded from counting for active-duty end strength purposes by section 115(i) of this title for duty covered by such section'; and

          (ii) in subparagraph (B)--

            (I) by striking `Ready Reserve' and inserting `Selected Reserve'; and

            (II) by striking `(other than members on full-time National Guard duty other than for training)'.

    (c) EFFECTIVE DATE- The amendments made by this section shall take effect on October 1, 2007.

SEC. 642. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR ANNUITIES BY DEPENDENCY AND INDEMNITY COMPENSATION.

    (a) REPEAL-

      (1) IN GENERAL- Subchapter II of chapter 73 of title 10, United States Code, is amended as follows:

        (A) In section 1450, by striking subsection (c).

        (B) In section 1451(c)--

          (i) by striking paragraph (2); and

          (ii) by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively.

      (2) CONFORMING AMENDMENTS- Such subchapter is further amended as follows:

        (A) In section 1450--

          (i) by striking subsection (e); and

          (ii) by striking subsection (k).

        (B) In section 1451(g)(1), by striking subparagraph (C).

        (C) In section 1452--

          (i) in subsection (f)(2), by striking `does not apply--' and all that follows and inserting `does not apply in the case of a deduction made through administrative error.'; and

          (ii) by striking subsection (g).

        (D) In section 1455(c), by striking `, 1450(k)(2),'.

    (b) Prohibition on Retroactive Benefits- No benefits may be paid to any person for any period before the effective date provided under subsection (e) by reason of the amendments made by subsection (a).

    (c) Return of SBP Premiums Previously Refunded to SBP Recipients-

      (1) RETURN OF CERTAIN REFUNDED AMOUNTS REQUIRED- Under regulations prescribed by the Secretary of Defense, a surviving spouse who is or has been in receipt of an annuity under the Survivor Benefit Plan under subchapter II of chapter 73 of title 10, United States Code, that is in effect before the effective date provided under subsection (e) and that is adjusted by reason of the amendments made by subsection (a) and who has received a refund of retired pay under section 1450(e) of title 10, United States Code (as in effect on the day before the effective date provided under subsection (e)), shall be required to repay such refund to the United States.

      (2) TERMS AND CONDITIONS- A surviving spouse repaying a refund to the United States under this subsection shall not be required to pay the United States any interest that would otherwise accrue or have accrued on any balance of such refund while such balance remains unpaid to the United States under this subsection. The amount repayable to the United States shall be repayable in a lump sum or over a period of years (not to exceed 10 years) agreed to by the surviving spouse or specified by the Secretary of Defense, in the absence of such an agreement.

      (3) WAIVER OF REPAYMENT- The Secretary of Defense may waive the repayment of a refund under this subsection if the Secretary determines that--

        (A) hardship or other circumstances make repayment of such refund unwarranted;

        (B) repayment of such refund would otherwise not be in the best interests of the United States.

    (d) Reconsideration of Optional Annuity- Section 1448(d)(2)(B) of title 10, United States Code, is amended by adding at the end the following new sentences: `The surviving spouse, however, may elect to terminate an annuity under this subparagraph in accordance with regulations prescribed by the Secretary concerned. Upon such an election, payment of an annuity to dependent children under this subparagraph shall terminate effective on the first day of the first month that begins after the date on which the Secretary concerned receives notice of the election, and, beginning on that day, an annuity shall be paid to the surviving spouse under paragraph (1) instead.'.

    (e) Effective Date- The amendments made by this section shall take effect on the later of--

      (1) the first day of the first month that begins after the date of the enactment of this Act; or

      (2) the first day of the fiscal year that begins in the calendar year in which this Act is enacted.

SEC. 643. EFFECTIVE DATE OF PAID-UP COVERAGE UNDER SURVIVOR BENEFIT PLAN.

    Section 1452(j) of title 10, United States Code, is amended by striking `October 1, 2008' and inserting `October 1, 2006'.

SEC. 644. EXPANSION OF CONDITIONS FOR DIRECT PAYMENT OF DIVISIBLE RETIRED PAY.

    (a) Repeal of Certain Condition- Section 1408(d) of title 10, United States Code, is amended--

      (1) by striking paragraph (2); and

      (2) by redesignating paragraphs (3) through (7) as paragraphs (2) through (6), respectively.

    (b) Effective Date-

      (1) IN GENERAL- The amendments made by subsection (a) shall take effect on the first day of the first month that begins more than 120 days after the date of the enactment of this Act.

      (2) PROHIBITION ON RETROACTIVE PAYMENTS- No payment may be made under section 1408(d) of title 10, United States Code, to or for the benefit of any person covered by paragraph (2) of such section (as in effect on the day before the effective date specified in paragraph (1)) for any period before such effective date.

SEC. 645. AUTHORITY FOR COST OF LIVING ADJUSTMENTS OF RETIRED PAY TREATED AS DIVISIBLE PROPERTY.

    (a) In General- Section 1408 of title 10, United States Code, is amended--

      (1) by redesignating subsections (i), (j), and (k) as subsections (j), (k), and (l), respectively; and

      (2) by inserting after subsection (h) the following new subsection (i):

    `(i) COST OF LIVING ADJUSTMENTS OF DIVISIBLE PROPERTY- A court order under subsection (a)(2)(C) may provide for the adjustment of the amount, if expressed in dollars, payable from the disposable retired pay of a member at the same time and in the same manner as retired pay is adjusted to reflect changes in the Consumer Price Index under section 1401a of this title.'.

    (b) Effective Date- The amendments made by subsection (a) shall take effect on the date of the enactment of this Act, and shall apply with respect to court orders that become effective after the end of the 90-day period beginning on the date of enactment of this Act.

SEC. 646. NOTICE AND COPY TO MEMBERS OF COURT ORDERS ON PAYMENT OF RETIRED PAY.

    (a) WAIVER OF NOTICE- Subsection (g) of section 1408 of title 10, United States Code, is amended--

      (1) by inserting `(1)' before `A person'; and

      (2) by adding at the end the following new paragraph:

    `(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 Secretary 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 paragraph:

    `(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.

SEC. 647. RETENTION OF ASSISTIVE TECHNOLOGY AND DEVICES 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:

`Sec. 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 `assistive technology' and `assistive technology device' have the meaning given such terms in section 3 of the Assistive Technology 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 adding at the end the following new item:

      `1154. Retention of assistive technology and devices provided before separation.'.

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 compensation paid'.

      (2) In section 1476(a)--

        (A) in paragraph (1), by striking `a death gratuity' and inserting `fallen hero compensation'; and

        (B) in paragraph (2), by striking `A death gratuity' and inserting `Fallen hero compensation'.

      (3) In section 1477(a), by striking `A death gratuity' 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 gratuity' in the matter preceding paragraph (1) and inserting `fallen hero compensation'; and

        (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.

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 subsection (a) shall take effect on December 31, 2004.

SEC. 650. DETERMINATION OF RETIRED PAY BASE OF GENERAL 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:

`Sec. 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 sections for chapter 71 of such title is amended by inserting after the item relating to section 1407 the following new item:

      `1407a. Retired pay base: members who were general or flag officers.'.

    (b) EFFECTIVE DATE- The amendments made by subsection (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.

SEC. 651. INAPPLICABILITY OF RETIRED PAY MULTIPLIER MAXIMUM PERCENTAGE TO SERVICE OF MEMBERS 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 follows:

      `(3) 30 YEARS OF SERVICE-

        `(A) RETIREMENT BEFORE JANUARY 1, 2007- In the case of a member who retires before 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 percentage) of--

            `(I) 2 1/2 ; and

            `(II) the member's years of creditable service (as defined in subsection (c)) in excess of 30 years of creditable service in any service, regardless of when served, under conditions authorized for purposes of this subparagraph during a period designated by the Secretary of Defense for purposes of this subparagraph.'.

    (b) RETIRED PAY FOR NON-REGULAR SERVICE- Section 12739(c) of such title is amended--

      (1) by striking `The total amount' and inserting `(1) Except as provided in paragraph (2), the total amount'; and

      (2) by adding at the end the following new paragraph:

    `(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 subsections (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) 2 1/2 percent of the years of service credited to that person under section 12733 of this title for service, regardless of when served, under conditions authorized for purposes of this paragraph during a period designated by the Secretary of Defense for purposes of this paragraph.'.

SEC. 652. MODIFICATION OF ELIGIBILITY FOR COMMENCEMENT OF AUTHORITY FOR OPTIONAL ANNUITIES FOR DEPENDENTS UNDER THE SURVIVOR 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 dependent 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 STATUS OR ACTIVE DUTY FOR SIGNIFICANT PERIODS.

    (a) REDUCED ELIGIBILITY AGE- Section 12731 of title 10, United States Code, is amended--

      (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 subsection:

    `(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 subparagraph 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.

    `(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 emergency 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 paragraph:

    `(2) Paragraph (1) does not apply to a member or former member entitled to retired pay for non-regular service 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, retired 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 substituting for the reference to being 60 years of age a reference 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 applications 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 operations for inpatient care during the period beginning 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 report 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 described 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, allowance, 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, hazardous duty pay, imminent danger pay, basic allowance for housing, basic allowance for subsistence, 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 underpayments 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 subparagraph (D).

        (F) For each member so listed who has applied 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.

        (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 classified annex.

    (b) ASSISTANCE WITH PAY OR ACCOUNT DIFFICULTIES-

      (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 Department of Defense an assistance center, accessible by toll-free telephone call, through which a covered member 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 relating to the military pay or accounts of such member.

      (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.

      (3) RESPONSE TO REQUESTS FOR ASSISTANCE- The Secretary shall ensure that, in providing assistance under paragraph (1) to a covered member of the Armed Forces or next of kin of such a member, personnel of the assistance center established under that paragraph--

        (A) provide an initial response to the request 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 inpatient care.

SEC. 662. PILOT PROGRAM ON TROOPS TO NURSE TEACHERS.

    (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, 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 qualifications to become nurse educators and in securing employment as nurse educators at accredited schools of nursing;

        (B) provide scholarships to nurse corps officers described in subsection (c) in return for continuing 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 subsection (h), the pilot program shall be conducted during 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 Secretary of Defense in consultation with the Secretary of Health and Human Services and the Secretary of Education.

    (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 officer 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 participants in the Program from among qualified nurse corps officers submitting applications therefor under paragraph (1).

    (e) Participant Agreement-

      (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 appropriate 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 accept 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 program leading to a master's degree or doctoral degree in a nursing field from an accredited 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 terms and conditions established by the Secretary; 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 described 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 scholarship 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 provided 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 Program 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 Education shall undertake any administration of the Program that is required after December 31, 2012, including 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 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 Program.

      (2) ELEMENTS- The report shall--

        (A) describe the activities undertaken under the Program; and

        (B) include an assessment of the effectiveness 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 educator' 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 degree in a related field from an accredited institution 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 competency 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 Service Act).

    (k) Funding- From amounts authorized to be appropriated 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 member of the Army' and all that follows through `in an active status' and inserting `a member of the Army (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- Subsection (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 AUTHORITY- Paragraph (3) of section 683(a) of the National 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 member on active duty or a member of a reserve component in an active status), a retired member of the Navy , or a former member of the Navy'.

      (2) TIME FOR EXERCISE OF AUTHORITY- Subsection (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 periods as the Secretary of Defense may provide in regulations prescribed by the Secretary of Defense.'.

      (3) REPEAL OF TERMINATION OF MODIFIED AUTHORITY- Paragraph (3) of section 683(b) of the National 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 member 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 member of a reserve component in an active status), a retired member of the Air Force, or a former member of the Air Force'.

      (2) TIME FOR EXERCISE OF AUTHORITY- Subsection (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 AUTHORITY- Paragraph (3) of section 683(c) of the National 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.

SEC. 664. EXCEPTION FOR NOTICE TO CONSUMER REPORTING AGENCIES REGARDING DEBTS OR ERRONEOUS 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 Secretary'; and

      (2) by adding at the end the following new paragraph:

    `(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, unless 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- Paragraph (2) of section 2780(b) of title 10, United States Code (as added by subsection (a)), shall not be construed to apply to or invalidate any action taken under such section before March 1, 2007.

    (c) Report- Not later than March 1, 2007, the Secretary of Defense shall submit to the congressional defense committees a report on the exercise of the authority in section 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 authority has been exercised, or waived (as provided in paragraph (2) of such section (as amended by subsection (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 contracts, 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 considers appropriate regarding the continuing use of such authority with respect to members of the Armed Forces.

SEC. 665. ENHANCEMENT OF AUTHORITY TO WAIVE CLAIMS FOR OVERPAYMENT OF PAY AND ALLOWANCES.

    (a) Clarification of Pay and Allowances- Subsection (a) of section 2774 of title 10, United States Code, is amended in the matter preceding paragraph (1) by inserting `(including any bonus or special or incentive pay)' after `pay or allowances'.

    (b) Waiver by Secretaries Concerned- Paragraph (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 section 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 Director of the Office of Management and Budget and the Secretary 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 amendments made by this section not later than March 1, 2007.

SEC. 666. TERMS OF CONSUMER CREDIT EXTENDED TO SERVICEMEMBER OR SERVICEMEMBER'S DEPENDENT.

    (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 described in subsection (a) shall not impose an annual percentage rate greater than 36 percent with respect to the consumer credit extended to a servicemember or a servicemember's dependent.

    `(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 provide to the servicemember or the servicemember's dependent 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 obligations of the servicemember or the servicemember's dependent, as applicable.

      `(2) TERMS- Such disclosures shall be presented in accordance with terms prescribed by the regulations 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 consolidate with the proceeds of other credit extended by the same creditor any consumer credit extended to a servicemember or a servicemember's dependent without--

      `(1) executing new loan documentation signed by the servicemember or the servicemember's dependent, 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 protection to a servicemember or a servicemember's dependent.

    `(f) Penalties-

      `(1) MISDEMEANOR- Any creditor who knowingly 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 otherwise available under law to the person claiming relief under this section, including any award for consequential and punitive damages.

    `(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 members 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 assistance to families of the members of the Armed Forces under the program by providing at each site established for purposes 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 members of the Armed Forces.

      (3) Sponsorship of volunteers and family support 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, Military Family Life Consultants, counselors, the Department 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 between and among the organizations, agencies, and entities referred to in paragraph (4).

    (d) Resources-

      (1) IN GENERAL- The Secretary shall provide personnel and other resources necessary for the implementation and operation of the program at each site established under subsection (b).

      (2) ACCEPTANCE OF CERTAIN SERVICES- In providing resources under paragraph (1), the Secretary may accept and utilize the services of non-Federal Government volunteers and non-profit entities.

    (e) Procedures- The Secretary shall establish procedures for the operation of each site established under subsection (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 implementation of the program.

      (2) ELEMENTS- The plan required under paragraph (1) shall include the following:

        (A) A description of the actions taken to select and establish sites for the program under subsection (b).

        (B) A description of the procedures established 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 departments and agencies of the Federal Government, 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 following:

        (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 assistance 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 extending 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 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 appropriated 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 Executive Officer'; and

        (B) in subsection (e)(1), by striking `Chief Operating Officer's' and inserting `Chief Executive Officer's'.

      (2) CONFORMING AMENDMENTS- Such Act is further amended by striking `Chief Operating Officer' 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 follows:

`SEC. 1515. CHIEF EXECUTIVE OFFICER.'.

      (B) The table of contents for such Act is amended by striking the item relating to section 1515 and inserting the following new item:

`Sec. 1515. Chief Executive Officer.'.

      (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 Facilities-

      (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 continuing 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 Retirement 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 period 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 admiral (lower half)'.

Subtitle F--Transition Assistance for Members of the National Guard and Reserve Returning From Deployment in Operation Iraqi Freedom or Operation Enduring 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 CIVILIAN EMPLOYMENT OF MEMBERS OF THE NATIONAL GUARD AND RESERVE RETURNING FROM DEPLOYMENT IN OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (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 deployment in Operation Iraqi Freedom or Operation Enduring 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 appointed by the Secretary of Defense from among the following:

      (1) Personnel of the Department of Defense.

      (2) With the concurrence of the Secretary of Veterans Affairs, personnel of the Department of Veterans Affairs.

      (3) With the concurrence of the Secretary of Labor, personnel of the Department of Labor.

    (c) Responsibilities- The working group established under subsection (a) shall--

      (1) identify and assess the needs of members of the National Guard and Reserve described in subsection (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 employment after deployment;

        (B) members who were students before deployment and seek to return to school or commence employment after deployment;

        (C) members who have experienced multiple recent deployments; and

        (D) members who have been wounded or injured during deployment; and

      (2) develop recommendations on means of improving assistance to members of the National Guard and Reserve described in subsection (a) in meeting the needs identified in paragraph (1) on their return from deployment as described in subsection (a).

    (d) Consultation- In carrying out its responsibilities under subsection (c), the working group established under subsection (a) shall consult with the following:

      (1) Appropriate personnel of the Small Business Administration.

      (2) Representatives of employers who employ members of the National Guard and Reserve described in subsection (a) on their return to civilian employment as described in that subsection.

      (3) Representatives of employee assistance organizations.

      (4) Representatives of associations of employers.

      (5) Representatives of organizations that assist wounded or injured members of the National Guard and Reserves in finding or sustaining employment.

      (6) Representatives of such other public or private organizations and entities as the working group considers appropriate.

    (e) Report-

      (1) IN GENERAL- Not later than one year after the date of the enactment of this Act, the working group established under subsection (a) shall submit to the Secretary of Defense and Congress a report on its activities under subsection (c).

      (2) ELEMENTS- The report required by paragraph (1) shall include the following:

        (A) The results of the identification and assessment required under subsection (c)(1).

        (B) The recommendations developed under subsection (c)(2), including recommendations on the following:

          (i) The provision of outreach and training to employers, employment assistance organizations, and associations of employers on the employment and transition needs of members of the National Guard and Reserve described in subsection (a) upon their return from deployment as described in that subsection.

          (ii) The provision of outreach and training to employers, employment assistance organizations, and associations of employers on the needs of family members of such members.

          (iii) The improvement of collaboration between the pubic and private sectors in order to ensure the successful transition of such members into civilian employment upon their return from such deployment.

      (3) AVAILABILITY TO PUBLIC- The Secretary shall take appropriate actions to make the report under paragraph (1) available to the public, including through the Internet website of the Department of Defense.

    (f) Termination-

      (1) IN GENERAL- The working group established under subsection (a) shall terminate on the date that is two years after the date of the enactment of this Act.

      (2) INTERIM DUTIES- During the period beginning on the date of the submittal of the report required by subsection (e) and the termination of the working group under paragraph (1), the working group shall serve as an advisory board to the Office for Employers and Employment Assistance Organizations under section 683.

    (g) Employment Assistance Organization Defined- In this section, the term `employment assistance organization' means an organization or entity, whether public or private, that provides assistance to individuals in finding or retaining employment, including organizations and entities under military career support programs.

SEC. 683. OFFICE FOR EMPLOYERS AND EMPLOYMENT ASSISTANCE ORGANIZATIONS.

    (a) Designation of Office-

      (1) IN GENERAL- The Secretary of Defense shall designate an office within the Department of Defense to assist employers, employment assistance organizations, and associations of employers in facilitating the successful transition to civilian employment of members of the National Guard and Reserve returning from deployment in Operation Iraqi Freedom or Operation Enduring Freedom.

      (2) NAME- The office designated under this subsection shall be known as the `Office for Employers and Employment Assistance Organizations' (in this section referred to as the `Office').

      (3) HEAD- The Secretary shall designate an individual to act as the head of the Office.

      (4) INTEGRATION- In designating the Office, the Secretary shall ensure close communication between the Office and the military departments, including the commands of the reserve components of the Armed Forces.

    (b) Functions- The Office shall have the following functions:

      (1) To provide education and technical assistance to employers, employment assistance organizations, and associations of employers to assist them in facilitating the successful transition to civilian employment of members of the National Guard and Reserve described in subsection (a) on their return from deployment as described in that subsection.

      (2) To provide education and technical assistance to employers, employment assistance organizations, and associations of employers to assist them in facilitating the successful adjustment of family members of the National Guard and Reserve to the deployment and return from deployment of members of the National Guard and Reserve as described in that subsection.

    (c) Resources To Be Provided-

      (1) IN GENERAL- In carrying out the functions specified in subsection (b), the Office shall provide employers, employment assistance organizations, and associations of employers resources, services, and assistance that include the following:

        (A) Guidelines on best practices and effective strategies.

        (B) Education on the physical and mental health conditions that can and may be experienced by members of the National Guard and Reserve described in subsection (a) on their return from deployment as described in that subsection in transitioning to civilian employment, including Post Traumatic Stress Disorder (PTSD) and traumatic brain injury (TBI), including education on--

          (i) the detection of warning signs of such conditions;

          (ii) the medical, mental health, and employment services available to such members, including materials on services offered by the Department of Defense, the Department of Veterans Affairs (including through the vet center program under section 1712A of title 38, United States Code), the Department of Labor, military support programs, and community mental health clinics; and

          (iii) the mechanisms for referring such members for services described in clause (ii) and for other medical and mental health screening and care when appropriate.

        (C) Education on the range and types of potential physical and mental health effects of deployment and post-deployment adjustment on family members of members of the National Guard and Reserve described in subsection (a), including education on--

          (i) the detection of warning signs of such effects on family members of members of the National Guard and Reserves;

          (ii) the medical, mental health, and employment services available to such family members, including materials on such services as described in subparagraph (B)(ii); and

          (iii) mechanisms for referring such family members for services described in clause (ii) and for medical and mental health screening and care when appropriate.

        (D) Education on mechanisms, strategies, and resources for accommodating and employing wounded or injured members of the National Guard and Reserves in work settings.

      (2) PROVISION OF RESOURCES- The Office shall make resources, services, and assistance available under this subsection through such mechanisms as the head of the Office considers appropriate, including the Internet, video conferencing, telephone services, workshops, trainings, presentations, group forums, and other mechanisms.

    (d) Personnel and Other Resources- The Secretary of Defense shall assign to the Office such personnel, funding, and other resources as are required to ensure the effective discharge by the Office of the functions under subsection (b).

    (e) Reports on Activities-

      (1) ANNUAL REPORT BY OFFICE- Not later than one year after the designation of the Office, and annually thereafter, the head of the Office, in consultation with the working group established pursuant to section 682 (while in effect), shall submit to the Secretary of Defense a written report on the progress and outcomes of the Office during the one-year period ending on the date of such report.

      (2) TRANSMITTAL TO CONGRESS- Not later than 60 days after receipt of a report under paragraph (1), the Secretary shall transmit such report to the Committees on Armed Services of the Senate and the House of Representatives, together with--

        (A) such comments on such report, and such assessment of the effectiveness of the Office, as the Secretary considers appropriate; and

        (B) such recommendations on means of improving the effectiveness of the Office as the Secretary considers appropriate.

      (3) AVAILABILITY TO PUBLIC- The Secretary shall take appropriate actions to make each report under paragraph (2) available to the public, including through the Internet website of the Office.

    (f) Employment Assistance Organization Defined- In this section, the term `employment assistance organization' means an organization or entity, whether public or private, that provides assistance to individuals in finding or retaining employment, including organizations and entities under military career support programs.

SEC. 684. ADDITIONAL RESPONSIBILITIES OF DEPARTMENT OF DEFENSE TASK FORCE ON MENTAL HEALTH RELATING TO MENTAL HEALTH OF MEMBERS OF THE NATIONAL GUARD AND RESERVE DEPLOYED IN OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Additional Responsibilities- Section 723 of the National Defense Authorization Act for Fiscal Year 2006 (Public Law 109-163; 119 Stat. 3348) is amended--

      (1) by redesignating subsections (d), (e), (f), and (g) as subsections (e), (f), (g), and (h), respectively; and

      (2) by inserting after subsection (c) the following new subsection (d):

    `(d) Assessment of Mental Health Needs of Members of National Guard and Reserve Deployed in OIF or OEF-

      `(1) IN GENERAL- In addition to the activities required under subsection (c), the task force shall, not later than 12 months after the date of the enactment of the Heroes at Home Act of 2006, submit to the Secretary a report containing an assessment and recommendations on the needs with respect to mental health of members of the National Guard and Reserve who are deployed in Operation Iraqi Freedom or Operation Enduring Freedom upon their return from such deployment.

      `(2) ELEMENTS- The assessment and recommendations required by paragraph (1) shall include the following:

        `(A) An assessment of the specific needs with respect to mental health of members of the National Guard and Reserve who are deployed in Operation Iraqi Freedom or Operation Enduring Freedom upon their return from such deployment.

        `(B) An identification of mental health conditions and disorders (including Post Traumatic Stress Disorder (PTSD), suicide attempts, and suicide) occurring among members of the National Guard and Reserve who undergo multiple deployments in Operation Iraqi Freedom or Operation Enduring Freedom upon their return from such deployment.

        `(C) Recommendations on mechanisms for improving the mental health services available to members of the National Guard and Reserve who are deployed in Operation Iraqi Freedom or Operation Enduring Freedom, including such members who undergo multiple deployments in such operations, upon their return from such deployment.'.

    (b) Report- Subsection (f) of such section, as redesignated by subsection (a)(1) of this section, is further amended--

      (1) in the subsection heading, by striking `Report' and inserting `Reports';

      (2) by striking paragraph (1) and inserting the following new paragraph (1):

      `(1) IN GENERAL- The report submitted to the Secretary under each of subsections (c) and (d) shall include--

        `(A) a description of the activities of the task force under such subsection;

        `(B) the assessment and recommendations required by such subsection; and

        `(C) such other matters relating to the activities of the task force under such subsection as the task force considers appropriate.'; and

      (3) in paragraph (2)--

        (A) by striking `the report under paragraph (1)' and inserting `a report under paragraph (1)'; and

        (B) by striking `the report as' and inserting `such report as'.

    (c) Plan Matters- Subsection (g) of such section, as redesignated by subsection (a)(1) of this section, is further amended--

      (1) by striking `the report from the task force under subsection (e)(1)' and inserting `a report from the task force under subsection (f)(1)'; and

      (2) by inserting `contained in such report' after `the task force' the second place it appears.

    (d) Termination- Subsection (h) of such section, as redesignated by subsection (a)(1) of this section, is further amended--

      (1) by inserting `with respect to the assessment and recommendations required by subsection (d)' after `the task force'; and

      (2) by striking `subsection (e)(2)' and inserting `subsection (f)(2)'.

SEC. 685. GRANTS ON ASSISTANCE IN COMMUNITY-BASED SETTINGS FOR MEMBERS OF THE NATIONAL GUARD AND RESERVE AND THEIR FAMILIES AFTER DEPLOYMENT IN OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) In General- The Secretary of Defense may award grants to eligible entities to carry out demonstration projects to assess the feasibility and advisability of utilizing community-based settings for the provision of assistance to members of the National Guard and Reserve who serve in Operation Iraqi Freedom or Operation Enduring Freedom, and their families, after the return of such members from deployment in Operation Iraqi Freedom or Operation Enduring Freedom, as the case may be, including--

      (1) services to improve the reuniting of such members of the National Guard and Reserve and their families;

      (2) education to increase awareness of the physical and mental health conditions that members of the National Guard and Reserve can and may experience on their return from such deployment, including education on--

        (A) Post Traumatic Stress Disorder (PTSD) and traumatic brain injury (TBI); and

        (B) mechanisms for the referral of such members of the National Guard and Reserve for medical and mental health screening and care when necessary; and

      (3) education to increase awareness of the physical and mental health conditions that family members of such members of the National Guard and Reserve can and may experience on the return of such members from such deployment, including education on--

        (A) depression, anxiety, and relationship problems; and

        (B) mechanisms for medical and mental health screening and care when appropriate.

    (b) Eligible Entities- An entity eligible for the award of a grant under this section is any public or private non-profit organization, such as a community mental health clinic, family support organization, military support organization, law enforcement agency, community college, or public school.

    (c) Application- An eligible entity seeking a grant under this section shall submit to the Secretary of Defense an application therefor in such manner, and containing such information, as the Secretary may require for purposes of this section, including a description of how such entity will work with the Department of Defense, the Department of Veterans Affairs, State health agencies, other appropriate Federal, State, and local agencies, family support organizations, and other community organization in undertaking activities described in subsection (a).

    (d) Annual Reports by Grant Recipients- An entity awarded a grant under this section shall submit to the Secretary of Defense on an annual basis a report on the activities undertaken by such entity during the preceding year utilizing amounts under the grant. Each report shall include such information as the Secretary shall specify for purposes of this subsection.

    (e) Annual Reports to Congress-

      (1) IN GENERAL- Not later than one year after the date of the enactment of this Act, and annually thereafter, the Secretary of Defense shall submit to Congress a report on activities undertaken under the grants awarded under this section. The report shall include recommendations for legislative, programmatic, or administrative action to improve or enhance activities under the grants awarded under this section.

      (2) AVAILABILITY TO PUBLIC- The Secretary shall take appropriate actions to make each report under this subsection available to the public.

SEC. 686. LONGITUDINAL STUDY ON TRAUMATIC BRAIN INJURY INCURRED BY MEMBERS OF THE ARMED FORCES IN OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Study Required- The Secretary of Defense shall, in consultation with the Secretary of Veterans Affairs, conduct a longitudinal study on the effects of traumatic brain injury incurred by members of the Armed Forces in Operation Iraqi Freedom or Operation Enduring Freedom. The duration of the longitudinal study shall be 15 years.

    (b) Elements- The study required by subsection (a) shall address the following:

      (1) The long-term physical and mental health effects of traumatic brain injuries incurred by members of the Armed Forces during service in Operation Iraqi Freedom or Operation Enduring Freedom.

      (2) The health care, mental health care, and rehabilitation needs of such members for such injuries after the completion of inpatient treatment through the Department of Defense, the Department of Veterans Affairs, or both.

      (3) The type and availability of long-term care rehabilitation programs and services within and outside the Department of Defense and the Department of Veterans Affairs for such members for such injuries, including community-based programs and services and in-home programs and services.

    (c) Reports-

      (1) PERIODIC AND FINAL REPORTS- After the third, seventh, eleventh, and fifteenth years of the study required by subsection (a), the Secretary of Defense shall, in consultation with the Secretary of Veterans Affairs, submit to Congress a comprehensive report on the results of the study during the preceding years. Each report shall include the following:

        (A) Current information on the cumulative outcomes of the study.

        (B) Such recommendations as the Secretary of Defense and the Secretary of Veterans Affairs jointly consider appropriate based on the outcomes of the study, including recommendations for legislative, programmatic, or administrative action to improve long-term care and rehabilitation programs and services for members of the Armed Forces with traumatic brain injuries.

      (2) AVAILABILITY TO PUBLIC- The Secretary of Defense and the Secretary of Veterans Affairs shall jointly take appropriate actions to make each report under this subsection available to the public.

    (d) Funding-

      (1) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Department of Defense to carry out this section amounts as follows:

        (A) For fiscal year 2007, $5,000,000.

        (B) For each of fiscal years 2008 through 2021, such sums as may be necessary.

      (2) OFFSET- The amount authorized to be appropriated by section 102(a)(2) for weapons procurement for the Navy is hereby reduced by $5,000,000, with the amount of the reduction to be allocated to amounts for the Trident II conventional modification program.

SEC. 687. TRAINING CURRICULA FOR FAMILY CAREGIVERS ON CARE AND ASSISTANCE FOR MEMBERS AND FORMER MEMBERS OF THE ARMED FORCES WITH TRAUMATIC BRAIN INJURY INCURRED IN OPERATION IRAQI FREEDOM AND OPERATION ENDURING FREEDOM.

    (a) Traumatic Brain Injury Family Caregiver Panel-

      (1) ESTABLISHMENT- The Secretary of Defense shall, in consultation with the Secretary of Veterans Affairs, establish within the Department of Defense a panel to develop coordinated, uniform, and consistent training curricula to be used in training family members in the provision of care and assistance to members and former members of the Armed Forces for traumatic brain injuries incurred during service in the Armed Forces in Operation Iraqi Freedom or Operation Enduring Freedom.

      (2) DESIGNATION OF PANEL- The panel established under paragraph (1) shall be known as the `Traumatic Brain Injury Family Caregiver Panel'.

      (3) MEMBERS- The Traumatic Brain Injury Family Caregiver Panel established under paragraph (1) shall consist of 15 members appointed by the Secretary of Defense, in consultation with the Secretary of Veterans Affairs, equally represented from among--

        (A) physicians, nurses, rehabilitation therapists, and other individuals with an expertise in caring for and assisting individuals with traumatic brain injury, including those who specialize in caring for and assisting individuals with traumatic brain injury incurred in war;

        (B) representatives of family caregivers or family caregiver associations;

        (C) Department of Defense and Department of Veterans Affairs health and medical personnel with expertise in traumatic brain injury, and Department of Defense personnel and readiness representatives with expertise in traumatic brain injury;

        (D) psychologists or other individuals with expertise in the mental health treatment and care of individuals with traumatic brain injury;

        (E) experts in the development of training curricula; and

        (F) any other individuals the Secretary considers appropriate.

    (b) Development of Curricula-

      (1) IN GENERAL- The Traumatic Brain Injury Family Caregiver Panel shall develop training curricula to be utilized during the provision of training to family members of members and former members of the Armed Forces described in subsection (a) on techniques, strategies, and skills for care and assistance for such members and former members with the traumatic brain injuries described in that subsection.

      (2) SCOPE OF CURRICULA- The curricula shall--

        (A) be based on empirical research and validated techniques; and

        (B) shall provide for training that permits recipients to tailor caregiving to the unique circumstances of the member or former member of the Armed Forces receiving care.

      (3) PARTICULAR REQUIREMENTS- In developing the curricula, the Traumatic Brain Injury Family Caregiver Panel shall--

        (A) specify appropriate training commensurate with the severity of traumatic brain injury; and

        (B) identify appropriate care and assistance to be provided for the degree of severity of traumatic brain injury for caregivers of various levels of skill and capability.

      (4) USE OF EXISTING MATERIALS- In developing the curricula, the Traumatic Brain Injury Family Caregiver Panel shall utilize and enhance any existing training curricula, materials, and resources applicable to such curricula as the Panel considers appropriate.

      (5) DEADLINE FOR DEVELOPMENT- The Traumatic Brain Injury Family Caregiver Panel shall develop the curricula not later than one year after the date of the enactment of this Act.

    (c) Dissemination of Curricula-

      (1) IN GENERAL- The Secretary of Defense shall, in consultation with the Traumatic Brain Injury Family Caregiver Panel, develop mechanisms for the dissemination of the curricula developed under subsection (b) to health care professionals referred to in paragraph (2) who treat or otherwise work with members and former members of the Armed Forces with traumatic brain injury incurred in Operation Iraqi Freedom or Operation Enduring Freedom. In developing such mechanisms, the Secretary may utilize and enhance existing mechanisms, including the Military Severely Injured Center.

      (2) HEALTH CARE PROFESSIONALS- The health care professionals referred to in this paragraph are the following:

        (A) Personnel at military medical treatment facilities.

        (B) Personnel at the polytrauma centers of the Department of Veterans Affairs.

        (C) Personnel and care managers at the Military Severely Injured Center.

        (D) Such other health care professionals of the Department of Defense as the Secretary considers appropriate.

        (E) Such other health care professionals of the Department of Veterans Affairs as the Secretary of Defense, in consultation with the Secretary of Veterans Affairs, considers appropriate.

      (3) PROVISION OF TRAINING TO FAMILY CAREGIVERS-

        (A) IN GENERAL- Health care professionals referred to in paragraph (2) who are trained in the curricula developed under subsection (b) shall provide training to family members of members and former members of the Armed Forces who incur traumatic brain injuries during service in the Operation Iraqi Freedom or Operation Enduring Freedom in the care and assistance to be provided for such injuries.

        (B) TIMING OF TRAINING- Training under this paragraph shall, to the extent practicable, be provided to family members while the member or former member concerned is undergoing treatment at a facility of the Department of Defense or Department of Veterans Affairs, as applicable, in order to ensure that such family members receive practice on the provision of such care and assistance under the guidance of qualified health professionals.

        (C) PARTICULARIZED TRAINING- Training provided under this paragraph to family members of a particular member or former member shall be tailored to the particular care needs of such member or former member and the particular caregiving needs of such family members.

      (4) QUALITY ASSURANCE- The Secretary shall develop mechanisms to ensure quality in the provision of training under this section to health care professionals referred to in paragraph (2) and in the provision of such training under paragraph (4) by such health care professionals.

      (5) REPORT- Not later than one year after the development of the curricula required by subsection (b), and annually thereafter, the Traumatic Brain Injury Family Caregiver Training Panel shall submit to the Secretary of Defense and the Secretary of Veterans Affairs, and to Congress, a report on the following:

        (A) The actions undertaken under this subsection.

        (B) The results of the tracking of outcomes based on training developed and provided under this section.

        (C) Recommendations for the improvement of training developed and provided under this section.

    (d) Funding-

      (1) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated to the Department of Defense to carry out this section amounts as follows:

        (A) For fiscal year 2007, $1,000,000.

        (B) For each of fiscal years 2008 through 2011, such sums as may be necessary.

      (2) OFFSET- The amount authorized to be appropriated by section 102(a)(2) for weapons procurement for the Navy is hereby reduced by $1,000,000, with the amount of the reduction to be allocated to amounts for the Trident II conventional modification program.

TITLE VII--HEALTH CARE

Subtitle A--Benefits Matters

SEC. 701. IMPROVED PROCEDURES FOR CANCER SCREENING FOR WOMEN.

    (a) PRIMARY AND PREVENTIVE HEALTH CARE SERVICES AUTHORITY- Section 1074d of title 10, United States Code, is amended--

      (1) in subsection (a)(1), by adding at the end the following new sentence: `The services described in paragraphs (1) and (2) of subsection (b) shall be provided under such procedures and at such intervals as the Secretary of Defense shall prescribe.'; and

      (2) in subsection (b), by striking paragraphs (1) and (2) and inserting the following new paragraphs:

      `(1) Cervical cancer screening.

      `(2) Breast cancer screening.'.

    (b) TRICARE PROGRAM- Section 1079(a)(2) of such title is amended--

      (1) in the matter preceding subparagraph (A), by striking `the schedule of pap smears and mammograms' and inserting `the schedule and method of cervical cancer screenings and breast cancer screenings'; and

      (2) in subparagraph (B), by striking `pap smears and mammograms' and inserting `cervical and breast cancer screenings'.

SEC. 702. NATIONAL MAIL-ORDER PHARMACY PROGRAM.

    (a) AVAILABILITY OF REFILLS OF MAINTENANCE-TYPE MEDICATIONS SOLELY THROUGH PROGRAM-

      (1) IN GENERAL- Subsection (a)(2) of section 1074g of title 10, United States Code, is amended--

        (A) in subparagraph (E), by striking `Pharmaceutical agents' and inserting `Except as provided in subparagraph (F), pharmaceutical agents'; and

        (B) by adding at the end the following new subparagraph:

    `(F)(i) Effective April 1, 2007, refills of maintenance medications shall, except as provided under clause (ii), be available to eligible covered beneficiaries solely through the national mail-order pharmacy program referred to in subparagraph (E)(iii).

    `(ii) Under such regulations as the Secretary may prescribe under this subparagraph, refills of a maintenance medication may be available to covered eligible beneficiaries through means other than the national mail-order pharmacy program if clinical requirements make it advisable that such medication be available to such beneficiaries through such other means.

    `(iii) The Secretary shall specify the pharmaceutical agents constituting maintenance medications for purposes of this subparagraph.'.

      (2) CONFORMING AMENDMENT- Subsection (f)(1) of such section is amended by striking `subsection (a)(2)(E)' and inserting `subparagraphs (E) and (F) of subsection (a)(2)'.

    (b) PROHIBITION ON COPAYMENTS FOR CERTAIN PHARMACEUTICALS AVAILABLE THROUGH PROGRAM- Subsection (a)(6) of such section is amended by adding at the end the following new subparagraph:

    `(C) In establishing the cost-sharing requirements, the Secretary may not impose any copayment or cost-sharing requirement with respect to the following:

      `(i) Refills of generic medications.

      `(ii) Brand name medications determined by a physician to be medically necessary.'.

SEC. 703. AVAILABILITY UNDER TRICARE OF ANESTHESIA FOR CHILDREN IN CONNECTION WITH DENTAL PROCEDURES FOR WHICH DENTAL ANESTHESIA IS INAPPROPRIATE.

    Section 1079(a)(1) of title 10, United States Code, is amended by inserting before the period at the end the following: `, except that, pursuant to such regulations as the Secretary of Defense may prescribe, hospitalization and professional services may be provided in connection with the anesthesia of a child under the age of six years for a dental procedure which, as determined by a qualified dental specialist, is necessary'.

SEC. 704. TRICARE COVERAGE FOR FORENSIC EXAMINATIONS FOLLOWING SEXUAL ASSAULTS AND DOMESTIC VIOLENCE.

    Section 1079(a) of title 10, United States Code, is amended by adding at the end the following new paragraph:

      `(17) Forensic examinations following a sexual assault or domestic violence may be provided.'.

SEC. 705. PROHIBITION ON INCREASE IN FISCAL YEAR 2007 IN ENROLLMENT FEES FOR COVERAGE UNDER TRICARE PRIME.

    (a) PROHIBITION- Fees charged for enrollment in TRICARE Prime may not be increased during fiscal year 2007.

    (b) TRICARE PRIME DEFINED- In this section, the term `TRICARE Prime' means the managed care option of the TRICARE program.

SEC. 706. LIMITATION ON FISCAL YEAR 2007 INCREASE IN PREMIUMS FOR COVERAGE UNDER TRICARE OF MEMBERS OF RESERVE COMPONENTS WHO COMMIT TO CONTINUED SERVICE IN SELECTED RESERVE AFTER RELEASE FROM ACTIVE DUTY.

    Any premium charged under subsection (d) of section 1076d of title 10, United States Code, for coverage under TRICARE of members of reserve components who commit to continued service in the Selected Reserve after release from active duty, as authorized by subsection (a) of such section, may not be increased during fiscal year 2007 by an amount which exceeds 2.2 percent of such premium as of September 30, 2006.

SEC. 707. TEMPORARY PROHIBITION ON INCREASE IN COPAYMENTS UNDER RETAIL PHARMACY SYSTEM OF PHARMACY BENEFITS PROGRAM.

    Subsection (a)(6) of section 1074g of title 10, United States Code, as amended by section 702(b) of this Act, is further amended by adding at the end the following new subparagraph:

    `(D) During the period beginning on October 1, 2006, and ending on September 31, 2007, the cost sharing requirements established under this paragraph for pharmaceutical agents available through retail pharmacies covered by paragraph (2)(E)(ii) may not exceed amounts as follows:

      `(i) In the case of generic agents, $3.

      `(ii) In the case of formulary agents, $9.

      `(iii) In the case of nonformulary agents, $22.'.

SEC. 708. EXPANSION OF ELIGIBILITY OF MEMBERS OF THE SELECTED RESERVE FOR COVERAGE UNDER TRICARE.

    (a) In General- Subsection (a) of section 1076b of title 10, United States Code, is amended--

      (1) in paragraph (2), by striking `or' at the end;

      (2) in paragraph (3), by striking the period at the end and inserting `; or'; and

      (3) by adding at the end the following new paragraph:

      `(4) is an employee of a business with 20 or fewer employees.'.

    (b) Premiums- Subsection (e)(2) of such section is amended by adding at the end the following new subparagraph:

      `(C) For members eligible under paragraph (4) of subsection (a), the amount equal to 75 percent of the total amount determined by the Secretary on an appropriate actuarial basis as being reasonable for the coverage.'.

    (c) Effective Date- The amendments made by this section shall take effect on October 1, 2006.

Subtitle B--Planning, Programming, and Management

SEC. 721. TREATMENT OF TRICARE RETAIL PHARMACY NETWORK UNDER FEDERAL PROCUREMENT OF PHARMACEUTICALS.

    Section 1074g of title 10, United States Code, is amended--

      (1) by redesignating subsections (f) and (g) as subsections (g) and (h), respectively; and

      (2) by inserting after subsection (e) the following new subsection (f):

    `(f) TRICARE RETAIL PHARMACY NETWORK- The TRICARE Retail Pharmacy Network under the TRICARE program shall be treated as an element of the Department of Defense for purposes of the procurement of drugs by Federal agencies under section 8126 of title 38 in connection with the provision by pharmacies in the Network of pharmaceutical services to eligible covered beneficiaries under this section.'.

SEC. 722. RELATIONSHIP BETWEEN THE TRICARE PROGRAM AND EMPLOYER-SPONSORED GROUP HEALTH CARE PLANS.

    (a) IN GENERAL- Chapter 55 of title 10, United States Code, is amended by inserting after section 1097b the following new section:

`Sec. 1097c. TRICARE program: relationship with employer-sponsored group health plans

    `(a) IN GENERAL- (1) The TRICARE program is the secondary payer for any health care services provided by an employer to a TRICARE eligible employee of such employer, and the spouse of such employee, through any group health plan offered by such employer.

    `(2) An employer shall provide that a TRICARE eligible employee of such employer, and the spouse of such employee, is entitled to benefits and services under the group health plan offered by such employer in the same manner and to the same extent as similarly situated employees of such employer who are not TRICARE eligible employees.

    `(3) An employer of a TRICARE eligible employee may not establish any condition applicable to the participation of the employee in a group health plan offered by such employer in connection with the entitlement of the employee for health care services under the TRICARE program, including any condition on--

      `(A) the eligibility of the employee for participation in the plan; or

      `(B) benefits or services available to the employee under the plan.

    `(b) PROHIBITION ON INCENTIVES FOR TRICARE ELIGIBLE EMPLOYEES NOT TO ENROLL OR TO DISENROLL IN GROUP HEALTH PLANS- (1) An employer may not offer a TRICARE eligible employee any financial or other benefit (including health services coverage that is supplemental to health services coverage under the TRICARE program) not to enroll, or to disenroll, in the group health plan offered by the employer in order to ensure that the TRICARE program, rather than the plan, is the primary payer for health care services received