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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 4 Engrossed in Senate (ES)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  1st Session
                                  S. 4

_______________________________________________________________________

                                 AN ACT

 
 To improve pay and retirement equity for members of 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.

    This Act may be cited as the ``Soldiers', Sailors', Airmen's, and 
Marines' Bill of Rights Act of 1999''.

                      TITLE I--PAY AND ALLOWANCES

SEC. 101. FISCAL YEAR 2000 INCREASE AND RESTRUCTURING OF BASIC PAY.

    (a) Waiver of Section 1009 Adjustment.--Any adjustment required by 
section 1009 of title 37, United States Code, in the rates of monthly 
basic pay authorized members of the uniformed services by section 
203(a) of such title to become effective during fiscal year 2000 shall 
not be made.
    (b) January 1, 2000, Increase in Basic Pay.--Effective on January 
1, 2000, the rates of monthly basic pay for members of the uniformed 
services shall be increased by 4.8 percent.
    (c) Basic Pay Reform.--Effective on July 1, 2000, the rates of 
monthly basic pay for members of the uniformed services within each pay 
grade are as follows:
      

                        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.............   6,594.30   6,810.30   6,953.10   6,993.30    7,171.80
O-7.............   5,479.50   5,851.80   5,851.50   5,894.40    6,114.60
O-6.............   4,061.10   4,461.60   4,754.40   4,754.40    4,772.40
O-5.............   3,248.40   3,813.90   4,077.90   4,127.70    4,291.80
O-4.............   2,737.80   3,333.90   3,556.20   3,606.04    3,812.40
O-3\3\..........   2,544.00   2,884.20   3,112.80   3,364.80    3,525.90
O-2\3\..........   2,218.80   2,527.20   2,910.90   3,000.00    3,071.10
O-1\3\..........   1,926.30   2,004.90   2,423.10   2,423.10    2,423.10
                 -------------------------------------------------------
                    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.............   7,471.50   7,540.80   7,824.60   7,906.20    8,150.10
O-7.............   6,282.00   6,475.80   6,669.00   6,863.10    7,471.50
O-6.............   4,976.70   5,004.00   5,004.00   5,169.30    5,791.20
O-5.............   4,291.80   4,420.80   4,659.30   4,971.90    5,286.00
O-4.............   3,980.40   4,251.50   4,464.00   4,611.00    4,758.90
O-3\3\..........   3,702.60   3,850.20   4,040.40   4,139.10    4,139.10
O-2\3\..........   3,071.10   3,071.10   3,071.10   3,071.10    3,071.10
O-1\3\..........   2,423.10   2,423.10   2,423.10   2,423.10    2,423.10
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-10\2\.........      $0.00  $10,655.1  $10,707.6  $10,930.2  $11,318.40
                                     0          0          0
O-9.............       0.00   9,319.50   9,453.60   9,647.70    9,986.40
O-8.............   8,503.80   8,830.20   9,048.00   9,048.00    9,048.00
O-7.............   7,985.40   7,985.40   7,985.40   7,985.40    8,025.60
O-6.............   6,086.10   6,381.30   6,549.00   6,719.10    7,049.10
O-5.............   5,436.00   5,583.60   5,751.90   5,751.90    5,751.90
O-4.............   4,808.70   4,808.70   4,808.70   4,808.70    4,808.70
O-3\3\..........   4,139.10   4,139.10   4,139.10   4,139.10    4,139.10
O-2\3\..........   3,071.10   3,071.10   3,071.10   3,071.10    3,071.10
O-1\3\..........   2,423.10   2,423.10   2,423.10   2,423.10   2,423.10
------------------------------------------------------------------------
\1\Basic pay for these officers is limited to the rate of basic pay for
  level V of the Executive Schedule.
\2\While serving as Chairman or Vice Chairman of the Joint Chiefs of
  Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of
  Staff of the Air Force, Commandant of the Marine Corps, or Commandant
  of the Coast Guard, basic pay for this grade is calculated to be
  $12,441.00, regardless of cumulative years of service computed under
  section 205 of title 37, United States Code. Nevertheless, basic pay
  for these officers is limited to the rate of basic pay for level V of
  the Executive Schedule.
\3\Does not apply to commissioned officers who have been credited with
  over 4 years of active duty service as an enlisted member or warrant
  officer.

  COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE AS AN
                   ENLISTED MEMBER OR WARRANT OFFICER
 Years of service computed under section 205 of title 37, United States
                                  Code
------------------------------------------------------------------------
    Pay Grade     2 or less    Over 2     Over 3     Over 4     Over 6
------------------------------------------------------------------------
O-3E............      $0.00      $0.00      $0.00  $3,364.80   $3,525.90
O-2E............       0.00       0.00       0.00   3,009.00    3,071.10
O-1E............       0.00       0.00       0.00   2,423.10    2,588.40
                 -------------------------------------------------------
                    Over 8    Over 10    Over 12    Over 14     Over 16
                 -------------------------------------------------------
O-3E............  $3,702.60  $3,850.20  $4,040.40  $4,200.30   $4,291.80
O-2E............   3,168.60   3,333.90   3,461.40   3,556.20    3,556.20
O-1E............   2,683.80   2,781.30   2,877.60   3,009.00    3,009.00
                 -------------------------------------------------------
                   Over 18    Over 20    Over 22    Over 24     Over 26
                 -------------------------------------------------------
O-3E............  $4,416.90  $4,416.90  $4,416.90  $4,416.90   $4,416.90
O-2E............   3,556.20   3,556.20   3,556.20   3,556.20    3,556.20
O-1E............   3,009.00   3,009.00   3,009.00   3,009.00    3,009.00
------------------------------------------------------------------------

                            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..............   2,592.00   2,788.50   2,868.60   2,947.50   3,083.40
W-3..............   2,355.90   2,555.40   2,555.40   2,588.40   2,694.30
W-2..............   2,063.40   2,232.60   2,232.60   2,305.80   2,423.10
W-1..............   1,719.00   1,971.00   1,971.00   2,135.70   2,232.60
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
W-5..............      $0.00      $0.00      $0.00      $0.00      $0.00
W-4..............   3,217.20   3,352.80   3,485.10   3,622.20   3,753.60
W-3..............   2,814.90   2,974.20   3,071.10   3,177.00   3,298.20
W-2..............   2,555.40   2,852.60   2,749.80   2,844.30   2,949.00
W-1..............   2,332.80   2,433.30   2,533.20   2,634.00   2,734.80
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
W-5..............      $0.00  $4,475.10  $4,628.70  $4,782.90  $4,937.40
W-4..............   3,888.00   4,019.00   4,155.60   4,289.70   4,427.10
W-3..............   3,418.50   3,539.10   3,659.40   3,780.00   3,900.90
W-2..............   3,058.40   3,163.80   3,270.90   3,378.30   3,378.30
W-1..............   2,835.00   2,910.90   2,910.90   2,910.90   2,910.90
------------------------------------------------------------------------

                            ENLISTED MEMBERS
 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\4\...........      $0.00      $0.00      $0.00      $0.00      $0.00
E-8..............       0.00       0.00       0.00       0.00       0.00
E-7..............   1,765.80   1,927.80   2,001.00   2,073.00   2,147.70
E-6..............   1,518.90   1,678.20   1,752.60   1,824.30   1,899.30
E-5..............   1,332.60   1,494.00   1,566.00   1,640.40   1,714.50
E-4..............   1,242.90   1,373.10   1,447.20   1,520.10   1,593.90
E-3..............   1,171.50   1,260.60   1,334.10   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40
E-1..............  \5\1,005.   1,005.60   1,005.60   1,005.60   1,005.60
                          60
                  ------------------------------------------------------
                     Over 8    Over 10    Over 12    Over 14    Over 16
                  ------------------------------------------------------
E-9\4\...........      $0.00  $3,015.30  $3,083.40  $3,169.80  $3,271.50
E-8..............   2,528.40   2,601.60   2,669.70   2,751.60   2,840.10
E-7..............   2,220.90   2,294.10   2,367.30   2,439.30   2,514.00
E-6..............   1,973.10   2,047.20   2,118.60   2,191.50   2,244.60
E-5..............   1,789.50   1,861.50   1,936.20   1,936.20   1,936.20
E-4..............   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90
E-3..............   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,127.40   1,127.40
E-1..............   1,005.60   1,005.60   1,005.60   1,005.60   1,005.60
                  ------------------------------------------------------
                    Over 18    Over 20    Over 22    Over 24    Over 26
                  ------------------------------------------------------
E-9\4\...........  $3,373.20  $3,473.40  $3,609.30  $3,744.00  $3,915.80
E-8..............   2,932.50   3,026.10   3,161.10   3,295.50   3,483.60
E-7..............   2,588.10   2,660.40   2,787.60   2,926.20   3,134.40
E-6..............   2,283.30   2,283.30   2,285.70   2,285.70   2,285.70
E-5..............   1,936.20   1,936.20   1,936.20   1,936.20   1,936.20
E-4..............   1,593.90   1,593.90   1,593.90   1,593.90   1,593.90
E-3..............   1,335.90   1,335.90   1,335.90   1,335.90   1,335.90
E-2..............   1,127.40   1,127.40   1,127.40   1,123.20   1,127.40
E-1..............   1,005.60   1,005.60   1,005.60   1,005.60  1,005.60
------------------------------------------------------------------------
\4\While serving as Sergeant Major of the Army, Master Chief Petty
  Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant
  Major of the Marine Corps, or Master Chief Petty Officer of the Coast
  Guard, basic pay for this grade is $4,701.00, regardless of cumulative
  years of service computed under section 205 of title 37, United States
  Code.
\5\In the case of members in the grade E-1 who have served less than 4
  months on active duty, basic pay is $930.30.

SEC. 102. PAY INCREASES FOR FISCAL YEARS AFTER FISCAL YEAR 2000.

    (a) ECI+0.5 Percent Increase for All Members.--Section 1009(c) of 
title 37, United States Code, is amended to read as follows:
    ``(c) ECI+0.5 Percent Increase for All Members.--Subject to 
subsection (d), an adjustment taking effect under this section during a 
fiscal year shall provide all eligible members with an increase in the 
monthly basic pay by the percentage equal to the sum of one percent 
plus the percentage calculated as provided under section 5303(a) of 
title 5 (without regard to whether rates of pay under the statutory pay 
systems are actually increased during such fiscal year under that 
section by the percentage so calculated).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 2000.

SEC. 103. SPECIAL SUBSISTENCE ALLOWANCE.

    (a) Allowance.--(1) Chapter 7 of title 37, United States Code, is 
amended by inserting after section 402 the following new section:
``Sec. 402a. Special subsistence allowance
    ``(a) Entitlement.--Upon the application of an eligible member of a 
uniformed service described in subsection (b)(1), the Secretary 
concerned shall pay the member a special subsistence allowance for each 
month for which the member is eligible to receive food stamp 
assistance, as determined by the Secretary.
    ``(b) Covered Members.--(1) A member referred to subsection (a) is 
an enlisted member in pay grade E-5 or below.
    ``(2) For the purposes of this section, a member shall be 
considered as being eligible to receive food stamp assistance if the 
household of the member meets the income standards of eligibility 
established under section 5(c)(2) of the Food Stamp Act of 1977 (7 
U.S.C. 2014(c)(2)), not taking into account the special subsistence 
allowance that may be payable to the member under this section and any 
allowance that is payable to the member under section 403 or 404a of 
this title.
    ``(c) Termination of Entitlement.--The entitlement of a member to 
receive payment of a special subsistence allowance terminates upon the 
occurrence of any of the following events:
            ``(1) Termination of eligibility for food stamp assistance.
            ``(2) Payment of the special subsistence allowance for 12 
        consecutive months.
            ``(3) Promotion of the member to a higher grade.
            ``(4) Transfer of the member in a permanent change of 
        station.
    ``(d) Reestablished Entitlement.--(1) After a termination of a 
member's entitlement to the special subsistence allowance under 
subsection (c), the Secretary concerned shall resume payment of the 
special subsistence allowance to the member if the Secretary 
determines, upon further application of the member, that the member is 
eligible to receive food stamps.
    ``(2) Payments resumed under this subsection shall terminate under 
subsection (c) upon the occurrence of an event described in that 
subsection after the resumption of the payments.
    ``(3) The number of times that payments are resumed under this 
subsection is unlimited.
    ``(e) Documentation of Eligibility.--A member of the uniformed 
services applying for the special subsistence allowance under this 
section shall furnish the Secretary concerned with such evidence of the 
member's eligibility for food stamp assistance as the Secretary may 
require in connection with the application.
    ``(f) Amount of Allowance.--The monthly amount of the special 
subsistence allowance under this section is $180.
    ``(g) Relationship to Basic Allowance for Subsistence.--The special 
subsistence allowance under this section is in addition to the basic 
allowance for subsistence under section 402 of this title.
    ``(h) Food Stamp Assistance Defined.--In this section, the term 
`food stamp assistance' means assistance under the Food Stamp Act of 
1977 (7 U.S.C. 2011 et seq.).
    ``(i) Termination of Authority.--No special subsistence allowance 
may be made under this section for any month beginning after September 
30, 2004.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 402 the 
following:

``402a. Special subsistence allowance.''.
    (b) Effective Date.--Section 402a of title 37, United States Code, 
shall take effect on the first day of the first month that begins not 
less than 180 days after the date of the enactment of this Act.
    (c) Annual Report.--(1) Not later than March 1 of each year after 
1999, the Secretary of Defense shall submit to Congress a report 
setting forth the number of members of the uniformed services who are 
eligible for assistance under the Food Stamp Act of 1977 (7 U.S.C. 2011 
et seq.).
    (2) In preparing the report, the Secretary shall consult with the 
Secretary of Transportation (with respect to the Coast Guard), who 
shall provide the Secretary of Defense with any information that the 
Secretary determines necessary to prepare the report.
    (3) No report is required under this section after March 1, 2004.

SEC. 104. INCREASED TUITION ASSISTANCE FOR MEMBERS OF THE ARMED FORCES 
              DEPLOYED IN SUPPORT OF A CONTINGENCY OPERATION OR SIMILAR 
              OPERATION.

    (a) Inapplicability of Limitation on Amount.--Section 2007(a) of 
title 10, United States Code, is amended--
            (1) by striking ``and'' at the end of paragraph (2);
            (2) by striking the period at the end of paragraph (3) and 
        inserting ``; and''; and
            (3) by adding at the end the following:
            ``(4) in the case of a member deployed outside the United 
        States in support of a contingency operation or similar 
        operation, all of the charges may be paid while the member is 
        so deployed.''.
    (b) Increased Authority Subject to Appropriations.--The authority 
to pay additional tuition assistance under paragraph (4) of section 
2007(a) of title 10, United States Code, as added by subsection (a), 
may be exercised only to the extent provided for in appropriations 
Acts.

SEC. 105. INCREASE IN RATE OF DIVING DUTY SPECIAL PAY.

    (a) Increase.--Section 304(b) of title 37, United States Code, is 
amended--
            (1) by striking ``$200'' and inserting ``$240''; and
            (2) by striking ``$300'' and inserting ``$340''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to special 
pay paid under section 304 of title 37, United States Code, for months 
beginning on or after that date.

SEC. 106. INCREASE IN MAXIMUM AMOUNT AUTHORIZED FOR REENLISTMENT BONUS 
              FOR ACTIVE MEMBERS.

    (a) Increase in Maximum Amount.--Section 308(a)(2)(B) of title 37, 
United States Code, is amended by striking ``$45,000'' and inserting 
``$60,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to 
reenlistments and extensions of enlistments taking effect on or after 
that date.

SEC. 107. INCREASE IN ENLISTMENT BONUS FOR MEMBERS WITH CRITICAL 
              SKILLS.

    (a) Increase.--Section 308a(a) of title 37, United States Code, is 
amended in the first sentence by striking ``$12,000'' and inserting 
``$20,000''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect 
enlistments and extensions of enlistments taking effect on or after 
that date.

SEC. 108. INCREASE IN SPECIAL PAY AND BONUSES FOR NUCLEAR-QUALIFIED 
              OFFICERS.

    (a) Special Pay for Nuclear-Qualified Officers Extending Period of 
Active Service.--Section 312(a) of title 37, United States Code, is 
amended by striking ``$15,000'' and inserting ``$25,000''.
    (b) Nuclear Career Accession Bonus.--Section 312b(a)(1) of title 
37, United States Code, is amended by striking ``$10,000'' and 
inserting ``$20,000''.
    (c) Nuclear Career Annual Incentive Bonuses.--Section 312c of title 
37, United States Code, is amended--
            (1) in subsection (a)(1), by striking ``$12,000'' and 
        inserting ``$22,000''; and
            (2) in subsection (b)(1), by striking ``$5,500'' and 
        inserting ``$10,000''.
    (d) Effective Date.--(1) The amendments made by this section shall 
take effect on October 1, 1999.
    (2) The amendments made by subsections (a) and (b) shall apply with 
respect to agreements accepted under section 312(a) and 312b(a), 
respectively, of title 37, United States Code, on or after October 1, 
1999.
    (3) The amendments made by subsection (c) shall apply with respect 
to nuclear service years beginning on or after October 1, 1999.

SEC. 109. INCREASE IN MAXIMUM MONTHLY RATE AUTHORIZED FOR FOREIGN 
              LANGUAGE PROFICIENCY PAY.

    (a) Increase in Maximum Monthly Rate.--Section 316(b) of title 37, 
United States Code, is amended by striking ``$100'' and inserting 
``$300''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to foreign 
language proficiency pay paid under section 316 of title 37, United 
States Code, for months beginning on or after that date.

SEC. 110. CAREER ENLISTED FLYER INCENTIVE PAY.

    (a) Incentive Pay Authorized.--(1) Chapter 5 of title 37, United 
States Code, is amended by inserting after section 301e the following 
new section 301f:
``Sec. 301f. Incentive pay: career enlisted flyers
    ``(a) Pay Authorized.--An enlisted member described in subsection 
(b) may be paid career enlisted flyer incentive pay as provided in this 
section.
    ``(b) Eligible Members.--An enlisted member referred to in 
subsection (a) is an enlisted member of the armed forces who--
            ``(1) is entitled to basic pay under section 204 of this 
        title or is entitled to compensation under paragraph (1) or (2) 
        of section 206(a) of this title;
            ``(2) holds a military occupational specialty or military 
        rating designated as a career enlisted flyer specialty or 
        rating by the Secretary concerned in regulations prescribed 
        under subsection (f) and continues to be proficient in the 
        skills required for that specialty or rating, or is in training 
        leading to the award of such a specialty or rating; and
            ``(3) is qualified for aviation service.
    ``(c) Monthly Payment.--(1) Career enlisted flyer incentive pay may 
be paid a member referred to in subsection (b) for each month in which 
the member performs aviation service that involves frequent and regular 
performance of operational flying duty by the member.
    ``(2)(A) Career enlisted flyer incentive pay may be paid a member 
referred to in subsection (b) for each month in which the member 
performs service, without regard to whether or the extent to which the 
member performs operational flying duty during the month, as follows:
            ``(i) In the case of a member who has performed at least 6, 
        and not more than 15, years of aviation service, the member may 
        be so paid after the member has frequently and regularly 
        performed operational flying duty in each of 72 months if the 
        member so performed in at least that number of months before 
        completing the member's first 10 years of performance of 
        aviation service.
            ``(ii) In the case of a member who has performed more than 
        15, and not more than 20, years of aviation service, the member 
        may be so paid after the member has frequently and regularly 
        performed operational flying duty in each of 108 months if the 
        member so performed in at least that number of months before 
        completing the member's first 15 years of performance of 
        aviation service.
            ``(iii) In the case of a member who has performed more than 
        20, and not more than 25, years of aviation service, the member 
        may be so paid after the member has frequently and regularly 
        performed operational flying duty in each of 168 months if the 
        member so performed in at least that number of months before 
        completing the member's first 20 years of performance of 
        aviation service.
    ``(B) The Secretary concerned, or a designee of the Secretary 
concerned not below the level of personnel chief of the armed force 
concerned, may reduce the minimum number of months of frequent and 
regular performance of operational flying duty applicable in the case 
of a particular member under--
            ``(i) subparagraph (A)(i) to 60 months;
            ``(ii) subparagraph (A)(ii) to 96 months; or
            ``(iii) subparagraph (A)(iii) to 144 months.
    ``(C) A member may not be paid career enlisted flyer incentive pay 
in the manner provided under subparagraph (A) after the member has 
completed 25 years of aviation service.
    ``(d) Monthly Rates.--(1) The monthly rate of any career enlisted 
flyer incentive pay paid under this section to a member on active duty 
shall be prescribed by the Secretary concerned, but may not exceed the 
following:

``Years of aviation service                                Monthly rate
    4 or less.....................................                $150 
    Over 4........................................                $225 
    Over 8........................................                $350 
    Over 14.......................................                $400.
    ``(2) The monthly rate of any career enlisted flyer incentive pay 
paid under this section to a member of a reserve component for each 
period of inactive-duty training during which aviation service is 
performed shall be equal to \1/30\ of the monthly rate of career 
enlisted flyer incentive pay provided under paragraph (1) for a member 
on active duty with the same number of years of aviation service.
    ``(e) Nonapplicability to Members Receiving Hazardous Duty 
Incentive Pay or Special Pay for Diving Duty.--A member receiving 
incentive pay under section 301(a) of this title or special pay under 
section 304 of this title may not be paid special pay under this 
section for the same period of service.
    ``(f) Regulations.--The Secretary concerned shall prescribe 
regulations for the administration of this section. The regulations 
shall include the following:
            ``(1) Definitions of the terms `aviation service' and 
        `frequently and regularly performed operational flying duty' 
        for purposes of this section.
            ``(2) The military occupational specialties or military 
        rating, as the case may be, that are designated as career 
        enlisted flyer specialties or ratings, respectively, for 
        purposes of this section.
    ``(g) Definition.--In this section, the term `operational flying 
duty' means--
            ``(1) flying performed under competent orders while serving 
        in assignments in which basic flying skills normally are 
        maintained in the performance of assigned duties as determined 
        by the Secretary concerned; and
            ``(2) flying performed by members in training that leads to 
        the award of a military occupational specialty or rating 
        referred to in subsection (b)(2).''.
    (2) The table of sections at the beginning of chapter 5 of title 
37, United States Code, is amended by inserting after the item relating 
to section 301e the following new item:

``301f. Incentive pay; career enlisted flyers.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999.
    (c) Save Pay Provision.--In the case of an enlisted member of a 
uniformed service who is a designated career enlisted flyer entitled to 
receive hazardous duty incentive pay under section 301(b) or 
301(c)(2)(A) of title 37, United States Code, as of October 1, 1999, 
the member shall be entitled from that date to payment of incentive pay 
at the monthly rate that is the higher of--
            (1) the monthly rate of incentive pay authorized by such 
        section 301(b) or 301(c)(2)(A) as of September 30, 1999; or
            (2) the monthly rate of incentive pay authorized by section 
        301f of title 37, United States Code, as added by subsection 
        (a).

SEC. 111. RETENTION BONUS FOR SPECIAL WARFARE OFFICERS EXTENDING 
              PERIODS OF ACTIVE DUTY.

    (a) Bonus Authorized.--(1) Chapter 5 of title 37, United States 
Code, is amended by inserting after section 301f, as added by section 
110(a) of this Act, the following new section:
``Sec. 301g. Special pay: special warfare officers extending period of 
              active duty
    ``(a) Bonus Authorized.--A special warfare officer described in 
subsection (b) who executes a written agreement to remain on active 
duty in special warfare service for at least one year may, upon the 
acceptance of the agreement by the Secretary concerned, be paid a 
retention bonus as provided in this section.
    ``(b) Covered Officers.--A special warfare officer referred to in 
subsection (a) is an officer of a uniformed service who--
            ``(1) is qualified for a military occupational specialty or 
        designator identified by the Secretary concerned as a special 
        warfare military occupational specialty or designator and is 
        serving in a position for which that specialty or designator is 
        authorized;
            ``(2) is in pay grade O-3, or is in pay grade O-4 and is 
        not on a list of officers recommended for promotion, at the 
        time the officer applies for an agreement under this section;
            ``(3) has completed at least 6, but not more than 14, years 
        of active commissioned service; and
            ``(4) has completed any service commitment incurred to be 
        commissioned as an officer.
    ``(c) Amount of Bonus.--The amount of a retention bonus paid under 
this section may not be more than $15,000 for each year covered by the 
written agreement.
    ``(d) Proration.--The term of an agreement under subsection (a) and 
the amount of the bonus payable under subsection (c) may be prorated as 
long as such agreement does not extend beyond the date on which the 
officer making such agreement would complete 14 years of active 
commissioned service.
    ``(e) Payment.--Upon acceptance of a written agreement under 
subsection (a) by the Secretary concerned, the total amount payable 
pursuant to the agreement becomes fixed and may be paid--
            ``(1) in a lump sum equal to the amount of half the total 
        amount payable under the agreement at the time the agreement is 
        accepted by the Secretary concerned followed by payments of 
        equal annual installments on the anniversary of the acceptance 
        of the agreement until the payment in full of the balance of 
        the amount that remains payable under the agreement after the 
        payment of the lump sum amount under this paragraph; or
            ``(2) in graduated annual payments under regulations 
        prescribed by the Secretary concerned with the first payment 
        being payable at the time the agreement is accepted by the 
        Secretary concerned and subsequent payments being payable on 
        the anniversaries of the acceptance of the agreement.
    ``(f) Additional Pay.--A retention bonus paid under this section is 
in addition to any other pay and allowances to which an officer is 
entitled.
    ``(g) Repayment.--(1) If an officer who has entered into a written 
agreement under subsection (a) and has received all or part of a 
retention bonus under this section fails to complete the total period 
of active duty in special warfare service as specified in the 
agreement, the Secretary concerned may require the officer to repay the 
United States, on a pro rata basis and to the extent that the Secretary 
determines conditions and circumstances warrant, all sums paid the 
officer under this section.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owed to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of a written agreement entered 
into under subsection (a) does not discharge the officer signing the 
agreement from a debt arising under such agreement or under paragraph 
(1).
    ``(h) Regulations.--The Secretaries concerned shall prescribe 
regulations to carry out this section, including the definition of the 
term `special warfare service' for purposes of this section. 
Regulations prescribed by the Secretary of a military department under 
this section shall be subject to the approval of the Secretary of 
Defense.''.
    (2) The table of sections at the beginning of chapter 5 of title 
37, United States Code, as amended by section 110(a) of this Act, is 
amended by inserting after the item relating to section 301f the 
following new item:

``301g. Special pay: special warfare officers extending period of 
                            active duty.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999.

SEC. 112. RETENTION BONUS FOR SURFACE WARFARE OFFICERS EXTENDING 
              PERIODS OF ACTIVE DUTY.

    (a) Bonus Authorized.--(1) Chapter 5 of title 37, United States 
Code, is amended by inserting after section 301g, as added by section 
111(a) of this Act, the following new section:
``Sec. 301h. Special pay: surface warfare officers extending period of 
              active duty
    ``(a) Special Pay Authorized.--(1) A surface warfare officer 
described in subsection (b) who executes a written agreement described 
in paragraph (2) may, upon the acceptance of the agreement by the 
Secretary of the Navy, be paid a retention bonus as provided in this 
section.
    ``(2) An agreement referred to in paragraph (1) is an agreement in 
which the officer concerned agrees--
            ``(A) to remain on active duty for at least two years and 
        through the tenth year of active commissioned service; and
            ``(B) to complete tours of duty to which the officer may be 
        ordered during the period covered by subparagraph (A) as a 
        department head afloat.
    ``(b) Covered Officers.--A surface warfare officer referred to in 
subsection (a) is an officer of the Regular Navy or Naval Reserve on 
active duty who--
            ``(1) is designated and serving as a surface warfare 
        officer;
            ``(2) is in pay grade O-3 at the time the officer applies 
        for an agreement under this section;
            ``(3) has been selected for assignment as a department head 
        on a surface ship;
            ``(4) has completed at least four, but not more than eight, 
        years of active commissioned service; and
            ``(5) has completed any service commitment incurred to be 
        commissioned as an officer.
    ``(c) Amount of Bonus.--The amount of a retention bonus paid under 
this section may not be more than $15,000 for each year covered by the 
written agreement.
    ``(d) Proration.--The term of an agreement under subsection (a) and 
the amount of the bonus payable under subsection (c) may be prorated as 
long as such agreement does not extend beyond the date on which the 
officer making such agreement would complete 10 years of active 
commissioned service.
    ``(e) Payment.--Upon acceptance of a written agreement under 
subsection (a) by the Secretary of the Navy, the total amount payable 
pursuant to the agreement becomes fixed and may be paid--
            ``(1) in a lump sum equal to the amount of half the total 
        amount payable under the agreement at the time the agreement is 
        accepted by the Secretary followed by payments of equal annual 
        installments on the anniversary of the acceptance of the 
        agreement until the payment in full of the balance of the 
        amount that remains payable under the agreement after the 
        payment of the lump sum amount under this paragraph; or
            ``(2) in equal annual payments with the first payment being 
        payable at the time the agreement is accepted by the Secretary 
        and subsequent payments being payable on the anniversaries of 
        the acceptance of the agreement.
    ``(f) Additional Pay.--A retention bonus paid under this section is 
in addition to any other pay and allowances to which an officer is 
entitled.
    ``(g) Repayment.--(1) If an officer who has entered into a written 
agreement under subsection (a) and has received all or part of a 
retention bonus under this section fails to complete the total period 
of active duty specified in the agreement, the Secretary of the Navy 
may require the officer to repay the United States, on a pro rata basis 
and to the extent that the Secretary determines conditions and 
circumstances warrant, all sums paid under this section.
    ``(2) An obligation to repay the United States imposed under 
paragraph (1) is for all purposes a debt owned to the United States.
    ``(3) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of a written agreement entered 
into under subsection (a) does not discharge the officer signing the 
agreement from a debt arising under such agreement or under paragraph 
(1).
    ``(h) Regulations.--The Secretary of the Navy shall prescribe 
regulations to carry out this section.''.
    (2) The table of sections at the beginning of chapter 5 of title 
37, United States Code, is amended by inserting after the item relating 
to section 301g, as added by section 111(a) of this Act, the following 
new item:

``301h. Special pay: surface warfare officers extending period of 
                            active duty.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999.

SEC. 113. AVIATION CAREER OFFICER SPECIAL PAY.

    (a) Period of Authority.--Subsection (a) of section 301b of title 
37, United States Code, is amended--
            (1) by inserting ``(1)'' after ``Authorized.--'';
            (2) by striking ``during the period beginning on January 1, 
        1989, and ending on December 31, 1999,'' and inserting ``during 
        the period described in paragraph (2),''; and
            (3) adding at the end the following:
    ``(2) Paragraph (1) applies with respect to agreements executed 
during the period beginning on the first day of the first month that 
begins on or after the date of the enactment of the Soldiers', 
Sailors', Airmen's, and Marines' Bill of Rights Act of 1999 and ending 
on December 31, 2004.''.
    (b) Repeal of Limitation to Certain Years of Career Aviation 
Service.--Subsection (b) of such section is amended--
            (1) by striking paragraph (5);
            (2) by inserting ``and'' at the end of paragraph (4); and
            (3) by redesignating paragraph (6) as paragraph (5).
    (c) Repeal of Lower Alternative Amount for Agreement To Serve for 3 
or Fewer Years.--Subsection (c) of such section is amended by striking 
``than--'' and all that follows and inserting ``than $25,000 for each 
year covered by the written agreement to remain on active duty.''.
    (d) Proration Authority for Coverage of Increased Period of 
Eligibility.--Subsection (d) of such section is amended by striking 
``14 years of commissioned service'' and inserting ``25 years of 
aviation service''.
    (e) Terminology.--Such section is further amended--
            (1) in subsection (f), by striking ``A retention bonus'' 
        and inserting ``Any amount''; and
            (2) in subsection (i)(1), by striking ``retention bonuses'' 
        in the first sentence and inserting ``special pay under this 
        section''.
    (f) Repeal of Content Requirements for Annual Report.--Subsection 
(i)(1) of such section is further amended by striking the second 
sentence.
    (g) Technical Amendment.--Subsection (g)(3) of such section if 
amended by striking the second sentence.
    (h) Effective Date.--This section and the amendments made by this 
section shall take effect on the first day of the first month that 
begins on or after the date of the enactment of this Act.

SEC. 114. THREE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAYMENT OF 
              CERTAIN BONUSES AND SPECIAL PAYS.

    (a) Aviation Officer Retention Bonus.--Section 301b(a) of title 37, 
United States Code, is amended by striking ``December 31, 1999,'' and 
inserting ``December 31, 2002,''.
    (b) Reenlistment Bonus for Active Members.--Section 308(g) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (c) Enlistment Bonuses for Members With Critical Skills.--Sections 
308a(c) and 308f(c) of title 37, United States Code, are each amended 
by striking ``December 31, 1999'' and inserting ``December 31, 2002''.
    (d) 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, 1999'' and inserting ``December 31, 
2002''.
    (e) Nuclear Career Accession Bonus.--Section 312b(c) of title 37, 
United States Code, is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2002''.
    (f) Nuclear Career Annual Incentive Bonus.--Section 312c(d) of 
title 37, United States Code, is amended by striking ``any fiscal year 
beginning before October 1, 1998, and the 15-month period beginning on 
that date and ending on December 31, 1999'' and inserting ``the 15-
month period beginning on October 1, 1998, and ending on December 31, 
1999, and any year beginning after December 31, 1999, and ending before 
January 1, 2003''.

SEC. 115. THREE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR RESERVE FORCES.

    (a) Special Pay for Health Professionals in Critically Short 
Wartime Specialties.--Section 302g(f) of title 37, United States Code, 
is amended by striking ``December 31, 1999'' and inserting ``December 
31, 2002''.
    (b) Selected Reserve Reenlistment Bonus.--Section 308b(f) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (c) Selected Reserve Enlistment Bonus.--Section 308c(e) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (d) Special Pay for Enlisted Members Assigned to Certain High 
Priority Units.--Section 308d(c) of title 37, United States Code, is 
amended by striking ``December 31, 1999'' and inserting ``December 31, 
2002''.
    (e) Selected Reserve Affiliation Bonus.--Section 308e(e) of title 
37, United States Code, is amended by striking ``December 31, 1999'' 
and inserting ``December 31, 2002''.
    (f) Ready Reserve Enlistment and Reenlistment Bonus.--Section 
308h(g) of title 37, United States Code, is amended by striking 
``December 31, 1999'' and inserting ``December 31, 2002''.
    (g) Prior Service Enlistment Bonus.--Section 308i(f) of title 37, 
United States Code, is amended by striking ``December 31, 1999'' and 
inserting ``December 31, 2002''.
    (h) Repayment of Education Loans for Certain Health Professionals 
Who Serve in the Selected Reserve.--Section 16302(d) of title 10, 
United States Code, is amended by striking ``January 1, 2000'' and 
inserting in lieu thereof ``January 1, 2003''.

SEC. 116. THREE-YEAR EXTENSION OF CERTAIN BONUSES AND SPECIAL PAY 
              AUTHORITIES FOR NURSE OFFICER CANDIDATES, REGISTERED 
              NURSES, AND NURSE ANESTHETISTS.

    (a) Nurse Officer Candidate Accession Program.--Section 2130a(a)(1) 
of title 10, United States Code, is amended by striking ``December 31, 
1999'' and inserting ``December 31, 2002''.
    (b) Accession Bonus for Registered Nurses.--Section 302d(a)(1) of 
title 37, United States Code, is amended by striking ``December 31, 
1999'' and inserting ``December 31, 2002''.
    (c) Incentive Special Pay for Nurse Anesthetists.--Section 
302e(a)(1) of title 37, United States Code, is amended by striking 
``December 31, 1999'' and inserting in lieu thereof ``December 31, 
2002''.

SEC. 117. SENSE OF CONGRESS REGARDING PARITY BETWEEN ADJUSTMENTS IN 
              MILITARY AND CIVIL SERVICE PAY.

    (a) Findings.--Congress makes the following findings:
            (1) Members of the uniformed services of the United States 
        and civilian employees of the United States make significant 
        contributions to the general welfare of the United States.
            (2) Increases in the levels of pay of members of the 
        uniformed services and of civilian employees of the United 
        States have not kept pace with increases in the overall levels 
        of pay of workers in the private sector so that there is now up 
        to a 30 percent gap between the compensation levels of Federal 
        civilian employees and the compensation levels of private 
        sector workers and a 9 to 14 percent gap between the 
        compensation levels of members of the uniformed services and 
        the compensation levels of private sector workers.
            (3) In almost every year of the past two decades, there 
        have been equal adjustments in the compensation of members of 
        the uniformed services and the compensation of civilian 
        employees of the United States.
    (b) Sense of Congress.--It is the sense of Congress that there 
should continue to be parity between the adjustments in the 
compensation of members of the uniformed services and the adjustments 
in the compensation of civilian employees of the United States.

SEC. 118. ENTITLEMENT OF RESERVES NOT ON ACTIVE DUTY TO RECEIVE SPECIAL 
              DUTY ASSIGNMENT PAY.

    (a) Authority.--Section 307(a) of title 37, United States Code, is 
amended by inserting after ``is entitled to basic pay'' in the first 
sentence the following: ``, or is entitled to compensation under 
section 206 of this title in the case of a member of a reserve 
component not on active duty,''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the first day of the first month that begins on or after 
the date of the enactment of this Act.

SEC. 119. SENSE OF THE SENATE REGARDING USE OF EXTENSION OF TIME TO 
              FILE TAX RETURNS FOR MEMBERS OF UNIFORMED SERVICES ON 
              DUTY ABROAD.

    (a) Findings.--The Senate finds that--
            (1) the Internal Revenue Service provides a 2-month 
        extension of the deadline for filing tax returns for members of 
        the uniformed services who are in an area outside the United 
        States or the Commonwealth of Puerto Rico for a tour of duty 
        which includes the date for filing tax returns;
            (2) any taxpayer using this 2-month extension who owes 
        additional tax must pay the tax on or before the regular filing 
        deadline;
            (3) those who use the 2-month extension and wait to pay the 
        additional tax at the time of filing are charged interest from 
        the regular filing deadline, and may also be required to pay a 
        penalty; and
            (4) it is fundamentally unfair to members of the uniformed 
        services who make use of this extension to require them to pay 
        penalties and interest on the additional tax owed.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) the 2-month extension of the deadline for filing tax 
        returns for certain members of the uniformed services provided 
        in Internal Revenue Service regulations should be codified; and
            (2) eligible members of the uniformed services should be 
        able to make use of the extension without accumulating interest 
        or penalties.

SEC. 120. IMPLEMENTATION OF THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM.

    (a) Clarification of Benefits Responsibility.--Subsection (a) of 
section 1060a of title 10, United States Code, is amended by striking 
``may carry out a program to provide special supplemental food 
benefits'' and inserting ``shall carry out a program to provide 
supplemental foods and nutrition education''.
    (b) Relationship to WIC Program.--Subsection (b) of such section is 
amended to read as follows:
    ``(b) Federal Payments.--For the purpose of providing supplemental 
foods under the program required under subsection (a), the Secretary of 
Agriculture shall make available to the Secretary of Defense for each 
of fiscal years 1999 through 2003, out of funds available for such 
fiscal year pursuant to the authorization of appropriations under 
section 17(g)(1) of the Child Nutrition Act of 1966 (42 U.S.C. 
1786(g)(1)), $10,000,000 plus such additional amount as is necessary to 
provide supplemental foods under the program for such fiscal year. The 
Secretary of Defense shall use funds available for the Department of 
Defense to provide nutrition education and to pay for costs for 
nutrition services and administration under the program.''.
    (c) Program Administration.--Subsection (c)(1)(A) of such section 
is amended by adding at the end the following: ``In the determining of 
eligibility for the program benefits, a person already certified for 
participation in the special supplemental nutrition program for women, 
infants, and children under section 17 of the Child Nutrition Act of 
1996 (42 U.S.C. 1786) shall be considered eligible for the duration of 
the certification period under that program.''.
    (d) Nutritional Risk Standards.--Subsection (c)(1)(B) of such 
section is amended by inserting ``and nutritional risk standards'' 
after ``income eligibility standards''.
    (e) Definitions.--Subsection (f) of such section is amended by 
adding at the end the following:
            ``(4) The terms `costs for nutrition services and 
        administration', `nutrition education' and `supplemental foods' 
        have the meanings given the terms in paragraphs (4), (7), and 
        (14), respectively, of section 17(b) of the Child Nutrition Act 
        of 1966 (42 U.S.C. 1786(b)).''.
    (f) Report.--Not later than March 1, 2001, the Secretary of 
Defense, in consultation with the Secretary of Agriculture, shall 
submit to Congress a report on the implementation of the special 
supplemental food program required under section 1060a of title 10, 
United States Code. The report shall include a discussion of whether 
the amount required to be provided by the Secretary of Agriculture for 
supplemental foods under subsection (b) of that section is adequate for 
the purpose and, if not, an estimate of the amount necessary to provide 
supplemental foods under the program.

                     TITLE II--RETIREMENT BENEFITS

SEC. 201. RETIRED PAY OPTIONS FOR PERSONNEL ENTERING UNIFORMED SERVICES 
              ON OR AFTER AUGUST 1, 1986.

    (a) Reduced Retired Pay Only for Members Electing 15-Year Service 
Bonus.--(1) Paragraph (2) of section 1409(b) of title 10, United States 
Code, is amended by inserting after ``July 31, 1986,'' the following: 
``has elected to receive a bonus under section 318 of title 37,''.
    (2)(A) Paragraph (2)(A) of section 1401a(b) of title 10, United 
States Code, is amended by striking ``The Secretary shall increase the 
retired pay of each member and former member who first became a member 
of a uniformed service before August 1, 1986,'' and inserting ``Except 
as otherwise provided in this subsection, the Secretary shall increase 
the retired pay of each member and former member''.
    (B) Paragraph (3) of such section 1401a(b) is amended by inserting 
after ``August 1, 1986,'' the following: ``and has elected to receive a 
bonus under section 318 of title 37,''.
    (3) Section 1410 of title 10, United States Code, is amended by 
inserting after ``August 1, 1986,'' the following: ``who has elected to 
receive a bonus under section 318 of title 37,''.
    (b) Optional Lump-Sum Bonus at 15 Years of Service.--(1) Chapter 5 
of title 37, United States Code, is amended by adding at the end the 
following new section:
``Sec. 318. Special pay: 15-year service bonus elected by members 
              entering on or after August 1, 1986
    ``(a) Payment of Bonus.--The Secretary concerned shall pay a bonus 
to a member of a uniformed service who is eligible and elects to 
receive the bonus under this section.
    ``(b) Eligibility for Bonus.--A member of a uniformed service 
serving on active duty is eligible to receive a bonus under this 
section if the member--
            ``(1) first became a member of a uniformed service on or 
        after August 1, 1986;
            ``(2) has completed 15 years of active duty in the 
        uniformed services; and
            ``(3) if not already obligated to remain on active duty for 
        a period that would result in at least 20 years of active-duty 
        service, executes a written agreement (prescribed by the 
        Secretary concerned) to remain continuously on active duty for 
        five years after the date of the completion of 15 years of 
        active-duty service.
    ``(c) Election.--(1) A member eligible to receive a bonus under 
this section may elect to receive the bonus. The election shall be made 
in such form and within such period as the Secretary concerned 
requires.
    ``(2) An election made under this subsection is irrevocable.
    ``(d) Notification of Eligibility.--The Secretary concerned shall 
transmit a written notification of the opportunity to elect to receive 
a bonus under this section to each member who is eligible (or upon 
execution of an agreement described in subsection (b)(3), would be 
eligible) to receive the bonus. The Secretary shall complete the 
notification within 180 days after the date on which the member 
completes 15 years of active duty. The notification shall include the 
procedures for electing to receive the bonus and an explanation of the 
effects under sections 1401a, 1409, and 1410 of title 10 that such an 
election has on the computation of any retired or retainer pay which 
the member may become eligible to receive.
    ``(e) Form and Amount of Bonus.--A bonus under this section shall 
be paid in one lump sum of $30,000.
    ``(f) Time for Payment.--Payment of a bonus to a member electing to 
receive the bonus under this section shall be made not later than the 
first month that begins on or after the date that is 60 days after the 
Secretary concerned receives from the member an election that satisfies 
the requirements imposed under subsection (c).
    ``(g) Repayment of Bonus.--(1) If a person paid a bonus under this 
section fails to complete the total period of active duty specified in 
the agreement entered into under subsection (b)(3), the person shall 
refund to the United States the amount that bears the same ratio to the 
amount of the bonus payment as the unserved part of that total period 
bears to the total period.
    ``(2) Subject to paragraph (3), an obligation to reimburse the 
United States imposed under paragraph (1) is for all purposes a debt 
owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the termination of an agreement under this 
section does not discharge the member signing such agreement from a 
debt arising under the agreement or this subsection.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``318. Special pay: 15-year service bonus elected by members entering 
                            on or after August 1, 1986.''.
    (c) Conforming Amendments to Survivor Benefit Plan Provisions.--(1) 
Section 1451(h)(3) of title 10, United States Code, is amended by 
inserting ``of certain members'' after ``retirement''.
    (2) Section 1452(i) of such title is amended by striking ``When the 
retired pay'' and inserting ``Whenever the retired pay''.
    (d) Related Technical Amendments.--(1) Section 1401a(b) of title 
10, United States Code, is amended--
            (A) by striking the heading for paragraph (1) and inserting 
        ``Increase required.--'';
            (B) by striking the heading for paragraph (2) and inserting 
        ``Percentage increase.--''; and
            (C) by striking the heading for paragraph (3) and inserting 
        ``Reduced percentage for certain post-august 1, 1986 members.--
        ''.
    (2) Section 1409(b)(2) of title 10, United States Code, is amended 
by inserting ``certain'' after ``Reduction applicable to'' in the 
paragraph heading.
    (3)(A) The heading of section 1410 of such title is amended by 
inserting ``certain'' before ``members''.
    (B) The item relating to such section in the table of sections at 
the beginning of chapter 71 of title 10, United States Code, is amended 
by inserting ``certain'' before ``members''.

SEC. 202. PARTICIPATION IN THRIFT SAVINGS PLAN.

    (a) Participation Authority.--(1)(A) Chapter 3 of title 37, United 
States Code, is amended by adding at the end the following:
``Sec. 211. Participation in Thrift Savings Plan
    ``(a) Authority.--A member of the uniformed services serving on 
active duty and a member of the Ready Reserve in any pay status may 
participate in the Thrift Savings Plan in accordance with section 8440e 
of title 5.
    ``(b) Rule of Construction Regarding Separation.--For the purposes 
of section 8440e of title 5, the following actions shall be considered 
separation of a member of the uniformed services from Government 
employment:
            ``(1) Release of the member from active-duty service (not 
        followed by a resumption of active-duty service within 30 days 
        after the effective date of the release).
            ``(2) Transfer of the member by the Secretary concerned to 
        a retired list maintained by the Secretary.''.
    (B) The table of sections at the beginning of such chapter is 
amended by adding at the end the following:

``211. Participation in Thrift Savings Plan.''.
    (2)(A) Subchapter III of chapter 84 of title 5, United States Code, 
is amended by adding at the end the following:
``Sec. 8440e. Members of the uniformed services: members on active 
              duty; members of the Ready Reserve
    ``(a) Participation Authorized.--(1) A member of the uniformed 
services authorized to participate in the Thrift Savings Plan under 
section 211(a) of title 37 may contribute to the Thrift Savings Fund.
    ``(2) An election to contribute to the Thrift Savings Fund under 
paragraph (1) may be made only during a period provided under section 
8432(b) for individuals subject to this chapter.
    ``(b) Applicability of Thrift Savings Plan Provisions.--Except as 
otherwise provided in this section, the provisions of this subchapter 
and subchapter VII of this chapter shall apply with respect to members 
of the uniformed services making contributions to the Thrift Savings 
Fund as if such members were employees within the meaning of section 
8401(11).
    ``(c) Maximum Contribution.--(1) The amount contributed by a member 
of the uniformed services for any pay period out of basic pay may not 
exceed 5 percent of such member's basic pay for such pay period.
    ``(2)(A) Subject to subparagraph (B), the amount contributed by a 
member of the Ready Reserve for any pay period for any compensation 
received under section 206 of title 37 may not exceed 5 percent of such 
member's compensation for such pay period.
    ``(B) Notwithstanding any other provision of this subchapter, no 
contribution may be made under this paragraph for a member of the Ready 
Reserve for any year to the extent that such contribution, when added 
to prior contributions for such member for such year under this 
subchapter, exceeds any limitation under section 415 of the Internal 
Revenue Code of 1986.
    ``(d) Other Member Contributions.--A member of the uniformed 
services making contributions to the Thrift Savings Fund out of basic 
pay, or out of compensation under section 206 of title 37, may also 
contribute (by direct transfer to the Fund) any part of any special or 
incentive pay that the member receives under section 308, 308a through 
308h, or 318 of title 37. No contribution made under this subsection 
shall be subject to, or taken into account for purposes of, the first 
sentence of section 8432(d), relating to the applicability of any 
limitation under section 415 of the Internal Revenue Code of 1986.
    ``(e) Agency Contributions Generally Prohibited.--Except as 
provided in section 211(c) of title 37, no contribution under section 
8432(c) of this title may be made for the benefit of a member of the 
uniformed services making contributions to the Thrift Savings Fund 
under subsection (a).
    ``(f) Benefits and Elections of Benefits.--In applying section 8433 
to a member of the uniformed services who has an account balance in the 
Thrift Savings Fund--
            ``(1) any reference in such section to separation from 
        Government employment shall be construed to refer to an action 
        described in section 211(b) of title 37; and
            ``(2) the reference in section 8433(g)(1) to contributions 
        made under section 8432(a) shall be treated as being a 
        reference to contributions made to the Fund by the member, 
        whether made under section 8351, 8432(a), or this section.
    ``(g) Basic Pay Defined.--For purposes of this section, the term 
`basic pay' means basic pay that is payable under section 204 of title 
37.''.
    (B) The table of sections at the beginning of chapter 84 of title 
5, United States Code, is amended by adding after the item relating to 
section 8440d the following:

``8440e. Members of the uniformed services: members on active duty; 
                            members of the Ready Reserve
    (3) Section 8432b(b) of title 5, United States Code, is amended--
            (A) in paragraph (1), by striking ``Each employee'' and 
        inserting ``Except as provided in paragraph (4), each 
        employee'';
            (B) by redesignating paragraph (4) as paragraph (5); and
            (C) by inserting after paragraph (3) the following new 
        paragraph (4):
    ``(4) No contribution may be made under this section for a period 
for which an employee made a contribution under section 8440e.''.
    (4) Section 8473 of title 5, United States Code, is amended--
            (A) in subsection (a), by striking ``14 members'' and 
        inserting ``15 members''; and
            (B) in subsection (b)--
                    (i) by striking ``14 members'' and inserting ``15 
                members'';
                    (ii) by striking ``and'' at the end of paragraph 
                (8);
                    (iii) by striking the period at the end of 
                paragraph (9) and inserting ``; and''; and
                    (iv) by adding at the end the following:
            ``(10) 1 shall be appointed to represent participants 
        (under section 8440e) who are members of the uniformed 
        services.''.
    (5) Paragraph (11) of section 8351(b) of title 5, United States 
Code, is redesignated as paragraph (8).
    (b) Applicability.--The authority of members of the uniformed 
services to participate in the Thrift Savings Plan under section 211 of 
title 37, United States Code (as added by subsection (a)(1)), shall 
take effect on July 1, 2000.
    (c) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Executive Director appointed by the Federal 
Thrift Retirement Investment Board shall issue regulations to implement 
section 8440e of title 5, United States Code (as added by subsection 
(a)(2)) and section 211 of title 37, United States Code (as added by 
subsection (a)(1)).

SEC. 203. SPECIAL RETENTION INITIATIVE.

    Section 211 of title 37, United States Code, as added by section 
202, is amended by adding at the end the following:
    ``(c) Agency Contributions for Retention in Critical Specialties.--
(1) The Secretary concerned may enter into an agreement with a member 
to make contributions to the Thrift Savings Fund for the benefit of the 
member if the member--
            ``(A) is in a specialty designated by the Secretary as 
        critical to meet requirements (whether such specialty is 
        designated as critical to meet wartime or peacetime 
        requirements); and
            ``(B) commits in such agreement to continue to serve on 
        active duty in that specialty for a period of six years.
    ``(2) Under any agreement entered into with a member under 
paragraph (1), the Secretary shall make contributions to the Fund for 
the benefit of the member for each pay period of the 6-year period of 
the agreement for which the member makes a contribution out of basic 
pay to the Fund under this section. Paragraph (2) of section 8432(c) 
applies to the Secretary's obligation to make contributions under this 
paragraph, except that the reference in such paragraph to contributions 
under paragraph (1) of such section does not apply.''.

SEC. 204. REPEAL OF REDUCTION IN RETIRED PAY FOR CIVILIAN EMPLOYEES.

    (a) Repeal.--(1) Section 5532 of title 5, United States Code, is 
repealed.
    (2) The chapter analysis at the beginning of chapter 55 of such 
title is amended by striking out the item relating to section 5532.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the first day of the first month that begins after the 
date of the enactment of this Act.

                 TITLE III--MONTGOMERY GI BILL BENEFITS

SEC. 301. INCREASE IN RATES OF EDUCATIONAL ASSISTANCE FOR FULL-TIME 
              EDUCATION.

    (a) Increase.--Section 3015 of title 38, United States Code, is 
amended--
            (1) in subsection (a)(1), by striking ``$528'' and 
        inserting ``$600''; and
            (2) in subsection (b)(1), by striking ``$429'' and 
        inserting ``$488''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on October 1, 1999, and shall apply with respect to 
educational assistance allowances paid for months after September 1999. 
However, no adjustment in rates of educational assistance shall be made 
under subsection (g) of section 3015 of title 38, United States Code, 
for fiscal year 2000.

SEC. 302. TERMINATION OF REDUCTIONS OF BASIC PAY.

    (a) Repeals.--(1) Section 3011 of title 38, United States Code, is 
amended by striking subsection (b).
    (2) Section 3012 of such title is amended by striking subsection 
(c).
    (3) The amendments made by paragraphs (1) and (2) shall take effect 
on the date of the enactment of this Act and shall apply to individuals 
whose initial obligated period of active duty under section 3011 or 
3012 of title 38, United States Code, as the case may be, begins on or 
after such date.
    (b) Termination of Reductions in Progress.--Any reduction in the 
basic pay of an individual referred to in section 3011(b) of title 38, 
United States Code, by reason of such section 3011(b), or of any 
individual referred to in section 3012(c) of such title by reason of 
such section 3012(c), as of the date of the enactment of this Act shall 
cease commencing with the first month beginning after such date, and 
any obligation of such individual under such section 3011(b) or 
3012(c), as the case may be, as of the day before such date shall be 
deemed to be fully satisfied as of such date.
    (c) Conforming Amendment.--Section 3034(e)(1) of title 38, United 
States Code, is amended in the second sentence by striking ``as soon as 
practicable'' and all that follows through ``such additional times'' 
and inserting ``at such times''.

SEC. 303. ACCELERATED PAYMENTS OF EDUCATIONAL ASSISTANCE.

    Section 3014 of title 38, United States Code, is amended--
            (1) by inserting ``(a)'' before ``The Secretary shall 
        pay''; and
            (2) by adding at the end the following new subsection (b):
    ``(b)(1) When the Secretary determines that it is appropriate to 
accelerate payments under the regulations prescribed pursuant to 
paragraph (6), the Secretary may make payments of basic educational 
assistance allowance under this subchapter on an accelerated basis.
    ``(2) The Secretary may pay a basic educational assistance 
allowance on an accelerated basis only to an individual entitled to 
payment of the allowance under this subchapter who has made a request 
for payment of the allowance on an accelerated basis.
    ``(3) In the event an adjustment under section 3015(g) of this 
title in the monthly rate of basic educational assistance will occur 
during a period for which a payment of an allowance is made on an 
accelerated basis under this subsection, the Secretary shall--
            ``(A) pay on an accelerated basis the amount the allowance 
        otherwise payable under this subchapter for the period without 
        regard to the adjustment under that section; and
            ``(B) pay on the date of the adjustment any additional 
        amount of the allowance that is payable for the period as a 
        result of the adjustment.
    ``(4) The entitlement to a basic educational assistance allowance 
under this subchapter of an individual who is paid an allowance on an 
accelerated basis under this subsection shall be charged at a rate 
equal to one month for each month of the period covered by the 
accelerated payment of the allowance.
    ``(5) A basic educational assistance allowance shall be paid on an 
accelerated basis under this subsection as follows:
            ``(A) In the case of an allowance for a course leading to a 
        standard college degree, at the beginning of the quarter, 
        semester, or term of the course in a lump-sum amount equivalent 
        to the aggregate amount of monthly allowance otherwise payable 
        under this subchapter for the quarter, semester, or term, as 
        the case may be, of the course.
            ``(B) In the case of an allowance for a course other than a 
        course referred to in subparagraph (A)--
                    ``(i) at the later of (I) the beginning of the 
                course, or (II) a reasonable time after the request for 
                payment by the individual concerned; and
                    ``(ii) in any amount requested by the individual 
                concerned up to the aggregate amount of monthly 
                allowance otherwise payable under this subchapter for 
                the period of the course.
    ``(6) The Secretary shall prescribe regulations for purposes of 
making payments of basic educational allowance on an accelerated basis 
under this subsection. Such regulations shall specify the circumstances 
under which accelerated payments should be made and include 
requirements relating to the request for, making and delivery of, and 
receipt and use of such payments.''.

SEC. 304. TRANSFER OF ENTITLEMENT TO EDUCATIONAL ASSISTANCE.

    (a) Authority To Transfer to Family Member.--Subchapter II of 
chapter 30 of title 38, United States Code, is amended by adding at the 
end the following new section:
``Sec. 3020. Transfer of entitlement to basic educational assistance
    ``(a) The Secretary may, for the purpose of enhancing recruiting 
and retention, and at the Secretary's sole discretion, permit an 
individual entitled to educational assistance under this subchapter to 
elect to transfer such individual's entitlement to such assistance, in 
whole or in part, to the individuals specified in subsection (b).
    ``(b) An individual's entitlement to educational assistance may be 
transferred when authorized under subsection (a) as follows:
            ``(1) To the individual's spouse.
            ``(2) To one or more of the individual's children.
            ``(3) To a combination of the individuals referred to in 
        paragraphs (1) and (2).
    ``(c)(1) An individual electing to transfer an entitlement to 
educational assistance under this section shall--
            ``(A) designate the individual or individuals to whom such 
        entitlement is being transferred and the percentage of such 
        entitlement to be transferred to each such individual; and
            ``(B) specify the period for which the transfer shall be 
        effective for each individual designated under subparagraph 
        (A).
    ``(2) The aggregate amount of the entitlement transferable by an 
individual under this section may not exceed the aggregate amount of 
the entitlement of such individual to educational assistance under this 
subchapter.
    ``(3) An individual electing to transfer an entitlement under this 
section may elect to modify or revoke the transfer at any time before 
the use of the transferred entitlement. An individual shall make the 
election by submitting written notice of such election to the 
Secretary.
    ``(d)(1) The use of any entitlement transferred under this section 
shall be charged against the entitlement of the individual making the 
transfer at the rate of one month for each month of transferred 
entitlement that is used.
    ``(2) Except as provided in paragraph (3), an individual using 
entitlement transferred under this section shall be subject to the 
provisions of this chapter in such use as if such individual were 
entitled to the educational assistance covered by the transferred 
entitlement in the individual's own right.
    ``(3) Notwithstanding section 3031 of this title, a child shall 
complete the use of any entitlement transferred to the child under this 
section before the child attains the age of 26 years.
    ``(e) In the event of an overpayment of educational assistance with 
respect to an individual to whom entitlement is transferred under this 
section, such individual and the individual making the transfer under 
this section shall be jointly and severally liable to the United States 
for the amount of the overpayment for purposes of section 3685 of this 
title.
    ``(f) The Secretary shall prescribe regulations for purposes of 
this section. Such regulations shall specify the manner and effect of 
an election to modify or revoke a transfer of entitlement under 
subsection (c)(3).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
3019 the following new item:

``3020. Transfer of entitlement to basic educational assistance.''.

SEC. 305. AVAILABILITY OF MONTGOMERY GI BILL BENEFITS FOR PREPARATORY 
              COURSES FOR COLLEGE AND GRADUATE SCHOOL ENTRANCE EXAMS.

    For purposes of section 3002(3) of title 38, United States Code, 
the term ``program of education'' shall include the following:
            (1) A preparatory course for a test that is required or 
        utilized for admission to an institution of higher education.
            (2) A preparatory course for test that is required or 
        utilized for admission to a graduate school.

                  TITLE IV--OTHER EDUCATIONAL BENEFITS

SEC. 401. ACCELERATED PAYMENTS OF CERTAIN EDUCATIONAL ASSISTANCE FOR 
              MEMBERS OF THE SELECTED RESERVE.

    Section 16131 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(j)(1) Whenever a person entitled to an educational assistance 
allowance under this chapter so requests and the Secretary concerned, 
in consultation with the Chief of the reserve component concerned, 
determines it appropriate, the Secretary may make payments of the 
educational assistance allowance to the person on an accelerated basis.
    ``(2) An educational assistance allowance shall be paid to a person 
on an accelerated basis under this subsection as follows:
            ``(A) In the case of an allowance for a course leading to a 
        standard college degree, at the beginning of the quarter, 
        semester, or term of the course in a lump-sum amount equivalent 
        to the aggregate amount of monthly allowance otherwise payable 
        under this chapter for the quarter, semester, or term, as the 
        case may be, of the course.
            ``(B) In the case of an allowance for a course other than a 
        course referred to in subparagraph (A)--
                    ``(i) at the later of (I) the beginning of the 
                course, or (II) a reasonable time after the Secretary 
                concerned receives the person's request for payment on 
                an accelerated basis; and
                    ``(ii) in any amount requested by the person up to 
                the aggregate amount of monthly allowance otherwise 
                payable under this chapter for the period of the 
                course.
    ``(3) If an adjustment in the monthly rate of educational 
assistance allowances will be made under subsection (b)(2) during a 
period for which a payment of the allowance is made to a person on an 
accelerated basis, the Secretary concerned shall--
            ``(A) pay on an accelerated basis the amount of the 
        allowance otherwise payable for the period without regard to 
        the adjustment under that subsection; and
            ``(B) pay on the date of the adjustment any additional 
        amount of the allowance that is payable for the period as a 
        result of the adjustment.
    ``(4) A person's entitlement to an educational assistance allowance 
under this chapter shall be charged at a rate equal to one month for 
each month of the period covered by an accelerated payment of the 
allowance to the person under this subsection.
    ``(5) The regulations prescribed by the Secretary of Defense and 
the Secretary of Transportation under subsection (a) shall provide for 
the payment of an educational assistance allowance on an accelerated 
basis under this subsection. The regulations shall specify the 
circumstances under which accelerated payments may be made and the 
manner of the delivery, receipt, and use of the allowance so paid
    ``(6) In this subsection, the term `Chief of the reserve component 
concerned' means the following:
            ``(A) The Chief of the Army Reserve, with respect to 
        members of the Army Reserve.
            ``(B) the Chief of Naval Reserve, with respect to members 
        of the Naval Reserve.
            ``(C) The Chief of the Air Force Reserve, with respect to 
        members of the Air Force Reserve.
            ``(D) The Commander, Marine Reserve Forces, with respect to 
        members of the Marine Corps Reserve.
            ``(E) The Chief of the National Guard Bureau, with respect 
        to members of the Army National Guard and the Air National 
        Guard.
            ``(F) The Commandant of the Coast Guard, with respect to 
        members of the Coast Guard Reserve.''.

SEC. 402. MODIFICATION OF TIME FOR USE BY CERTAIN MEMBERS OF THE 
              SELECTED RESERVE OF ENTITLEMENT TO CERTAIN EDUCATIONAL 
              ASSISTANCE.

    Section 16133(b) of title 10, United States Code, is amended by 
adding at the end the following new paragraph:
    ``(5)(A) In the case of a person who continues to serve as member 
of the Selected Reserve as of the end of the 10-year period applicable 
to the person under subsection (a), as extended, if at all, under 
paragraph (4), the period during which the person may use the person's 
entitlement shall expire at the end of the 5-year period beginning on 
the date the person is separated from the Selected Reserve.
    ``(B) The provisions of paragraph (4) shall apply with respect to 
any period of active duty of a person referred to in subparagraph (A) 
during the 5-year period referred to in that subparagraph.''.

                            TITLE V--REPORT

SEC. 501. ANNUAL REPORT ON EFFECTS OF INITIATIVES ON RECRUITMENT AND 
              RETENTION.

    (a) Requirement for Report.--On December 1 of each year, the 
Secretary of Defense shall submit to Congress a report that sets forth 
the Secretary's assessment of the effects that the provisions of this 
Act and the amendments made by the Act are having on recruitment and 
retention of personnel for the Armed Forces.
    (b) First Report.--The first report under this section shall be 
submitted not later than December 1, 2000.

SEC. 502. REPORT AND REGULATIONS ON DEPARTMENT OF DEFENSE POLICIES ON 
              PROTECTING THE CONFIDENTIALITY OF COMMUNICATIONS WITH 
              PROFESSIONALS PROVIDING THERAPEUTIC OR RELATED SERVICES 
              REGARDING SEXUAL OR DOMESTIC ABUSE.

    (a) Requirement for Study.--(1) The Comptroller General shall study 
the policies, procedures, and practices of the military departments for 
protecting the confidentiality of communications between--
            (A) a dependent of a member of the Armed Forces who--
                    (i) is a victim of sexual harassment, sexual 
                assault, or intrafamily abuse; or
                    (ii) has engaged in such misconduct; and
            (B) a therapist, counselor, advocate, or other professional 
        from whom the dependent seeks professional services in 
        connection with effects of such misconduct.
    (2) The Comptroller General shall conclude the study and submit to 
the Secretary of Defense a report on the results of the study within 
such period as is necessary to enable the Secretary to satisfy the 
reporting requirement under subsection (d).
    (b) Regulations.--The Secretary of Defense shall prescribe in 
regulations the policies and procedures that the Secretary considers 
necessary to provide the maximum possible protections for the 
confidentiality of communications described in subsection (a) relating 
to misconduct described in that subsection, consistent with--
            (1) the findings of the Comptroller General;
            (2) the standards of confidentiality and ethical standards 
        issued by relevant professional organizations;
            (3) applicable requirements of Federal and State law;
            (4) the best interest of victims of sexual harassment, 
        sexual assault, or intrafamily abuse; and
            (5) such other factors as the Secretary, in consultation 
        with the Attorney General, may consider appropriate.

                        TITLE VI--MISCELLANEOUS

SEC. 601. IMPROVEMENT OF TRICARE PROGRAM.

    (a) Improvement of TRICARE Program.--(1) Chapter 55 of title 10, 
United States Code, is amended by inserting after section 1097a the 
following new section:
``Sec. 1097b. TRICARE: comparability of benefits with benefits under 
              Federal Employees Health Benefits program; other 
              requirements and authorities
    ``(a) Comparability of Benefits.--The Secretary of Defense shall, 
to the maximum extent practicable, ensure that the health care coverage 
available through the TRICARE program is substantially similar to the 
health care coverage available under similar health benefits plans 
offered under the Federal Employees Health Benefits program established 
under chapter 89 of title 5.
    ``(b) Portability of Benefits.--The Secretary of Defense shall 
provide that any covered beneficiary enrolled in the TRICARE program 
may receive benefits under that program at facilities that provide 
benefits under that program throughout the various regions of that 
program.
    ``(c) Patient Management.--(1) The Secretary of Defense shall, to 
the maximum extent practicable, minimize the authorization or 
certification requirements imposed upon covered beneficiaries under the 
TRICARE program as a condition of access to benefits under that 
program.
    ``(2) The Secretary of Defense shall, to the maximum extent 
practicable, utilize practices for processing claims under the TRICARE 
program that are similar to the best industry practices for processing 
claims for health care services in a simplified and expedited manner. 
To the maximum extent practicable, such practices shall include 
electronic processing of claims.
    ``(d) Reimbursement of Health Care Providers.--(1) Subject to 
paragraph (2), the Secretary of Defense may increase the reimbursement 
provided to health care providers under the TRICARE program above the 
reimbursement otherwise authorized such providers under that program if 
the Secretary determines that such increase is necessary in order to 
ensure the availability of an adequate number of qualified health care 
providers under that program.
    ``(2) The amount of reimbursement provided under paragraph (1) with 
respect to a health care service may not exceed the lesser of--
            ``(A) the amount equal to the local usual and customary 
        charge for the service in the service area (as determined by 
        the Secretary) in which the service is provided; or
            ``(B) the amount equal to 115 per cent of the CHAMPUS 
        maximum allowable charge for the service.
    ``(e) Authority for Certain Third-Party Collections.--(1) A medical 
treatment facility of the uniformed services under the TRICARE program 
may collect from a third-party payer the reasonable charges for health 
care services described in paragraph (2) that are incurred by the 
facility on behalf of a covered beneficiary under that program to the 
extent that the beneficiary would be eligible to receive reimbursement 
or indemnification from the third-party payer if the beneficiary were 
to incur such charges on the beneficiary's own behalf.
    ``(2) The reasonable charges described in this paragraph are 
reasonable charges for services or care covered by the medicare program 
under title XVIII of the Social Security Act.
    ``(3) The collection of charges, and the utilization of amounts 
collected, under this subsection shall be subject to the provisions of 
section 1095 of this title. The term `reasonable costs', as used in 
that section shall be deemed for purposes of the application of that 
section to this subsection to refer to the reasonable charges described 
in paragraph (2).
    ``(f) Consultation.--The Secretary of Defense shall carry out any 
actions under this section after consultation with the other 
administering Secretaries.''.
    (2) The table of sections at the beginning of chapter 55 of such 
title is amended by inserting after the item relating to section 1097a 
the following new item:

``1097b. TRICARE: comparability of benefits with benefits under Federal 
                            Employees Health Benefits program; other 
                            requirements and authorities.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect one year after the date of the enactment of this Act.
    (c) Report on Implementation.--(1) Not later than 6 months after 
the date of the enactment of this Act, the Secretary of Defense, in 
consultation with the other administering Secretaries, shall submit to 
Congress a report assessing the effects of the implementation of the 
requirements and authorities set forth in section 1097b of title 10, 
United States Code (as added by subsection (a)).
    (2) The report shall include the following:
            (A) An assessment of the cost of the implementation of such 
        requirements and authorities.
            (B) An assessment whether or not the implementation of any 
        such requirements and authorities will result in the 
        utilization by the TRICARE program of the best industry 
        practices with respect to the matters covered by such 
        requirements and authorities.
    (3) In this subsection, the term ``administering Secretaries'' has 
the meaning given that term in section 1072(3) of title 10, United 
States Code.
    (d) Inapplicability of Reporting Requirements.--The reports 
required by section 501 shall not address the amendments made by 
subsection (a).

SEC. 602. SENSE OF SENATE REGARDING PROCESSING OF CLAIMS FOR VETERANS' 
              BENEFITS.

    (a) Findings.--The Senate makes the following findings:
            (1) Despite advances in technology, telecommunications, and 
        training, the Department of Veterans Affairs currently requires 
        20 percent more time to process claims for veterans' benefits 
        than the Department required to process such claims in 1997.
            (2) The Department does not currently process claims for 
        veterans' benefits in a timely manner.
    (b) Sense of Senate.--It is the sense of the Senate to urge the 
Secretary of Veterans Affairs to--
            (1) review the program, policies, and procedures of the 
        Veterans Benefits Administration of the Department of Veterans 
        Affairs in order to identify areas in which the Administration 
        does not currently process claims for veterans' benefits in a 
        manner consistent with the objectives set forth in the National 
        Performance Review (including objectives regarding timeliness 
        of Executive branch activities);
            (2) initiate any actions necessary to ensure that the 
        Administration processes claims for such benefits in a manner 
        consistent with such objectives; and
            (3) report to the Congress by June 1, 1999, on measures 
        taken to improve processing time for veterans' claims.

SEC. 603. EXPANSION OF LIST OF DISEASES PRESUMED TO BE SERVICE-
              CONNECTED FOR RADIATION-EXPOSED VETERANS.

    Section 1112(c)(2) of title 38, United States Code, is amended by 
adding at the end the following:
            ``(P) Lung cancer.
            ``(Q) Colon cancer.
            ``(R) Tumors of the brain and central nervous system.''.

SEC. 604. MEDICARE SUBVENTION DEMONSTRATION PROJECT FOR VETERANS.

    Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is 
amended by adding at the end the following:

        ``medicare subvention demonstration project for veterans

    ``Sec. 1897. (a) Definitions.--In this section:
            ``(1) Administering secretaries.--The term `administering 
        Secretaries' means the Secretary and the Secretary of Veterans 
        Affairs acting jointly.
            ``(2) Demonstration project; project.--The terms 
        `demonstration project' and `project' mean the demonstration 
        project carried out under this section.
            ``(3) Demonstration site.--The term `demonstration site' 
        means a Veterans Affairs medical facility, including a group of 
        Veterans Affairs medical facilities that provide hospital care 
        or medical services as part of a service network or similar 
        organization.
            ``(4) Military retiree.--The term `military retiree' means 
        a member or former member of the Armed Forces who is entitled 
        to retired pay.
            ``(5) Targeted medicare-eligible veteran.--The term 
        `targeted medicare-eligible veteran' means an individual who--
                    ``(A) is a veteran (as defined in section 101(2) of 
                title 38, United States Code) and is described in 
                section 1710(a)(3) of title 38, United States Code;
                    ``(B) has attained age 65;
                    ``(C) is entitled to benefits under part A of this 
                title; and
                    ``(D)(i) is enrolled for benefits under part B of 
                this title; and
                    ``(ii) if such individual attained age 65 before 
                the date of enactment of the Veterans' Equal Access to 
                Medicare Act, was so enrolled on such date.
            ``(6) Trust funds.--The term `trust funds' means the 
        Federal Hospital Insurance Trust Fund established in section 
        1817 and the Federal Supplementary Medical Insurance Trust Fund 
        established in section 1841.
            ``(7) Veterans affairs medical facility.--The term 
        `Veterans Affairs medical facility' means a medical facility as 
        defined in section 8101 of title 38, United States Code.
    ``(b) Demonstration Project.--
            ``(1) In general.--
                    ``(A) Establishment.--The administering Secretaries 
                are authorized to establish a demonstration project 
                (under an agreement entered into by the administering 
                Secretaries) under which the Secretary shall reimburse 
                the Secretary of Veterans Affairs, from the trust 
                funds, for medicare health care services furnished to 
                certain targeted medicare-eligible veterans at a 
                demonstration site.
                    ``(B) Agreement.--The agreement entered into under 
                subparagraph (A) shall include at a minimum--
                            ``(i) a description of the benefits to be 
                        provided to the participants in the 
                        demonstration project established under this 
                        section;
                            ``(ii) a description of the eligibility 
                        rules for participation in the demonstration 
                        project, including any terms and conditions 
                        established under subparagraph (C) and any 
                        cost-sharing required under subparagraph (D);
                            ``(iii) a description of how the 
                        demonstration project will satisfy the 
                        requirements under this title (including 
                        beneficiary protections and quality assurance 
                        mechanisms);
                            ``(iv) a description of the demonstration 
                        sites selected under paragraph (2);
                            ``(v) a description of how reimbursement 
                        and maintenance of effort requirements under 
                        subsection (h) will be implemented in the 
                        demonstration project;
                            ``(vi) a statement that the Secretary shall 
                        have access to all data of the Department of 
                        Veterans Affairs that the Secretary determines 
                        is necessary to conduct independent estimates 
                        and audits of the maintenance of effort 
                        requirement, the annual reconciliation, and 
                        related matters required under the 
                        demonstration project;
                            ``(vii) a description of any requirement 
                        that the Secretary waives pursuant to 
                        subsection (d); and
                            ``(viii) a certification, provided after 
                        review by the administering Secretaries, that 
                        any entity that is receiving payments by reason 
                        of the demonstration project has sufficient--
                                    ``(I) resources and expertise to 
                                provide, consistent with payments under 
                                subsection (h), the full range of 
                                benefits required to be provided to 
                                beneficiaries under the project; and
                                    ``(II) information and billing 
                                systems in place to ensure the accurate 
                                and timely submission of claims for 
                                benefits and to ensure that providers 
                                of services, physicians, and other 
                                health care professionals are 
                                reimbursed by the entity in a timely 
                                and accurate manner.
                    ``(C) Voluntary participation.--Participation of 
                targeted medicare-eligible veterans in the 
                demonstration project shall be voluntary, subject to 
                the capacity of participating demonstration sites and 
                the funding limitations specified in subsection (h), 
                and shall be subject to such terms and conditions as 
                the administering Secretaries may establish. In the 
                case of a demonstration site described in paragraph 
                (2)(C)(i), targeted medicare-eligible veterans who are 
                military retirees shall be given preference for 
                participating in the project conducted at that site.
                    ``(D) Cost-sharing.--The Secretary of Veterans 
                Affairs may establish cost-sharing requirements for 
                veterans participating in the demonstration project. If 
                such cost-sharing requirements are established, those 
                requirements shall be the same as the requirements that 
                apply to targeted medicare-eligible patients at medical 
                centers that are not Veterans Affairs medical 
                facilities.
                    ``(E) Data match.--
                            ``(i) Establishment of data matching 
                        program.--The administering Secretaries shall 
                        establish a data matching program under which 
                        there is an exchange of information of the 
                        Department of Veterans Affairs and of the 
                        Department of Health and Human Services as is 
                        necessary to identify veterans (as defined in 
                        section 101(2) of title 38, United States Code) 
                        who are entitled to benefits under part A or 
                        enrolled under part B, or both, in order to 
                        carry out this section. The provisions of 
                        section 552a of title 5, United States Code, 
                        shall apply with respect to such matching 
                        program only to the extent the administering 
                        Secretaries find it feasible and appropriate in 
                        carrying out this section in a timely and 
                        efficient manner.
                            ``(ii) Performance of data match.--The 
                        administering Secretaries, using the data 
                        matching program established under clause (i), 
                        shall perform a comparison in order to identify 
                        veterans who are entitled to benefits under 
                        part A or enrolled under part B, or both. To 
                        the extent such Secretaries deem appropriate to 
                        carry out this section, the comparison and 
                        identification may distinguish among such 
                        veterans by category of veterans, by 
                        entitlement to benefits under this title, or by 
                        other characteristics.
                            ``(iii) Deadline for first data match.--Not 
                        later than October 31, 1999, the administering 
                        Secretaries shall first perform a comparison 
                        under clause (ii).
                            ``(iv) Certification by inspector 
                        general.--
                                    ``(I) In general.--The 
                                administering Secretaries may not 
                                conduct the program unless the 
                                Inspector General of the Department of 
                                Health and Human Services certifies to 
                                Congress that the administering 
                                Secretaries have established the data 
                                matching program under clause (i) and 
                                have performed a comparison under 
                                clause (ii).
                                    ``(II) Deadline for 
                                certification.--Not later than December 
                                15, 1999, the Inspector General of the 
                                Department of Health and Human Services 
                                shall submit a report to Congress 
                                containing the certification under 
                                subclause (I) or the denial of such 
                                certification.
            ``(2) Number of demonstration sites.--
                    ``(A) In general.--Subject to subparagraphs (B) and 
                (C), and subsection (g)(1)(D)(ii), the administering 
                Secretaries shall establish a plan for the selection of 
                up to 10 demonstration sites located in geographically 
                dispersed locations to participate in the project.
                    ``(B) Criteria.--The administering Secretaries 
                shall favor selection of those demonstration sites that 
                consideration of the following factors indicate are 
                suited to serve targeted medicare-eligible veterans:
                            ``(i) There is a high potential demand by 
                        targeted medicare-eligible veterans for the 
                        services to be provided at the demonstration 
                        site.
                            ``(ii) The demonstration site has 
                        sufficient capability in billing and accounting 
                        to participate in the project.
                            ``(iii) The demonstration site can 
                        demonstrate favorable indicators of quality of 
                        care, including patient satisfaction.
                            ``(iv) The demonstration site delivers a 
                        range of services required by targeted 
                        medicare-eligible veterans.
                            ``(v) The demonstration site meets other 
                        relevant factors identified in the plan.
                    ``(C) Required demonstration sites.--At least 1 of 
                each of the following demonstration sites shall be 
                selected for inclusion in the demonstration project:
                            ``(i) Demonstration site near closed 
                        base.--A demonstration site that is in the same 
                        catchment area as a military treatment facility 
                        referred to in section 1074(a) of title 10, 
                        United States Code, which was closed pursuant 
                        to either--
                                    ``(I) 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); or
                                    ``(II) title II of the Defense 
                                Authorization Amendments and Base 
                                Closure and Realignment Act (Public Law 
                                100-526; 10 U.S.C. 2687 note).
                            ``(ii) Demonstration site in a rural 
                        area.--A demonstration site that serves a 
                        predominantly rural population.
            ``(3) Restriction.--No new buildings may be built or 
        existing buildings expanded with funds from the demonstration 
        project.
            ``(4) Duration.--The administering Secretaries shall 
        conduct the demonstration project during the 3-year period 
        beginning on January 1, 2000.
    ``(c) Crediting of Payments.--A payment received by the Secretary 
of Veterans Affairs under the demonstration project shall be credited 
to the applicable Department of Veterans Affairs medical appropriation 
and (within that appropriation) to funds that have been allotted to the 
demonstration site that furnished the services for which the payment is 
made. Any such payment received during a fiscal year for services 
provided during a prior fiscal year may be obligated by the Secretary 
of Veterans Affairs during the fiscal year during which the payment is 
received.
    ``(d) Authority To Waive Certain Medicare Requirements.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary may, to the extent necessary to carry out the 
        demonstration project, waive any requirement under this title.
            ``(2) Beneficiary protections for managed care plans.--In 
        the case of a managed care plan established by the Secretary of 
        Veterans Affairs pursuant to subsection (g), such plan shall 
        comply with the requirements of part C of this title that 
        relate to beneficiary protections and other matters, including 
        such requirements relating to the following areas:
                    ``(A) Enrollment and disenrollment.
                    ``(B) Nondiscrimination.
                    ``(C) Information provided to beneficiaries.
                    ``(D) Cost-sharing limitations.
                    ``(E) Appeal and grievance procedures.
                    ``(F) Provider participation.
                    ``(G) Access to services.
                    ``(H) Quality assurance and external review.
                    ``(I) Advance directives.
                    ``(J) Other areas of beneficiary protections that 
                the Secretary determines are applicable to such 
                project.
            ``(3) Description of waiver.--If the Secretary waives any 
        requirement pursuant to paragraph (1), the Secretary shall 
        include a description of such waiver in the agreement described 
        in subsection (b)(1)(B).
    ``(e) Inspector General.--Nothing in the agreement entered into 
under subsection (b) shall limit the Inspector General of the 
Department of Health and Human Services from investigating any matters 
regarding the expenditure of funds under this title for the 
demonstration project, including compliance with the provisions of this 
title and all other relevant laws.
    ``(f) Report.--At least 60 days prior to the commencement of the 
demonstration project, the administering Secretaries shall submit a 
copy of the agreement entered into under subsection (b) to the 
committees of jurisdiction in Congress.
    ``(g) Managed Health Care.--
            ``(1) Managed health care plans.--
                    ``(A) In general.--The Secretary of Veterans 
                Affairs may establish and operate managed health care 
                plans at demonstration sites.
                    ``(B) Requirements.--Any managed health care plan 
                established in accordance with subparagraph (A) shall 
                be operated by or through a Veterans Affairs medical 
                facility, or a group of Veterans Affairs medical 
                facilities, and may include the provision of health 
                care services by public and private entities under 
                arrangements made between the Department of Veterans 
                Affairs and the other public or private entity 
                concerned. Any such managed health care plan shall be 
                established and operated in conformance with standards 
                prescribed by the administering Secretaries.
                    ``(C) Minimum benefits.--The administering 
                Secretaries shall prescribe the minimum health care 
                benefits to be provided under a managed health care 
                plan to veterans enrolled in the plan, which benefits 
                shall include at least all health care services covered 
                under the medicare program under this title.
                    ``(D) Inclusion in number of demonstration sites.--
                            ``(i) In general.--Subject to clause (ii), 
                        if the Secretary of Veterans Affairs elects to 
                        establish a managed health care plan under this 
                        section, the establishment of such plan is a 
                        selected demonstration site for purposes of 
                        applying the numerical limitation under 
                        subsection (b)(2).
                            ``(ii) Limitation.--The Secretary of 
                        Veterans Affairs shall not establish more than 
                        4 managed health care plans under this section.
            ``(2) Demonstration site requirements.--The Secretary of 
        Veterans Affairs may establish a managed health care plan under 
        paragraph (1) using 1 or more demonstration sites and other 
        public or private entities only after the Secretary of Veterans 
        Affairs submits to Congress a report setting forth a plan for 
        the use of such sites and entities. The plan may not be 
        implemented until the Secretary of Veterans Affairs has 
        received from the Inspector General of the Department of 
        Veterans Affairs, and has forwarded to Congress, certification 
        of each of the following:
                    ``(A) The cost accounting system of the Veterans 
                Health Administration (currently known as the Decision 
                Support System) is operational and is providing 
                reliable cost information on care delivered on an 
                inpatient and outpatient basis at such sites and 
                entities.
                    ``(B) The demonstration sites and entities have 
                developed a credible plan (on the basis of market 
                surveys, data from the Decision Support System, 
                actuarial analysis, or other appropriate methods and 
                taking into account the level of payment under 
                subsection (h) and the costs of providing covered 
                services at the sites and entities) to minimize, to the 
                extent feasible, the risk that appropriated funds 
                allocated to the sites and entities will be required to 
                meet the obligation of the sites and entities to 
                targeted medicare-eligible veterans under the 
                demonstration project.
                    ``(C) The demonstration sites and entities 
                collectively have available capacity to provide the 
                contracted benefits package to a sufficient number of 
                targeted medicare-eligible veterans.
                    ``(D) The Veterans Affairs medical facility 
                administering the health plan has sufficient systems 
                and safeguards in place to minimize any risk that 
                instituting the managed care model will result in 
                reducing the quality of care delivered to participants 
                in the demonstration project or to other veterans 
                receiving care under paragraph (1) or (2) of section 
                1710(a) of title 38, United States Code.
            ``(3) Reserves.--The Secretary of Veterans Affairs shall 
        maintain such reserves as may be necessary to ensure against 
        the risk that appropriated funds, allocated to demonstration 
        sites and public or private entities participating in the 
        demonstration project through a managed health care plan under 
        this section, will be required to meet the obligations of those 
        sites and entities to targeted medicare-eligible veterans.
    ``(h) Payments Based on Regular Medicare Payment Rates.--
            ``(1) Payments.--
                    ``(A) In general.--Subject to the succeeding 
                provisions of this subsection, the Secretary shall 
                reimburse the Secretary of Veterans Affairs for 
                services provided under the demonstration project at 
                the following rates:
                            ``(i) Noncapitation.--Except as provided in 
                        clause (ii) and subject to subparagraphs (B) 
                        and (D), at a rate equal to 95 percent of the 
                        amounts that otherwise would be payable under 
                        this title on a noncapitated basis for such 
                        services if the demonstration site was not part 
                        of this demonstration project, was 
                        participating in the medicare program, and 
                        imposed charges for such services.
                            ``(ii) Capitation.--Subject to 
                        subparagraphs (B) and (D), in the case of 
                        services provided to an enrollee under a 
                        managed health care plan established under 
                        subsection (g), at a rate equal to 95 percent 
                        of the amount paid to a Medicare+Choice 
                        organization under part C with respect to such 
                        an enrollee.
                            ``(iii) Other cases.--In cases in which a 
                        payment amount may not otherwise be readily 
                        computed under clauses (i) or (ii), the 
                        Secretaries shall establish rules for computing 
                        equivalent or comparable payment amounts.
                    ``(B) Exclusion of certain amounts.--In computing 
                the amount of payment under subparagraph (A), the 
                following shall be excluded:
                            ``(i) Disproportionate share hospital 
                        adjustment.--Any amount attributable to an 
                        adjustment under section 1886(d)(5)(F) of the 
                        Social Security Act (42 U.S.C. 
                        1395ww(d)(5)(F)).
                            ``(ii) Direct graduate medical education 
                        payments.--Any amount attributable to a payment 
                        under subsection (h) of such section.
                            ``(iii) Percentage of indirect medical 
                        education adjustment.--40 percent of any amount 
                        attributable to the adjustment under subsection 
                        (d)(5)(B) of such section.
                            ``(iv) Percentage of capital payments.--67 
                        percent of any amounts attributable to payments 
                        for capital-related costs under subsection (g) 
                        of such section.
                    ``(C) Periodic payments from medicare trust 
                funds.--Payments under this subsection shall be made--
                            ``(i) on a periodic basis consistent with 
                        the periodicity of payments under this title; 
                        and
                            ``(ii) in appropriate part, as determined 
                        by the Secretary, from the trust funds.
                    ``(D) Annual limit on medicare payments.--The 
                amount paid to the Department of Veterans Affairs under 
                this subsection for any year for the demonstration 
                project may not exceed $50,000,000.
            ``(2) Reduction in payment for va failure to maintain 
        effort.--
                    ``(A) In general.--To avoid shifting onto the 
                medicare program under this title costs previously 
                assumed by the Department of Veterans Affairs for the 
                provision of medicare-covered services to targeted 
                medicare-eligible veterans, the payment amount under 
                this subsection for the project for a fiscal year shall 
                be reduced by the amount (if any) by which--
                            ``(i) the amount of the VA effort level for 
                        targeted veterans (as defined in subparagraph 
                        (B)) for the fiscal year ending in such year, 
                        is less than
                            ``(ii) the amount of the VA effort level 
                        for targeted veterans for fiscal year 1998.
                    ``(B) VA effort level for targeted veterans 
                defined.--For purposes of subparagraph (A), the term 
                `VA effort level for targeted veterans' means, for a 
                fiscal year, the amount, as estimated by the 
                administering Secretaries, that would have been 
                expended under the medicare program under this title 
                for VA-provided medicare-covered services for targeted 
                veterans (as defined in subparagraph (C)) for that 
                fiscal year if benefits were available under the 
                medicare program for those services. Such amount does 
                not include expenditures attributable to services for 
                which reimbursement is made under the demonstration 
                project.
                    ``(C) VA-provided medicare-covered services for 
                targeted veterans.--For purposes of subparagraph (B), 
                the term `VA-provided medicare-covered services for 
                targeted veterans' means, for a fiscal year, items and 
                services--
                            ``(i) that are provided during the fiscal 
                        year by the Department of Veterans Affairs to 
                        targeted medicare-eligible veterans;
                            ``(ii) that constitute hospital care and 
                        medical services under chapter 17 of title 38, 
                        United States Code; and
                            ``(iii) for which benefits would be 
                        available under the medicare program under this 
                        title if they were provided other than by a 
                        Federal provider of services that does not 
                        charge for those services.
            ``(3) Assuring no increase in cost to medicare program.--
                    ``(A) Monitoring effect of demonstration program on 
                costs to medicare program.--
                            ``(i) In general.--The Secretaries, in 
                        consultation with the Comptroller General, 
                        shall closely monitor the expenditures made 
                        under the medicare program for targeted 
                        medicare-eligible veterans during the period of 
                        the demonstration project compared to the 
                        expenditures that would have been made for such 
                        veterans during that period if the 
                        demonstration project had not been conducted.
                            ``(ii) Annual report by the comptroller 
                        general.--Not later than December 31 of each 
                        year during which the demonstration project is 
                        conducted, the Comptroller General shall submit 
                        to the Secretaries and the appropriate 
                        committees of Congress a report on the extent, 
                        if any, to which the costs of the Secretary 
                        under the medicare program under this title 
                        increased during the preceding fiscal year as a 
                        result of the demonstration project.
                    ``(B) Required response in case of increase in 
                costs.--
                            ``(i) In general.--If the administering 
                        Secretaries find, based on subparagraph (A), 
                        that the expenditures under the medicare 
                        program under this title increased (or are 
                        expected to increase) during a fiscal year 
                        because of the demonstration project, the 
                        administering Secretaries shall take such steps 
                        as may be needed--
                                    ``(I) to recoup for the medicare 
                                program the amount of such increase in 
                                expenditures; and
                                    ``(II) to prevent any such increase 
                                in the future.
                            ``(ii) Steps.--Such steps--
                                    ``(I) under clause (i)(I), shall 
                                include payment of the amount of such 
                                increased expenditures by the Secretary 
                                of Veterans Affairs from the current 
                                medical care appropriation of the 
                                Department of Veterans Affairs to the 
                                trust funds; and
                                    ``(II) under clause (i)(II), shall 
                                include suspending or terminating the 
                                demonstration project (in whole or in 
                                part) or lowering the amount of payment 
                                under paragraph (1)(A).
    ``(i) Evaluation and Reports.--
            ``(1) Independent evaluation.--
                    ``(A) In general.--The administering Secretaries 
                shall arrange for an independent entity with expertise 
                in the evaluation of health care services to conduct an 
                evaluation of the demonstration project.
                    ``(B) Contents.--The evaluation conducted under 
                subparagraph (A) shall include an assessment, based on 
                the agreement entered into under subsection (b), of the 
                following:
                            ``(i) The cost to the Department of 
                        Veterans Affairs of providing care to veterans 
                        under the project.
                            ``(ii) Compliance of participating 
                        demonstration sites with applicable measures of 
                        quality of care, compared to such compliance 
                        for other medicare-participating medical 
                        centers that are not Veterans Affairs medical 
                        facilities.
                            ``(iii) A comparison of the costs of 
                        participation of the demonstration sites in the 
                        program with the reimbursements provided for 
                        services of such sites.
                            ``(iv) Any savings or costs to the medicare 
                        program under this title from the project.
                            ``(v) Any change in access to care or 
                        quality of care for targeted medicare-eligible 
                        veterans participating in the project.
                            ``(vi) Any effect of the project on the 
                        access to care and quality of care for targeted 
                        medicare-eligible veterans not participating in 
                        the project and other veterans not 
                        participating in the project.
                            ``(vii) The provision of services under 
                        managed health care plans under subsection (g), 
                        including the circumstances (if any) under 
                        which the Secretary of Veterans Affairs uses 
                        reserves described in paragraph (3) of such 
                        subsection and the Secretary of Veterans 
                        Affairs' response to such circumstances 
                        (including the termination of managed health 
                        care plans requiring the use of such reserves).
                            ``(viii) Any effect that the demonstration 
                        project has on the enrollment in 
                        Medicare+Choice plans offered by 
                        Medicare+Choice organizations under part C of 
                        this title in the established site areas.
                            ``(ix) Any additional elements that the 
                        independent entity determines is appropriate to 
                        assess regarding the demonstration project.
                    ``(C) Annual reports.--The independent entity 
                conducting the evaluation under subparagraph (A) shall 
                submit reports on such evaluation to the administering 
                Secretaries and to the committees of jurisdiction in 
                the Congress as follows:
                            ``(i) Initial report.--The entity shall 
                        submit the initial report not later than 12 
                        months after the date on which the 
                        demonstration project begins operation.
                            ``(ii) Second annual report.--The entity 
                        shall submit the second annual report not later 
                        than 30 months after the date on which the 
                        demonstration project begins operation.
                            ``(iii) Final report.--The entity shall 
                        submit the final report not later than 3\1/2\ 
                        years after the date on which the demonstration 
                        project begins operation.
            ``(2) Report on extension and expansion of demonstration 
        project.--Not later than 3\1/2\ years after the date on which 
        the demonstration project begins operation, the administering 
        Secretaries shall submit to Congress a report containing--
                    ``(A) their recommendation as to--
                            ``(i) whether to extend the demonstration 
                        project or make the project permanent;
                            ``(ii) whether to expand the project to 
                        cover additional demonstration sites and to 
                        increase the maximum amount of reimbursement 
                        (or the maximum amount of reimbursement 
                        permitted for managed health care plans under 
                        this section) under the project in any year; 
                        and
                            ``(iii) whether the terms and conditions of 
                        the project should be continued (or modified) 
                        if the project is extended or expanded; and
                    ``(B) a detailed description of any costs 
                associated with their recommendation made pursuant to 
                clauses (i) and (ii) of subparagraph (A).''.

            Passed the Senate February 24, 1999.

            Attest:

                                                             Secretary.
106th CONGRESS

  1st Session

                                  S. 4

_______________________________________________________________________

                                 AN ACT

 To improve pay and retirement equity for members of the Armed Forces; 
                        and for other purposes.
```