337
(7) To identify and make recommendations for
the elimination of statutory prohibitions and barriers
to using reserve component intelligence units and in-
dividuals to carry out peacetime operational require-
ments.
(d) REPORTS.—The Secretary of Defense shall sub-
mit to Congress—
(1) interim reports on the status of the test
program not later than July 1, 2002, and July 1,
2003; and
(2) a final report, with such recommendations
for changes as the Secretary considers necessary,
not later than December 1, 2004.
SEC. 577. NATIONAL GUARD CHALLENGE PROGRAM.
(a) RESPONSIBILITY OF SECRETARY OF DEFENSE.—
Subsection (a) of section 509 of title 32, United States
Code, is amended by striking ‘‘, acting through the Chief
of the National Guard Bureau,’’.
(b) SOURCES OF FEDERAL SUPPORT.—Subsection
(b) of such section is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of
Defense’’;
(2) by striking ‘‘, except that Federal expendi-
tures 
under 
the 
program 
may 
not 
exceed
$62,500,000 for any fiscal year’’; and
338
(3) by adding at the end the following new
paragraphs:
‘‘(2) The Secretary shall carry out the National
Guard Challenge Program using—
‘‘(A) funds appropriated directly to the Sec-
retary of Defense for the program, except that the
amount of funds appropriated directly to the Sec-
retary and expended for the program in a fiscal year
may not exceed $62,500,000; and
‘‘(B) nondefense funds made available or trans-
ferred to the Secretary of Defense by other Federal
agencies to support the program.
‘‘(3) Federal funds made available or transferred to
the Secretary of Defense under paragraph (2)(B) by other
Federal agencies to support the National Guard Challenge
Program may be expended for the program in excess of
the fiscal year limitation specified in paragraph (2)(A).’’.
(c) REGULATIONS.—Such section is further amended
by adding at the end the following new subsection:
‘‘(m) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to carry out the National Guard
Challenge Program. The regulations shall address at a
minimum the following:
‘‘(1) The terms to be included in the program
agreements required by subsection (c).
339
‘‘(2) The qualifications for persons to partici-
pate in the program, as required by subsection (e).
‘‘(3) The benefits authorized for program par-
ticipants, as required by subsection (f).
‘‘(4) The status of National Guard personnel
assigned to duty in support of the program under
subsection (g).
‘‘(5) The conditions for the use of National
Guard facilities and equipment to carry out the pro-
gram, as required by subsection (h).
‘‘(6) The status of program participants, as de-
scribed in subsection (i).
‘‘(7) The procedures to be used by the Sec-
retary when communicating with States about the
program.’’.
(d) CONFORMING AMENDMENT.—Section 2033 of
title 10, United States Code, is amended by striking ‘‘ap-
propriated for’’ and inserting ‘‘appropriated directly to the
Secretary of Defense for’’.
SEC. 578. STUDY OF USE OF CIVILIAN CONTRACTOR PILOTS
FOR OPERATIONAL SUPPORT MISSIONS.
(a) STUDY.—The Secretary of Defense shall conduct
a study to determine the feasibility and cost, as well as
the advantages and disadvantages, of using civilian con-
tractor personnel as pilots and other air crew members
340
to fly nonmilitary Government aircraft (referred to as
‘‘operational support aircraft’’) to perform non-combat
personnel transportation missions worldwide. In carrying
out the study, the Secretary shall consider the views and
recommendations of the Chairman of the Joint Chiefs and
the other members of the Joint Chiefs of Staff.
(b) MATTERS TO BE INCLUDED.—The study shall,
as a minimum—
(1) determine whether use of civilian contractor
personnel as pilots and other air crew members for
such operational support missions would be a cost
effective means of freeing for duty in units with
combat and combat support missions those military
pilots and other personnel who now perform such
operational support missions; and
(2) the effect on retention of military pilots and
other personnel if they are no longer required to fly
operational support missions.
(c) SUBMISSION OF REPORT.—The Secretary shall
submit a report containing the results of the study to the
Committee on Armed Services of the Senate and the Com-
mittee on Armed Services of the House of Representatives
not later than six months after the date of the enactment
of this Act.
341
SEC. 579. REIMBURSEMENT FOR EXPENSES INCURRED BY
MEMBERS IN CONNECTION WITH CANCELLA-
TION OF LEAVE ON SHORT NOTICE.
(a) REIMBURSEMENT AUTHORIZED.—Chapter 53 of
title 10, United States Code, is amended by inserting after
section 1053 the following new section:
‘‘§ 1053a. Expenses incurred in connection with leave
canceled due to contingency operations:
reimbursement
‘‘(a) AUTHORIZATION TO REIMBURSE.—The Sec-
retary concerned may reimburse a member of the armed
forces under the jurisdiction of the Secretary for travel
and related expenses (to the extent not otherwise reim-
bursable under law) incurred by the member as a result
of the cancellation of previously approved leave when the
leave is canceled in connection with the member’s partici-
pation in a contingency operation and the cancellation oc-
curs within 48 hours of the time the leave would have com-
menced.
‘‘(b) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to establish the criteria for the appli-
cability of subsection (a).
‘‘(c) CONCLUSIVENESS OF SETTLEMENT.—The set-
tlement of an application for reimbursement under sub-
section (a) is final and conclusive.’’.
342
(b) EFFECTIVE DATE.—Section 1053a of title 10,
United States Code, as added by subsection (a) shall apply
with respect to any travel and related expenses incurred
by a member in connection with leave canceled after the
date of the enactment of this Act.
(c) CONFORMING AND CLERICAL AMENDMENTS.—
(1) The heading of section 1052 of such title is amended
to read as follows:
‘‘§ 1052. Adoption expenses: reimbursement’’.
(2) The heading of section 1053 of such title is
amended to read as follows:
‘‘§ 1053. Financial institution charges incurred be-
cause of Government error in direct de-
posit of pay: reimbursement’’.
(3) The table of sections at the beginning of chapter
53 of such title is amended by striking the items relating
to sections 1052 and 1053 and inserting the following:
‘‘1052. Adoption expenses: reimbursement.
‘‘1053. Financial institution charges incurred because of Government error in
direct deposit of pay: reimbursement.
‘‘1053a. Expenses incurred in connection with leave canceled due to contingency
operations: reimbursement.’’.
TITLE VI—COMPENSATION AND OTHER PERSONNEL
BENEFITS
Subtitle A—Pay and Allowances
Sec. 601. Increase in basic pay for fiscal year 2001.
Sec. 602. Additional restructuring of basic pay rates for enlisted members.
Sec. 603. Revised method for calculation of basic allowance for subsistence.
Sec. 604. Family subsistence supplemental allowance for low-income members
of the Armed Forces.
Sec. 605. Basic allowance for housing.
Sec. 606. Additional amount available for fiscal year 2001 increase in basic al-
lowance for housing inside the United States.
343
Sec. 607. Equitable treatment of junior enlisted members in computation of
basic allowance for housing.
Sec. 608. Eligibility of members in grade E–4 to receive basic allowance for
housing while on sea duty.
Sec. 609. Personal money allowance for senior enlisted members of the Armed
Forces.
Sec. 610. Increased uniform allowances for officers.
Sec. 611. Cabinet-level authority to prescribe requirements and allowance for
clothing of enlisted members.
Sec. 612. Increase 
in 
monthly 
subsistence 
allowance 
for 
members 
of
precommissioning programs.
Subtitle B—Bonuses and Special and Incentive Pays
Sec. 621. Extension of certain bonuses and special pay authorities for reserve
forces.
Sec. 622. Extension of certain bonuses and special pay authorities for nurse of-
ficer candidates, registered nurses, and nurse anesthetists.
Sec. 623. Extension of authorities relating to payment of other bonuses and
special pays.
Sec. 624. Revision of enlistment bonus authority.
Sec. 625. Consistency of authorities for special pay for reserve medical and
dental officers.
Sec. 626. Elimination of required congressional notification before implementa-
tion of certain special pay authority.
Sec. 627. Special pay for physician assistants of the Coast Guard.
Sec. 628. Authorization of special pay and accession bonus for pharmacy offi-
cers.
Sec. 629. Correction of references to Air Force veterinarians.
Sec. 630. Career sea pay.
Sec. 631. Increased maximum rate of special duty assignment pay.
Sec. 632. Entitlement of members of the National Guard and other reserves
not on active duty to receive special duty assignment pay.
Sec. 633. Authorization of retention bonus for members of the Armed Forces
qualified in a critical military skill.
Sec. 634. Entitlement of active duty officers of the Public Health Service Corps
to special pays and bonuses of health professional officers of
the Armed Forces.
Subtitle C—Travel and Transportation Allowances
Sec. 641. Advance payments for temporary lodging of members and depend-
ents.
Sec. 642. Additional transportation allowance regarding baggage and household
effects.
Sec. 643. Incentive for shipping and storing household goods in less than aver-
age weights.
Sec. 644. Equitable dislocation allowances for junior enlisted members.
Sec. 645. Authority to reimburse military recruiters, Senior ROTC cadre, and
military entrance processing personnel for certain parking ex-
penses.
Sec. 646. Expansion of funded student travel for dependents.
Subtitle D—Retirement and Survivor Benefit Matters
344
Sec. 651. Exception to high-36 month retired pay computation for members re-
tired following a disciplinary reduction in grade.
Sec. 652. Increase in maximum number of Reserve retirement points that may
be credited in any year.
Sec. 653. Retirement from active reserve service after regular retirement.
Sec. 654. Same treatment for Federal judges as for other Federal officials re-
garding payment of military retired pay.
Sec. 655. Reserve component Survivor Benefit Plan spousal consent require-
ment.
Sec. 656. Sense of Congress on increasing Survivor Benefit Plan annuities for
surviving spouses age 62 or older.
Sec. 657. Revision to special compensation authority to repeal exclusion of uni-
formed services retirees in receipt of disability retired pay.
Subtitle E—Other Matters
Sec. 661. Participation in Thrift Savings Plan.
Sec. 662. Determinations of income eligibility for special supplemental food pro-
gram.
Sec. 663. Billeting services for reserve members traveling for inactive-duty
training.
Sec. 664. Settlement of claims for payments for unused accrued leave and for
retired pay.
Sec. 665. Additional benefits and protections for personnel incurring injury, ill-
ness, or disease in the performance of funeral honors duty.
Sec. 666. Authority for extension of deadline for filing claims associated with
capture and internment of certain persons by North Vietnam.
Sec. 667. Back pay for members of the Navy and Marine Corps selected for
promotion while interned as prisoners of war during World
War II.
Sec. 668. Sense of Congress concerning funding for reserve components.
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2001.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The
adjustment to become effective during fiscal year 2001 re-
quired by section 1009 of title 37, United States Code,
in the rates of monthly basic pay authorized members of
the uniformed services shall not be made.
(b) INCREASE IN BASIC PAY.—Effective on January
1, 2001, the rates of monthly basic pay for members of
the uniformed services are increased by 3.7 percent.
345
SEC. 602. ADDITIONAL RESTRUCTURING OF BASIC PAY
RATES FOR ENLISTED MEMBERS.
(a) MINIMUM PAY INCREASES FOR MID-LEVEL EN-
LISTED GRADES.—(1) Subject to paragraph (2), effective
on July 1, 2001, the rates of monthly basic pay for en-
listed members of the Armed Forces in the pay grades
E–7, E–6, and E–5 shall be as follows:
ENLISTED MEMBERS
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
E–7 ...
1,831.20
1,999.20
2,075.10
2,149.80
2,228.10
E–6 ...
1,575.00
1,740.30
1,817.40
1,891.80
1,969.80
E–5 ...
1,381.80
1,549.20
1,623.90
1,701.00
1,779.30
Over 8
Over 10
Over 12
Over 14
Over 16
E–7 ...
2,362.20
2,437.80
2,512.80
2,588.10
2,666.10
E–6 ...
2,097.30
2,174.10
2,248.80
2,325.00
2,379.60
E–5 ...
1,888.50
1,962.90
2,040.30
2,040.30
2,040.30
Over 18
Over 20
Over 22
Over 24
Over 26
E–7 ...
2,742.00
2,817.90
2,949.60
3,034.80
3,250.50
E–6 ...
2,421.30
2,421.30
2,421.30
2,421.30
2,421.30
E–5 ...
2,040.30
2,040.30
2,040.30
2,040.30
2,040.30
(2) The amounts specified in the table in paragraph
(1) are subject to such revision as the Secretary of De-
fense and the Secretary of Transportation may prescribe
under subsection (b)(1)(A).
(b) SECRETARIAL AUTHORITY
TO FURTHER RE-
VISE.—(1) To ensure the efficient and effective operation
of the military pay system, the Secretary of Defense, and
the Secretary of Transportation with regard to the Coast
Guard, may—
346
(A) further increase any of the amounts speci-
fied in the table in subsection (a) for enlisted mem-
bers of the Armed Forces in the pay grades E–7, E–
6, and E–5; and
(B) increase any of the amounts specified for
other enlisted members in the table under the head-
ing ‘‘ENLISTED MEMBERS’’ in section 601(c) of
the National Defense Authorization Act for Fiscal
Year 2000 (Public Law 106–65; 113 Stat. 648), as
adjusted on January 1, 2001, pursuant to section
601(b) of this Act.
(2) The revisions in monthly basic pay made by the
Secretary of Defense and the Secretary of Transportation
under paragraph (1) shall take effect on July 1, 2001,
but only if the Secretaries also comply with paragraph (3).
(3) If the Secretary of Defense or the Secretary of
Transportation exercises the authority provided by para-
graph (1), the Secretaries shall include, in the budget jus-
tification materials submitted to Congress in support of
the President’s budget submitted under section 1105 of
title 31, United States Code, for fiscal year 2002—
(A) a revised pay table for enlisted members of
the Armed Forces to reflect the increases in monthly
basic pay to take effect on July 1, 2001; and
347
(B) a description of the various increases made
and the reasons therefor.
SEC. 603. REVISED METHOD FOR CALCULATION OF BASIC
ALLOWANCE FOR SUBSISTENCE.
(a) ANNUAL REVISION OF RATE.—Subsection (b) of
section 402 of title 37, United States Code, is amended—
(1) in paragraph (1), by striking ‘‘The monthly
rate’’ and inserting ‘‘Through December 31, 2001,
the monthly rate’’;
(2) by redesignating paragraph (2) as para-
graph (3); and
(3) by inserting after paragraph (1) the fol-
lowing new paragraph:
‘‘(2) On and after January 1, 2002, the monthly rate
of basic allowance for subsistence to be in effect for an
enlisted member for a year (beginning on January 1 of
that year) shall be equal to the sum of—
‘‘(A) the monthly rate of basic allowance for
subsistence that was in effect for an enlisted mem-
ber for the preceding year; plus
‘‘(B) the product of the monthly rate under
subparagraph (A) and the percentage increase in the
monthly cost of a liberal food plan for a male in the
United States who is between 20 and 50 years of
348
age over the preceding fiscal year, as determined by
the Secretary of Agriculture each October 1.’’.
(b) CONFORMING AMENDMENT.—Subsection (d)(1)
of such section is amended by striking ‘‘established under
subsection (b)(1)’’ and inserting ‘‘in effect under para-
graph (1) or (2) of subsection (b)’’.
(c) EARLY TERMINATION OF BAS TRANSITIONAL
AUTHORITY.—Effective October 1, 2001, subsections (c)
through (f) of section 602 of the National Defense Author-
ization Act for Fiscal Year 1998 (Public Law 105–85; 37
U.S.C. 402 note) are repealed.
SEC. 604. FAMILY SUBSISTENCE SUPPLEMENTAL ALLOW-
ANCE FOR LOW-INCOME MEMBERS OF THE
ARMED FORCES.
(a) SUPPLEMENTAL ALLOWANCE REQUIRED.—(1)
Chapter 7 of title 37, United States Code, is amended by
inserting after section 402 the following new section:
‘‘§ 402a. Supplemental subsistence allowance for low-
income members with dependents
‘‘(a) SUPPLEMENTAL ALLOWANCE REQUIRED.—(1)
The Secretary concerned shall increase the basic allowance
for subsistence to which a member of the armed forces
described in subsection (b) is otherwise entitled under sec-
tion 402 of this title by an amount (in this section referred
to as the ‘supplemental subsistence allowance’) designed
350
‘‘(b) MEMBERS ENTITLED
TO ALLOWANCE.—(1)
Subject to subsection (d), a member of the armed forces
is entitled to receive the supplemental subsistence allow-
ance if the Secretary concerned determines that the mem-
ber’s income, together with the income of the rest of the
member’s household (if any), is within the highest income
standard of eligibility, as then in effect under section 5(c)
of the Food Stamp Act of 1977 (7 U.S.C. 2014(c)) and
without regard to paragraph (1) of such section, for par-
ticipation in the food stamp program.
‘‘(2) In determining whether a member meets the eli-
gibility criteria under paragraph (1), the Secretary—
‘‘(A) shall not take into consideration the
amount of the supplemental subsistence allowance
payable under this section; but
‘‘(B) shall take into consideration the amount
of the basic allowance for housing that the member
receives under section 403 of this title or would oth-
erwise receive under such section, in the case of a
member who is not entitled to that allowance as a
result of assignment to quarters of the United
States or a housing facility under the jurisdiction of
a uniformed service.
‘‘(c) APPLICATION
FOR ALLOWANCE.—To request
the supplemental subsistence allowance, a member shall
352
to meet, or once again meets, the eligibility criteria de-
scribed in subsection (b).
‘‘(f) REPORTING REQUIREMENT.—Not later than
March 1 of each year after 2001, the Secretary of Defense
shall submit to Congress a report specifying the number
of members of the armed forces who received, at any time
during the preceding year, the supplemental subsistence
allowance. In preparing the report, the Secretary of De-
fense shall consult with the Secretary of Transportation.
No report is required under this subsection after March
1, 2006.
‘‘(g) DEFINITIONS.—In this section:
‘‘(1) The term ‘Secretary concerned’ means—
‘‘(A) the Secretary of Defense; and
‘‘(B) the Secretary of Transportation, with
respect to the Coast Guard when it is not oper-
ating as a service in the Navy.
‘‘(2) The terms ‘allotment’ and ‘household’ have
the meanings given those terms in section 3 of the
Food Stamp Act of 1977 (7 U.S.C. 2012).
‘‘(3) The term ‘food stamp program’ means the
program established pursuant to section 4 of the
Food Stamp Act of 1977 (7 U.S.C. 2013).
353
‘‘(h) TERMINATION
OF AUTHORITY.—No supple-
mental subsistence allowance may be provided under this
section after September 30, 2006.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 402 the following:
‘‘402a. Supplemental subsistence allowance for low-income members with de-
pendents.’’.
(b) EFFECTIVE DATE.—Section 402a of title 37,
United States Code, as added by subsection (a), shall take
effect on the first day of the first month that begins not
less than 180 days after the date of the enactment of this
Act.
SEC. 605. BASIC ALLOWANCE FOR HOUSING.
(a) CALCULATION OF RATES.—Subsection (b) of sec-
tion 403 of title 37, United States Code, is amended—
(1) by striking paragraph (2);
(2) by redesignating paragraph (1) as para-
graph (2); and
(3) by inserting after the subsection heading
the following: ‘‘(1) The Secretary of Defense shall
prescribe the rates of the basic allowance for housing
that are applicable for the various military housing
areas in the United States. The rates for an area
shall be based on the costs of adequate housing de-
termined for the area under paragraph (2).’’.
354
(b) MINIMUM ANNUAL AMOUNT AVAILABLE
FOR
HOUSING ALLOWANCES.—Subsection (b) of such section
is further amended—
(1) by striking paragraphs (3) and (5); and
(2) by inserting after paragraph (2) the fol-
lowing new paragraph:
‘‘(3) The total amount that may be paid for a fiscal
year for the basic allowance for housing under this sub-
section may not be less than the product of—
‘‘(A) the total amount authorized to be paid for
such allowance for the preceding fiscal year; and
‘‘(B) a fraction—
‘‘(i) the numerator of which is the index of
the national average monthly cost of housing
for June of the preceding fiscal year; and
‘‘(ii) the denominator of which is the index
of the national average monthly cost of housing
for June of the second preceding fiscal year.’’.
(c) LIMITATIONS ON REDUCTION IN MEMBER’S AL-
LOWANCE.—(1) Paragraph (6) of such subsection is
amended by striking ‘‘, changes in the national average
monthly cost of housing,’’.
(2) Paragraph (7) of such subsection is amended by
striking ‘‘without dependents’’.
355
(d) ALLOWANCE WHEN DEPENDENTS ARE UNABLE
TO ACCOMPANY MEMBERS.—Subsection (d) of such sec-
tion is amended by striking paragraph (3) and inserting
the following new paragraph:
‘‘(3) If a member with dependents is assigned to duty
in an area that is different from the area in which the
member’s dependents reside, the member is entitled to a
basic allowance for housing as provided in subsection (b)
or (c), whichever applies to the member, subject to the
following:
‘‘(A) If the member’s assignment to duty in
that area, or the circumstances of that assignment,
require the member’s dependents to reside in a dif-
ferent area, as determined by the Secretary con-
cerned, the amount of the basic allowance for hous-
ing for the member shall be based on the area in
which the dependents reside or the member’s last
duty station, whichever the Secretary concerned de-
termines to be most equitable.
‘‘(B) If the member’s assignment to duty in
that area is under the conditions of a low-cost or no-
cost permanent change of station or permanent
change of assignment, the amount of the basic allow-
ance for housing for the member shall be based on
the member’s last duty station if the Secretary con-
356
cerned determines that it would be inequitable to
base the allowance on the cost of housing in the area
to which the member is reassigned.’’.
(e) EXTENSION OF TRANSITION PERIOD.—Section
603(b) of the National Defense Authorization Act for Fis-
cal Year 1998 (Public Law 105–85; 37 U.S.C. 403 note)
is amended by striking ‘‘six years’’ and inserting ‘‘eight
years’’.
(f) EFFECTIVE
DATE; APPLICATION.—(1) The
amendments made by this section shall take effect on Oc-
tober 1, 2000.
(2) In the case of the amendment made by subsection
(c)(2), the amendment shall apply with respect to pay pe-
riods beginning on and after October 1, 2000, for a mem-
ber of the uniformed services covered by the provision of
law so amended regardless of the date on which the mem-
ber was first reassigned to duty under the conditions of
a low-cost or no-cost permanent change of station or per-
manent change of assignment.
(3) In the case of the amendment made by subsection
(d), the amendment shall apply with respect to pay periods
beginning on and after October 1, 2000, for a member
of the uniformed services covered by the provision of law
so amended regardless of the date on which the member
357
was first assigned to duty in an area that is different from
the area in which the member’s dependents reside.
SEC. 606. ADDITIONAL AMOUNT AVAILABLE FOR FISCAL
YEAR 2001 INCREASE IN BASIC ALLOWANCE
FOR HOUSING INSIDE THE UNITED STATES.
In addition to the amount determined by the Sec-
retary of Defense under section 403(b)(3) of title 37,
United States Code, as amended by section 605(b), to be
the total amount to be paid during fiscal year 2001 for
the basic allowance for housing for military housing areas
inside the United States, $30,000,000 of the amount au-
thorized to be appropriated by section 421 for military
personnel shall be used by the Secretary to further in-
crease the total amount available for the basic allowance
for housing for military housing areas inside the United
States.
SEC. 607. EQUITABLE TREATMENT OF JUNIOR ENLISTED
MEMBERS IN COMPUTATION OF BASIC AL-
LOWANCE FOR HOUSING.
(a) DETERMINATION
OF
COSTS
OF
ADEQUATE
HOUSING.—Paragraph (2) of subsection (b) of section
403 of title 37, United States Code, as redesignated by
section 605(a)(2), is amended by adding at the end the
following new sentence: ‘‘After June 30, 2001, the Sec-
retary may not differentiate between members with de-
358
pendents in pay grades E–1 through E–4 in determining
what constitutes adequate housing for members.’’.
(b) SINGLE RATE; MINIMUM.—Subsection (b) of
such section, as amended by section 605(b)(1), is amended
by inserting after paragraph (4) the following new para-
graph:
‘‘(5) On and after July 1, 2001, the Secretary of De-
fense shall establish a single monthly rate for members
of the uniformed services with dependents in pay grades
E–1 through E–4 in the same military housing area. The
rate shall be consistent with the rates paid to members
in pay grades other than pay grades E–1 through E–4
and shall be based on the following:
‘‘(A) The average cost of a two-bedroom apart-
ment in that military housing area.
‘‘(B) One-half of the difference between the av-
erage cost of a two-bedroom townhouse in that area
and the amount determined in subparagraph (A).’’.
SEC. 608. ELIGIBILITY OF MEMBERS IN GRADE E–4 TO RE-
CEIVE BASIC ALLOWANCE FOR HOUSING
WHILE ON SEA DUTY.
(a) PAYMENT AUTHORIZED.—Subsection (f)(2)(B) of
section 403 of title 37, United States Code, is amended—
(1) by striking ‘‘E–5’’ in the first sentence and
inserting ‘‘E–4 or E–5’’; and
359
(2) by striking ‘‘grade E–5’’ in the second sen-
tence and inserting ‘‘grades E–4 and E–5’’.
(b) 
CONFORMING
AMENDMENT.—Subsection
(m)(1)(B) of such section is amended by striking ‘‘E–4’’
and inserting ‘‘E–3’’.
SEC. 609. PERSONAL MONEY ALLOWANCE FOR SENIOR EN-
LISTED MEMBERS OF THE ARMED FORCES.
(a) AUTHORITY.—Section 414 of title 37, United
States Code, is amended by adding at the end the fol-
lowing new subsection:
‘‘(c) ALLOWANCE
FOR SENIOR ENLISTED MEM-
BERS.—In addition to other pay or allowances authorized
by this title, a noncommissioned officer is entitled to a
personal money allowance of $2,000 a year while serving
as the Sergeant Major of the Army, the Master Chief
Petty Officer of the Navy, the Chief Master Sergeant of
the Air Force, the Sergeant Major of the Marine Corps,
or the Master Chief Petty Officer of the Coast Guard.’’.
(b) STYLISTIC AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by inserting ‘‘ALLOWANCE
FOR OFFICERS SERVING IN CERTAIN RANKS OR PO-
SITIONS.—’’ after ‘‘(a)’’; and
(2) in subsection (b), by inserting ‘‘ALLOWANCE
FOR CERTAIN NAVAL OFFICERS.—’’ after ‘‘(b)’’.
360
(b) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2000.
SEC. 610. INCREASED UNIFORM ALLOWANCES FOR OFFI-
CERS.
(a) INITIAL ALLOWANCE.—Section 415(a) of title 37,
United States Code, is amended by striking ‘‘$200’’ and
inserting ‘‘$400’’.
(b) ADDITIONAL ALLOWANCE.—Section 416(a) of
such title is amended by striking ‘‘$100’’ and inserting
‘‘$200’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2000.
SEC. 611. CABINET-LEVEL AUTHORITY TO PRESCRIBE RE-
QUIREMENTS AND ALLOWANCE FOR CLOTH-
ING OF ENLISTED MEMBERS.
Section 418 of title 37, United States Code, is
amended—
(1) in subsection (a), by striking ‘‘The Presi-
dent’’ and inserting ‘‘The Secretary of Defense and
the Secretary of Transportation, with respect to the
Coast Guard when it is not operating as a service
in the Navy,’’; and
(2) in subsection (b), by striking ‘‘the Presi-
dent’’ and inserting ‘‘the Secretary of Defense’’.
361
SEC. 612. INCREASE IN MONTHLY SUBSISTENCE ALLOW-
ANCE 
FOR 
MEMBERS 
OF
PRECOMMISSIONING PROGRAMS.
(a) PAY RATES FOR CADETS AND MIDSHIPMEN.—
Section 203(c) of title 37, United States Code, is amended
by striking ‘‘at the rate of $600.00.’’ and inserting ‘‘at
the monthly rate equal to 35 percent of the basic pay of
a commissioned officer in the pay grade O–1 with less
than two years of service.’’.
(b) SUBSISTENCE ALLOWANCE RATES.—Subsection
(a) of section 209 of such title is amended—
(1) by inserting ‘‘(1)’’ before ‘‘Except’’;
(2) by striking ‘‘subsistence allowance of $200
a month’’ and inserting ‘‘monthly subsistence allow-
ance at a rate prescribed under paragraph (2)’’;
(3) by striking ‘‘Subsistence’’ and inserting the
following:
‘‘(3) A subsistence’’; and
(4) by inserting after the first sentence the fol-
lowing:
‘‘(2) The Secretary of Defense shall prescribe by reg-
ulation the monthly rates for subsistence allowances pro-
vided under this section. The rate may not be less than
$250 per month, but may not exceed $674 per month.’’.
(c) CONFORMING AND STYLISTIC AMENDMENTS.—
Section 209 of such title is further amended—
362
(1) in subsection (a), by inserting ‘‘SENIOR
ROTC MEMBERS IN ADVANCED TRAINING.—’’ after
‘‘(a)’’;
(2) in subsection (b)—
(A) by inserting ‘‘SENIOR ROTC MEM-
BERS
APPOINTED
IN
RESERVES.—’’ after
‘‘(b)’’; and
(B) by striking ‘‘in the amount provided in
subsection (a)’’ and inserting ‘‘at a rate pre-
scribed under subsection (a)’’;
(3) in subsection (c), by inserting ‘‘PAY WHILE
ATTENDING TRAINING
OR PRACTICE CRUISE.—’’
after ‘‘(c)’’ the first place it appears; and
(4) in subsection (d)—
(A) by inserting ‘‘MEMBERS OF MARINE
CORPS
OFFICER
CANDIDATE
PROGRAM.—’’
after ‘‘(d)’’; and
(B) by striking ‘‘the same rate as that pre-
scribed by subsection (a),’’ and inserting ‘‘a
monthly rate prescribed under subsection (a)’’.
(d) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect October 1, 2001.
363
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 621. EXTENSION OF CERTAIN BONUSES AND SPECIAL
PAY AUTHORITIES FOR RESERVE FORCES.
(a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section
302g(f) of title 37, United States Code, is amended by
striking ‘‘December 31, 2000’’ and inserting ‘‘December
31, 2001’’.
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of such title is amended by striking ‘‘De-
cember 31, 2000’’ and inserting ‘‘December 31, 2001’’.
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘Decem-
ber 31, 2000’’ and inserting ‘‘December 31, 2001’’.
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section
308d(c) of such title is amended by striking ‘‘December
31, 2000’’ and inserting ‘‘December 31, 2001’’.
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘Decem-
ber 31, 2000’’ and inserting ‘‘December 31, 2001’’.
(f) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended
364
by striking ‘‘December 31, 2000’’ and inserting ‘‘Decem-
ber 31, 2001’’.
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f) of such title is amended by striking ‘‘December
31, 2000’’ and inserting ‘‘December 31, 2001’’.
(h) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of title 10, United
States Code, is amended by striking ‘‘January 1, 2001’’
and inserting ‘‘January 1, 2002’’.
SEC. 622. EXTENSION OF CERTAIN BONUSES AND SPECIAL
PAY AUTHORITIES FOR NURSE OFFICER CAN-
DIDATES, REGISTERED NURSES, AND NURSE
ANESTHETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States
Code, is amended by striking ‘‘December 31, 2000’’ and
inserting ‘‘December 31, 2001’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking ‘‘December 31, 2000’’ and inserting
‘‘December 31, 2001’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
365
Code, is amended by striking ‘‘December 31, 2000’’ and
inserting ‘‘December 31, 2001’’.
SEC. 623. EXTENSION OF AUTHORITIES RELATING TO PAY-
MENT OF OTHER BONUSES AND SPECIAL
PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking ‘‘December 31, 2000,’’ and inserting ‘‘Decem-
ber 31, 2001,’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of such title is amended by strik-
ing ‘‘December 31, 2000’’ and inserting ‘‘December 31,
2001’’.
(c) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section
312(e) of such title is amended by striking ‘‘December 31,
2000’’ and inserting ‘‘December 31, 2001’’.
(d) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of such title is amended by striking ‘‘December
31, 2000’’ and inserting ‘‘December 31, 2001’’.
(e) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE
BONUS.—Section 312c(d) of such title is amended by
striking ‘‘December 31, 2000’’ and inserting ‘‘December
31, 2001’’.
366
SEC. 624. REVISION OF ENLISTMENT BONUS AUTHORITY.
(a) BONUS AUTHORIZED.—(1) Title 37, United
States Code, is amended by inserting after section 308i
the following new section:
‘‘§ 309. Special pay: enlistment bonus
‘‘(a) BONUS AUTHORIZED; BONUS AMOUNT.—A per-
son who enlists in an armed force for a period of at least
2 years may be paid a bonus in an amount not to exceed
$20,000. The bonus may be paid in a single lump sum
or in periodic installments.
‘‘(b) REPAYMENT OF BONUS.—(1) A member of the
armed forces who voluntarily, or because of the member’s
misconduct, does not complete the term of enlistment for
which a bonus was paid under this section, or a member
who is not technically qualified in the skill for which the
bonus was paid, if any (other than a member who is not
qualified because of injury, illness, or other impairment
not the result of the member’s misconduct), shall refund
to the United States that percentage of the bonus that
the unexpired part of member’s enlistment is of the total
enlistment period for which the bonus was paid.
‘‘(2) An obligation to reimburse the United States
imposed under paragraph (1) is for all purposes a debt
owed to the United States.
‘‘(3) A discharge in bankruptcy under title 11 that
is entered less than 5 years after the termination of an
367
enlistment for which a bonus was paid under this section
does not discharge the person receiving the bonus from
the debt arising under paragraph (1).
‘‘(c) RELATION TO PROHIBITION ON BOUNTIES.—
The enlistment bonus authorized by this section is not a
bounty for purposes of section 514(a) of title 10.
‘‘(d) REGULATIONS.—This section shall be adminis-
tered under regulations prescribed by the Secretary of De-
fense for the armed forces under the jurisdiction of the
Secretary of Defense and by the Secretary of Transpor-
tation for the Coast Guard when the Coast Guard is not
operating as a service in the Navy.
‘‘(e) DURATION OF AUTHORITY.—No bonus shall be
paid under this section with respect to any enlistment in
the armed forces made after December 31, 2001.’’.
(2) The table of sections at the beginning of chapter
5 of such title is amended by inserting after the item relat-
ing to section 308i the following new item:
‘‘309. Special pay: enlistment bonus.’’.
(b) REPEAL OF SUPERSEDED ENLISTMENT BONUS
AUTHORITIES.—(1) Sections 308a and 308f of title 37,
United States Code, are repealed.
(2) The table of sections at the beginning of chapter
5 of such title is amended by striking the items relating
to such sections.
368
(c) EFFECTIVE DATE.—(1) The amendments made
by subsection (a) shall take effect on October 1, 2000,
and apply with respect to enlistments in the Armed Forces
made on or after that date.
(2) The amendments made by subsection (b) shall
take effect on October 1, 2000. The repeal of sections
308a and 308f of title 37, United States Code, by such
subsection shall not affect the validity or terms of any
bonus provided under such sections for enlistments in the
Armed Forces made before that date.
SEC. 625. CONSISTENCY OF AUTHORITIES FOR SPECIAL
PAY FOR RESERVE MEDICAL AND DENTAL
OFFICERS.
(a) CONSISTENT DESCRIPTIONS OF ACTIVE DUTY.—
Section 302(h)(1) of title 37, United States Code, is
amended by inserting before the period at the end the fol-
lowing: ‘‘, including active duty in the form of annual
training, active duty for training, and active duty for spe-
cial work’’.
(b) RELATION TO OTHER SPECIAL PAY AUTHORI-
TIES.—Subsection (d) of section 302f of such title is
amended to read as follows:
‘‘(d) SPECIAL RULE FOR RESERVE MEDICAL AND
DENTAL OFFICERS.—While a reserve medical or dental
officer receives a special pay under section 302 or 302b
370
SEC. 627. SPECIAL PAY FOR PHYSICIAN ASSISTANTS OF
THE COAST GUARD.
Section 302c(d)(1) of title 37, United States Code,
is amended by inserting after ‘‘nurse,’’ the following: ‘‘an
officer of the Coast Guard or Coast Guard Reserve des-
ignated as a physician assistant,’’.
SEC. 628. AUTHORIZATION OF SPECIAL PAY AND ACCES-
SION BONUS FOR PHARMACY OFFICERS.
(a) AUTHORIZATION OF SPECIAL PAY AND BONUS.—
Chapter 5 of title 37, United States Code, is amended by
inserting after section 302h the following new sections:
‘‘§ 302i. Special pay: pharmacy officers
‘‘(a) ARMY, NAVY, AND AIR FORCE PHARMACY OFFI-
CERS.—Under regulations prescribed pursuant to section
303a of this title, the Secretary of the military department
concerned may, subject to subsection (c), pay special pay
at the rates specified in subsection (d) to an officer who—
‘‘(1) is a pharmacy officer in the Medical Serv-
ice Corps of the Army or Navy or the Biomedical
Sciences Corps of the Air Force; and
‘‘(2) is on active duty under a call or order to
active duty for a period of not less than one year.
‘‘(b) PUBLIC HEALTH SERVICE CORPS.—Subject to
subsection (c), the Secretary of Health and Human Serv-
ices may pay special pay at the rates specified in sub-
section (d) to an officer who—
371
‘‘(1) is an officer in the Regular or Reserve
Corps of the Public Health Service and is designated
as a pharmacy officer; and
‘‘(2) is on active duty under a call or order to
active duty for a period of not less than one year.
‘‘(c) LIMITATION.—Special pay may not be paid
under this section to an officer serving in a pay grade
above pay grade O–6.
‘‘(d) RATE OF SPECIAL PAY.—The rate of special pay
paid to an officer under subsection (a) or (b) is as follows:
‘‘(1) $3,000 per year, if the officer is under-
going pharmacy internship training or has less than
3 years of creditable service.
‘‘(2) $7,000 per year, if the officer has at least
3 but less than 6 years of creditable service and is
not undergoing pharmacy internship training.
‘‘(3) $7,000 per year, if the officer has at least
6 but less than 8 years of creditable service.
‘‘(4) $12,000 per year, if the officer has at least
8 but less than 12 years of creditable service.
‘‘(5) $10,000 per year, if the officer has at least
12 but less than 14 years of creditable service.
‘‘(6) $9,000 per year, if the officer has at least
14 but less than 18 years of creditable service.
372
‘‘(7) $8,000 per year, if the officer has 18 or
more years of creditable service.
‘‘§ 302j. Special pay: accession bonus for pharmacy of-
ficers
‘‘(a) ACCESSION BONUS AUTHORIZED.—A person
who is a graduate of an accredited pharmacy school and
who, during the period beginning on the date of the enact-
ment of the Floyd D. Spence National Defense Authoriza-
tion Act for Fiscal Year 2001 and ending on September
30, 2004, executes a written agreement described in sub-
section (c) to accept a commission as an officer of a uni-
formed service and remain on active duty for a period of
not less than 4 years may, upon acceptance of the agree-
ment by the Secretary concerned, be paid an accession
bonus in an amount determined by the Secretary con-
cerned.
‘‘(b) LIMITATION
ON AMOUNT
OF BONUS.—The
amount of an accession bonus under subsection (a) may
not exceed $30,000.
‘‘(c) LIMITATION ON ELIGIBILITY FOR BONUS.—A
person may not be paid a bonus under subsection (a) if—
‘‘(1) the person, in exchange for an agreement
to accept an appointment as a warrant or commis-
sioned officer, received financial assistance from the
Department of Defense or the Department of Health
373
and Human Services to pursue a course of study in
pharmacy; or
‘‘(2) the Secretary concerned determines that
the person is not qualified to become and remain li-
censed as a pharmacist.
‘‘(d) AGREEMENT.—The agreement referred to in
subsection (a) shall provide that, consistent with the needs
of the uniformed service concerned, the person executing
the agreement shall be assigned to duty, for the period
of obligated service covered by the agreement, as a phar-
macy officer in the Medical Service Corps of the Army
or Navy, a biomedical sciences officer in the Air Force
designated as a pharmacy officer, or a pharmacy officer
of the Public Health Service.
‘‘(e) REPAYMENT.—(1) An officer who receives a pay-
ment under subsection (a) and who fails to become and
remain licensed as a pharmacist during the period for
which the payment is made shall refund to the United
States an amount equal to the full amount of such pay-
ment.
‘‘(2) An officer who voluntarily terminates service on
active duty before the end of the period agreed to be
served under subsection (a) shall refund to the United
States an amount that bears the same ratio to the amount
374
paid to the officer as the unserved part of such period
bears to the total period agreed to be served.
‘‘(3) An obligation to reimburse the United States
under paragraph (1) or (2) is for all purposes a debt owed
to the United States.
‘‘(4) A discharge in bankruptcy under title 11 that
is entered less than 5 years after the termination of an
agreement under this section does not discharge the per-
son signing such agreement from a debt arising under
such agreement or this subsection. This paragraph applies
to any case commenced under title 11 after the date of
the enactment of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001.’’.
(b) ADMINISTRATION.—Section 303a of title 37,
United States Code, is amended by striking ‘‘302h’’ each
place it appears and inserting ‘‘302j’’.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 5 of such title is amended by
inserting after the item relating to section 302h the fol-
lowing new items:
‘‘302i. Special pay: pharmacy officers.
‘‘302j. Special pay: accession bonus for pharmacy officers.’’.
SEC. 629. CORRECTION OF REFERENCES TO AIR FORCE
VETERINARIANS.
Section 303(a) of title 37, United States Code, is
amended—
375
(1) in paragraph (1)(B), by striking ‘‘who is
designated as a veterinary officer’’ and inserting
‘‘who is an officer in the Biomedical Sciences Corps
and holds a degree in veterinary medicine’’; and
(2) in paragraph (2), by striking subparagraph
(B) and inserting the following:
‘‘(B) of a reserve component of the Air
Force, of the Army or the Air Force without
specification of component, or of the National
Guard, who—
‘‘(i) is designated as a veterinary offi-
cer; or
‘‘(ii) is an officer in the Biomedical
Sciences Corps of the Air Force and holds
a degree in veterinary medicine; or’’.
SEC. 630. CAREER SEA PAY.
(a) REFORM OF AUTHORITIES.—Section 305a of title
37, United States Code, is amended—
(1) in subsection (a), by striking ‘‘(a) Under
regulations prescribed by the President, a member’’
and inserting ‘‘(a) AVAILABILITY
OF
SPECIAL
PAY.—A member’’;
(2) by redesignating subsection (d) as sub-
section (e); and
376
(3) by striking subsections (b) and (c) and in-
serting the following new subsections:
‘‘(b) RATES; MAXIMUM.—The Secretary concerned
shall prescribe the monthly rates for special pay applicable
to members of each armed force under the Secretary’s ju-
risdiction. No monthly rate may exceed $750.
‘‘(c) PREMIUM.—A member of a uniformed service
entitled to career sea pay under this section who has
served 36 consecutive months of sea duty is also entitled
to a career sea pay premium for the thirty-seventh con-
secutive month and each subsequent consecutive month of
sea duty served by such member. The monthly amount of
the premium shall be prescribed by the Secretary con-
cerned, but may not exceed $350.
‘‘(d) REGULATIONS.—The Secretary concerned shall
prescribe regulations for the administration of this section
for the armed force or armed forces under the jurisdiction
of the Secretary. The entitlements under this section shall
be subject to the regulations.’’.
(b) STYLISTIC AMENDMENT.—Subsection (e) of such
section, as redesignated by subsection (a)(2), is amended
by inserting before ‘‘(1)’’ in paragraph (1) the following:
‘‘DEFINITION OF SEA DUTY.—’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on October 1, 2000, and shall
377
apply with respect to months beginning on or after that
date.
SEC. 631. INCREASED MAXIMUM RATE OF SPECIAL DUTY
ASSIGNMENT PAY.
Section 307(a) of title 37, United States Code, is
amended—
(1) by striking ‘‘$275’’ and inserting ‘‘$600’’;
and
(2) by striking the second sentence.
SEC. 632. ENTITLEMENT OF MEMBERS OF THE NATIONAL
GUARD AND OTHER RESERVES NOT ON AC-
TIVE DUTY TO RECEIVE SPECIAL DUTY AS-
SIGNMENT PAY.
(a) AUTHORITY.—Section 307 of title 37, United
States Code, is amended by adding at the end the fol-
lowing new subsection:
‘‘(d)(1) Under regulations prescribed by the Sec-
retary concerned and to the extent provided for by appro-
priations, when an enlisted member of the National Guard
or a reserve component of a uniformed service who is enti-
tled to compensation under section 206 of this title per-
forms duty for which a member described in subsection
(a) is entitled to special pay under such subsection, the
member of the National Guard or reserve component is
entitled to an increase in compensation equal to 1⁄30 of
378
the monthly special duty assignment pay prescribed by the
Secretary concerned for the performance of that same
duty by members described in subsection (a).
‘‘(2) A member of the National Guard or a reserve
component entitled to an increase in compensation under
paragraph (1) is entitled to the increase—
‘‘(A) for each regular period of instruction, or
period of appropriate duty, at which the member is
engaged for at least two hours, including that per-
formed on a Sunday or holiday; or
‘‘(B) for the performance of such other equiva-
lent training, instruction, duty, or appropriate du-
ties, as the Secretary may prescribe under section
206(a) of this title.
‘‘(3) This subsection does not apply to a member of
the National Guard or a reserve component who is entitled
to basic pay under section 204 of this title.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect October 1, 2000.
SEC. 633. AUTHORIZATION OF RETENTION BONUS FOR
MEMBERS OF THE ARMED FORCES QUALI-
FIED IN A CRITICAL MILITARY SKILL.
(a) BONUS AUTHORIZED.—(1) Chapter 5 of title 37,
United States Code, is amended by adding at the end the
following new section:
379
‘‘§ 323. Special pay: retention incentives for members
qualified in a critical military skill
‘‘(a) RETENTION BONUS AUTHORIZED.—An officer
or enlisted member of the armed forces who is serving on
active duty and is qualified in a designated critical military
skill may be paid a retention bonus as provided in this
section if—
‘‘(1) in the case of an officer, the member exe-
cutes a written agreement to remain on active duty
for at least 1 year; or
‘‘(2) in the case of an enlisted member, the
member reenlists or voluntarily extends the mem-
ber’s enlistment for a period of at least 1 year.
‘‘(b) DESIGNATION OF CRITICAL SKILLS.—(1) A des-
ignated critical military skill referred to in subsection (a)
is a military skill designated as critical by the Secretary
of Defense, or by the Secretary of Transportation with re-
spect to the Coast Guard when it is not operating as a
service in the Navy.
‘‘(2) The Secretary of Defense, and the Secretary of
Transportation with respect to the Coast Guard when it
is not operating as a service in the Navy, shall notify Con-
gress, in advance, of each military skill to be designated
by the Secretary as critical for purposes of this section.
The notice shall be submitted at least 90 days before any
bonus with regard to that critical skill is offered under
380
subsection (a) and shall include a discussion of the neces-
sity for the bonus, the amount and method of payment
of the bonus, and the retention results that the bonus is
expected to achieve.
‘‘(c) PAYMENT METHODS.—A bonus under this sec-
tion may be paid in a single lump sum or in periodic in-
stallments.
‘‘(d) MAXIMUM BONUS AMOUNT.—A member may
enter into an agreement under this section, or reenlist or
voluntarily extend the member’s enlistment, more than
once to receive a bonus under this section. However, a
member may not receive a total of more than $200,000
in payments under this section.
‘‘(e) CERTAIN MEMBERS INELIGIBLE.—A retention
bonus may not be provided under subsection (a) to a mem-
ber of the armed forces who—
‘‘(1) has completed more than 25 years of ac-
tive duty; or
‘‘(2) will complete the member’s twenty-fifth
year of active duty before the end of the period of
active duty for which the bonus is being offered.
‘‘(f) RELATIONSHIP TO OTHER INCENTIVES.—A re-
tention bonus paid under this section is in addition to any
other pay and allowances to which a member is entitled.
381
‘‘(g) REPAYMENT OF BONUS.—(1) If an officer who
has entered into a written agreement under subsection (a)
fails to complete the total period of active duty specified
in the agreement, or an enlisted member who voluntarily
or because of misconduct does not complete the term of
enlistment for which a bonus was paid under this section,
the Secretary of Defense, and the Secretary of Transpor-
tation with respect to members of the Coast Guard when
it is not operating as a service in the Navy, may require
the member to repay the United States, on a pro rata
basis and to the extent that the Secretary determines con-
ditions and circumstances warrant, all sums paid under
this section.
‘‘(2) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed
to the United States.
‘‘(3) A discharge in bankruptcy under title 11 that
is entered less than 5 years after the termination of a writ-
ten agreement entered into under subsection (a) does not
discharge the member from a debt arising under para-
graph (2).
‘‘(h) ANNUAL REPORT.—Not later than February 15
of each year, the Secretary of Defense and the Secretary
of Transportation shall submit to Congress a report—
382
‘‘(1) analyzing the effect, during the preceding
fiscal year, of the provision of bonuses under this
section on the retention of members qualified in the
critical military skills for which the bonuses were of-
fered; and
‘‘(2) describing the intentions of the Secretary
regarding the continued use of the bonus authority
during the current and next fiscal years.
‘‘(i) TERMINATION
OF
BONUS
AUTHORITY.—No
bonus may be paid under this section with respect to any
reenlistment, or voluntary extension of an enlistment, in
the armed forces entered into after December 31, 2001,
and no agreement under this section may be entered into
after that date.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘323. Special pay: retention incentives for members qualified in a critical mili-
tary skill.’’.
(b) EFFECTIVE DATE.—Section 323 of title 10,
United States Code, as added by subsection (a), shall take
effect on October 1, 2000.
383
SEC. 634. ENTITLEMENT OF ACTIVE DUTY OFFICERS OF
THE PUBLIC HEALTH SERVICE CORPS TO
SPECIAL PAYS AND BONUSES OF HEALTH
PROFESSIONAL OFFICERS OF THE ARMED
FORCES.
(a) IN GENERAL.—Section 303a of title 37, United
States Code, is amended—
(1) by redesignating subsections (b) and (c) as
subsections (c) and (d); and
(2) by inserting after subsection (a) the fol-
lowing new subsection (b):
‘‘(b)(1) Except as provided in paragraph (2) or as
otherwise provided under a provision of this chapter, a
commissioned officer in the Regular or Reserve Corps of
the Public Health Service is entitled to special pay under
a provision of this chapter in the same amounts, and
under the same terms and conditions, as a commissioned
officer of the armed forces is entitled to special pay under
that provision.
‘‘(2) A commissioned medical officer in the Regular
or Reserve Corps of the Public Health Service (other than
an officer serving in the Indian Health Service) may not
receive additional special pay under section 302(a)(4) of
this title for any period during which the officer is pro-
viding obligated service under the following provisions of
law:
384
‘‘(A) Section 338B of the Public Health Service
Act (42 U.S.C. 254l–1).
‘‘(B) Section 225(e) of the Public Health Serv-
ice Act, as that section was in effect before 1, 1977.
‘‘(C) Section 752 of the Public Health Service
Act, as that section was in effect between October
1, 1977, and August 13, 1981.’’.
(b) REPEAL OF SUPERSEDED PROVISIONS.—Section
208(a) of the Public Health Service Act (42 U.S.C.
210(a)) is amended—
(1) by striking paragraphs (2) and (3); and
(2) by inserting after paragraph (1) the fol-
lowing new paragraph (2):
‘‘(2) For provisions relating to the receipt of special
pay by commissioned officers of the Regular and Reserve
Corps while on active duty, see section 303a(b) of title
37, United States Code.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 641. ADVANCE PAYMENTS FOR TEMPORARY LODGING
OF MEMBERS AND DEPENDENTS.
(a) SUBSISTENCE EXPENSES.— Section 404a of title
37, United States Code, is amended—
(1) by redesignating subsections (b) and (c) as
subsections (d) and (e), respectively; and
385
(2) by striking subsection (a) and inserting the
following:
‘‘(a) PAYMENT OR REIMBURSEMENT OF SUBSIST-
ENCE EXPENSES.—(1) Under regulations prescribed by
the Secretaries concerned, a member of a uniformed serv-
ice who is ordered to make a change of permanent station
described in paragraph (2) shall be paid or reimbursed for
subsistence expenses of the member and the member’s de-
pendents for the period (subject to subsection (c)) for
which the member and dependents occupy temporary
quarters incident to that change of permanent station.
‘‘(2) Paragraph (1) applies to the following:
‘‘(A) A permanent change of station from any
duty station to a duty station in the United States
(other than Hawaii or Alaska).
‘‘(B) A permanent change of station from a
duty station in the United States (other than Hawaii
or Alaska) to a duty station outside the United
States or in Hawaii or Alaska.
‘‘(C) In the case of an enlisted member who is
reporting to the member’s first permanent duty sta-
tion, the change from the member’s home of record
or initial technical school to that first permanent
duty station.
386
‘‘(b) PAYMENT IN ADVANCE.—The Secretary con-
cerned may make any payment for subsistence expenses
to a member under this section in advance of the member
actually incurring the expenses. The amount of an advance
payment made to a member shall be computed on the basis
of the Secretary’s determination of the average number
of days that members and their dependents occupy tem-
porary quarters under the circumstances applicable to the
member and the member’s dependents.
‘‘(c) MAXIMUM PAYMENT PERIOD.—(1) In the case
of a change of permanent station described in subpara-
graph (A) or (C) of subsection (a)(2), the period for which
subsistence expenses are to be paid or reimbursed under
this section may not exceed 10 days.
‘‘(2) In the case of a change of permanent station
described in subsection (a)(2)(B)—
‘‘(A) the period for which such expenses are to
be paid or reimbursed under this section may not ex-
ceed five days; and
‘‘(B) such payment or reimbursement may be
provided only for expenses incurred before leaving
the United States (other than Hawaii or Alaska).’’.
(b) PER DIEM.—Section 405 of such title is amended
to read as follows:
387
‘‘§ 405. Travel and transportation allowances: per
diem while on duty outside the United
States or in Hawaii or Alaska
‘‘(a) PER DIEM AUTHORIZED.—Without regard to
the monetary limitation of this title, the Secretary con-
cerned may pay a per diem to a member of the uniformed
services who is on duty outside of the United States or
in Hawaii or Alaska, whether or not the member is in a
travel status. The Secretary may pay the per diem in ad-
vance of the accrual of the per diem.
‘‘(b) DETERMINATION
OF PER DIEM.—In deter-
mining the per diem to be paid under this section, the
Secretary concerned shall consider all elements of the cost
of living to members of the uniformed services under the
Secretary’s jurisdiction and their dependents, including
the cost of quarters, subsistence, and other necessary inci-
dental expenses. However, dependents may not be consid-
ered in determining the per diem allowance for a member
in a travel status.
‘‘(c) TREATMENT OF HOUSING COST AND ALLOW-
ANCE.—Housing cost and allowance may be disregarded
in prescribing a station cost of living allowance under this
section.’’.
(c) STYLISTIC AMENDMENTS.—Section 404a of such
title is further amended—
388
(1) in subsection (d), as redesignated by sub-
section (a), by striking ‘‘(d)’’ and inserting ‘‘(d)
DAILY SUBSISTENCE RATES.—’’; and
(2) in subsection (e), as redesignated by sub-
section (a), by striking ‘‘(e)’’ and inserting ‘‘(e)
MAXIMUM DAILY PAYMENT.—’’.
SEC. 642. ADDITIONAL TRANSPORTATION ALLOWANCE RE-
GARDING BAGGAGE AND HOUSEHOLD EF-
FECTS.
(a) PET QUARANTINE FEES.—Section 406(a)(1) of
title 37, United States Code, is amended by adding at the
end the following new sentence: ‘‘The Secretary concerned
may also reimburse the member for mandatory pet quar-
antine fees for household pets, but not to exceed $275 per
change of station, when the member incurs the fees inci-
dent to such change of station.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect October 1, 2000.
SEC. 643. INCENTIVE FOR SHIPPING AND STORING HOUSE-
HOLD 
GOODS 
IN 
LESS 
THAN 
AVERAGE
WEIGHTS.
Section 406(b)(1) of title 37, United States Code, is
amended by adding at the end the following new subpara-
graph:
389
‘‘(G) Under regulations prescribed by the Secretary
of Defense, the Secretary concerned may pay a member
a share (determined pursuant to such regulations) of the
savings resulting to the United States when the total
weights of the member’s baggage and household effects
shipped and stored under subparagraph (A) are less than
the average weights of the baggage and household effects
that are shipped and stored, respectively, by other mem-
bers in the same grade and with the same dependents sta-
tus as the member in connection with changes of station
that are comparable to the member’s change of station.
The total savings shall be equal to the difference between
the cost of shipping and cost of storing such average
weights of baggage and household effects, respectively,
and the corresponding costs associated with the weights
of the member’s baggage and household effects. For the
administration of this subparagraph, the Secretary of De-
fense shall annually determine the average weights of bag-
gage and household effects shipped and stored in connec-
tion with a change of temporary or permanent station.’’.
SEC. 644. EQUITABLE DISLOCATION ALLOWANCES FOR
JUNIOR ENLISTED MEMBERS.
Section 407(c)(1) of title 37, United States Code, is
amended by inserting before the period at the end the fol-
lowing: ‘‘, except that the Secretary concerned may not
390
differentiate between members with dependents in pay
grades E–1 through E–5’’.
SEC. 645. AUTHORITY TO REIMBURSE MILITARY RECRUIT-
ERS, SENIOR ROTC CADRE, AND MILITARY
ENTRANCE PROCESSING PERSONNEL FOR
CERTAIN PARKING EXPENSES.
(a) REIMBURSEMENT AUTHORITY.—Chapter 7 of
title 37, United States Code, is amended by inserting after
section 411h the following new section:
‘‘§ 411i. Travel and transportation allowances: park-
ing expenses
‘‘(a) REIMBURSEMENT AUTHORITY.—Under regula-
tions prescribed by the Secretary of Defense, the Secretary
of a military department may reimburse eligible Depart-
ment of Defense personnel for expenses incurred after Oc-
tober 1, 2001, for parking a privately owned vehicle at
a place of duty described in subsection (b).
‘‘(b) ELIGIBILITY.—A member of the Army, Navy,
Air Force, or Marine Corps or an employee of the Depart-
ment of Defense may be reimbursed under subsection (a)
for parking expenses while—
‘‘(1) assigned to duty as a recruiter for any of
the armed forces;
‘‘(2) assigned to duty at a military entrance
processing facility of the armed forces; or
391
‘‘(3) detailed for instructional and administra-
tive duties at any institution where a unit of the
Senior Reserve Officers’ Training Corps is main-
tained.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 411h the following new
item:
‘‘411i. Travel and transportation allowances: parking expenses.’’.
SEC. 646. EXPANSION OF FUNDED STUDENT TRAVEL FOR
DEPENDENTS.
Section 430 of title 37, United States Code, is
amended—
(1) in subsections (a)(3) and (b)(1), by striking
‘‘for the purpose of obtaining a secondary or under-
graduate college education’’ and inserting ‘‘for the
purpose of obtaining a formal education’’; and
(2) in subsection (f)—
(A) by striking ‘‘In this section, the term’’
and inserting the following:
‘‘In this section:
‘‘(1) The term’’; and
(B) by adding at the end the following new
subparagraph:
‘‘(2) The term ‘formal education’ means the fol-
lowing:
392
‘‘(A) A secondary education.
‘‘(B) An undergraduate college education.
‘‘(C) A graduate education pursued on a
full-time basis at an institution of higher edu-
cation (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)).
‘‘(D) Vocational education pursued on a
full-time basis at a post-secondary vocational
institution (as defined in section 102(c) of the
Higher Education Act of 1965 (20 U.S.C.
1002(c))).’’.
Subtitle D—Retirement and
Survivor Benefit Matters
SEC. 651. EXCEPTION TO HIGH-36 MONTH RETIRED PAY
COMPUTATION FOR MEMBERS RETIRED FOL-
LOWING A DISCIPLINARY REDUCTION IN
GRADE.
Section 1407 of title 10, United States Code, is
amended—
(1) in subsection (b), by striking ‘‘The retired
pay base’’ and inserting ‘‘Except as provided in sub-
section (f), the retired pay base’’; and
(2) by adding at the end the following new sub-
section:
393
‘‘(f) EXCEPTION FOR ENLISTED MEMBERS REDUCED
IN GRADE AND OFFICERS WHO DO NOT SERVE SATIS-
FACTORILY IN HIGHEST GRADE HELD.—
‘‘(1) COMPUTATION
BASED
ON
PRE-HIGH-
THREE RULES.—In the case of a member or former
member described in paragraph (2), the retired pay
base or retainer pay base is determined under sec-
tion 1406 of this title in the same manner as if the
member or former member first became a member
of a uniformed service before September 8, 1980.
‘‘(2) AFFECTED
MEMBERS.—A member or
former member referred to in paragraph (1) is a
member or former member who by reason of conduct
occurring after the date of the enactment of this
subsection—
‘‘(A) in the case of a member retired in an
enlisted grade or transferred to the Fleet Re-
serve or Fleet Marine Corps Reserve, was at
any time reduced in grade as the result of a
court-martial sentence, nonjudicial punishment,
or an administrative action, unless the member
was subsequently promoted to a higher enlisted
grade or appointed to a commissioned or war-
rant grade; and
394
‘‘(B) in the case of an officer, is retired in
a grade lower than the highest grade in which
served by reason of denial of a determination or
certification under section 1370 of this title
that the officer served on active duty satisfac-
torily in that grade.
‘‘(3) SPECIAL
RULE
FOR
ENLISTED
MEM-
BERS.—In the case of a member who retires within
three years after having been reduced in grade as
described in paragraph (2)(A), who retires in an en-
listed grade that is lower than the grade from which
reduced, and who would be subject to paragraph (1)
but for a subsequent promotion to a higher enlisted
grade or a subsequent appointment to a warrant or
commissioned grade, the rates of basic pay used in
the computation of the member’s high-36 average
for the period of the member’s service in a grade
higher than the grade in which retired shall be the
rates of pay that would apply if the member had
been serving for that period in the grade in which
retired.’’.
395
SEC. 652. INCREASE IN MAXIMUM NUMBER OF RESERVE
RETIREMENT POINTS THAT MAY BE CRED-
ITED IN ANY YEAR.
Section 12733(3) of title 10, United States Code, is
amended by striking ‘‘but not more than’’ and all that
follows and inserting ‘‘but not more than—
‘‘(A) 60 days in any one year of service be-
fore the year of service that includes September
23, 1996;
‘‘(B) 75 days in the year of service that in-
cludes September 23, 1996, and in any subse-
quent year of service before the year of service
that includes the date of the enactment of the
Floyd D. Spence National Defense Authoriza-
tion Act for Fiscal Year 2001; and
‘‘(C) 90 days in the year of service that in-
cludes the date of the enactment of the Floyd
D. Spence National Defense Authorization Act
for Fiscal Year 2001 and in any subsequent
year of service.’’.
SEC. 653. RETIREMENT FROM ACTIVE RESERVE SERVICE
AFTER REGULAR RETIREMENT.
(a) CONVERSION TO RESERVE RETIREMENT.—(1)
Chapter 1223 of title 10, United States Code, is amended
by adding at the end the following new section:
397
‘‘(c) TIME AND FORM OF ELECTION.—An election
under subsection (b) shall be made within such time and
in such form as the Secretary concerned requires.
‘‘(d) EFFECTIVE DATE OF ELECTION.—An election
made by a person under subsection (b) shall be effective—
‘‘(1) except as provided in paragraph (2)(B), as
of the date on which the person attains 60 years of
age, if the Secretary concerned receives the election
in accordance with this section within 180 days after
that date; or
‘‘(2) on the first day of the first month that be-
gins after the date on which the Secretary concerned
receives the election in accordance with this section,
if—
‘‘(A) the date of the receipt of the election
is more than 180 days after the date on which
the person attains 60 years of age; or
‘‘(B) the person retires from service in an
active status within that 180-day period.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘12741. Retirement from active service performed after regular retirement.’’.
(b) EFFECTIVE DATE.—Section 12741 of title 10,
United States Code, as added by subsection (a), shall take
effect 180 days after the date of the enactment of this
398
Act and shall apply with respect to retired pay payable
for months beginning on of after that effective date.
SEC. 654. SAME TREATMENT FOR FEDERAL JUDGES AS FOR
OTHER 
FEDERAL 
OFFICIALS 
REGARDING
PAYMENT OF MILITARY RETIRED PAY.
(a) ARTICLE III JUDGES.—(1) Section 371 of title
28, United States Code, is amended—
(A) by striking subsection (e); and
(B) by redesignating subsection (f) as sub-
section (e).
(2) Subsection (b) of such section is amended by
striking ‘‘subsection (f)’’ each place it appears and insert-
ing ‘‘subsection (e)’’.
(b) JUDGES OF UNITED STATES COURT OF FED-
ERAL CLAIMS.—(1) Section 180 of title 28, United States
Code, is repealed.
(2) The table of sections at the beginning of chapter
7 of such title is amended by striking the item relating
to section 180.
(c) RETROACTIVE EFFECTIVE DATE.—The amend-
ments made by this section shall take effect as of October
1, 1999.
399
SEC. 655. RESERVE COMPONENT SURVIVOR BENEFIT PLAN
SPOUSAL CONSENT REQUIREMENT.
(a) ELIGIBLE PARTICIPANTS.—Subsection (a)(2)(B)
of section 1448 of title 10, United States Code, is amend-
ed to read as follows:
‘‘(B) RESERVE-COMPONENT ANNUITY PAR-
TICIPANTS.—A person who (i) is eligible to par-
ticipate in the Plan under paragraph (1)(B),
and (ii) is married or has a dependent child
when he is notified under section 12731(d) of
this title that he has completed the years of
service required for eligibility for reserve-compo-
nent retired pay, unless the person elects (with
his spouse’s concurrence, if required under
paragraph (3)) not to participate in the Plan
before the end of the 90-day period beginning
on the date on which he receives that notifica-
tion.’’.
(b) SUBSEQUENT ELECTION TO PARTICIPATE.—
Subsection (a)(3)(B) of such section is amended—
(1) by striking ‘‘who elects to provide’’ and in-
serting ‘‘who is eligible to provide’’;
(2) by redesignating clauses (i) and (ii) as
clauses (iii) and (iv), respectively; and
(3) by inserting before clause (iii) (as so redes-
ignated) the following new clauses:
400
‘‘(i) not to participate in the Plan;
‘‘(ii) to designate under subsection
(e)(2) the effective date for commencement
of annuity payments under the Plan in the
event that the member dies before becom-
ing 60 years of age to be the 60th anniver-
sary of the member’s birth (rather than
the day after the date of the member’s
death);’’.
(c) CONFORMING AMENDMENTS.—Subchapter II of
chapter 73 of such title is further amended—
(1) in section 1448(a)(2), by striking ‘‘de-
scribed in clauses (i) and (ii)’’ in the sentence fol-
lowing subparagraph (B) (as amended by subsection
(a)) and all that follows through ‘‘that clause’’ and
inserting ‘‘who elects under subparagraph (B) not to
participate in the Plan’’;
(2) in section 1448(a)(4)—
(A) by striking ‘‘not to participate in the
Plan’’ in subparagraph (A); and
(B) by striking ‘‘to participate in the
Plan’’ in subparagraph (B);
(3) in section 1448(e), by striking ‘‘a person
electing to participate’’ and all that follows through
‘‘making such election’’ and inserting ‘‘a person is
401
required to make a designation under this sub-
section, the person’’; and
(4) in section 1450(j)(1), by striking ‘‘An annu-
ity’’ and all that follows through the period and in-
serting ‘‘A reserve-component annuity shall be effec-
tive in accordance with the designation made under
section 1448(e) of this title by the person providing
the annuity.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section apply only with respect to a notification under
section 12731(d) of title 10, United States Code, made
after January 1, 2001, that a member of a reserve compo-
nent has completed the years of service required for eligi-
bility for reserve-component retired pay.
SEC. 656. SENSE OF CONGRESS ON INCREASING SURVIVOR
BENEFIT PLAN ANNUITIES FOR SURVIVING
SPOUSES AGE 62 OR OLDER.
(a) SENSE OF CONGRESS.—It is the sense of Con-
gress that, subject to the requirements and limitations of
congressional budget procedures relating to the enactment
of new (or increased) entitlement authority, there should
be enacted legislation that increases the annuities provided
under the Survivor Benefit Plan program for surviving
spouses who are 62 years of age or older in order to reduce
(and eventually eliminate) the different levels of annuities
402
under that program for surviving spouses who are under
age 62 and those who are 62 years of age and older.
(b) SURVIVOR BENEFIT PLAN.—For purposes of this
section, the term ‘‘Survivor Benefit Plan program’’ means
the program of annuities for survivors of members of the
uniformed services provided under subchapter II of chap-
ter 73 of title 10, United States Code.
SEC. 657. REVISION TO SPECIAL COMPENSATION AUTHOR-
ITY TO REPEAL EXCLUSION OF UNIFORMED
SERVICES RETIREES IN RECEIPT OF DIS-
ABILITY RETIRED PAY.
(a) ELIGIBILITY FOR CHAPTER 61 RETIREES.—Sec-
tion 1413(c) of title 10, United States Code, is amended
by striking ‘‘(other than a member who is retired under
chapter 61 of this title)’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on October 1, 2001, and
shall apply to months that begin on or after that date.
No benefit may be paid under section 1413 of title 10,
United States Code, to any person by reason of the
amendment made by subsection (a) for any period before
that date.
403
Subtitle E—Other Matters
SEC. 661. PARTICIPATION IN THRIFT SAVINGS PLAN.
(a) EFFECTIVE DATE OF AUTHORITY TO PARTICI-
PATE.—Section 663 of the National Defense Authoriza-
tion Act for Fiscal Year 2000 (Public Law 106–65; 113
Stat. 673; 5 U.S.C. 8440 note) is amended to read as fol-
lows:
‘‘SEC. 663. EFFECTIVE DATE.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), the amendments made by this subtitle shall take effect
180 days after the date of the enactment of the Floyd
D. Spence National Defense Authorization Act for Fiscal
Year 2001.
‘‘(b) POSTPONEMENT AUTHORITY.—(1) The Sec-
retary of Defense may postpone by up to 180 days after
the date that would otherwise apply under subsection
(a)—
‘‘(A) the date as of which the amendments
made by this subtitle shall take effect; or
‘‘(B) the date as of which section 211(a)(2) of
title 37, United States Code (as added by this sub-
title) shall take effect.
‘‘(2) Postponement authority under this subsection
may be exercised only to the extent that the failure to do
so would prevent the Federal Retirement Thrift Invest-
404
ment Board from being able to provide timely and accu-
rate services to investors or would place an excessive bur-
den on the administrative capacity of the Board to accom-
modate participants in the Thrift Savings Plan, as deter-
mined by the Secretary of Defense after consultation with
the Executive Director (appointed by the Board).
‘‘(3) Paragraph (1) includes the authority to post-
pone the effective date of the amendments made by this
subtitle (apart from section 211(a)(2) of title 37, United
States Code), and the effective date of such section
211(a)(2), by different lengths of time.
‘‘(4) The Secretary shall notify the congressional de-
fense committees, the Committee on Government Reform
of the House of Representatives, and the Committee on
Governmental Affairs of the Senate of any determination
made under this subsection.’’.
(b) REGULATIONS.—Section 661(b) of such Act (113
Stat. 672; 5 U.S.C. 8440e note) is amended by striking
‘‘the date on which’’ and all that follows through ‘‘later,’’
and inserting ‘‘the 180th day after the date of the enact-
ment of the Floyd D. Spence National Defense Authoriza-
tion Act for Fiscal Year 2001,’’.
(c) 
CONFORMING
AMENDMENT.—Section
8440e(b)(2)(B)(i) of title 5, United States Code, is
amended by striking ‘‘as of’’ and all that follows through
405
‘‘thereof)’’ and inserting ‘‘as of the effective date that ap-
plies with respect to such individual under section 663 of
the National Defense Authorization Act for Fiscal Year
2000’’.
SEC. 662. DETERMINATIONS OF INCOME ELIGIBILITY FOR
SPECIAL SUPPLEMENTAL FOOD PROGRAM.
Section 1060a(c)(1)(B) of title 10, United States
Code, is amended by striking the second sentence and in-
serting the following new sentence: ‘‘In the application of
such criterion, the Secretary shall exclude from income
any basic allowance for housing as permitted under section
17(d)(2)(B) of the Child Nutrition Act of 1966 (42 U.S.C.
1786(d)(2)(B)).’’.
SEC. 663. BILLETING SERVICES FOR RESERVE MEMBERS
TRAVELING FOR INACTIVE-DUTY TRAINING.
(a) IN GENERAL.—(1) Chapter 1217 of title 10,
United States Code, is amended by inserting after section
12603 the following new section:
‘‘§ 12604. Billeting in Department of Defense facili-
ties: Reserves attending inactive-duty
training
‘‘(a) AUTHORITY FOR BILLETING ON SAME BASIS AS
ACTIVE DUTY MEMBERS TRAVELING UNDER ORDERS.—
The Secretary of Defense shall prescribe regulations au-
thorizing a Reserve traveling to inactive-duty training at
406
a location more than 50 miles from that Reserve’s resi-
dence to be eligible for billeting in Department of Defense
facilities on the same basis and to the same extent as a
member of the armed forces on active duty who is trav-
eling under orders away from the member’s permanent
duty station.
‘‘(b) PROOF OF REASON FOR TRAVEL.—The Sec-
retary shall include in the regulations the means for con-
firming a Reserve’s eligibility for billeting under sub-
section (a).’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 12603 the following new item:
‘‘12604. Billeting in Department of Defense facilities: Reserves attending inac-
tive-duty training.’’.
(b) EFFECTIVE DATE.—Section 12604 of title 10,
United States Code, as added by subsection (a), shall
apply with respect to periods of inactive-duty training be-
ginning more than 180 days after the date of the enact-
ment of this Act.
SEC. 664. SETTLEMENT OF CLAIMS FOR PAYMENTS FOR
UNUSED ACCRUED LEAVE AND FOR RETIRED
PAY.
(a) CLAIMS FOR PAYMENTS FOR UNUSED ACCRUED
LEAVE.—Subsection (a)(1)(A) of section 3702 of title 31,
407
United States Code, is amended by inserting ‘‘payments
for unused accrued leave,’’ after ‘‘transportation,’’.
(b) WAIVER
OF TIME LIMITATIONS.—Subsection
(e)(1) of such section is amended by striking ‘‘claim for
pay or allowances provided under title 37’’ and inserting
‘‘claim for pay, allowances, or payment for unused accrued
leave under title 37 or a claim for retired pay under title
10’’.
SEC. 665. ADDITIONAL BENEFITS AND PROTECTIONS FOR
PERSONNEL INCURRING INJURY, ILLNESS,
OR DISEASE IN THE PERFORMANCE OF FU-
NERAL HONORS DUTY.
(a) INCAPACITATION PAY.—Section 204 of title 37,
United States Code, is amended—
(1) in subsection (g)(1)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (C);
(B) by striking the period at the end of
subparagraph (D) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(E) in line of duty while—
‘‘(i) serving on funeral honors duty under
section 12503 of title 10 or section 115 of title
32;
408
‘‘(ii) traveling to or from the place at
which the duty was to be performed; or
‘‘(iii) remaining overnight at or in the vi-
cinity of that place immediately before so serv-
ing, if the place is outside reasonable com-
muting distance from the member’s residence.’’;
and
(2) in subsection (h)(1)—
(A) by striking ‘‘or’’ at the end of subpara-
graph (C);
(B) by striking the period at the end of
subparagraph (D) and inserting ‘‘; or’’; and
(C) by adding at the end the following:
‘‘(E) in line of duty while—
‘‘(i) serving on funeral honors duty under
section 12503 of title 10 or section 115 of title
32;
‘‘(ii) traveling to or from the place at
which the duty was to be performed; or
‘‘(iii) remaining overnight at or in the vi-
cinity of that place immediately before so serv-
ing, if the place is outside reasonable com-
muting distance from the member’s residence.’’.
(b) TORT CLAIMS.—Section 2671 of title 28, United
States Code, is amended by inserting ‘‘115,’’ in the second
409
paragraph after ‘‘members of the National Guard while
engaged in training or duty under section’’.
(c) APPLICABILITY.—(1) The amendments made by
subsection (a) shall apply with respect to months begin-
ning on or after the date of the enactment of this Act.
(2) The amendment made by subsection (b) shall
apply with respect to acts and omissions occurring before,
on, or after the date of the enactment of this Act.
SEC. 666. AUTHORITY FOR EXTENSION OF DEADLINE FOR
FILING CLAIMS ASSOCIATED WITH CAPTURE
AND INTERNMENT OF CERTAIN PERSONS BY
NORTH VIETNAM.
Section 657(d)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
Stat. 2585) is amended by adding at the end the following
new sentence: ‘‘The Secretary may, in the case of any
claim under this section, extend the time limitation under
the preceding sentence by up to 18 months if the Sec-
retary determines that such an extension in the case of
that claim is necessary to prevent an injustice or that fail-
ure of the claimant to file the claim within that time limi-
tation is due to excusable neglect.’’.
410
SEC. 667. BACK PAY FOR MEMBERS OF THE NAVY AND MA-
RINE CORPS SELECTED FOR PROMOTION
WHILE INTERNED AS PRISONERS OF WAR
DURING WORLD WAR II.
(a) ENTITLEMENT
OF
FORMER
PRISONERS
OF
WAR.—Upon receipt of a claim made in accordance with
this section, the Secretary of the Navy shall pay, from any
appropriation currently available to the Secretary, back
pay to any person who, by reason of being interned as
a prisoner of war while serving as a member of the Navy
or the Marine Corps during World War II, was not avail-
able to accept a promotion for which the person had been
selected.
(b) PAYMENT TO SURVIVING SPOUSE OF DECEASED
FORMER MEMBER.—In the case of a person described in
subsection (a) who is deceased, the back pay for that per-
son under this section shall be paid to the living surviving
spouse of that person, if any. If there is no living surviving
spouse, no claim may be paid under this section with re-
spect to that person.
(c) AMOUNT OF BACK PAY.—(1) The amount of back
pay payable to or for a person described in subsection (a)
is the amount equal to the difference between—
(A) the total amount of basic pay that would
have been paid to that person for service in the
Navy or the Marine Corps for the back-pay com-
411
putation period if the person had been promoted to
the grade to which selected to be promoted; and
(B) the total amount of basic pay that was ac-
tually paid to or for that person for such service for
the back-pay computation period.
(2) For purposes of paragraph (1), the back-pay com-
putation period for a person covered by subsection (a) is
the period—
(A) beginning on the date (as determined by
the Secretary of the Navy) as of when that person’s
promotion would have been effective for pay pur-
poses but for the person’s internment as a prisoner
of war; and
(B) ending on the earliest of—
(i) the date of the person’s discharge or re-
lease from active duty;
(ii) the date on which the person’s pro-
motion to that grade in fact became effective
for pay purposes; and
(iii) the end of World War II.
(d) TIME LIMITATIONS.—(1) To be eligible for a pay-
ment under this section, a claimant must file a claim for
such payment with the Secretary of the Navy within two
years after the effective date of the regulations prescribed
to carry out this section.
412
(2) Not later than 18 months after receiving a claim
for payment under this section, the Secretary shall deter-
mine the eligibility of the claimant for payment of the
claim. Subject to subsection (f), if the Secretary deter-
mines that the claimant is eligible for the payment, the
Secretary shall promptly pay the claim.
(e) REGULATIONS.—Not later than six months after
the date of the enactment of this Act, the Secretary of
the Navy shall prescribe regulations to carry out this sec-
tion. Such regulations shall include procedures by which
persons may submit claims for payment under this section.
(f) LIMITATION ON DISBURSEMENT.—(1) Notwith-
standing any power of attorney, assignment of interest,
contract, or other agreement, the actual disbursement of
a payment of back pay under this section may be made
only to a person who is eligible for the payment under
subsection (a) or (b).
(2) In the case of a claim approved for payment but
not disbursed as a result of paragraph (1), the Secretary
shall hold the funds in trust for the person in an interest
bearing account until such time as the person makes an
election under such paragraph.
(g) ATTORNEY FEES.—Notwithstanding any con-
tract, the representative of a person may not receive, for
services rendered in connection with the claim of, or with
413
respect to, a person under this section, more than 10 per-
cent of the amount of a payment made under this section
on that claim.
(h) OUTREACH.—The Secretary of the Navy shall
take such actions as are necessary to ensure that the bene-
fits and eligibility for benefits under this section are widely
publicized by means designed to provide actual notice of
the availability of the benefits in a timely manner to the
maximum number of eligible persons practicable.
(i) DEFINITION.—In this section, the term ‘‘World
War II’’ has the meaning given that term in section
101(8) of title 38, United States Code.
SEC. 668. SENSE OF CONGRESS CONCERNING FUNDING
FOR RESERVE COMPONENTS.
It is the sense of Congress that it is in the national
interest for the President, in the President’s Budget for
each fiscal year, to provide funds for the reserve compo-
nents of the Armed Forces at a level sufficient to ensure
that the reserve components are able to meet the require-
ments, including training requirements, specified for them
in the National Military Strategy.
TITLE VII—HEALTH CARE
PROVISIONS
Subtitle A—Health Care Services
Sec. 701. Provision of domiciliary and custodial care for CHAMPUS bene-
ficiaries and certain former CHAMPUS beneficiaries.
Sec. 702. Chiropractic health care for members on active duty.
414
Sec. 703. School-required physical examinations for certain minor dependents.
Sec. 704. Two-year extension of dental and medical benefits for surviving de-
pendents of certain deceased members.
Sec. 705. Two-year extension of authority for use of contract physicians at mili-
tary entrance processing stations and elsewhere outside medical
treatment facilities.
Sec. 706. Medical and dental care for Medal of Honor recipients.
Subtitle B—Senior Health Care
Sec. 711. Implementation of TRICARE senior pharmacy program.
Sec. 712. Conditions for eligibility for CHAMPUS and TRICARE upon the at-
tainment of age 65; expansion and modification of medicare
subvention project.
Sec. 713. Accrual funding for health care for medicare-eligible retirees and de-
pendents.
Subtitle C—TRICARE Program
Sec. 721. Improvement of access to health care under the TRICARE program.
Sec. 722. Additional beneficiaries under TRICARE Prime Remote program in
the continental United States.
Sec. 723. Modernization of TRICARE business practices and increase of use of
military treatment facilities.
Sec. 724. Extension of TRICARE managed care support contracts.
Sec. 725. Report on protections against health care providers seeking direct re-
imbursement from members of the uniformed services.
Sec. 726. Voluntary termination of enrollment in TRICARE retiree dental pro-
gram.
Sec. 727. Claims processing improvements.
Sec. 728. Prior authorizations for certain referrals and nonavailability-of-
health-care statements.
Subtitle D—Demonstration Projects
Sec. 731. Demonstration project for expanded access to mental health coun-
selors.
Sec. 732. Teleradiology demonstration project.
Sec. 733. Health care management demonstration program.
Subtitle E—Joint Initiatives With Department of Veterans
Affairs
Sec. 741. VA-DOD sharing agreements for health services.
Sec. 742. Processes for patient safety in military and veterans health care sys-
tems.
Sec. 743. Cooperation in developing pharmaceutical identification technology.
Subtitle F—Other Matters
Sec. 751. Management of anthrax vaccine immunization program.
Sec. 752. Elimination of copayments for immediate family.
Sec. 753. Medical informatics.
Sec. 754. Patient care reporting and management system.
Sec. 755. Augmentation of Army Medical Department by detailing Reserve offi-
cers of the Public Health Service.
Sec. 756. Privacy of Department of Defense medical records.
415
Sec. 757. Authority to establish special locality-based reimbursement rates; re-
ports.
Sec. 758. Reimbursement for certain travel expenses.
Sec. 759. Reduction of cap on payments.
Sec. 760. Training in health care management and administration.
Sec. 761. Studies on feasibility of sharing biomedical research facility.
Sec. 762. Study on comparability of coverage for physical, speech, and occupa-
tional therapies.
Subtitle A—Health Care Services
SEC. 701. PROVISION OF DOMICILIARY AND CUSTODIAL
CARE FOR CHAMPUS BENEFICIARIES AND
CERTAIN FORMER CHAMPUS BENEFICIARIES.
(a) 
CONTINUATION
OF
CARE
FOR
CERTAIN
CHAMPUS BENEFICIARIES.—Section 703(a)(1) of the
National Defense Authorization Act for Fiscal Year 2000
(Public Law 106–65; 113 Stat. 682; 10 U.S.C. 1077 note)
is amended by inserting before the period at the end the
following: ‘‘or by the prohibition in section 1086(d)(1) of
such title’’.
(b) REIMBURSEMENT FOR SERVICES PROVIDED.—
Section 703(a) of such Act is further amended by adding
at the end the following new paragraph:
‘‘(4) The Secretary may provide payment for domi-
ciliary or custodial care services provided to an eligible
beneficiary for which payment was discontinued by reason
of section 1086(d) of title 10, United States Code, and
subsequently reestablished under other legal authority.
Such payment is authorized for the period beginning on
the date of discontinuation of payment for domiciliary or
416
custodial care services and ending on the date of reestab-
lishment of payment for such services.’’.
(c) COST LIMITATION FOR INDIVIDUAL CASE MAN-
AGEMENT PROGRAM.—(1) Section 1079(a)(17) of title 10,
United States Code, is amended—
(A) by inserting ‘‘(A)’’ after ‘‘(17)’’; and
(B) by adding at the end the following:
‘‘(B) The total amount expended under sub-
paragraph (A) for a fiscal year may not exceed
$100,000,000.’’.
(2) Section 703 of the National Defense Authoriza-
tion Act for Fiscal Year 2000 is further amended by add-
ing at the end the following:
‘‘(e) COST LIMITATION.—The total amount paid for
services for eligible beneficiaries under subsection (a) for
a fiscal year (together with the costs of administering the
authority under that subsection) shall be included in the
expenditures limited by section 1079(a)(17)(B) of title 10,
United States Code.’’.
(3) The amendments made by paragraphs (1) and (2)
shall apply to fiscal years after fiscal year 1999.
(d) STUDY REQUIRED.—(1) Not later than the date
that is three months after the date of the enactment of
this Act, the Comptroller General of the United States
shall undertake a study to evaluate the coordination and
417
effectiveness of the supplemental disability health care
programs of the Department of Defense, the Program for
Persons with Disabilities and the Individual Case Manage-
ment Program for Persons with Disabilities, as such pro-
grams relate to other elements of the TRICARE program
in meeting the health care needs of disabled dependents
of members of the Armed Forces on active duty. The
Comptroller General shall examine—
(A) the number of such dependents who receive
services under the Program for Persons with Dis-
abilities, and the number of beneficiaries receiving
care under the Individual Case Management Pro-
gram for Persons with Disabilities, and a description
of the patterns of use and expenditures for services
provided under such programs;
(B) the effectiveness of the existing system for
coordinating the provision of services under the
TRICARE program and the supplemental disability
programs of the Department of Defense, including
the comprehensiveness of services and the cost effec-
tiveness of providing services;
(C) the extent to which the monthly maximum
benefit imposed under current law under the Pro-
gram for Persons with Disabilities affects the ability
of beneficiaries to obtain needed health care services;
418
(D) the number of beneficiaries who are receiv-
ing services that supplement services to the
TRICARE program under the Program for Persons
with Disabilities and the Individual Case Manage-
ment Program for Persons with Disabilities; and
(E) the extent to which costs or lack of cov-
erage for health care services for disabled depend-
ents of members of the Armed Forces on active duty
under existing military health care programs has
caused increased enrollment of such dependents in
medicaid programs.
(2) Not later than April 16, 2001, the Comptroller
General shall submit to Congress a report on the results
of the study under this section, including recommenda-
tions for legislative or administrative changes for pro-
viding a comprehensive, efficient, and complete system of
health care services for disabled dependents of members
of the Armed Forces on active duty.
SEC. 702. CHIROPRACTIC HEALTH CARE FOR MEMBERS ON
ACTIVE DUTY.
(a) PLAN REQUIRED.—(1) Not later than March 31,
2001, the Secretary of Defense shall complete develop-
ment of a plan to provide chiropractic health care services
and benefits, as a permanent part of the Defense Health
Program (including the TRICARE program), for all mem-
419
bers of the uniformed services who are entitled to care
under section 1074(a) of title 10, United States Code.
(2) The plan shall provide for the following:
(A) Access, at designated military medical
treatment facilities, to the scope of chiropractic serv-
ices as determined by the Secretary, which includes,
at a minimum, care for neuro-musculoskeletal condi-
tions typical among military personnel on active
duty.
(B) A detailed analysis of the projected costs of
fully integrating chiropractic health care services
into the military health care system.
(C) An examination of the proposed military
medical treatment facilities at which such services
would be provided.
(D) An examination of the military readiness
requirements for chiropractors who would provide
such services.
(E) An examination of any other relevant fac-
tors that the Secretary considers appropriate.
(F) Phased-in implementation of the plan over
a 5-year period, beginning on October 1, 2001.
(b) CONSULTATION REQUIREMENTS.—The Secretary
of Defense shall consult with the other administering Sec-
retaries described in section 1073 of title 10, United
420
States Code, and the oversight advisory committee estab-
lished under section 731 of the National Defense Author-
ization Act for Fiscal Year 1995 (Public Law 103–337;
10 U.S.C. 1092 note) regarding the following:
(1) The development and implementation of the
plan required under subsection (a).
(2) Each report that the Secretary is required
to submit to Congress regarding the plan.
(3) The selection of the military medical treat-
ment facilities at which the chiropractic services de-
scribed in subsection (a)(2)(A) are to be provided.
(c) CONTINUATION OF CURRENT SERVICES.—Until
the plan required under subsection (a) is implemented, the
Secretary shall continue to furnish the same level of chiro-
practic health care services and benefits under the Defense
Health Program that is provided during fiscal year 2000
at military medical treatment facilities that provide such
services and benefits.
(d) REPORT REQUIRED.—Not later than January 31,
2001, the Secretary of Defense shall submit a report on
the plan required under subsection (a), together with ap-
propriate appendices and attachments, to the Committees
on Armed Services of the Senate and the House of Rep-
resentatives.
421
(e) GAO REPORTS.—The Comptroller General shall
monitor the development and implementation of the plan
required under subsection (a), including the administra-
tion of services and benefits under the plan, and periodi-
cally submit to the committees referred to in subsection
(d) written reports on such development and implementa-
tion.
SEC. 703. SCHOOL-REQUIRED PHYSICAL EXAMINATIONS
FOR CERTAIN MINOR DEPENDENTS.
Section 1076 of title 10, United States Code is
amended by adding at the end the following:
‘‘(f)(1) The administering Secretaries shall furnish
an eligible dependent a physical examination that is re-
quired by a school in connection with the enrollment of
the dependent as a student in that school.
‘‘(2) A dependent is eligible for a physical examina-
tion under paragraph (1) if the dependent—
‘‘(A) is entitled to receive medical care under
subsection (a) or is authorized to receive medical
care under subsection (b); and
‘‘(B) is at least 5 years of age and less than 12
years of age.
‘‘(3) Nothing in paragraph (2) may be construed to
prohibit the furnishing of a school-required physical exam-
ination to any dependent who, except for not satisfying
422
the age requirement under that paragraph, would other-
wise be eligible for a physical examination required to be
furnished under this subsection.’’.
SEC. 704. TWO-YEAR EXTENSION OF DENTAL AND MEDICAL
BENEFITS FOR SURVIVING DEPENDENTS OF
CERTAIN DECEASED MEMBERS.
(a) DENTAL BENEFITS.—Section 1076a(k)(2) of title
10, United States Code, is amended by striking ‘‘one-year
period’’ and inserting ‘‘three-year period’’.
(b) MEDICAL BENEFITS.—Section 1079(g) of title
10, United States Code, is amended by striking ‘‘one-year
period’’ in the second sentence and inserting ‘‘three-year
period’’.
SEC. 705. TWO-YEAR EXTENSION OF AUTHORITY FOR USE
OF CONTRACT PHYSICIANS AT MILITARY EN-
TRANCE PROCESSING STATIONS AND ELSE-
WHERE OUTSIDE MEDICAL TREATMENT FA-
CILITIES.
Section 1091(a)(2) of title 10, United States Code,
is amended by striking ‘‘December 31, 2000’’ in the sec-
ond sentence and inserting ‘‘December 31, 2002’’.
423
SEC. 706. MEDICAL AND DENTAL CARE FOR MEDAL OF
HONOR RECIPIENTS.
(a) IN GENERAL.—(1) Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074g
the following new section:
‘‘§ 1074h. Medical and dental care: medal of honor re-
cipients; dependents
‘‘(a) MEDAL
OF HONOR RECIPIENTS.—A former
member of the armed forces who is a Medal of Honor re-
cipient and who is not otherwise entitled to medical and
dental benefits under this chapter may, upon request, be
given medical and dental care provided by the admin-
istering Secretaries in the same manner as if entitled to
retired pay.
‘‘(b) IMMEDIATE DEPENDENTS.—A person who is an
immediate dependent of a Medal of Honor recipient and
who is not otherwise entitled to medical and dental bene-
fits under this chapter may, upon request, be given med-
ical and dental care provided by the administering Secre-
taries in the same manner as if the Medal of Honor recipi-
ent were, or (if deceased) was at the time of death, entitled
to retired pay.
‘‘(c) DEFINITIONS—In this section:
‘‘(1) The term ‘Medal of Honor recipient’
means a person who has been awarded a medal of
424
honor under section 3741, 6241, or 8741 of this
title or section 491 of title 14.
‘‘(2) The term ‘immediate dependent’ means a
dependent described in subparagraph (A), (B), (C),
or (D) of section 1072(2) of this title.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1074g the following new item:
‘‘1074h. Medical and dental care: medal of honor recipients; dependents.’’.
(b) EFFECTIVE DATE.—Section 1074h of title 10,
United States Code, shall apply with respect to medical
and dental care provided on or after the date of the enact-
ment of this Act.
Subtitle B—Senior Health Care
SEC. 711. IMPLEMENTATION OF TRICARE SENIOR PHAR-
MACY PROGRAM.
(a) EXPANSION OF TRICARE SENIOR PHARMACY
PROGRAM.—Section 723 of the Strom Thurmond Na-
tional Defense Authorization Act for Fiscal Year 1999
(Public Law 105–261; 112 Stat. 2068; 10 U.S.C. 1073
note) is amended—
(1) in subsection (a)—
(A) by striking ‘‘October 1, 1999’’ and in-
serting ‘‘April 1, 2001’’; and
(B) by striking ‘‘who reside in an area se-
lected under subsection (f)’’;
425
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b) PROGRAM REQUIREMENTS.—The same coverage
for pharmacy services and the same requirements for cost
sharing and reimbursement as are applicable under sec-
tion 1086 of title 10, United States Code, shall apply with
respect to the program required by subsection (a).’’;
(3) in subsection (d)—
(A) by striking ‘‘December 31, 2000’’ and
inserting ‘‘December 31, 2001’’; and
(B) by striking ‘‘December 31, 2002’’ and
inserting ‘‘December 31, 2003’’;
(4) in subsection (e)—
(A) in paragraph (1)—
(i) in subparagraph (B), by inserting
‘‘and’’ after the semicolon;
(ii) in subparagraph (C), by striking
‘‘; and’’ and inserting a period; and
(iii) by striking subparagraph (D);
and
(B) in paragraph (2), by striking ‘‘at the
time’’ and all that follows through ‘‘facility’’
and inserting ‘‘, before April 1, 2001, has at-
tained the age of 65 and did not enroll in the
program described in such paragraph’’; and
426
(5) by striking subsection (f).
(b) TERMINATION
OF DEMONSTRATION PROJECT
AND RETAIL PHARMACY NETWORK REQUIREMENTS.—
Section 702 of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 1079
note) is amended by adding at the end the following:
‘‘(h) TERMINATION.—This section shall cease to
apply to the Secretary of Defense on the date after the
implementation of section 711 of the Floyd D. Spence Na-
tional Defense Authorization Act for Fiscal Year 2001
that the Secretary determines appropriate, with a view to
minimizing instability with respect to the provision of
pharmacy benefits, but in no case later than the date that
is one year after the date of the enactment of such Act.’’.
SEC. 712. CONDITIONS FOR ELIGIBILITY FOR CHAMPUS
AND TRICARE UPON THE ATTAINMENT OF
AGE 65; EXPANSION AND MODIFICATION OF
MEDICARE SUBVENTION PROJECT.
(a) ELIGIBILITY
OF
MEDICARE
ELIGIBLE
PER-
SONS.—(1) Section 1086(d) of title 10, United States
Code, is amended—
(A) by striking paragraph (2) and inserting the
following:
‘‘(2) The prohibition contained in paragraph (1) shall
not apply to a person referred to in subsection (c) who—
427
‘‘(A) is enrolled in the supplementary medical
insurance program under part B of such title (42
U.S.C. 1395j et seq.); and
‘‘(B) in the case of a person under 65 years of
age, is entitled to hospital insurance benefits under
part A of title XVIII of the Social Security Act pur-
suant to subparagraph (A) or (C) of section
226(b)(2) of such Act (42 U.S.C. 426(b)(2)) or sec-
tion 226A(a) of such Act (42 U.S.C. 426–1(a)).’’;
and
(B) in paragraph (4), by striking ‘‘paragraph
(1) who satisfy only the criteria specified in subpara-
graphs (A) and (B) of paragraph (2), but not sub-
paragraph (C) of such paragraph,’’ and inserting
‘‘subparagraph (B) of paragraph (2) who do not sat-
isfy the condition specified in subparagraph (A) of
such paragraph’’.
(2) Subsection (a)(4)(A) of section 1896 of the Social
Security Act (42 U.S.C. 1395ggg) is amended to read as
follows:
‘‘(A) is eligible for health benefits under
section 1086 of such title by reason of sub-
section (c)(1) of such section;’’.
(3) The amendments made by paragraphs (1) and (2)
shall take effect on October 1, 2001.
428
(b) 1-YEAR EXTENSION OF MEDICARE SUBVENTION
PROJECT.—Section 1896 of the Social Security Act (42
U.S.C. 1395ggg) is amended—
(1) in subsection (b)(4), by striking ‘‘3-year pe-
riod’’ and inserting ‘‘4-year period’’; and
(2) in subsection (i)(4)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (B);
(B) by striking the period at the end of
subparagraph (C) and inserting ‘‘; and’’; and
(C) by adding at the end the following new
subparagraph:
‘‘(D) 
$70,000,000 
for 
calendar 
year
2001.’’.
(c) FURTHER
EXTENSION
OF
MEDICARE
SUB-
VENTION PROJECT.—(1) Subsection (b)(4) of section
1896 of the Social Security Act (42 U.S.C. 1395ggg) is
amended by striking the period at the end and inserting
the following: ‘‘, except that the administering Secretaries
may negotiate and (subject to section 701(f) of the Floyd
D. Spence National Defense Authorization Act for Fiscal
Year 2001) enter into a new or revised agreement under
paragraph (1)(A) to continue the project after the end of
such period. If the project is so continued, the admin-
istering Secretaries may terminate the agreement under
429
which the program operates after providing notice to Con-
gress in accordance with subsection (k)(2)(B)(v).’’.
(2) Such section is further amended—
(A) in the heading, by striking ‘‘DEMONSTRA-
TION PROJECT’’ and inserting ‘‘PROGRAM’’;
(B) by amending paragraph (2) of subsection
(a) to read as follows:
‘‘(2) PROGRAM.—The term ‘program’ means the pro-
gram carried out under this section.’’;
(C) by striking ‘‘DEMONSTRATION PROJECT’’
and ‘‘demonstration project’’ and ‘‘project’’ each
place each appears and inserting ‘‘PROGRAM’’, ‘‘pro-
gram’’, and ‘‘program’’ respectively ; and
(D) by striking ‘‘DEMONSTRATION’’ in the
heading of subsection (j)(1).
(3) Subsection (i)(4) of such section is amended to
read as follows:
‘‘(4) CAP ON AMOUNT.—The maximum aggre-
gate expenditures from the trust funds under this
subsection pursuant to the agreement entered into
between the administering Secretaries under sub-
section (b) for a fiscal year (before fiscal year 2006)
shall not exceed the amount agreed by the Secre-
taries to be the amount that would have been ex-
pended from the trust funds on beneficiaries who en-
430
roll in the program, had the program not been es-
tablished, plus the following:
‘‘(A) $35,000,000 for fiscal year 2002.
‘‘(B) $55,000,000 for fiscal year 2003.
‘‘(C) $75,000,000 for fiscal year 2004.
‘‘(D) $100,000,000 for fiscal year 2005.’’.
(d) AUTHORIZING PROGRAM EXPANSION AND MODI-
FICATIONS.—(1) Paragraph (2) of subsection (b) of such
section 1896 is amended to read as follows:
‘‘(2) LOCATION
OF
SITES.—Subject to sub-
section (k)(2)(B), the program shall be conducted in
any site that is designated jointly by the admin-
istering Secretaries.’’.
(2) Subsection (d)(2) of such section is amended by
inserting ‘‘, or (subject to subsection (k)(2)(B)) such com-
parable requirements as are included in the agreement
under subsection (b)(1)(A)’’ after ‘‘the following areas’’.
(3) Subsection (i) of such section is amended—
(A) in paragraph (2), by inserting ‘‘subject to
paragraph (4),’’ after ‘‘paragraph (1)’’; and
(B) by striking paragraph (4) and inserting the
following:
‘‘(4) MODIFICATION
OF
PAYMENT
METHOD-
OLOGY.—The administering Secretaries may, subject
to subsection (k)(2)(B), modify the payment meth-
431
odology provided under paragraphs (1) and (2) so
long as the amount of the reimbursement provided
to the Secretary of Defense fully reimburses the De-
partment of Defense for its cost of providing services
under the program but does not exceed an amount
that is estimated to be equivalent to the amount that
otherwise would have been expended under this title
for such services if provided other than under the
program (not including amounts described in para-
graph (2)). Such limiting amount may be based for
any site on the amount that would be payable to
Medicare+Choice organizations under part C for the
area of the site or the amounts that would be pay-
able under parts A and B.’’.
(e) CHANGE IN REPORTS.—Paragraph (2) of sub-
section (k) of such section 1896 is amended to read as
follows:
‘‘(2) REPORTS ON PROGRAM OPERATION AND
CHANGES.—
‘‘(A) 
ANNUAL
REPORT.—The 
admin-
istering Secretaries shall submit to the Commit-
tees on Armed Services and Finance of the Sen-
ate and the Committees on Armed Services and
Ways and Means of the House of Representa-
tives an annual report on the program and its
432
impact on costs and the provision of health
services under this title and title 10, United
States Code.
‘‘(B) BEFORE MAKING CERTAIN PROGRAM
CHANGES.—The administering Secretaries shall
submit to such Committees a report at least 60
days before—
‘‘(i) changing the designation of a site
under subsection (b)(2);
‘‘(ii) applying comparable require-
ments under subsection (d)(2);
‘‘(iii) making significant changes in
payment methodology or amounts under
subsection (i)(4);
‘‘(iv) making other significant changes
in the operation of the program; or
‘‘(v) terminating the agreement under
the second sentence of subsection (b)(4).
‘‘(C) EXPLANATION.—Each report under
subparagraph (B) shall include justifications for
the changes or termination to which the report
refers.’’.
(f) CONDITIONAL EFFECTIVE DATE.—(1) Upon ne-
gotiating an agreement under the amendment made by
subsection (c)(1), the Secretary of Defense and the Sec-
433
retary of Health and Human Services shall jointly trans-
mit a notification of the proposed agreement to the Com-
mittee on Armed Services and the Committee on Finance
of the Senate and the Committee on Armed Services and
the Committee on Ways and Means of the House of Rep-
resentatives, and shall include with the transmittal a copy
of the proposed agreement and all related agreements and
supporting documents.
(2) Such proposed agreement shall take effect, and
the amendments made by subsections (c)(2), (c)(3), (d),
and (e) shall take effect, on such date as is provided for
in such agreement and in an Act enacted after the date
of the enactment of this Act.
SEC. 713. ACCRUAL FUNDING FOR HEALTH CARE FOR
MEDICARE-ELIGIBLE 
RETIREES 
AND 
DE-
PENDENTS.
(a) ESTABLISHMENT OF FUND.—(1) Part II of sub-
title A of title 10, United States Code, is amended by in-
serting after chapter 55 the following new chapter:
‘‘CHAPTER 56—DEPARTMENT OF DEFENSE
MEDICARE-ELIGIBLE 
RETIREE
HEALTH CARE FUND
‘‘Sec.
‘‘1111.
Establishment and purpose of Fund; definitions.
‘‘1112.
Assets of Fund.
‘‘1113.
Payments from the Fund.
‘‘1114.
Board of Actuaries.
‘‘1115.
Determination of contributions to the Fund.
436
of three members who shall be appointed by the Secretary
of Defense from among qualified professional actuaries
who are members of the Society of Actuaries.
‘‘(2)(A) Except as provided in subparagraph (B), the
members of the Board shall serve for a term of 15 years,
except that a member of the Board appointed to fill a va-
cancy occurring before the end of the term for which his
predecessor was appointed shall only serve until the end
of such term. A member may serve after the end of his
term until his successor has taken office. A member of
the Board may be removed by the Secretary of Defense
for misconduct or failure to perform functions vested in
the Board, and for no other reason.
‘‘(B) Of the members of the Board who are first ap-
pointed under this paragraph, one each shall be appointed
for terms ending five, ten, and 15 years, respectively, after
the date of appointment, as designated by the Secretary
of Defense at the time of appointment.
‘‘(3) A member of the Board who is not otherwise
an employee of the United States is entitled to receive pay
at the daily equivalent of the annual rate of basic pay of
the highest rate of basic pay under the General Schedule
of subchapter III of chapter 53 of title 5, for each day
the member is engaged in the performance of duties vested
in the Board, and is entitled to travel expenses, including
437
a per diem allowance, in accordance with section 5703 of
title 5.
‘‘(b) The Board shall report to the Secretary of De-
fense annually on the actuarial status of the Fund and
shall furnish its advice and opinion on matters referred
to it by the Secretary.
‘‘(c) The Board shall review valuations of the Fund
under section 1115(c) of this title and shall report periodi-
cally, not less than once every four years, to the President
and Congress on the status of the Fund. The Board shall
include in such reports recommendations for such changes
as in the Board’s judgment are necessary to protect the
public interest and maintain the Fund on a sound actu-
arial basis.
‘‘§ 1115. Determination of contributions to the Fund
‘‘(a) The Board shall determine the amount that is
the present value (as of October 1, 2002) of future bene-
fits payable from the Fund that are attributable to service
in the uniformed services performed before October 1,
2002. That amount is the original unfunded liability of
the Fund. The Board shall determine the period of time
over which the original unfunded liability should be liq-
uidated and shall determine an amortization schedule for
the liquidation of such liability over that period. Contribu-
tions to the Fund for the liquidation of the original un-
438
funded liability in accordance with such schedule shall be
made as provided in section 1116(b) of this title.
‘‘(b)(1) The Secretary of Defense shall determine
each year, in sufficient time for inclusion in budget re-
quests for the following fiscal year, the total amount of
Department of Defense contributions to be made to the
Fund during that fiscal year under section 1116(a) of this
title. That amount shall be the sum of the following:
‘‘(A) The product of—
‘‘(i) the current estimate of the value of
the single level dollar amount to be determined
under subsection (c)(1)(A) at the time of the
next actuarial valuation under subsection (c);
and
‘‘(ii) the expected average force strength
during that fiscal year for members of the uni-
formed services on active duty (other than ac-
tive duty for training) and full-time National
Guard duty (other than full-time National
Guard duty for training only).
‘‘(B) The product of—
‘‘(i) the current estimate of the value of
the single level dollar amount to be determined
under subsection (c)(1)(B) at the time of the
439
next actuarial valuation under subsection (c);
and
‘‘(ii) the expected average force strength
during that fiscal year for members of the
Ready Reserve of the uniformed services other
than members on full-time National Guard duty
other than for training) who are not otherwise
described in subparagraph (A)(ii).
‘‘(2) The amount determined under paragraph (1) for
any fiscal year is the amount needed to be appropriated
to the Department of Defense for that fiscal year for pay-
ments to be made to the Fund during that year under
section 1116(a) of this title. The President shall include
not less than the full amount so determined in the budget
transmitted to Congress for that fiscal year under section
1105 of title 31. The President may comment and make
recommendations concerning any such amount.
‘‘(c)(1) Not less often than every four years, the Sec-
retary of Defense shall carry out an actuarial valuation
of the Fund. Each such actuarial valuation shall include—
‘‘(A) a determination (using the aggregate
entry-age normal cost method) of a single level dol-
lar amount for members of the uniformed services
on active duty (other than active duty for training)
440
or full-time National Guard duty (other than full-
time National Guard duty for training only); and
‘‘(B) a determination (using the aggregate
entry-age normal cost method) of a single level dol-
lar amount for members of the Ready Reserve of the
uniformed services and other than members on full-
time National Guard duty other than for training)
who are not otherwise described by subparagraph
(A).
Such single level dollar amounts shall be used for the pur-
poses of subsection (b) and section 1116(a) of this title.
‘‘(2) If at the time of any such valuation there has
been a change in benefits under the Department of De-
fense retiree health care programs for medicare-eligible
beneficiaries that has been made since the last such valu-
ation and such change in benefits increases or decreases
the present value of amounts payable from the Fund, the
Secretary of Defense shall determine an amortization
methodology and schedule for the amortization of the cu-
mulative unfunded liability (or actuarial gain to the Fund)
created by such change and any previous such changes
so that the present value of the sum of the amortization
payments (or reductions in payments that would otherwise
be made) equals the cumulative increase (or decrease) in
the present value of such amounts.
441
‘‘(3) If at the time of any such valuation the Sec-
retary of Defense determines that, based upon changes in
actuarial assumptions since the last valuation, there has
been an actuarial gain or loss to the Fund, the Secretary
shall determine an amortization methodology and schedule
for the amortization of the cumulative gain or loss to the
Fund created by such change in assumptions and any pre-
vious such changes in assumptions through an increase
or decrease in the payments that would otherwise be made
to the Fund.
‘‘(4) If at the time of any such valuation the Sec-
retary of Defense determines that, based upon the Fund’s
actuarial experience (other than resulting from changes in
benefits or actuarial assumptions) since the last valuation,
there has been an actuarial gain or loss to the Fund, the
Secretary shall determine an amortization methodology
and schedule for the amortization of the cumulative gain
or loss to the Fund created by such actuarial experience
and any previous actuarial experience through an increase
or decrease in the payments that would otherwise be made
to the Fund.
‘‘(5) Contributions to the Fund in accordance with
amortization schedules under paragraphs (2), (3), and (4)
shall be made as provided in section 1116(b) of this title.
442
‘‘(d) All determinations under this section shall be
made using methods and assumptions approved by the
Board of Actuaries (including assumptions of interest
rates and medical inflation) and in accordance with gen-
erally accepted actuarial principles and practices.
‘‘(e) The Secretary of Defense shall provide for the
keeping of such records as are necessary for determining
the actuarial status of the Fund.
‘‘§ 1116. Payments into the Fund
‘‘(a) The Secretary of Defense shall pay into the
Fund at the end of each month as the Department of De-
fense contribution to the Fund for that month the amount
that is the sum of the following:
‘‘(1) The product of—
‘‘(A) the monthly dollar amount deter-
mined using all the methods and assumptions
approved for the most recent (as of the first
day of the current fiscal year) actuarial valu-
ation under section 1115(c)(1)(A) of this title
(except that any statutory change in the De-
partment of Defense retiree health care pro-
grams for medicare-eligible beneficiaries that is
effective after the date of that valuation and on
or before the first day of the current fiscal year
shall be used in such determination); and
443
‘‘(B) the total end strength for that month
for members of the uniformed services on active
duty (other than active duty for training) and
full-time National Guard duty (other than full-
time National Guard duty for training only).
‘‘(2) The product of—
‘‘(A) the level monthly dollar amount de-
termined using all the methods and assump-
tions approved for the most recent (as of the
first day of the current fiscal year) actuarial
valuation under section 1115(c)(1)(B) of this
title (except that any statutory change in the
Department of Defense retiree health care pro-
grams for medicare-eligible beneficiaries that is
effective after the date of that valuation and on
or before the first day of the current fiscal year
shall be used in such determination); and
‘‘(B) the total end strength for that month
for members of the Ready Reserve of the uni-
formed services other than members on full-
time National Guard duty other than for train-
ing) who are not otherwise described in para-
graph (1)(B). Amounts paid into the Fund
under this subsection shall be paid from funds
available for the Defense Health Program.
444
‘‘(b)(1) At the beginning of each fiscal year the Sec-
retary of the Treasury shall promptly pay into the Fund
from the General Fund of the Treasury the amount cer-
tified to the Secretary by the Secretary of Defense under
paragraph (3). Such payment shall be the contribution to
the Fund for that fiscal year required by sections 1115(a)
and 1115(c) of this title.
‘‘(2) At the beginning of each fiscal year the Sec-
retary of Defense shall determine the sum of the following:
‘‘(A) The amount of the payment for that year
under the amortization schedule determined by the
Board of Actuaries under section 1115(a) of this
title for the amortization of the original unfunded li-
ability of the Fund.
‘‘(B) The amount (including any negative
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary of De-
fense under section 1115(c)(2) of this title for the
amortization of any cumulative unfunded liability (or
any gain) to the Fund resulting from changes in
benefits.
‘‘(C) The amount (including any negative
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary of De-
fense under section 1115(c)(3) of this title for the
445
amortization of any cumulative actuarial gain or loss
to the Fund resulting from actuarial assumption
changes.
‘‘(D) The amount (including any negative
amount) for that year under the most recent amorti-
zation schedule determined by the Secretary of De-
fense under section 111(c)(4) of this title for the
amortization of any cumulative actuarial gain or loss
to the Fund resulting from actuarial experience.
‘‘(3) The Secretary of Defense shall promptly certify
the amount determined under paragraph (2) each year to
the Secretary of the Treasury.
‘‘§ 1117. Investment of assets of Fund
‘‘The Secretary of the Treasury shall invest such por-
tion of the Fund as is not in the judgment of the Secretary
of Defense required to meet current withdrawals. Such in-
vestments shall be in public debt securities with maturities
suitable to the needs of the Fund, as determined by the
Secretary of Defense, and bearing interest at rates deter-
mined by the Secretary of the Treasury, taking into con-
sideration current market yields on outstanding market-
able obligations of the United States of comparable matu-
rities. The income on such investments shall be credited
to and form a part of the Fund.’’.
446
(2) The tables of chapters at the beginning of subtitle
A, and at the beginning of part II of subtitle A, of title
10, United States Code, are amended by inserting after
the item relating to chapter 55 the following new item:
‘‘56. Department of Defense Medicare-Eligible Retiree Health Care
Fund ...................................................................................................... 1111.’’.
(b) DELAYED EFFECTIVE DATES FOR CERTAIN PRO-
VISIONS.—(1) Sections 1113 and 1116 of title 10, United
States Code (as added by subsection (a)), shall take effect
on October 1, 2002.
(2) Section 1115 of such title (as added by such sub-
section) shall take effect on October 1, 2001.
Subtitle C—TRICARE Program
SEC. 721. IMPROVEMENT OF ACCESS TO HEALTH CARE
UNDER THE TRICARE PROGRAM.
(a) WAIVER OF NONAVAILABILITY STATEMENT OR
PREAUTHORIZATION.—In the case of a covered beneficiary
under chapter 55 of title 10, United States Code, who is
enrolled in TRICARE Standard, the Secretary of Defense
may not require with regard to authorized health care
services (other than mental health services) under any new
contract for the provision of health care services under
such chapter that the beneficiary—
(1) obtain a nonavailability statement or
preauthorization from a military medical treatment
447
facility in order to receive the services from a civilian
provider; or
(2) obtain a nonavailability statement for care
in specialized treatment facilities outside the 200-
mile radius of a military medical treatment facility.
(b) NOTICE.—The Secretary may require that the
covered beneficiary inform the primary care manager of
the beneficiary of any health care received from a civilian
provider or in a specialized treatment facility.
(c) EXCEPTIONS.—Subsection (a) shall not apply if—
(1) the Secretary demonstrates significant costs
would be avoided by performing specific procedures
at the affected military medical treatment facilities;
(2) the Secretary determines that a specific
procedure must be provided at the affected military
medical treatment facility to ensure the proficiency
levels of the practitioners at the facility; or
(3) the lack of nonavailability statement data
would significantly interfere with TRICARE con-
tract administration.
(d) EFFECTIVE DATE—This section shall take effect
on October 1, 2001.
749
drugs in schedule III, IV, or V or combinations of such
drugs to patients for maintenance or detoxification treat-
ment, the practitioner submit to the Secretary a notifica-
tion of the intent of the practitioner to begin dispensing
the drugs or combinations for such purpose, and that the
notification contain the following certifications by the
practitioner:
‘‘(i) The practitioner is a qualifying physician
(as defined in subparagraph (G)).
‘‘(ii) With respect to patients to whom the prac-
titioner will provide such drugs or combinations of
drugs, the practitioner has the capacity to refer the
patients for appropriate counseling and other appro-
priate ancillary services.
‘‘(iii) In any case in which the practitioner is
not in a group practice, the total number of such pa-
tients of the practitioner at any one time will not ex-
ceed the applicable number. For purposes of this
clause, the applicable number is 30, except that the
Secretary may by regulation change such total num-
ber.
‘‘(iv) In any case in which the practitioner is in
a group practice, the total number of such patients
of the group practice at any one time will not exceed
the applicable number. For purposes of this clause,