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who is entitled to compensation under section 206 of 
such title while the member participates in an edu-
cation or training program to acquire proficiency in 
a critical foreign language or expertise in foreign 
cultural studies or a related skill designated as crit-
ical under such section 353. 
(2) DURATION OF PILOT PROGRAM.—The Sec-
retary shall conduct the pilot program during the pe-
riod beginning on October 1, 2008, and ending on 
December 31, 2013. Incentive pay may not be pro-
vided under the pilot program after December 31, 
2013. 
(3) REPORTING REQUIREMENT.—Not later than 
March 31, 2012, the Secretary shall submit to Con-
gress a report containing the results of the pilot pro-
gram and the recommendations of the Secretary re-
garding whether to continue or expand the pilot pro-
gram. 
(d) 
EXPEDITED
IMPLEMENTATION.—Notwith-
standing section 662 of the National Defense Authoriza-
tion Act for Fiscal Year 2008 (Public Law 110–181; 122 
Stat. 180; 37 U.S.C. 301 note), the Secretary of a military 
department may immediately implement the amendments 
made by subsections (a) and (b) in order to ensure the 
prompt availability of proficiency bonuses and incentive 
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pay under section 353 of title 37, United States Code, as 
amended by such subsections, for persons enrolled in offi-
cer training programs. 
SEC. 620. TEMPORARY TARGETED BONUS AUTHORITY TO 
INCREASE DIRECT ACCESSIONS OF OFFICERS 
IN CERTAIN HEALTH PROFESSIONS. 
(a) DESIGNATION OF CRITICALLY SHORT WARTIME 
HEALTH SPECIALTIES.—For purposes of section 335 of 
title 37, United States Code, as added by section 661 of 
the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181), the following health profes-
sions are designated as a critically short wartime specialty 
under subsection (a)(2) of such section: 
(1) Psychologists who have been awarded a di-
ploma as a Diplomate in Psychology by the Amer-
ican Board of Professional Psychology and are fully 
licensed and such other mental health practitioners 
as the Secretary concerned determines to be nec-
essary. 
(2) Registered nurses. 
(b) SPECIAL AGREEMENT AUTHORITY.—Under the 
authority provided by this section, the Secretary concerned 
may enter into an agreement under subsection (f) of sec-
tion 335 of title 37, United States Code, to pay a health 
professions bonus under such section to a person who ac-
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cepts a commission or appointment as an officer and 
whose health profession specialty is specified in subsection 
(a). 
(c) EFFECTIVE PERIOD.—This section shall take ef-
fect on October 1, 2008. The designations made by sub-
section (a) and the authority to enter into an agreement 
under subsection (b) expire on September 30, 2010. 
Subtitle C—Travel and 
Transportation Allowances 
SEC. 631. INCREASED WEIGHT ALLOWANCE FOR TRANS-
PORTATION OF BAGGAGE AND HOUSEHOLD 
EFFECTS FOR CERTAIN ENLISTED MEMBERS. 
(a) ALLOWANCE.—The table in section 406(b)(1)(C) 
of title 37, United States Code, is amended by striking 
the items relating to pay grades E–5 through E–9 and 
inserting the following new items: 
Pay Grade 
Without Dependents 
With Dependents 
‘‘E–9 
13,500 
15,500 
E–8 
12,500 
14,500 
E–7 
11,500 
13,500 
E–6 
8,500 
11,500 
E–5 
7,500 
9,500’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall take effect on October 1, 2008. 
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SEC. 632. ADDITIONAL WEIGHT ALLOWANCE FOR TRANS-
PORTATION 
OF 
MATERIALS 
ASSOCIATED 
WITH EMPLOYMENT OF A MEMBER’S SPOUSE 
OR COMMUNITY SUPPORT VOLUNTEER OR 
CHARITY ACTIVITIES. 
(a) ADDITIONAL
WEIGHT
ALLOWANCE.—Section 
406(b)(1) of title 37, United States Code, is amended by 
adding at the end the following new subparagraph: 
‘‘(H) In connection with a change of permanent sta-
tion of a member, the Secretary concerned shall increase 
the weight allowance otherwise applicable under subpara-
graph (C) for the member by 200 pounds for the purpose 
of facilitating the shipment of materials associated with 
the employment of the member’s spouse or community 
support volunteer or charity activities of the member and 
any dependents of the member.’’. 
SEC. 633. TRANSPORTATION OF FAMILY PETS DURING 
EVACUATION 
OF 
NONESSENTIAL 
PER-
SONNEL. 
Section 406(b)(1) of title 37, United States Code, is 
amended by inserting after subparagraph (H), as added 
by section 632, the following new subparagraph: 
‘‘(I) In connection with an evacuation from a perma-
nent station located in a foreign area, a member is entitled 
to transportation of not more than two family household 
pets, including shipment and the payment of quarantine 
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fees, if any. As an alternative to the provision of transpor-
tation for the pets, the Secretary concerned may reim-
burse the member or provide a monetary allowance under 
subparagraph (F) if other commercial transportation 
means are used. A member is not entitled to transpor-
tation under this subparagraph for horses, livestock, or 
pets weighing in excess of 150 pounds or for animals that 
the Secretary concerned determines are exotic pets or en-
dangered species.’’. 
Subtitle D—Retired Pay and 
Survivor Benefits 
SEC. 641. EQUITY IN COMPUTATION OF DISABILITY RE-
TIRED PAY FOR RESERVE COMPONENT MEM-
BERS WOUNDED IN ACTION. 
Section 1208(b) of title 10, United States Code, is 
amended— 
(1) by striking ‘‘A member’’ and inserting ‘‘(1) 
Except as provided in paragraph (2), a member’’; 
and 
(2) by adding at the end the following new 
paragraph: 
‘‘(2) If a member of the uniformed services who is 
not a member of a regular component is retired under this 
chapter or is placed on the temporary disability retired 
list under this chapter because of a disability incurred 
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after the date of the enactment of this paragraph for 
which the member is awarded the Purple Heart, the mem-
ber shall be credited, for the purposes of this chapter, with 
the number of years of service that would be counted if 
computing the member’s years of service under section 
12732 of this title.’’. 
SEC. 642. EFFECT OF TERMINATION OF SUBSEQUENT MAR-
RIAGE ON PAYMENT OF SURVIVOR BENEFIT 
PLAN ANNUITY TO SURVIVING SPOUSE OR 
FORMER SPOUSE WHO PREVIOUSLY TRANS-
FERRED 
ANNUITY 
TO 
DEPENDENT 
CHIL-
DREN. 
Section 1450(b)(3) of title 10, United States Code, 
is amended by adding at the end the following new sen-
tence: ‘‘The payment of an annuity to a surviving spouse 
or former spouse under this paragraph shall be resumed 
even though the surviving spouse or former spouse pre-
viously transferred the annuity to a child or children under 
section 1448(d)(2)(B) of this title if, when the marriage 
is so terminated, the child or children, due to loss of de-
pendent status, death, or other cause, are no longer eligi-
ble for the annuity under such section.’’. 
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SEC. 643. EXTENSION TO SURVIVORS OF CERTAIN MEM-
BERS WHO DIE ON ACTIVE DUTY OF SPECIAL 
SURVIVOR INDEMNITY ALLOWANCE FOR PER-
SONS AFFECTED BY REQUIRED SURVIVOR 
BENEFIT PLAN ANNUITY OFFSET FOR DE-
PENDENCY AND INDEMNITY COMPENSATION. 
(a) EXTENSION.—Subsection (m) of section 1450 of 
title 10, United States Code, as added by section 644 of 
the National Defense Authorization Act for Fiscal Year 
2008, is amended in paragraph (1)(B) by striking ‘‘section 
1448(a)(1) of this title’’ and inserting ‘‘subsection (a)(1) 
of section 1448 of this title or by reason of coverage under 
subsection (d) of such section’’. 
(b) APPLICATION OF AMENDMENT.—The amendment 
made by subsection (a) shall apply with respect to the 
month beginning on October 1, 2008, and subsequent 
months as provided by paragraph (6) of subsection (m) 
of section 1450 of title 10, United States Code, as added 
by section 644 of the National Defense Authorization Act 
for Fiscal Year 2008. 
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SEC. 644. ELECTION TO RECEIVE RETIRED PAY FOR NON- 
REGULAR SERVICE UPON RETIREMENT FOR 
SERVICE IN AN ACTIVE RESERVE STATUS 
PERFORMED AFTER ATTAINING ELIGIBILITY 
FOR REGULAR RETIREMENT. 
(a) ELECTION AUTHORITY; REQUIREMENTS.—Sub-
section (a) of section 12741 of title 10, United States 
Code, is amended to read as follows: 
‘‘(a) AUTHORITY TO ELECT TO RECEIVE RESERVE 
RETIRED PAY.—(1) A person may elect to receive retired 
pay under this chapter, instead of receiving retired or re-
tainer pay under chapter 65, 367, 571, or 867 of this title, 
if— 
‘‘(A) the person satisfies the requirements spec-
ified in paragraphs (1) and (2) of section 12731(a) 
of this title for entitlement to retired pay under this 
chapter; 
‘‘(B) the person served in an active status in 
the Selected Reserve of the Ready Reserve after be-
coming eligible for retirement under chapter 65, 
367, 571, or 867 of this title (without regard to 
whether the person actually retired or received re-
tired or retainer pay under one of those chapters); 
‘‘(C) the person completed not less than two 
years of service in such active status (excluding any 
period of active service); and 
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‘‘(D) the service of the person in such active 
status is determined by the Secretary concerned to 
have been satisfactory. 
‘‘(2) The Secretary concerned may reduce the two- 
year service requirement specified in paragraph (1)(C) in 
the case of a person who— 
‘‘(A) completed at least six months of service in 
a position of adjutant general required under section 
314 of title 32 or in a position of assistant adjutant 
general subordinate to such a position of adjutant 
general; and 
‘‘(B) failed to complete the minimum two years 
of service solely because the appointment of the per-
son to such position was terminated or vacated as 
described in section 324(b) of title 32.’’. 
(b) ACTIONS
TO EFFECTUATE ELECTION.—Sub-
section (b) of such section is amended by striking para-
graph (1) and inserting the following new paragraph: 
‘‘(1) terminate the eligibility of the person to 
retire under chapter 65, 367, 571, or 867 of this 
title, if the person is not already retired under one 
of those chapters, and terminate entitlement of the 
person to retired or retainer pay under one of those 
chapters, if the person was already receiving retired 
or retainer pay under one of those chapters; and’’. 
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(c) CONFORMING AMENDMENT TO REFLECT NEW 
VARIABLE AGE REQUIREMENT FOR RETIREMENT.—Sub-
section (d) of such section is amended— 
(1) in paragraph (1), by striking ‘‘attains 60 
years of age’’ and inserting ‘‘attains the eligibility 
age applicable to the person under section 12731(f) 
of this title’’; and 
(2) in paragraph (2)(A), by striking ‘‘attains 60 
years of age’’ and inserting ‘‘attains the eligibility 
age applicable to the person under such section’’. 
(d) REPEAL OF RESTRICTION ON ELECTION TO RE-
CEIVE RESERVE RETIRED PAY.—Section 12731(a) of 
such title is amended— 
(1) by inserting ‘‘and’’ at the end of paragraph 
(2); 
(2) by striking ‘‘; and’’ at the end of paragraph 
(3) and inserting a period; and 
(3) by striking paragraph (4). 
(e) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading for sec-
tion 12741 of such title is amended to read as fol-
lows: 
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‘‘§ 12741. Retirement for service in an active status 
performed in the Selected Reserve of the 
Ready Reserve after eligibility for reg-
ular retirement’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 1223 of such title is 
amended by striking the item relating to section 
12741 and inserting the following new item: 
‘‘12741. Retirement for service in an active status performed in the Selected Re-
serve of the Ready Reserve after eligibility for regular retire-
ment.’’. 
(f) RETROACTIVE
APPLICABILITY.—The amend-
ments made by this section shall take effect as of January 
1, 2008. 
SEC. 645. RECOMPUTATION OF RETIRED PAY AND ADJUST-
MENT OF RETIRED GRADE OF RESERVE RE-
TIREES TO REFLECT SERVICE AFTER RE-
TIREMENT. 
(a) RECOMPUTATION.—Section 10145 of title 10, 
United States Code, is amended by adding at the end the 
following new subsection: 
‘‘(e)(1) If a member of the Retired Reserve is recalled 
to an active status under subsection (d) in the Selected 
Reserve of the Ready Reserve and completes not less than 
two years of service in such active status, the member is 
entitled to— 
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‘‘(A) the recomputation of the retired pay of 
the member determined under section 12739 of this 
title; and 
‘‘(B) in the case of a commissioned officer, an 
adjustment in the retired grade of the member in 
the manner provided in section 1370 of this title. 
‘‘(2) The Secretary concerned may reduce the two- 
year service requirement specified in paragraph (1) in the 
case of a member who— 
‘‘(A) is recalled to serve in a position of adju-
tant general required under section 314 of title 32 
or in a position of assistant adjutant general subor-
dinate to such a position of adjutant general; 
‘‘(B) completes at least six months of service in 
such position; and 
‘‘(C) fails to complete the minimum two years 
of service solely because the appointment of the 
member to such position is terminated or vacated as 
described in section 324(b) of title 32.’’. 
(b) RETROACTIVE APPLICABILITY.—The amendment 
made by this section shall take effect as of January 1, 
2008. 
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SEC. 646. CORRECTION OF UNINTENDED REDUCTION IN 
SURVIVOR BENEFIT PLAN ANNUITIES DUE TO 
PHASED ELIMINATION OF TWO-TIER ANNU-
ITY COMPUTATION AND SUPPLEMENTAL AN-
NUITY. 
Effective as of October 28, 2004, and as if included 
therein as enacted, section 644(c) of the Ronald W. 
Reagan National Defense Authorization Act for Fiscal 
Year 2005 (Public Law 108–375; 118 Stat. 1961; 19 
U.S.C. 1450 note) is amended by adding at the end the 
following new paragraph: 
‘‘(3) SAVINGS PROVISION.—If, as a result of the 
recomputation of annuities under section 1450 of 
title 10, United States Code, and supplemental sur-
vivor annuities under section 1457 of such title, as 
required by paragraph (1), the total amount of both 
annuities to be paid to an annuitant for a month 
would be less (because of the offset required by sec-
tion 1450(c) of such title for dependency and indem-
nity compensation) than the amount that would be 
paid to the annuitant in the absence of recomputa-
tion, the Secretary of Defense shall take such ac-
tions as are necessary to adjust the annuity amounts 
to eliminate the reduction.’’. 
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SEC. 647. PRESUMPTION OF DEATH FOR PARTICIPANTS IN 
SURVIVOR BENEFIT PLAN IN MISSING STA-
TUS. 
(a) CONDITIONS ON PRESUMPTION.—In the case of 
a participant in the Survivor Benefit Plan who has been 
determined by the Secretary of State to have been kid-
napped in Iraq or Afghanistan on or after August 1, 2007, 
the Secretary of a military department may not make a 
determination under section 1450(l) of title 10, United 
States Code, that the participant is missing, with the pre-
sumption of death, until the earlier of— 
(1) a period of at least 7 years expires after the 
date of the determination of the Secretary of State; 
or 
(2) the date on which the participant is con-
firmed dead and a death certificate is delivered to 
the next of kin of the participant. 
(b) RESUMPTION OF RETIRED PAY; PAYMENT OF 
BACK PAY.—In the case of a participant in the Survivor 
Benefit Plan described in subsection (a) who was pre-
sumed to be dead before the date of the enactment of this 
Act under section 1450(l) of title 10, United States Code, 
the Secretary of a military department concerned shall— 
(1) resume payment of any retired pay to which 
the participant is entitled to as a retired member of 
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the Armed Forces pending satisfaction of the condi-
tions specified in subsection (a); and 
(2) pay retired pay for periods occurring before 
the date of the enactment of this Act for which re-
tired pay was not paid because of the presumption 
of death. 
SEC. 648. ELIGIBILITY FOR DISABILITY RETIRED PAY AND 
SEPARATION PAY OF CERTAIN FORMER CA-
DETS AND MIDSHIPMEN WITH PRIOR EN-
LISTED SERVICE. 
Section 1217(a) of title 10, United States Code, is 
amended by striking ‘‘incurred after October 28, 2004.’’ 
and inserting ‘‘incurred— 
‘‘(1) after October 28, 2004; or 
‘‘(2) after January 1, 2000, in the case of a 
cadet or midshipman who was discharged from an 
enlisted grade in order to accept an appointment as 
a cadet or midshipman.’’. 
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Subtitle E—Commissary and Non-
appropriated Fund Instrumen-
tality Benefits and Operations 
SEC. 651. USE OF COMMISSARY STORES SURCHARGES DE-
RIVED FROM TEMPORARY COMMISSARY INI-
TIATIVES FOR RESERVE COMPONENTS AND 
RETIRED MEMBERS. 
Section 2484(h) of title 10, United States Code, is 
amended— 
(1) by redesignating paragraphs (3) and (4) as 
paragraphs (4) and (5), respectively; 
(2) in such paragraph (4), as so redesignated, 
by striking ‘‘paragraph (1) or (2)’’ and inserting 
‘‘paragraph (1), (2), or (3)’’; and 
(3) by inserting after paragraph (2) the fol-
lowing new paragraph: 
‘‘(3)(A) The Secretary of Defense may use the pro-
ceeds derived from surcharges imposed under subsection 
(d) in connection with sales of commissary merchandise 
through initiatives described in subparagraph (B) to offset 
the cost of such initiatives. 
‘‘(B) Subparagraph (A) applies with respect to initia-
tives, utilizing temporary and mobile equipment, intended 
to provide members of reserve components, Retired mem-
bers, and other persons eligible for commissary benefits, 
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but without reasonable access to commissary stores, im-
proved access to commissary merchandise.’’. 
SEC. 652. REQUIREMENTS FOR PRIVATE OPERATION OF 
COMMISSARY STORE FUNCTIONS. 
Section 2485(a)(2) of title 10, United States Code, 
is amended in the last sentence by striking ‘‘December 31, 
2008’’ and inserting ‘‘December 31, 2013’’. 
SEC. 653. ADDITIONAL EXCEPTION TO LIMITATION ON USE 
OF APPROPRIATED FUNDS FOR DEPART-
MENT OF DEFENSE GOLF COURSES. 
Section 2491a of title 10, United States Code, is 
amended— 
(1) by redesignating paragraph (2) of sub-
section (b) as subsection (c) and, in such subsection 
(as so redesignated)— 
(A) by inserting ‘‘REGULATIONS.—’’ before 
‘‘The Secretary’’; and 
(B) by striking ‘‘this subsection’’ and in-
serting ‘‘subsection (b)’’; and 
(2) by inserting after paragraph (1) of sub-
section (b) the following new paragraph: 
‘‘(2) Subsection (a) does not apply to the purchase 
and maintenance of specialized golf carts designed to ac-
commodate persons with disabilities and the use of the golf 
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carts at a facility or installation where the Secretary deter-
mines the golf carts can be safely operated.’’. 
SEC. 654. ENHANCED ENFORCEMENT OF PROHIBITION ON 
SALE OR RENTAL OF SEXUALLY EXPLICIT 
MATERIAL ON MILITARY INSTALLATIONS. 
(a) ESTABLISHMENT OF RESALE ACTIVITIES RE-
VIEW BOARD.—Section 2495b of title 10, United States 
Code, is amended— 
(1) by redesignating subsections (c) and (d) as 
subsections (d) and (e), respectively; and 
(2) by inserting after subsection (b) the fol-
lowing new subsection: 
‘‘(c) RESALE ACTIVITIES REVIEW BOARD.—(1) The 
Secretary of Defense shall establish a nine-member board 
to make recommendations to the Secretary regarding 
whether material sold or rented, or proposed for sale or 
rental, on property under the jurisdiction of the Depart-
ment of Defense is barred from sale or rental by sub-
section (a). 
‘‘(2)(A) The Secretary of Defense shall appoint six 
members of the board to broadly represent the interests 
of the patron base served by the defense commissary sys-
tem and the exchange system. The Secretary shall appoint 
one of the members to serve as the chairman of the board. 
At least one member appointed under this subparagraph 
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shall be a person with experience managing or advocating 
for military family programs and who is also an eligible 
patron of the defense commissary system and the ex-
change system. 
‘‘(B) The Secretary of each of the military depart-
ments shall appoint one member of the board. 
‘‘(C) A vacancy on the board shall be filled in the 
same manner as the original appointment. 
‘‘(3) The Secretary of Defense may detail persons to 
serve as staff for the board. At a minimum, the Secretary 
shall ensure that the board is assisted at meetings by mili-
tary resale and legal advisors. 
‘‘(4) The recommendations made by the board under 
paragraph (1) shall be made available to the public. The 
Secretary of Defense shall publicize the availability of such 
recommendations by such means as the Secretary con-
siders appropriate. 
‘‘(5) Members of the board shall be allowed travel ex-
pense, including per diem in lieu of subsistence, at rates 
authorized for employees of agencies under subchapter I 
of chapter 57 of title 5 while away from their homes or 
regular places of business in the performance of services 
for the board.’’. 
(b) DEADLINE FOR ESTABLISHMENT AND INITIAL 
MEETING.— 
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(1) ESTABLISHMENT.—The board required by 
subsection (c) of section 2495b of title 10, United 
States Code, as added by subsection (a), shall be es-
tablished, and its initial nine members appointed, 
not later than 120 days after the date of the enact-
ment of this Act. 
(2) MEETINGS.—The board shall conduct an 
initial meeting within one year after the date of the 
appointment of the initial members of the board. At 
the discretion of the board, the board may consider 
all materials previously reviewed under such section 
as available for reconsideration for a minimum of 
180 days following the initial meeting of the board. 
SEC. 655. REQUIREMENT TO BUY MILITARY DECORATIONS, 
RIBBONS, BADGES, MEDALS, INSIGNIA, AND 
OTHER 
UNIFORM 
ACCOUTERMENTS 
PRO-
DUCED IN THE UNITED STATES. 
(a) REQUIREMENT.—Subchapter III of chapter 147 
of title 10, United States Code, is amended by adding at 
the end the following new section: 
‘‘§ 2495c. Requirement to buy military decorations 
and other uniform accouterments from 
American sources; exceptions 
‘‘(a) BUY-AMERICAN REQUIREMENT.—A military ex-
change store or other nonappropriated fund instrumen-
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tality of the Department of Defense may not purchase for 
resale any military decorations, ribbons, badges, medals, 
insignia, and other uniform accouterments that are not 
produced in the United States. 
‘‘(b) EXCEPTION.—Subsection (a) does not apply to 
the extent that the Secretary of Defense determines 
that— 
‘‘(1) a satisfactory quality and sufficient quan-
tity of an item covered by such subsection and pro-
duced in the United States cannot be procured; or 
‘‘(2) the purchase of the item produced outside 
the United States is in the best interests of members 
of the armed forces. 
‘‘(c) CONGRESSIONAL NOTIFICATION.—As soon as 
practicable after an exception is granted under subsection 
(b), the Secretary of Defense shall submit to Congress a 
report explaining the reasons for the exception. 
‘‘(d) UNITED STATES DEFINED.—In this section, the 
term ‘United States’ includes the Commonwealth of Puer-
to Rico, Guam, the United States Virgin Islands, the Com-
monwealth of the Northern Mariana Islands, American 
Samoa, and any other territory or possession of the United 
States.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such subchapter is amended by adding 
at the end the following new item: 
‘‘2495c. Requirement to buy military decorations and other uniform 
accouterments from American sources; exceptions.’’. 
SEC. 656. USE OF APPROPRIATED FUNDS
TO PAY POST AL-
LOWANCES OR OVERSEAS COST OF LIVING 
ALLOWANCES TO NONAPPROPRIATED FUND 
INSTRUMENTALITY 
EMPLOYEES 
SERVING 
OVERSEAS. 
(a) AUTHORITY TO USE APPROPRIATED FUNDS.— 
Chapter 81 of title 10, United States Code, is amended 
by inserting after section 1587a the following new section: 
‘‘§ 1587b. Employees of nonappropriated fund instru-
mentalities: payment of overseas post al-
lowances or overseas cost of living allow-
ances 
‘‘(a) USE OF APPROPRIATED FUNDS TO PAY ALLOW-
ANCES.—Subject to the availability of appropriated funds 
for this purpose, the Secretary of Defense may pay post 
allowances or cost of living allowances to an non-
appropriated fund instrumentality employee who is a cit-
izen of the United States and is employed in a full-time 
position at a location outside of the continental United 
States. 
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‘‘(b) DURATION.—The Secretary of Defense may use 
the authority provided by this section to pay post allow-
ances or cost of living allowances that have been due to 
an nonappropriated fund instrumentality employee or 
former employee since December 1, 2001, but have not 
been previously paid. No allowance may be provided under 
this section after December 31, 2011. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘nonappropriated fund instru-
mentality employee’ has the meaning given that 
term in section 1587 of this title. 
‘‘(2) The term ‘continental United States’ 
means the 48 contiguous States and the District of 
Columbia.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 1587a the following new 
item: 
‘‘1587b. Employees of nonappropriated fund instrumentalities: payment of over-
seas post allowances or overseas cost of living allowances.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on October 1, 2008. 
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SEC. 657. STUDY REGARDING SALE OF ALCOHOLIC WINE 
AND BEER IN COMMISSARY STORES IN ADDI-
TION TO EXCHANGE STORES. 
(a) STUDY REQUIRED.—The Secretary of Defense 
shall conduct a study evaluating the propriety, patron con-
venience, and financial utility of including alcoholic wine 
and beer as an authorized commissary merchandise cat-
egory for sale in, at, or by commissary stores. 
(b) PILOT PROGRAM.— 
(1) AUTHORIZED.—In connection with the 
study required by subsection (a), the Secretary may 
conduct a pilot program involving the sale of alco-
holic wine and beer in commissary stores if the Sec-
retary determines that such a pilot program would 
be useful in making the evaluations required by such 
subsection. 
(2) SCOPE.—If the Secretary determines that 
the pilot program would be useful, the Secretary 
shall conduct the pilot program at a minimum of 10 
locations for a period of not less than four months 
nor greater than one year. 
(c) REPORT.—Within 120 days after completion of 
the study required in subsection (a), the Secretary shall 
submit to Congress a report containing the findings and 
recommendations of the Secretary developed as a result 
of the study and the results of the pilot program, if con-
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ducted under subsection (b). The Secretary may delay the 
submission of the report pending the conclusion of the 
pilot program. 
Subtitle F—Other Matters 
SEC. 661. BONUS TO ENCOURAGE ARMY PERSONNEL AND 
OTHER PERSONS TO REFER PERSONS FOR 
ENLISTMENT IN THE ARMY. 
(a) AVAILABILITY OF BONUS TO TRAINED CIVIL-
IANS.—Subsection (a)(2) of section 3252 of title 10, 
United States Code, is amended by adding at the end the 
following new subparagraph: 
‘‘(F) A member of the general public who has 
completed a training course provided by the Sec-
retary, directly or through an entity contracted to 
provide such training, regarding the appropriate pro-
cedures used to recruit persons for enlistment in the 
Army.’’. 
(b) TIME FOR PAYMENT OF BONUS.—Subsection (b) 
of such section is amended— 
(1) by striking ‘‘or’’ at the end of paragraph 
(1); 
(2) by striking the period at the end of para-
graph (2) and inserting ‘‘; or’’; and 
(3) by adding at the end the following new 
paragraph: 
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‘‘(3) when the individual concerned contacts an 
entity contracted to recruit persons for enlistment in 
the Army.’’. 
(c) PAYMENT METHODS.—Such section is further 
amended— 
(1) in subsection (d), by striking the second 
sentence; and 
(2) by striking subsection (e) and inserting the 
following new subsection: 
‘‘(e) PAYMENT METHODS.—At the discretion of the 
Secretary, a bonus payable for a referral of a person under 
subsection (a) may be paid— 
‘‘(1) directly to the individual referred to in 
subsection (b) making the referral; or 
‘‘(2) through an entity contracted to make 
bonus payments under this section.’’. 
(d) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 3252. Bonus to encourage Army personnel and 
other persons to refer persons for enlist-
ment in the Army’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 333 of such title is 
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amended by striking the item relating to section 
3252 and inserting the following new item: 
‘‘3252. Bonus to encourage Army personnel and other persons to refer persons 
for enlistment in the Army.’’. 
SEC. 662. CONTINUATION OF ENTITLEMENT TO BONUSES 
AND SIMILAR BENEFITS FOR MEMBERS OF 
THE UNIFORMED SERVICES WHO DIE, ARE 
SEPARATED OR RETIRED FOR DISABILITY, 
OR MEET OTHER CRITERIA. 
(a) DISCRETION TO PROVIDE EXCEPTION TO TERMI-
NATION AND REPAYMENT REQUIREMENTS UNDER CER-
TAIN CIRCUMSTANCES.—Section 303a(e) of title 37, 
United States Code, is amended— 
(1) in the subsection heading, by inserting ‘‘; 
TERMINATION
OF
ENTITLEMENT
TO
UNPAID 
AMOUNTS’’ after ‘‘MET’’; 
(2) in paragraph (1)— 
(A) by striking ‘‘A member’’ and inserting 
‘‘(A) Except as provided in paragraph (2), a 
member’’; and 
(B) by striking ‘‘the requirements, except 
in certain circumstances authorized by the Sec-
retary concerned.’’ and inserting ‘‘the eligibility 
requirements and may not receive any unpaid 
amounts of the bonus or similar benefit after 
the member fails to satisfy the requirements, 
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unless the Secretary concerned determines that 
the imposition of the repayment requirement 
and termination of the payment of unpaid 
amounts of the bonus or similar benefit with re-
gard to the member would be contrary to a per-
sonnel policy or management objective, would 
be against equity and good conscience, or would 
be contrary to the best interests of the United 
States.’’; and 
(3) by redesignating paragraph (2) as subpara-
graph (B) of paragraph (1). 
(b) MANDATORY PAYMENT OF UNPAID AMOUNTS 
UNDER CERTAIN CIRCUMSTANCES; NO REPAYMENT OF 
UNEARNED
AMOUNTS.—Section 303a(e) of title 37, 
United States Code, is amended by inserting after para-
graph (1), as amended by subsection (a), the following 
new paragraph (2): 
‘‘(2)(A) If a member of the uniformed services dies 
(other than as a result the member’s misconduct) or is 
retired or separated for disability under chapter 61 of title 
10, the Secretary concerned— 
‘‘(i) shall not require repayment by the member 
or the member’s estate of the unearned portion of 
any bonus or similar benefit previously paid to the 
member; and 
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‘‘(ii) shall require the payment to the member 
or the member’s estate of the remainder of any 
bonus or similar benefit that was not yet paid to the 
member, but to which the member was entitled im-
mediately before the death, retirement, or separation 
of the member, and would be paid if not for the 
death, retirement, or separation of the member. 
‘‘(B) The amount to be paid under subparagraph 
(A)(ii) shall be equal to the full amount specified by the 
agreement or contract applicable to the bonus or similar 
benefit as if the member continued to be entitled to the 
bonus or similar benefit following the death, retirement, 
or separation. 
‘‘(C) Amounts to be paid to a member or the mem-
ber’s estate under subparagraph (A)(ii) shall be paid in 
a lump sum not later than 90 days after the date of the 
death, retirement, or separation of the member, whichever 
applies.’’. 
(c) CONFORMING AMENDMENTS REFLECTING CON-
SOLIDATED SPECIAL PAY AND BONUS AUTHORITIES.— 
(1) CONFORMING AMENDMENTS.—Section 373 
of title 37, United States Code, as added by section 
661 of the National Defense Authorization Act for 
Fiscal Year 2008, is amended— 
(A) in subsection (a)— 
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(i) in the subsection heading, by in-
serting ‘‘AND TERMINATION’’ after ‘‘RE-
PAYMENT’’; and 
(ii) by inserting before the period at 
the end the following: ‘‘, and the member 
may not receive any unpaid amounts of the 
bonus, incentive pay, or similar benefit 
after the member fails to satisfy such serv-
ice or eligibility requirement’’; and 
(B) by striking subsection (b) and insert-
ing the following new subsection: 
‘‘(b) EXCEPTIONS.— 
‘‘(1) DISCRETION TO PROVIDE EXCEPTION TO 
TERMINATION AND REPAYMENT REQUIREMENTS.— 
Pursuant to the regulations prescribed to administer 
this section, the Secretary concerned may grant an 
exception to the repayment requirement and require-
ment to terminate the payment of unpaid amounts 
of a bonus, incentive pay, or similar benefit if the 
Secretary concerned determines that the imposition 
of the repayment and termination requirements with 
regard to a member of the uniformed services would 
be contrary to a personnel policy or management ob-
jective, would be against equity and good conscience, 
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or would be contrary to the best interests of the 
United States. 
‘‘(2) 
MANDATORY
PAYMENT
OF
UNPAID 
AMOUNTS UNDER CERTAIN CIRCUMSTANCES; NO RE-
PAYMENT OF UNEARNED AMOUNTS.—(A) If a mem-
ber of the uniformed services dies (other than as a 
result the member’s misconduct) or is retired or sep-
arated for disability under chapter 61 of title 10, the 
Secretary concerned— 
‘‘(i) shall not require repayment by the 
member or the member’s estate of the unearned 
portion of any bonus, incentive pay, or similar 
benefit previously paid to the member; and 
‘‘(ii) shall require the payment to the 
member or the member’s estate of the remain-
der of any bonus, incentive pay, or similar ben-
efit that was not yet paid to the member, but 
to which the member was entitled immediately 
before the death, retirement, or separation of 
the member, and would be paid if not for the 
death, retirement, or separation of the member. 
‘‘(B) The amount to be paid under subpara-
graph (A)(ii) shall be equal to the full amount speci-
fied by the agreement or contract applicable to the 
bonus, incentive pay, or similar benefit as if the 
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HR 5658 PCS 
member continued to be entitled to the bonus, incen-
tive pay, or similar benefit following the death, re-
tirement, or separation. 
‘‘(C) Amounts to be paid to a member or the 
member’s estate under subparagraph (A)(ii) shall be 
paid in a lump sum not later than 90 days after the 
date of the death, retirement, or separation of the 
member, whichever applies.’’. 
(2) CLERICAL AMENDMENTS.— 
(A) SECTION HEADING.—The heading of 
such section is amended to read as follows: 
‘‘§ 373. Repayment of unearned portion of bonus, in-
centive pay, or similar benefit, and termi-
nation of remaining payments, when con-
ditions of payment not met’’. 
(B) TABLE OF CONTENTS.—The table of 
sections at the beginning of chapter 5 of title 
37, United States Code, is amended by striking 
the item relating to section 373 and inserting 
the following new item: 
‘‘373. Repayment of unearned portion of bonus, incentive pay, or similar benefit, 
and termination of remaining payments, when conditions of 
payment not met.’’. 
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SEC. 663. PROVIDING INJURED MEMBERS OF THE ARMED 
FORCES INFORMATION CONCERNING BENE-
FITS. 
Section 1651 of the National Defense Authorization 
Act for Fiscal Year 2008 (Public Law 110–181; 122 Stat. 
476; 10 U.S.C. 1071 note) is amended to read as follows: 
‘‘SEC. 1651. HANDBOOK FOR MEMBERS OF THE ARMED 
FORCES ON COMPENSATION AND BENEFITS 
AVAILABLE FOR SERIOUS INJURIES AND ILL-
NESSES. 
‘‘(a) INFORMATION ON AVAILABLE COMPENSATION 
AND BENEFITS.—Not later than March 31, 2009, the Sec-
retary of Defense shall develop and maintain a comprehen-
sive description of the compensation and other benefits to 
which a member of the Armed Forces, and the family of 
such member, would be entitled upon the separation or 
retirement of the member from the Armed Forces as a 
result of a serious injury or illness. Such description shall 
be published— 
‘‘(1) in a handbook; and 
‘‘(2) on a publically available, searchable Inter-
net website or comparable successor facility. 
‘‘(b) CONTENTS.—The comprehensive description 
shall include the following: 
‘‘(1) The range of compensation and benefits 
based on grade, length of service, degree of disability 
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HR 5658 PCS 
at separation or retirement, and other factors affect-
ing compensation and benefits as the Secretary con-
siders appropriate. 
‘‘(2) Information concerning the Disability 
Evaluation System of each military department, in-
cluding— 
‘‘(A) an explanation of the process of the 
Disability Evaluation System; 
‘‘(B) a general timeline of the process of 
the Disability Evaluation System; 
‘‘(C) the role and responsibilities of the 
military department throughout the process of 
the Disability Evaluation System; and 
‘‘(D) the role and responsibilities of a 
member of the Armed Forces throughout the 
process of the Disability Evaluation System. 
‘‘(3) Benefits administered by the Department 
of Veterans Affairs that a member of the Armed 
Forces would be entitled upon the separation or re-
tirement from the Armed Forces as a result of a se-
rious injury or illness. 
‘‘(4) A list of State veterans service organiza-
tions and their contact information and Internet 
website addresses. 
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‘‘(c) CONSULTATION.—The Secretary of Defense 
shall develop and maintain the comprehensive description 
required by subsection (a) in consultation with the Sec-
retary of Veterans Affairs, the Secretary of Health and 
Human Services, and the Commissioner of Social Secu-
rity. 
‘‘(d) UPDATE.—The Secretary of Defense shall up-
date— 
‘‘(1) the handbook on a periodic basis, but not 
less often than annually; and 
‘‘(2) the Internet website or comparable suc-
cessor facility immediately after any change has 
been made to the compensation or other benefits de-
scribed in subsection (a). 
‘‘(e) PROVISION TO MEMBERS.—The Secretary of the 
military department concerned shall provide the handbook 
to each member of the Armed Forces under the jurisdic-
tion of that Secretary as soon as practicable following an 
injury or illness for which the member may retire or sepa-
rate from the Armed Forces. 
‘‘(f) PROVISION TO REPRESENTATIVES.—If a mem-
ber is incapacitated or otherwise unable to receive the 
handbook, the handbook shall be provided to the next of 
kin or a legal representative of the member, as determined 
in accordance with regulations prescribed by the Secretary 
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of the military department concerned for purposes of this 
section.’’. 
SEC. 664. POSTAL BENEFITS PROGRAM FOR MEMBERS OF 
THE ARMED FORCES SERVING IN IRAQ OR 
AFGHANISTAN. 
(a) AVAILABILITY OF POSTAL BENEFITS.—The Sec-
retary of Defense, in consultation with the United States 
Postal Service, shall provide for a program under which 
postal benefits are provided to qualified individuals in ac-
cordance with this section. 
(b) QUALIFIED INDIVIDUAL.—In this section, the 
term ‘‘qualified individual’’ means a member of the Armed 
Forces on active duty (as defined in section 101 of title 
10, United States Code) who— 
(1) is serving in Iraq or Afghanistan; or 
(2) is hospitalized at a facility under the juris-
diction of the Department of Defense as a result of 
a disease or injury incurred as a result of service in 
Iraq or Afghanistan. 
(c) POSTAL BENEFITS DESCRIBED.— 
(1) VOUCHERS.—The postal benefits provided 
under the program shall consist of such coupons or 
other similar evidence of credit, whether in printed, 
electronic, or other format (in this section referred 
to as a ‘‘voucher’’), as the Secretary of Defense, in 
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consultation with the Postal Service, shall determine, 
which entitle the bearer or user to make qualified 
mailings free of postage. 
(2) QUALIFIED MAILING.—In this section, the 
term ‘‘qualified mailing’’ means the mailing of a sin-
gle mail piece which— 
(A) is first-class mail (including any 
sound- or video-recorded communication) not 
exceeding 13 ounces in weight and having the 
character of personal correspondence or parcel 
post not exceeding 10 pounds in weight; 
(B) is sent from within an area served by 
a United States post office; and 
(C) is addressed to a qualified individual. 
(3) 
COORDINATION
RULE.—Postal 
benefits 
under the program are in addition to, and not in lieu 
of, any reduced rates of postage or other similar 
benefits which might otherwise be available by or 
under law, including any rates of postage resulting 
from the application of section 3401(b) of title 39, 
United States Code. 
(d) NUMBER
OF VOUCHERS.—A member of the 
Armed Forces shall be eligible for one voucher for every 
second month in which the member is a qualified indi-
vidual. 
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(e) LIMITATIONS ON USE; DURATION.—A voucher 
may not be used— 
(1) for more than a single qualified mailing; or 
(2) after the earlier of— 
(A) the expiration date of the voucher, as 
designated by the Secretary of Defense; or 
(B) the end of the one-year period begin-
ning on the date on which the regulations pre-
scribed under subsection (f) take effect. 
(f) REGULATIONS.—Not later than 30 days after the 
date of the enactment of this Act, the Secretary of Defense 
(in consultation with the Postal Service) shall prescribe 
such regulations as may be necessary to carry out the pro-
gram, including— 
(1) procedures by which vouchers will be pro-
vided or made available in timely manner to quali-
fied individuals; and 
(2) procedures to ensure that the number of 
vouchers provided or made available with respect to 
any qualified individual complies with subsection (d). 
(g) TRANSFERS TO POSTAL SERVICE.— 
(1) BASED ON ESTIMATES.—The Secretary of 
Defense shall transfer to the Postal Service, out of 
amounts available to carry out the program and in 
advance of each calendar quarter during which post-
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al benefits may be used under the program, an 
amount equal to the amount of postal benefits that 
the Secretary estimates will be used during such 
quarter, reduced or increased (as the case may be) 
by any amounts by which the Secretary finds that 
a determination under this section for a prior quar-
ter was greater than or less than the amount finally 
determined for such quarter. 
(2) BASED
ON
FINAL
DETERMINATION.—A 
final determination of the amount necessary to cor-
rect any previous determination under this section, 
and any transfer of amounts between the Postal 
Service and the Department of Defense based on 
that final determination, shall be made not later 
than six months after the end of the one-year period 
referred to in subsection (e)(2)(B). 
(3) CONSULTATION REQUIRED.—All estimates 
and determinations under this subsection of the 
amount of postal benefits under the program used in 
any period shall be made by the Secretary of De-
fense in consultation with the Postal Service. 
(h) FUNDING.— 
(1) INCREASE.—The amount authorized to be 
appropriated by section 421 for military personnel is 
hereby increased by $10,000,000, and such amount 
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shall be available for postal benefits provided in this 
section. 
(2) OFFSETTING REDUCTION.—Funds author-
ized to be appropriated in fiscal year 2009 for Mili-
tary Personnel are reduced by $10,000,000. 
TITLE VII—HEALTH CARE 
PROVISIONS 
Subtitle A—Improvements to Health Benefits 
Sec. 701. One-year extension of prohibition on increases in certain health care 
costs for members of the uniformed services. 
Sec. 702. Temporary prohibition on increase in copayments under retail phar-
macy system of pharmacy benefits program. 
Sec. 703. Prohibition on conversion of military medical and dental positions to 
civilian medical and dental positions. 
Sec. 704. Chiropractic health care for members on active duty. 
Sec. 705. Requirement to recalculate TRICARE Reserve Select premiums 
based on actual cost data. 
Sec. 706. Program for health care delivery at military installations projected to 
grow. 
Sec. 707. Guidelines for combined Federal medical facilities. 
Sec. 708. Reserve component behavioral health care provider locator and ap-
pointment assistance demonstration project. 
Subtitle B—Preventive Care 
Sec. 711. Waiver of copayments for preventive services for certain TRICARE 
beneficiaries. 
Sec. 712. Military health risk management demonstration project. 
Sec. 713. Smoking cessation program under TRICARE. 
Sec. 714. Preventive health allowance. 
Subtitle C—Wounded Warrior Matters 
Sec. 721. Center of excellence in prevention, diagnosis, mitigation, treatment, 
and rehabilitation of hearing loss and auditory system injuries. 
Sec. 722.
Clarification to center of excellence relating to military eye injuries. 
Sec. 723. National Casualty Care Research Center. 
Sec. 724. Peer-reviewed research program on extremity war injuries. 
Sec. 725. Review of policies and processes related to the delivery of mail to 
wounded members of the Armed Forces. 
Sec. 726. Post-deployment mental health screening demonstration project. 
Subtitle D—Other Matters 
Sec. 731. Report on stipend for members of reserve components for health care 
for certain dependents. 
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Sec. 732. Report on providing the Extended Care Health Option Program to 
autistic dependents of military retirees. 
Sec. 733. Sense of Congress regarding autism therapy services. 
Sec. 734. Report on implementation of recommendations contained in report on 
health effects of exposure to depleted uranium. 
Sec. 735. Suicide Risk by Military Occupation. 
Sec. 736. Implementation of recommendations of Department of Defense Men-
tal Health Task Force. 
Sec. 737. Transitional health care for certain members of the Armed Forces 
who agree to serve in the Selected Reserve of the Ready Re-
serve. 
Subtitle A—Improvements to 
Health Benefits 
SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON IN-
CREASES IN CERTAIN HEALTH CARE COSTS 
FOR MEMBERS OF THE UNIFORMED SERV-
ICES. 
(a) CHARGES UNDER CONTRACTS
FOR MEDICAL 
CARE.—Section 1097(e) of title 10, United States Code, 
is amended by striking ‘‘September 30, 2008’’ and insert-
ing ‘‘September 30, 2009’’. 
(b) CHARGES
FOR
INPATIENT
CARE.—Section 
1086(b)(3) of such title is amended by striking ‘‘Sep-
tember 30, 2008’’ and inserting ‘‘September 30, 2009’’. 
SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN CO-
PAYMENTS UNDER RETAIL PHARMACY SYS-
TEM OF PHARMACY BENEFITS PROGRAM. 
During the period beginning on October 1, 2008, and 
ending on September 30, 2009, the cost sharing require-
ments established under paragraph (6) of section 
1074g(a) of title 10, United States Code, for pharma-
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ceutical agents available through retail pharmacies cov-
ered by paragraph (2)(E)(ii) of such section may not ex-
ceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
SEC. 703. PROHIBITION ON CONVERSION OF MILITARY 
MEDICAL AND DENTAL POSITIONS TO CIVIL-
IAN MEDICAL AND DENTAL POSITIONS. 
(a) PROHIBITION.—The Secretary of a military de-
partment may not convert any military medical or dental 
position to a civilian medical or dental position on or after 
October 1, 2008. 
(b) RESTORATION OF CERTAIN POSITIONS TO MILI-
TARY POSITIONS.—In the case of any military medical or 
dental position that is converted to a civilian medical or 
dental position during the period beginning on October 1, 
2004, and ending on September 30, 2008, if the position 
is not filled by a civilian by September 30, 2008, the Sec-
retary of the military department concerned shall restore 
the position to a military medical or dental position that 
can be filled only by a member of the Armed Forces who 
is a health professional. 
(c) DEFINITIONS.—In this section: 
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(1) The term ‘‘military medical or dental posi-
tion’’ means a position for the performance of health 
care functions (or coded to work within a military 
treatment facility) within the Armed Forces held by 
a member of the Armed Forces. 
(2) The term ‘‘civilian medical or dental posi-
tion’’ means a position for the performance of health 
care functions within the Department of Defense 
held by an employee of the Department or of a con-
tractor of the Department. 
(3) The term ‘‘conversion’’, with respect to a 
military medical or dental position, means a change 
of the position to a civilian medical or dental posi-
tion, effective as of the date of the manning author-
ization document of the military department making 
the change (through a change in designation from 
military to civilian in the document, the elimination 
of the listing of the position as a military position 
in the document, or through any other means indi-
cating the change in the document or otherwise). 
(d) REPEAL.—Section 721 of the National Defense 
Authorization Act for Fiscal Year 2008 (Public Law 110– 
181) is repealed. 
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SEC. 704. CHIROPRACTIC HEALTH CARE FOR MEMBERS ON 
ACTIVE DUTY. 
(a) REQUIREMENT FOR CHIROPRACTIC CARE.—Sub-
ject to such regulations as the Secretary of Defense may 
prescribe, the Secretary shall provide chiropractic services 
for members of the uniformed services who are entitled 
to care under section 1074(a) of title 10, United States 
Code. Such chiropractic services may be provided only by 
a doctor of chiropractic. 
(b) DEMONSTRATION PROJECTS.—The Secretary of 
Defense may conduct one or more demonstration projects 
to provide chiropractic services to deployed members of the 
uniformed services. Such chiropractic services may be pro-
vided only by a doctor of chiropractic. 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘chiropractic services’’— 
(A) includes diagnosis (including by diag-
nostic X-ray tests), evaluation and manage-
ment, and therapeutic services for the treat-
ment of a patient’s health condition, including 
neuromusculoskeletal conditions and the sub-
luxation complex, and such other services deter-
mined appropriate by the Secretary and as au-
thorized under State law; and 
(B) does not include the use of drugs or 
surgery. 
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(2) The term ‘‘doctor of chiropractic’’ means 
only a doctor of chiropractic who is licensed as a 
doctor of chiropractic, chiropractic physician, or chi-
ropractor by a State, the District of Columbia, or a 
territory or possession of the United States. 
SEC. 705. REQUIREMENT TO RECALCULATE TRICARE RE-
SERVE SELECT PREMIUMS BASED ON AC-
TUAL COST DATA. 
(a) CALCULATION BASED ON ACTUAL COST DATA.— 
Paragraph (3) of section 1076d(d) of title 10, United 
States Code, is amended to read as follows: 
‘‘(3) The monthly amount of the premium in effect 
for a month for TRICARE Standard coverage under this 
section shall be not more than the lesser of— 
‘‘(A) the amount equal to 28 percent of the 
total average monthly amount for that coverage, as 
determined by the Secretary based on actual cost 
data for the preceding fiscal year; or 
‘‘(B) the amount in effect for the month of 
March 2006.’’. 
(b) EFFECTIVE DATE.—Paragraph (3) of section 
1076d(d) of title 10, United States Code, as amended by 
this section, shall apply with respect to fiscal year 2009 
and fiscal years thereafter. 
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SEC. 706. PROGRAM FOR HEALTH CARE DELIVERY AT MILI-
TARY INSTALLATIONS PROJECTED TO GROW. 
(a) PROGRAM.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall develop a plan to establish a program to build cooper-
ative health care arrangements and agreements between 
military installations projected to grow and local and re-
gional non-military health care systems. 
(b) REQUIREMENTS OF PLAN.—In developing the 
plan, the Secretary of Defense shall— 
(1) identify and analyze health care delivery op-
tions involving the private sector and health care 
services in military facilities located on military in-
stallations; 
(2) develop methods for determining the cost 
avoidance or savings resulting from innovative part-
nerships between the Department of Defense and 
the private sector; 
(3) develop requirements for Department of De-
fense health care providers to deliver health care in 
civilian community hospitals; and 
(4) collaborate with State and local authorities 
to create an arrangement to share and exchange, be-
tween the Department of Defense and nonmilitary 
health care systems, personal health information, 
and data of military personnel and their families. 
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(c) COORDINATION WITH OTHER ENTITIES.—The 
plan shall include requirements for coordination with Fed-
eral, State, and local entities, TRICARE managed care 
support contractors, and other contracted assets around 
installations selected for participation in the program. 
(d) CONSULTATION REQUIREMENTS.—The Secretary 
of Defense shall develop the plan in consultation with the 
Secretaries of the military departments. 
(e) SELECTION OF MILITARY INSTALLATIONS.—The 
program shall be implemented at each installation partici-
pating in the pilot program conducted pursuant to section 
721 of the Ronald W. Reagan National Defense Author-
ization Act for Fiscal Year 2005 (Public Law 108–375; 
118 Stat. 1988) and other military installations selected 
by the Secretary of Defense. Each selected military instal-
lation shall meet the following criteria: 
(1) The military installation has members of 
the Armed Forces on active duty and members of re-
serve components of the Armed Forces that use the 
installation as a training and operational base, with 
members routinely deploying in support of the global 
war on terrorism. 
(2) The military population of an installation 
will significantly increase by 2013 due to actions re-
lated to either Grow the Force initiatives or rec-
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ommendations of the Defense Base Realignment and 
Closure Commission. 
(3) There is a military treatment facility on the 
installation that has— 
(A) no inpatient or trauma center care ca-
pabilities; and 
(B) no current or planned capacity that 
would satisfy the proposed increase in military 
personnel at the installation. 
(4) There is a civilian community hospital near 
the military installation, and the military treatment 
facility has— 
(A) no inpatient services or limited capa-
bility to expand inpatient care beds, intensive 
care, and specialty services; and 
(B) limited or no capability to provide 
trauma care. 
(f) REPORTS.—Not later than one year after the date 
of the enactment of this Act, and every year thereafter, 
the Secretary of Defense shall submit to the Committees 
on Armed Services of the Senate and House of Represent-
atives an annual report describing the results of the pro-
gram. 
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SEC. 707. GUIDELINES FOR COMBINED FEDERAL MEDICAL 
FACILITIES. 
Before a facility may be designated a combined Fed-
eral medical facility of the Department of Defense and the 
Department of Veterans Affairs, the Secretary of Defense 
and the Secretary of Veterans Affairs shall issue a signed 
agreement that specifies, at a minimum, a binding oper-
ational agreement on the following areas: 
(1) Patient priority categories. 
(2) Budgeting. 
(3) Staffing. 
(4) Construction. 
(5) Physical plant management. 
SEC. 708. RESERVE COMPONENT BEHAVIORAL HEALTH 
CARE PROVIDER LOCATOR AND APPOINT-
MENT 
ASSISTANCE 
DEMONSTRATION 
PROJECT. 
(a) DEMONSTRATION PROJECT.—The Secretary of 
Defense shall conduct a demonstration project to assess 
the feasibility and efficacy of providing a behavioral health 
care provider locator and appointment assistance service 
to members of the reserve components of the Armed 
Forces. 
(b) ELEMENTS.—The demonstration project shall in-
clude, at a minimum, a toll-free hotline, staffed and avail-
able 24 hours a day 7 days a week, to help members of 
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the reserve components find behavioral health care pro-
viders and schedule outpatient appointments in the 
TRICARE network. 
(c) ELIGIBILITY.—In order to be eligible for the dem-
onstration project, a member of the Armed Forces shall 
meet the following requirements: 
(1) Be a member of the Selected Reserve. 
(2) Be enrolled in TRICARE Reserve Select. 
(d) IMPLEMENTATION.—The demonstration project 
shall be implemented not later than 180 days after the 
date of the enactment of this Act. 
(e) SUNSET.—The authority for the demonstration 
project required by this section shall expire on September 
30, 2011. 
(f) REPORTS.—The Secretary of Defense shall sub-
mit to the congressional defense committees the following 
reports: 
(1) PLAN.—Not later than 90 days after the 
date of the enactment of this Act, a report con-
taining a plan to implement the demonstration 
project required by this section. 
(2) UPDATES.—Not later than 180 days after 
such date of enactment and every 180 days there-
after, a report containing an update on the dem-
onstration project. 
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(3) FINAL EVALUATION.—Not later than Janu-
ary 1, 2012, a report containing a final written eval-
uation, including recommendations for the extension 
or expansion of the demonstration project. 
Subtitle B—Preventive Care 
SEC. 711. WAIVER OF COPAYMENTS FOR PREVENTIVE 
SERVICES FOR CERTAIN TRICARE BENE-
FICIARIES. 
(a) WAIVER OF CERTAIN COPAYMENTS.—Subject to 
subsection (b) and under regulations prescribed by the 
Secretary of Defense, the Secretary shall— 
(1) waive all copayments under sections 
1079(b) and 1086(b) of title 10, United States 
Code, for preventive services for all beneficiaries who 
would otherwise pay copayments; and 
(2) ensure that a beneficiary pays nothing for 
preventive services during a year even if the bene-
ficiary has not paid the amount necessary to cover 
the beneficiary’s deductible for the year. 
(b) EXCLUSION
FOR MEDICARE-ELIGIBLE BENE-
FICIARIES.—Subsection (a) shall not apply to a medicare- 
eligible beneficiary. 
(c) REFUND OF COPAYMENTS.— 
(1) AUTHORITY.—Under regulations prescribed 
by the Secretary of Defense, the Secretary may pay 
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a refund to a medicare-eligible beneficiary excluded 
by subsection (b), subject to the availability of ap-
propriations specifically for such refunds, consisting 
of an amount up to the difference between— 
(A) the amount the beneficiary pays for co-
payments for preventive services during fiscal 
year 2009; and 
(B) the amount the beneficiary would have 
paid during such fiscal year if the copayments 
for preventive services had been waived pursu-
ant to subsection (a) during that year. 
(2) 
COPAYMENTS
COVERED.—The 
refunds 
under paragraph (1) are available only for copay-
ments paid by medicare-eligible beneficiaries during 
fiscal year 2009. 
(3) FUNDING.—Of the amounts authorized to 
be appropriated under title XIV of this Act for the 
Defense Health Program, $10,000,000 is authorized 
for the purposes of the refund authorized under this 
subsection. 
(d) DEFINITIONS.—In this section: 
(1) PREVENTIVE
SERVICES.—The term ‘‘pre-
ventive services’’ includes, taking into consideration 
the age and gender of the beneficiary: 
(A) Colorectal screening. 
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(B) Breast screening. 
(C) Cervical screening. 
(D) Prostate screening. 
(E) Annual physical exam. 
(F) Vaccinations 
(2) MEDICARE-ELIGIBLE.—The term ‘‘medi-
care-eligible’’ has the meaning provided by section 
1111((b) of title 10, United States Code. 
SEC. 712. MILITARY HEALTH RISK MANAGEMENT DEM-
ONSTRATION PROJECT. 
(a) DEMONSTRATION
PROJECT
REQUIRED.—The 
Secretary of Defense shall conduct a demonstration 
project designed to evaluate the efficacy of providing in-
centives to encourage healthy behaviors on the part of eli-
gible military health system beneficiaries. 
(b) ELEMENTS OF DEMONSTRATION PROJECT.— 
(1) WELLNESS
ASSESSMENT.—The Secretary 
shall develop a wellness assessment to be offered to 
beneficiaries enrolled in the demonstration project. 
The wellness assessment shall incorporate nationally 
recognized standards for health and healthy behav-
iors and shall be offered to determine a baseline and 
at appropriate intervals determined by the Sec-
retary. The wellness assessment shall include the fol-
lowing: 
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(A) A self-reported health risk assessment. 
(B) Physiological and biometric measures, 
including at least— 
(i) blood pressure; 
(ii) glucose level; 
(iii) lipids; and 
(iv) nicotine use. 
(2) POPULATION ENROLLED.—Non-medicare el-
igible retired beneficiaries of the military health sys-
tem and their dependents who are enrolled in 
TRICARE Prime and who reside in the demonstra-
tion project service area shall be enrolled in the dem-
onstration project. 
(3) GEOGRAPHIC
COVERAGE
OF
DEMONSTRA-
TION PROJECT.—The demonstration project shall be 
conducted in at least three geographic areas within 
the United States where TRICARE Prime is of-
fered, as determined by the Secretary. The area cov-
ered by the project shall be referred to as the dem-
onstration project service area. 
(4) PROGRAMS.—The Secretary shall develop 
programs to assist enrollees to improve healthy be-
haviors, as identified by the wellness assessment. 
(5) INCLUSION
OF
INCENTIVES
REQUIRED.— 
For the purpose of conducting the demonstration 
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project, the Secretary may offer monetary and non- 
monetary incentives to enrollees to encourage par-
ticipation in the demonstration project. 
(c) EVALUATION OF DEMONSTRATION PROJECT.— 
The Secretary shall annually evaluate the demonstration 
project for the following: 
(1) The extent to which the health risk assess-
ment and the physiological and biometric measures 
of beneficiaries are improved from the baseline (as 
determined in the wellness assessment). 
(2) In the case of baseline health risk assess-
ments and physiological and biometric measures that 
reflect healthy behaviors, the extent to which the 
measures are maintained. 
(d) IMPLEMENTATION PLAN.—The Secretary of De-
fense shall submit a plan to implement the health risk 
management demonstration project required by this sec-
tion not later than 90 days after the date of the enactment 
of this Act. 
(e) DURATION OF PROJECT.—The health risk man-
agement demonstration project shall be implemented for 
a period of three years, beginning not later than March 
1, 2009, and ending three years after that date. 
(f) REPORT.— 
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(1) IN
GENERAL.—The Secretary of Defense 
shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives an 
annual report on the effectiveness of the health risk 
management demonstration project in improving the 
health risk measures of military health system bene-
ficiaries enrolled in the demonstration project. The 
first report shall be submitted not later than one 
year after the date of the enactment of this Act, and 
subsequent reports shall be submitted for each year 
of the demonstration project with the final report 
being submitted not later than 90 days after the ter-
mination of the demonstration project. 
(2) MATTERS COVERED.—Each report shall ad-
dress, at a minimum, the following: 
(A) The number of beneficiaries who were 
enrolled in the project. 
(B) The number of enrolled beneficiaries 
who participate in the project. 
(C) The incentives to encourage healthy 
behaviors that were provided to the bene-
ficiaries in each beneficiary category, and the 
extent to which the incentives encouraged 
healthy behaviors. 
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(D) An assessment of the effectiveness of 
the demonstration project. 
(E) Recommendations for adjustments to 
the demonstration project. 
(F) The estimated costs avoided as a re-
sult of decreased health risk conditions on the 
part of each of the beneficiary categories. 
(G) Recommendations for extending the 
demonstration project or implementing a per-
manent wellness assessment program. 
(H) Identification of legislative authorities 
required to implement a permanent program. 
SEC. 713. SMOKING CESSATION PROGRAM UNDER TRICARE. 
(a) TRICARE SMOKING CESSATION PROGRAM.— 
Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Defense shall establish a 
smoking cessation program under the TRICARE pro-
gram, to be made available to all beneficiaries under the 
TRICARE program who are not medicare-eligible. The 
Secretary may prescribe such regulations as may be nec-
essary to implement the program. 
(b) ELEMENTS.—The program shall include, at a 
minimum, the following elements: 
(1) The availability, at no cost to the bene-
ficiary, of pharmaceuticals used for smoking ces-
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sation, with a limitation on the availability of such 
pharmaceuticals to the national mail-order pharmacy 
program under the TRICARE program if appro-
priate. 
(2) Access to a toll-free quit line that is avail-
able 24 hours a day, 7 days a week. 
(3) Access to printed and Internet web-based 
tobacco cessation material. 
(c) PLAN.—Not later than 90 days after the date of 
the enactment of this Act, the Secretary shall submit to 
the congressional defense committees a plan to implement 
the program. 
(d) REFUND OF COPAYMENTS.— 
(1) AUTHORITY.—Under regulations prescribed 
by the Secretary of Defense, the Secretary may pay 
a refund to a medicare-eligible beneficiary otherwise 
excluded by this section, subject to the availability of 
appropriations specifically for such refunds, con-
sisting of an amount up to the difference between— 
(A) the amount the beneficiary pays for co-
payments for smoking cessation services de-
scribed in subsection (b) during fiscal year 
2009; and 
(B) the amount the beneficiary would have 
paid during such fiscal year if the beneficiary 
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had not been excluded under subsection (a) 
from the smoking cessation program under that 
subsection. 
(2) 
COPAYMENTS
COVERED.—The 
refunds 
under paragraph (1) are available only for copay-
ments paid by medicare-eligible beneficiaries during 
fiscal year 2009. 
(3) FUNDING.—Of the amounts authorized to 
be appropriated under title XIV for the Defense 
Health Program, $3,000,000 is authorized for the 
purposes of the refund authorized under this sub-
section. 
(e) REPORT.—Not later than one year after the date 
of the enactment of this Act, the Secretary shall submit 
to the congressional defense committees a report covering 
the following: 
(1) The status of the program. 
(2) The number of participants in the program. 
(3) The cost of the program. 
(4) The costs avoided that are attributed to the 
program. 
(5) The success rates of the program compared 
to other nationally recognized smoking cessation pro-
grams. 
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(6) Findings regarding the success rate of par-
ticipants in the program. 
(7) Recommendations to modify the policies and 
procedures of the program. 
(8) Recommendations concerning the future 
utility of the program. 
(f) DEFINITIONS.—In this section: 
(1) 
TRICARE 
PROGRAM.—The 
term 
‘‘TRICARE program’’ has the meaning provided by 
section 1072(7) of title 10, United States Code. 
(2) MEDICARE-ELIGIBLE.—The term ‘‘medi-
care-eligible’’ has the meaning provided by section 
1111(b) of title 10, United States Code. 
SEC. 714. PREVENTIVE HEALTH ALLOWANCE. 
(a) ALLOWANCE.—Chapter 7 of title 37, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 438. Preventive health services allowance 
‘‘(a) DEMONSTRATION PROJECT.—During the period 
beginning on January 1, 2009, and ending on December 
31, 2011, the Secretary of Defense shall conduct a dem-
onstration project designed to evaluate the efficacy of pro-
viding an annual allowance (to be known as a ‘preventive 
health services allowance’) to members of the armed forces 
described in subsection (b) to increase the use of preven-
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tive health services by such members and their depend-
ents. 
‘‘(b) ELIGIBLE MEMBERS.—(1) Subject to the nu-
merical limitations specified in paragraph (2), a member 
of the armed forces who is serving on active duty for a 
period of more than 30 days and meets the medical and 
dental readiness requirements for the armed force of the 
member may receive a preventive health services allow-
ance. 
‘‘(2) Not more than 1,500 members of each of the 
Army, Navy, Air Force, and Marine Corps may receive 
a preventive health services allowance during any year, of 
which half in each armed force shall be members without 
dependents and half shall be members with dependents. 
‘‘(c) AMOUNT OF ALLOWANCE.—The Secretary of the 
military department concerned shall pay a preventive 
health services allowance to a member selected to receive 
the allowance in an amount equal to— 
‘‘(1) $500 per year, in the case of a member 
without dependents; and 
‘‘(2) $1,000 per year, in the case of a member 
with dependents. 
‘‘(d) AUTHORIZED
PREVENTIVE
HEALTH
SERV-
ICES.—(1) The Secretary of Defense shall specify the 
types of preventive health services that may be procured 
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using a preventive health services allowance and the fre-
quency at which such services may be procured. 
‘‘(2) At a minimum, authorized preventive health 
services shall include, taking into consideration the age 
and gender of the member and dependents of the member: 
‘‘(A) Colorectal screening. 
‘‘(B) Breast screening. 
‘‘(C) Cervical screening. 
‘‘(D) Prostate screening. 
‘‘(E) Annual physical exam. 
‘‘(F) Annual dental exam. 
‘‘(G) Vaccinations. 
‘‘(3) The Secretary of Defense shall ensure that 
members selected to receive the preventive health services 
allowance and their dependents are provided a reasonable 
opportunity to receive the services authorized under this 
subsection in their local area. 
‘‘(e) DATA COLLECTION.—At a minimum, the Sec-
retary of Defense shall monitor and record the health of 
members receiving a preventive health services allowance 
and their dependents and the results the testing required 
to qualify for payment of the allowance, if conducted. The 
Secretary shall assess the medical utility of the testing re-
quired to qualify for payment of a preventive health allow-
ance. 
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‘‘(f) REPORTING REQUIREMENT.—Not later than 
March 31, 2010, and March 31, 2012, the Secretary of 
Defense shall submit to Congress a report on the status 
of the demonstration project, including findings regarding 
the medical status of participants, recommendations to 
modify the policies and procedures of the program, and 
recommendations concerning the future utility of the 
project. 
‘‘(g) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations to carry out this section.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item: 
‘‘438. Preventive health care allowance.’’. 
Subtitle C—Wounded Warrior 
Matters 
SEC. 721. CENTER OF EXCELLENCE IN PREVENTION, DIAG-
NOSIS, MITIGATION, TREATMENT, AND REHA-
BILITATION OF HEARING LOSS AND AUDI-
TORY SYSTEM INJURIES. 
(a) IN GENERAL.—The Secretary of Defense shall es-
tablish within the Department of Defense a center of ex-
cellence in the prevention, diagnosis, mitigation, treat-
ment, and rehabilitation of hearing loss and auditory sys-
tem injury to carry out the responsibilities specified in 
subsection (c). 
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(b) PARTNERSHIPS.—The Secretary shall ensure that 
the center collaborates to the maximum extent practicable 
with the Secretary of Veterans Affairs, institutions of 
higher education, and other appropriate public and private 
entities (including international entities) to carry out the 
responsibilities specified in subsection (c). 
(c) RESPONSIBILITIES.— 
(1) IN GENERAL.—The center shall— 
(A) implement a comprehensive plan and 
strategy for the Department of Defense, as de-
veloped by the Secretary of Defense, for a reg-
istry of information for the tracking of the di-
agnosis, surgical intervention or other operative 
procedure, other treatment, and follow up for 
each case of hearing loss and auditory system 
injury incurred by a member of the Armed 
Forces while serving on active duty; 
(B) ensure the electronic exchange with 
the Secretary of Veterans Affairs of information 
obtained through tracking under subparagraph 
(A); and 
(C) enable the Secretary of Veterans Af-
fairs to access the registry and add information 
pertaining to additional treatments or surgical 
procedures and eventual hearing outcomes for 
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veterans who were entered into the registry and 
subsequently received treatment through the 
Veterans Health Administration. 
(2) DESIGNATION OF REGISTRY.—The registry 
under this subsection shall be known as the ‘‘Hear-
ing Loss and Auditory System Injury Registry’’ 
(hereinafter referred to as the ‘‘Registry’’). 
(3) CONSULTATION
IN
DEVELOPMENT.—The 
center shall develop the Registry in consultation with 
audiologists, speech and language pathologists, 
otolaryngologists, and other specialist personnel of 
the Department of Defense and the audiologists, 
speech and language pathologists, otolaryngologists, 
and other specialist personnel of the Department of 
Veterans Affairs. The mechanisms and procedures of 
the Registry shall reflect applicable expert research 
on military and other hearing loss. 
(4) MECHANISMS.—The mechanisms of the 
Registry for tracking under paragraph (1)(A) shall 
ensure that each military medical treatment facility 
or other medical facility shall submit to the center 
for inclusion in the Registry information on the di-
agnosis, surgical intervention or other operative pro-
cedure, other treatment, and follow up for each case 
of hearing loss and auditory system injury described 
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in that paragraph as follows (to the extent applica-
ble): 
(A) Not later than 30 days after surgery 
or other operative intervention, including a sur-
gery or other operative intervention carried out 
as a result of a follow-up examination. 
(B) Not later than 180 days after the 
hearing loss and auditory system injury is re-
ported or recorded in the medical record. 
(5) COORDINATION OF CARE AND BENEFITS.— 
(A) The center shall provide notice to the National 
Center 
for 
Rehabilitative 
Auditory 
Research 
(NCRAR) of the Department of Veterans Affairs 
and to the auditory system impairment services of 
the Veterans Health Administration on each member 
of the Armed Forces described in subparagraph (B) 
for purposes of ensuring the coordination of the pro-
vision of ongoing auditory system rehabilitation ben-
efits and services by the Department of Veterans Af-
fairs after the separation or release of such member 
from the Armed Forces. 
(B) A member of the Armed Forces described 
in this subparagraph is a member of the Armed 
Forces with significant hearing loss or auditory sys-
tem injury incurred while serving on active duty, in-
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cluding a member with auditory dysfunction related 
to traumatic brain injury. 
(d) UTILIZATION OF REGISTRY INFORMATION.—The 
Secretary of Defense and the Secretary of Veterans Af-
fairs shall jointly ensure that information in the Registry 
is available to appropriate audiologists, speech and lan-
guage pathologists, otolaryngologists, and other specialist 
personnel of the Department of Defense and the Depart-
ment of Veterans Affairs for purposes of encouraging and 
facilitating the conduct of research, and the development 
of best practices and clinical education, on hearing loss 
or auditory system injury incurred by members of the 
Armed Forces. 
(e) INCLUSION
OF RECORDS
OF OIF/OEF VET-
ERANS.—The Secretary of Defense shall take appropriate 
actions to include in the Registry such records of members 
of the Armed Forces who incurred a hearing loss or audi-
tory system injury while serving on active duty on or after 
September 11, 2001, but before the establishment of the 
Registry, as the Secretary considers appropriate for pur-
poses of the Registry. 
SEC. 722. CLARIFICATION TO CENTER OF EXCELLENCE RE-
LATING TO MILITARY EYE INJURIES. 
Section 1623(d) of Public Law 110–181 is amended 
by striking ‘‘in combat’’ at the end. 
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SEC. 723. NATIONAL CASUALTY CARE RESEARCH CENTER. 
(a) REDESIGNATION
OF RESEARCH PROGRAM
AS 
CENTER.—Not later than October 1, 2009, the Secretary 
of Defense shall designate a center be known as the ‘‘Na-
tional Casualty Care Research Center’’ (in this section re-
ferred to as the ‘‘Center’’), which shall consist of the pro-
gram known as the combat casualty care research pro-
gram at the Army Medical Research and Materiel Com-
mand as modified in accordance with this section. 
(b) DIRECTOR.—There shall be a director of the Cen-
ter, who shall be appointed by the Secretary after con-
sultation with the commanding general of the Medical Re-
search and Materiel Command. 
(c) ACTIVITIES OF THE CENTER.—In addition to the 
functions already performed by the combat casualty care 
research program, the Center shall— 
(1) provide a public-private partnership for 
funding clinical and experimental studies in combat 
injury; 
(2) integrate laboratory and clinical research to 
hasten improvements in care to both civilians and 
members of the Armed Forces who are injured; 
(3) ensure that data from both military and ci-
vilian entities, including the Joint Theater Trauma 
Registry and the National Trauma Data Bank, are 
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optimally used to establish research agendas and 
measure improvements in outcomes; and 
(4) fund the full spectrum of injury research 
and evaluation, including— 
(A) laboratory, translational, and clinical 
research; 
(B) point of wounding and pre-hospital 
care; 
(C) early resuscitative management; 
(D) initial and definitive surgical care; 
(E) rehabilitation and reintegration into 
society; and 
(F) coordinate multi-institutional civilian/ 
military collaboration and trauma research. 
(d) AUTHORIZATION.—In addition to amounts au-
thorized for the combat casualty care research program 
of the Army Medical Research and Materiel Command, 
there is authorized to be appropriated $1,000,000 for the 
Center established pursuant to this section. 
(e) FUNDING ADJUSTMENTS.—For the amounts au-
thorized in subsection (d): 
(1) The amount for the Defense Health Pro-
gram, Research and Development, is hereby in-
creased by $1,000,000, to be available for the 
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United States Army Medical Research and Materiel 
Command. 
(2) The amount for Weapons Procurement, 
Navy, is hereby reduced by $1,000,000, to be de-
rived from other missiles. 
SEC. 724. PEER-REVIEWED RESEARCH PROGRAM ON EX-
TREMITY WAR INJURIES. 
(a) 
ESTABLISHMENT
OF
PEER-REVIEWED 
ORTHOPAEDIC EXTREMITY TRAUMA RESEARCH PRO-
GRAM.—Not later than 180 days after the date of the en-
actment of this Act, the Secretary of Defense shall estab-
lish a competitive, peer-reviewed research program within 
the Defense Health Program’s research and development 
function to conduct peer-reviewed medical research at 
military and civilian institutions designed to develop sci-
entific information aimed at saving injured extremities, 
avoiding amputations, and preserving and restoring the 
function of injured extremities. Such research shall ad-
dress military medical needs and include the full range 
of scientific inquiry encompassing basic, translational, and 
clinical research. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report on the plans for estab-
lishment, management, and operation of the Peer-Re-
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viewed Research Program on Extremity War Injuries re-
quired under this section. 
(c) EFFECTIVE DATE.—This section shall be in effect 
until September 30, 2013. 
SEC. 725. REVIEW OF POLICIES AND PROCESSES RELATED 
TO THE DELIVERY OF MAIL TO WOUNDED 
MEMBERS OF THE ARMED FORCES. 
(a) REVIEW
OF DELIVERY POLICY
AND PROC-
ESSES.—The Secretary of Defense shall review the policies 
and processes related to the delivery of letters, packages, 
messages, and other communications that are intended as 
measures of support and addressed generally to wounded 
and injured members of the Armed Forces (such as ‘‘To 
any Wounded Warrior’’ or ‘‘To Any Wounded Service 
Member’’) in military medical treatment facilities and 
other locations where members of the Armed Forces are 
treated and rehabilitated. 
(b) SPECIFIC PROCESSES.—In conducting the review 
under subsection (a), the Secretary of Defense shall deter-
mine the following: 
(1) Whether the current Department of Defense 
prohibition on the direct delivery of such letters, 
packages, messages, and other communications to 
wounded and injured members of the Armed Forces 
should be modified. 
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(2) The adequacy, particularly from the per-
spective of wounded and injured members of the 
Armed Forces, of the current governmental and non- 
governmental delivery processes. 
(c) CORRECTIVE ACTIONS.—Based on the review 
under subsection (a), the Secretary of Defense may take 
actions to correct or modify the policies and processes re-
lated to the delivery of letters, packages, messages, and 
other communications to wounded and injured members 
of the Armed Forces as the Secretary determines appro-
priate. 
(d) REPORT.—Not later than 90 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to the Committee on Armed Services of the 
Senate and the Committee on Armed Services of the 
House of Representatives a report on the results of the 
review under subsection (a) and the ongoing and projected 
actions to correct or modify the policies and processes re-
lated to the delivery of letters, packages, messages, and 
other communications to wounded and injured members 
of the Armed Forces. 
SEC. 726. POST-DEPLOYMENT MENTAL HEALTH SCREENING 
DEMONSTRATION PROJECT. 
(a) DEMONSTRATION
PROJECT
REQUIRED.—The 
Secretary of Defense shall conduct a demonstration 
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project to assess the feasibility and efficacy of providing 
a face to face post-deployment mental health screening be-
tween a member of the Armed Forces and a mental health 
provider. 
(b) ELEMENTS.—The demonstration project shall in-
clude, at a minimum, the following elements: 
(1) A combat stress evaluation conducted in 
person by a qualified mental health professional 
within 120 to 180 days after the date on which the 
member returns from combat theater. 
(2) Phone follow-ups by a case manager, not 
necessarily stationed at the military installation, at 
the following intervals after the initial post-deploy-
ment screening: 
(A) Six months. 
(B) Twelve months. 
(C) Eighteen months. 
(D) Twenty-four months. 
(c) CONSULTATION.—The Secretary of Defense shall 
develop the demonstration project in consultation with the 
Secretary of Veterans Affairs and the Secretary of Health 
and Human Services. The Secretary of Defense may also 
coordinate the program with any accredited college, uni-
versity, hospital-based or community-based mental health 
center the Secretary considers appropriate. 
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(d) SELECTION OF MILITARY INSTALLATION.—The 
demonstration project shall be conducted at two military 
installations, one active duty and one reserve component 
demobilization station, selected by the Secretary of De-
fense. The installations selected shall have members of the 
Armed Forces on active duty and members of the reserve 
components that use the installation as a training and op-
erating base, with members routinely deploying in support 
of operations in Iraq, Afghanistan, and other assignments 
related to the global war on terrorism. 
(e) PERSONNEL REQUIREMENTS.—The Secretary of 
Defense shall ensure an adequate number of the following 
personnel in the program: 
(1) Qualified mental health professionals that 
are licensed psychologists, psychiatrists, psychiatric 
nurses, or clinical social workers. 
(2) Suicide prevention counselors. 
(f) TIMELINE.— 
(1) The demonstration project required by this 
subsection shall be implemented not later than Sep-
tember 30, 2009. 
(2) Authority for this demonstration project 
shall expire on September 30, 2011. 
(g) REPORTS.—The Secretary of Defense shall sub-
mit to the congressional defense committees— 
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(1) a plan to implement the demonstration 
project, including site selection and criteria for 
choosing the site, not later than June 1, 2009, 
(2) an interim report every 180 days thereafter; 
and 
(3) a final report detailing the results not later 
than January 1, 2012. 
Subtitle D—Other Matters 
SEC. 731. REPORT ON STIPEND FOR MEMBERS OF RESERVE 
COMPONENTS FOR HEALTH CARE FOR CER-
TAIN DEPENDENTS. 
The Secretary of Defense shall submit to the congres-
sional defense committees a report on the extent to which 
the Secretary has exercised the authority provided in sec-
tion 704 of the National Defense Authorization Act for 
Fiscal Year 2008 (Public Law 110–181; 122 Stat. 188; 
10 U.S.C. 1076 note). 
SEC. 732. REPORT ON PROVIDING THE EXTENDED CARE 
HEALTH OPTION PROGRAM TO AUTISTIC DE-
PENDENTS OF MILITARY RETIREES. 
(a) REPORT REQUIRED.—Not later than 90 days 
after the date of the enactment of this Act, the Secretary 
of Defense shall submit to the congressional defense com-
mittees a report that contains a plan for including autistic 
dependents of military retirees in the Extended Care 
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Health Option program (hereafter in this section referred 
to as the ‘‘ECHO program’’). 
(b) CONTENTS OF REPORT.—The report required 
under subsection (a) shall include the following: 
(1) The most current data on the number of 
military retirees with autistic dependents and an es-
timate of the number of future military retirees with 
autistic dependents. 
(2) The cost estimates of providing extended 
benefits under the ECHO program to autistic de-
pendents of all current and future military retirees. 
(3) The feasibility of including autistic depend-
ents of military retirees in any ongoing demonstra-
tion or pilot programs within the ECHO program. 
(4) The statutory and regulatory impediments 
to including autistic dependents of military retirees 
in the ECHO program. 
SEC. 733. SENSE OF CONGRESS REGARDING AUTISM THER-
APY SERVICES. 
(a) MINIMUM COST SHARE PER MONTH.—The Sec-
retary of Defense shall ensure that autistic children of 
members of the Armed Forces enrolled in the Extended 
Care Health Option program shall be eligible to receive 
a minimum of $5,000 per month of autistic therapy serv-
ices. 
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(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Secretary of Defense should ensure that the 
process in determining eligibility for autistic therapy serv-
ices provided to the children of members of the Armed 
Forces is conducted in an expeditious manner and without 
delay. 
(c) STUDY AND REPORT.— 
(1) STUDY.—The Secretary of Defense shall 
conduct a study on autistic therapy services in the 
Department of Defense. The study shall include— 
(A) an evaluation of whether such services 
would be better managed under the TRICARE 
program; and 
(B) the potential benefits and costs of a 
transition of the management of such services 
from the exceptional family member programs 
to the TRICARE program. 
(2) REPORT.—Not later than July 30, 2009, 
the Secretary shall submit to the Committees on 
Armed Services of the Senate and the House of Rep-
resentatives a report on the results of the study. 
(d) DEFINITIONS.—In this section: 
(1) AUTISTIC THERAPY SERVICES.—The term 
‘‘autistic therapy services’’ includes applied behavior 
analysis. 
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(2) 
TRICARE 
PROGRAM.—The 
term 
‘‘TRICARE program’’ has the meaning provided by 
section 1072 of title 10, United States Code. 
(3) EXTENDED
CARE
HEALTH
OPTION.—The 
term ‘‘Extended Care Health Option’’ means the 
program of extended benefits provided pursuant to 
subsections (d), (e), and (f) of section 1079 of title 
10, United States Code. 
(e) FUNDING.—Of the amount authorized to be ap-
propriated by section 1511(a), $29,000,000 is authorized 
to be used to carry out this section. 
SEC. 734. REPORT ON IMPLEMENTATION OF RECOMMENDA-
TIONS CONTAINED IN REPORT ON HEALTH 
EFFECTS OF EXPOSURE TO DEPLETED URA-
NIUM. 
Not later than 120 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to Congress a report describing the measures underway 
to implement the recommendations contained in the report 
entitled ‘‘Review of the Toxicologic and Radiologic Risks 
to Military Personnel from Exposure to Depleted Uranium 
During and After Combat’’, which was conducted pursu-
ant to section 716 of the John Warner National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109– 
364; 120 Stat. 2391). 
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SEC. 735. SUICIDE RISK BY MILITARY OCCUPATION. 
(a) STUDY.—The Secretary of Defense shall conduct 
a study to identify the mental health risks associated with 
the performance of military duties. 
(b) ELEMENTS.—The study shall include the fol-
lowing elements: 
(1) An assessment of suicide incidence by mili-
tary occupation. 
(2) An identification of military occupations 
with a high incidence of suicide. 
(3) An evaluation of current suicide prevention 
programs for those military occupations with a high 
incidence of suicide. 
(4) An assessment of the need for additional 
suicide prevention programs specific to military oc-
cupations with a high incidence of suicide. 
(c) REPORT.—Not later than 120 days after the date 
of enactment of this Act, the Secretary of Defense shall 
submit to the Congressional Defense Committees a report 
on the findings of the study. The report shall include any 
recommendations for improving suicide prevention pro-
grams for military occupations with a high incidence of 
suicide. 
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SEC. 736. IMPLEMENTATION OF RECOMMENDATIONS OF 
DEPARTMENT OF DEFENSE MENTAL HEALTH 
TASK FORCE. 
(a) IN GENERAL.—The Comptroller General of the 
United States shall conduct a review of the implementa-
tion by the Department of Defense of recommendations 
made by the Department of Defense Task Force on Men-
tal Health (in this section referred to as the ‘‘Task 
Force’’) developed pursuant to section 723 of the National 
Defense Authorization Act for Fiscal Year 2006 (Public 
Law 109–163; 119 Stat. 3348) to ensure a full continuum 
of psychological health services and care for members of 
the Armed Forces and their families. 
(b) REPORT REQUIRED.—Not later than one year 
after the date of the enactment of this Act, the Comp-
troller General shall submit to the congressional defense 
committees a report on the results of the review required 
by this section. The report shall include such recommenda-
tions as the Comptroller General considers appropriate. 
SEC. 737. TRANSITIONAL HEALTH CARE FOR CERTAIN 
MEMBERS OF THE ARMED FORCES WHO 
AGREE TO SERVE IN THE SELECTED RE-
SERVE OF THE READY RESERVE. 
(a) PROVISION OF TRANSITIONAL HEALTH CARE.— 
Section 1145(a)(2) of title 10, United States Code, is 
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amended by adding at the end the following new subpara-
graph: 
‘‘(E) A member who is separated from active 
duty who agrees to become a member of the Selected 
Reserve of the Ready Reserve of a reserve compo-
nent.’’. 
(b) EFFECTIVE DATE.—Subparagraph (E) of section 
1145(a)(2) of title 10, United States Code, as added by 
subsection (a), shall apply with respect to members of the 
Armed Forces separated from active duty after the date 
of the enactment of this Act. 
(c) OFFSET.—The amount in section 201(4) for re-
search, development, test, and evaluation, Defense-wide, 
is hereby reduced by $22,000,000, to be derived from the 
Missile Defense Agency. 
TITLE VIII—ACQUISITION POL-
ICY, ACQUISITION MANAGE-
MENT, AND RELATED MAT-
TERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Review of impact of illegal subsidies on acquisition of KC–45 aircraft. 
Sec. 802. Assessment of urgent operational needs fulfillment. 
Sec. 803. Preservation of tooling for major defense acquisition programs. 
Sec. 804. Prohibition on procurement from beneficiaries of foreign subsidies. 
Sec. 805. Domestic industrial base considerations during source selection. 
Sec. 806. Commercial software reuse preference. 
Sec. 807. Comprehensive proposal analysis required during source selection. 
Subtitle B—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 811. Acquisition workforce expedited hiring authority. 
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Sec. 812. Definition of system for Defense Acquisition Challenge Program. 
Sec. 813. Career path and other requirements for military personnel in the ac-
quisition field. 
Sec. 814. Technical data rights for non-FAR agreements. 
Sec. 815. Clarification that cost accounting standards apply to Federal con-
tracts performed outside the United States. 
Subtitle C—Provisions Relating to Inherently Governmental Functions 
Sec. 821. Policy on personal conflicts of interest by employees of Department 
of Defense contractors. 
Sec. 822. Development of guidance on personal services contracts. 
Sec. 823. Limitation on performance of product support integrator functions. 
Sec. 824. Performance by private security contractors of inherently govern-
mental functions in an area of combat operations. 
Subtitle D—Defense Industrial Security 
Sec. 831. Requirements relating to facility clearances. 
Sec. 832. Foreign ownership control or influence. 
Sec. 833. Congressional oversight relating to facility clearances and foreign 
ownership control or influence; definitions. 
Subtitle E—Other Matters 
Sec. 841. Clarification of status of Government rights in the designs of depart-
ment of defense vessels, boats, and craft, and components 
thereof. 
Sec. 842. Expansion of authority to retain fees from licensing of intellectual 
property. 
Sec. 843. Transfer of sections of title 10 relating to Milestone A and Milestone 
B for clarity. 
Sec. 844. Earned value management study and report. 
Sec. 845. Report on market research. 
Sec. 846. System development and demonstration benchmark report. 
Sec. 847. Additional matters required to be reported by contractors performing 
security functions in areas of combat operations. 
Sec. 848. Report relating to munitions. 
Sec. 849. Additional contractor requirements and responsibilities relating to al-
leged crimes by or against contractor personnel in Iraq and Af-
ghanistan. 
Sec. 850. Requirement for Department of Defense to adopt an acquisition 
strategy for Defense Base Act insurance. 
Sec. 851. Motor carrier fuel surcharges. 
Sec. 852. Requirement for defense contract clause prohibiting certain uses of 
foreign shell companies. 
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Subtitle A—Acquisition Policy and 
Management 
SEC. 801. REVIEW OF IMPACT OF ILLEGAL SUBSIDIES ON 
ACQUISITION OF KC–45 AIRCRAFT. 
(a) REVIEW OF ILLEGAL SUBSIDIES REQUIRED.— 
The Secretary of the Air Force, not later than 10 days 
after a ruling by the World Trade Organization that either 
or both of the United States or the European Union, or 
any political entity within the United States or the Euro-
pean Union, has provided illegal subsidies to a manufac-
turer of large commercial aircraft, shall begin a review, 
as described in subsection (b), of the impact of such illegal 
subsidies on the source selection for the KC–45 Aerial Re-
fueling Aircraft Program. 
(b) PERFORMANCE OF THE REVIEW.—In performing 
the review required by subsection (a), the Secretary of Air 
Force shall comply with the following requirements: 
(1) The Secretary shall seek information from 
the public on the potential impact of illegal subsidies 
on the source selection process for the KC–45 Aerial 
Refueling Aircraft Program through a notice and 
comment process. The Secretary shall adopt such 
procedures for handling information provided under 
such notice and comment process as are necessary to 
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protect national security and confidential business 
information. 
(2) The Secretary shall consult with experts 
within the Department of Defense, the Office of 
Management and Budget, the Office of the United 
States Trade Representative, and other agencies and 
offices of the Federal government, as appropriate, 
on the potential impact of illegal subsidies on the 
source selection process for the KC–45 Aerial Re-
fueling Aircraft Program. 
(3) The Secretary shall request information 
from each of the offerors in the source selection 
process for the KC–45 Aerial Refueling Aircraft 
Program on the potential impact of illegal subsidies 
on such process. 
(c) COMPLETION OF REVIEW.—The Secretary of the 
Air Force shall complete the review required by subsection 
(a) not later than 90 days after the World Trade Organi-
zation has ruled on all illegal subsidy cases involving large 
commercial aircraft pending at the World Trade Organiza-
tion as of the date of the enactment of this Act. 
(d) DETERMINATION AND REMEDY REQUIRED.—If 
the Secretary of the Air Force determines, after per-
forming the review required by subsection (a), that an ille-
gal subsidy or subsidies had a material impact on the 
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source selection process for the KC–45 Aerial Refueling 
Aircraft Program sufficient to bring into question the fair-
ness of such source selection process, the Secretary shall 
take such measures as are necessary and appropriate to 
ensure that the effect of such subsidy or subsidies is re-
moved and the source selection process for the KC–45 
Aerial Refueling Aircraft Program is fair to all offerors. 
(e) DEFINITIONS.—In this section: 
(1) The term ‘‘illegal subsidy’’ means a subsidy 
found to constitute a violation of the Agreement on 
Subsidies and Countervailing Measures. 
(2) The term ‘‘Agreement on Subsidies and 
Countervailing Measures’’ means the agreement de-
scribed in section 101(d)(12) of the Uruguay Round 
Agreements Act (19 U.S.C. 3511(d)(12)). 
(3) The term ‘‘source selection’’, with respect to 
a program of the Department of Defense, means the 
selection, through the use of competitive procedures 
or such other procurement procedures as may be ap-
plicable, of a contractor to perform a contract to 
carry out the program. 
SEC. 802. ASSESSMENT OF URGENT OPERATIONAL NEEDS 
FULFILLMENT. 
(a) ASSESSMENT REQUIRED.—The Secretary of De-
fense shall commission a study and report by a federally 
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(5) An evaluation of the extent to which joint 
urgent operational need statements are used to doc-
ument urgent joint capability gaps or are used— 
(A) to avoid using service-specific urgent 
operational need and acquisition processes; 
(B) to document non-urgent capability 
gaps; or 
(C) to request specific acquisition out-
comes, such as specific systems or equipment. 
(6) A description and evaluation of the effec-
tiveness of the processes used by the various ele-
ments of the Department of Defense to prioritize 
and fulfill joint urgent operational needs, including 
the Joint Improvised Explosive Device Defeat Orga-
nization and the Joint Rapid Acquisition Cell. 
(7) An evaluation of the extent to which joint 
acquisition entities maintain oversight, once a mili-
tary department or defense agency has been des-
ignated as responsible for execution and fielding of 
a capability in response to a joint urgent operational 
need statement, including oversight of— 
(A) the responsiveness of the military de-
partment or agency in execution; 
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(B) the field performance of the capability 
delivered in response to the joint urgent oper-
ational need statement; and 
(C) the concurrent development of a long- 
term acquisition and sustainment strategy. 
(8) Recommendations regarding— 
(A) common definitions and standards for 
urgent operational needs statements and joint 
urgent operational need statements; 
(B) best practices and process improve-
ments 
for 
the 
creation, 
evaluation, 
prioritization, and fulfillment of urgent oper-
ational need statements and joint urgent oper-
ational need statements; and 
(C) the extent to which rapid acquisition 
processes should be consolidated or expanded. 
(b) SUBMISSION TO CONGRESS.—Not later than 180 
days after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to the congressional defense 
committees the report resulting from the study conducted 
pursuant to subsection (a). 
(c) DEFINITIONS.—In this section: 
(1) The term ‘‘urgent operational need’’ or ‘‘ur-
gent operational need statement’’ means a high pri-
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ority capability gap from an ongoing, named oper-
ation— 
(A) that is validated and resourced by a 
specific military department or defense agency; 
and 
(B) that, if not addressed immediately, will 
seriously endanger personnel or pose a major 
threat to ongoing operations. 
(2) The term ‘‘joint urgent operational need’’ 
means a high priority capability gap from an ongo-
ing, named operation— 
(A) that is identified by a combatant com-
mander; 
(B) that requires validation and resourcing 
by the Joint Chiefs of Staff; 
(C) that falls outside of the established 
processes of the military departments; and 
(D) that, if not addressed immediately will 
seriously endanger personnel or pose a major 
threat to ongoing operations. 
SEC. 803. PRESERVATION OF TOOLING FOR MAJOR DE-
FENSE ACQUISITION PROGRAMS. 
(a) GUIDANCE REQUIRED.—The Secretary of De-
fense shall issue guidance requiring that all unique tooling 
associated with the production of hardware for a major 
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defense acquisition program be preserved and stored 
through the end of the service life of the end item associ-
ated with such a program. Such guidance shall— 
(1) provide that either a component of the De-
partment of Defense or a contractor (or subcon-
tractor at any tier) may be responsible for preserva-
tion and storage of such tooling; 
(2) require that the milestone decision authority 
approve a plan for the preservation and storage of 
such tooling prior to granting a Milestone C ap-
proval; 
(3) if such tooling is to be preserved and stored 
by a component of the Department of Defense, re-
quire the component to ensure adequate funds and 
facilities are available to preserve and store such 
tooling through the projected service life of the end 
item; 
(4) if such tooling is to be preserved and stored 
by a contractor, or a subcontractor at any tier, re-
quire that any production contract (or subcontract) 
awarded in support of the major defense acquisition 
program include a contract clause regarding the 
preservation and storage of such tooling; and 
(5) provide a mechanism for the Secretary of 
Defense to waive such requirement if— 
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(A) the Secretary determines that such a 
waiver is in the best interest of national secu-
rity; and 
(B) notifies the congressional defense com-
mittees at least 15 days before taking such ac-
tion. 
(b) DEFINITIONS.—In this section: 
(1) MAJOR DEFENSE ACQUISITION PROGRAM.— 
The term ‘‘major defense acquisition program’’ has 
the meaning provided in section 2430 of title 10, 
United States Code. 
(2) MILESTONE
DECISION
AUTHORITY.—The 
term ‘‘milestone decision authority’’ has the meaning 
provided in section 2366a(f)(2). 
(3) MILESTONE C APPROVAL.—The term ‘‘Mile-
stone C approval’’ has the meaning provided in sec-
tion 2366(e)(8) of title 10, United States Code. 
SEC. 804. PROHIBITION ON PROCUREMENT FROM BENE-
FICIARIES OF FOREIGN SUBSIDIES. 
(a) PROHIBITION.—Except as provided in subsections 
(c) and (d), the Secretary of Defense may not enter into 
a contract for the procurement of goods or services from 
any foreign person to which the government of a foreign 
country that is a member of the World Trade Organization 
has provided a subsidy if— 
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(1) the United States has requested consulta-
tions with that foreign country under the Agreement 
on Subsidies and Countervailing Measures on the 
basis, in whole or in part, that the subsidy is a pro-
hibited subsidy under that Agreement; and 
(2) either— 
(A) the dispute before the World Trade 
Organization has not been resolved; or 
(B) the World Trade Organization has 
ruled that the subsidy provided by the foreign 
country is a prohibited subsidy under the 
Agreement on Subsidies and Countervailing 
Measures. 
(b) ADDITIONAL APPLICABILITY.— 
(1) JOINT VENTURES.—The prohibition under 
subsection (a) with respect to a foreign person also 
applies to any joint venture, cooperative organiza-
tion, partnership, or contracting team of which that 
foreign person is a member. 
(2) SUBCONTRACTS AND TASK AND DELIVERY 
ORDERS.—The prohibition under subsection (a) with 
respect to a contract also applies to any sub-
contracts at any tier entered into under the contract 
and any task orders or delivery orders at any tier 
issued under the contract. 
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(c) EXCEPTIONS TO APPLICABILITY.— 
(1) INAPPLICABILITY
TO
PROGRAMS
WITH 
MILESTONE
B
APPROVAL.—The prohibition under 
subsection (a) shall not apply to any contract under 
a major defense acquisition program that has re-
ceived Milestone B approval as of the date of the en-
actment of this Act. 
(2) INAPPLICABILITY
TO
CERTAIN
PROCURE-
MENTS.—The prohibition under subsection (a) shall 
not apply to a contract for the procurement of goods 
or services from a foreign person being provided a 
subsidy if— 
(A) in any case in which goods or services 
are the subject of the consultation requested by 
the United States (as described in subsection 
(a)(1)), the goods or services to be procured 
under the contract are not related to the goods 
and services that are the subject of the con-
sultation; or 
(B) in any case in which the subject of the 
consultation requested by the United States (as 
described in subsection (a)) is not a good or 
service (but is law, regulations, or other policies 
of the foreign country), the Department of De-
fense contracting officer for the contract has 
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to the agreement, except in any case in which 
the Secretary of Defense determines, on the 
basis of criteria established in such policy guid-
ance, that the establishment of rights during or 
through agreement negotiations would not be 
practicable. 
‘‘(b) PROVISIONS
IN
NON-FAR AGREEMENTS.— 
Whenever practicable, a non-FAR agreement described in 
subsection (a) shall contain appropriate provisions relating 
to technical data, including provisions— 
‘‘(1) defining the respective rights of the United 
States and the party to the agreement regarding any 
technical data to be delivered under the agreement; 
‘‘(2) specifying the technical data to be deliv-
ered under the agreement and delivery schedules for 
such delivery; 
‘‘(3) establishing or referencing procedures for 
determining the acceptability of technical data to be 
delivered under the agreement; 
‘‘(4) to the maximum practicable extent, identi-
fying, in advance of delivery, technical data which is 
to be delivered with restrictions on the right of the 
United States to use such data; 
‘‘(5) requiring the party to the agreement to re-
vise any technical data delivered under the agree-
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