administering this chapter during such year (adjusted to 
reconcile for any earlier overestimates or underestimates 
under this subparagraph) are defrayed. 
‘‘(e) Nothing in this chapter shall, in the case of an 
enrolled individual applying for an extension of insurance 
coverage under this chapter after the expiration of such 
enrolled individual’s first opportunity to enroll, preclude 
the application of underwriting standards for later enroll-
ment. 
‘‘§ 8806. Preemption 
‘‘(a) The terms of any contract under this chapter 
which relate to the nature, provision, or extent of coverage 
or benefits (including payments with respect to benefits) 
shall supersede and preempt any State, territorial, tribal, 
or local law, or any regulation issued thereunder, which 
relates to non-work related disability insurance or con-
tracts. 
‘‘(b)(1) No tax, fee, or other monetary payment may 
be imposed or collected, directly or indirectly, by any 
State, territory, tribe, or locality, or by any political sub-
division or other governmental authority thereof, on, or 
with respect to, any premium paid for an insurance policy 
under this chapter. 
‘‘(2) Paragraph (1) shall not be construed to exempt 
any company or other entity issuing a policy of insurance 
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under this chapter from the imposition, payment, or collec-
tion of a tax, fee, or other monetary payment on the net 
income or profit accruing to or realized by such entity 
from business conducted under this chapter, if that tax, 
fee, or payment is applicable to a broad range of business 
activity. 
‘‘(c) No law of a State, territory, tribe, or locality, 
pertaining to subrogation or reimbursement with respect 
to benefits provided under this chapter, shall operate ex-
cept as expressly adopted by the Director. 
‘‘§ 8807. Studies, reports, and audits 
‘‘(a) A contract under this chapter shall contain pro-
visions requiring the carrier to furnish such reasonable re-
ports as the Director determines to be necessary to enable 
the Director to carry out the Director’s functions under 
this chapter. 
‘‘(b) Each Federal agency shall keep such records, 
make such certifications, and furnish the Director, the 
carrier, or both, with such information and reports as the 
Director may require. 
‘‘(c) The Director shall conduct periodic reviews of 
each plan under this chapter to ensure its competitiveness. 
‘‘§ 8808. Jurisdiction of courts 
‘‘The district courts of the United States have origi-
nal jurisdiction, concurrent with the United States Court 
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of Federal Claims, of a civil action or claim against the 
United States under this chapter after such administrative 
remedies as required under section 8803(c) have been ex-
hausted, but only to the extent judicial review is not pre-
cluded by any dispute resolution or other remedy under 
this chapter. 
‘‘§ 8809. Administrative functions 
‘‘(a)(1) Except as otherwise provided in this chapter, 
the Director shall prescribe regulations necessary to carry 
out this chapter and to make arrangements as necessary 
with other agencies and payroll systems to implement the 
program. 
‘‘(2) Except as otherwise provided by law, the Direc-
tor shall specify in regulation the treatment of time spent 
by an individual in receipt of benefits under this chapter 
for the purposes of periodic increases in pay, retention 
purposes, and other rights, benefits, and conditions of em-
ployment for which length of service is a factor. 
‘‘(b) The carrier shall provide for periodic coordinated 
enrollment, promotion, and education efforts, as specified 
by the Director. 
‘‘§ 8810. Cost accounting standards 
‘‘The cost accounting standards issued pursuant to 
section 1502 of title 41 shall not apply with respect to 
an insurance contract under this chapter.’’. 
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(b) CONFORMING AMENDMENT.—Section 1005(f) of 
title 39, United States Code, is amended by inserting 
‘‘88,’’ after ‘‘87,’’. 
(c) CLERICAL AMENDMENT.—The analysis for part 
III of title 5, United States Code, is amended by adding 
at the end of subpart G the following: 
‘‘88. Non-Work Related Short-Term Disability Insurance 8801’’. 
(d) DATE OF APPLICATION.—The amendment made 
by subsection (a) shall apply to contracts that take effect 
with respect to the first calender year that begins more 
than 18 months after the date of enactment of this sec-
tion. 
Æ 
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