(2) The term ‘‘capital asset’’ has the meaning
given that term in Office of Management and Budget
Circular A–11.
(3) The term ‘‘national security system’’ has the
meaning given that term in section 5142 of the
Clinger–Cohen Act of 1996 (40 U.S.C. 1452).
SEC. 353. IMPLEMENTATION OF POLICY REGARDING CER-
TAIN COMMERCIAL OFF-THE-SHELF INFOR-
MATION TECHNOLOGY PRODUCTS.
The Secretary of Defense shall ensure that—
(1) the Department of Defense implements the
policy established by the Committee on National Se-
curity Systems (formerly the National Security Tele-
communications and Information Systems Security
Committee) that limits the acquisition by the Federal
Government of all commercial off-the-shelf informa-
tion assurance and information assurance-enabled in-
formation technology products to those products that
have been evaluated and validated in accordance with
appropriate criteria, schemes, or programs; and
(2) implementation of such policy includes uni-
form enforcement procedures.
SEC. 354. INSTALLATION AND CONNECTION POLICY AND
PROCEDURES REGARDING DEFENSE SWITCH
NETWORK.
(a) ESTABLISHMENT OF POLICY AND PROCEDURES.—
Not later than 180 days after the date of the enactment of
this Act, the Secretary of Defense shall establish clear and
uniform policy and procedures, applicable to the military
departments and Defense Agencies, regarding the installa-
tion and connection of telecom switches to the Defense
Switch Network.
(b) ELEMENTS OF POLICY AND PROCEDURES.—The
policy and procedures shall address at a minimum the fol-
lowing:
(1) Clear interoperability and compatibility re-
quirements for certifying, installing, and connecting
telecom switches to the Defense Switch Network.
(2) Current, complete, and enforceable testing,
validation, and certification procedures needed to en-
sure the interoperability and compatibility require-
ments are satisfied.
(c) EXCEPTIONS.—(1) The Secretary of Defense may
specify certain circumstances in which—
(A) the requirements for testing, validation, and
certification of telecom switches may be waived; or
(B) interim authority for the installation and
connection of telecom switches to the Defense Switch
Network may be granted.
(2) Only the Assistant Secretary of Defense for Com-
mand, Control, Communications, and Intelligence, after
consultation with the Chairman of the Joint Chiefs of Staff,
may approve a waiver or grant of interim authority under
paragraph (1).
(d) INVENTORY OF DEFENSE SWITCH NETWORK.—The
Secretary of Defense shall prepare and maintain an inven-
tory of all telecom switches that, as of the date on which
the Secretary issues the policy and procedures—
(1) are installed or connected to the Defense
Switch Network; but
(2) have not been tested, validated, and certified
by the Defense Information Systems Agency (Joint
Interoperability Test Center).
(e) TELECOM SWITCH DEFINED.—In this section, the
term ‘‘telecom switch’’ means hardware or software designed
to send and receive voice, data, and video signals across
a network.
Subtitle G—Other Matters
SEC. 361. DISTRIBUTION OF MONTHLY REPORTS ON ALLO-
CATION OF FUNDS WITHIN OPERATION AND
MAINTENANCE BUDGET SUBACTIVITIES.
(a) DESIGNATION OF RECIPIENTS.—Subsection (a) of
section 228 of title 10, United States Code, is amended by
striking ‘‘to Congress’’ and inserting ‘‘to the congressional
defense committees’’.
(b) CONGRESSIONAL
DEFENSE
COMMITTEES
DE-
FINED.—Subsection (e) of such section is amended—
(1) by striking ‘‘(e) O&M BUDGET ACTIVITY DE-
FINED.—For purposes of this section, the’’ and insert-
ing the following:
‘‘(e) DEFINITIONS.—In this section:
‘‘(1) The’’; and
(2) by adding at the end the following:
‘‘(2) The term ‘congressional defense committees’
means the Committee on Armed Services and the
Committee on Appropriations of the Senate and the
Committee on Armed Services and the Committee on
Appropriations of the House of Representatives.’’.
SEC. 362. MINIMUM DEDUCTION FROM PAY OF CERTAIN
MEMBERS OF THE ARMED FORCES TO SUP-
PORT ARMED FORCES RETIREMENT HOME.
Section 1007(i) of title 37, United States Code, is
amended—
(1) in paragraph (1), by striking ‘‘an amount
(determined under paragraph (3)) not to exceed
$1.00.’’ and inserting ‘‘an amount equal to $1.00 and
such additional amount as may be determined under
paragraph (3).’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the amount’’ in the first
sentence and inserting ‘‘the additional amount’’;
and
(B) by striking ‘‘The amount’’ in the second
sentence and inserting ‘‘The additional amount’’.
SEC. 363. CONDITION ON CONVERSION OF DEFENSE SECU-
RITY SERVICE TO A WORKING CAPITAL FUND-
ED ENTITY.
The Secretary of Defense may not convert the Defense
Security Service to a working capital funded entity of the
Department of Defense unless the Secretary submits, in ad-
vance, to the Committee on Armed Services of the House
of Representatives and the Committee on Armed Services
of the Senate a certification that the Defense Security Serv-
ice has the financial systems in place to fully support oper-
ation of the Defense Security Service as a working capital
funded entity under section 2208 of title 10, United States
Code.
SEC. 364. CONTINUATION OF ARSENAL SUPPORT PROGRAM
INITIATIVE.
(a) EXTENSION THROUGH FISCAL YEAR 2004.—Sub-
section (a) of section 343 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (as enacted
into law by Public Law 106–398; 114 Stat. 1654A–65) is
amended by striking ‘‘and 2002’’ and inserting ‘‘through
2004’’.
(b) REPORTING REQUIREMENTS.—Subsection (g) of
such section is amended—
(1) in paragraph (1), by striking ‘‘2002’’ and in-
serting ‘‘2004’’; and
(2) in paragraph (2), by striking the first sen-
tence and inserting the following new sentence: ‘‘Not
later than July 1, 2003, the Secretary of the Army
shall submit to the congressional defense committees a
report on the results of the demonstration program
since its implementation, including the Secretary’s
views regarding the benefits of the program for Army
manufacturing arsenals and the Department of the
Army and the success of the program in achieving the
purposes specified in subsection (b).’’.
SEC. 365. TRAINING RANGE SUSTAINMENT PLAN, GLOBAL
STATUS OF RESOURCES AND TRAINING SYS-
TEM, AND TRAINING RANGE INVENTORY.
(a) PLAN REQUIRED.—(1) The Secretary of Defense
shall develop a comprehensive plan for using existing au-
thorities available to the Secretary of Defense and the Secre-
taries of the military departments to address problems cre-
ated by limitations on the use of military lands, marine
areas, and airspace reserved, withdrawn, or designated for
training and testing activities by, for, or on behalf of the
Armed Forces.
(2) The plan shall include the following:
(A) Goals and milestones for tracking planned
actions and measuring progress.
(B) Projected funding requirements for imple-
menting planned actions.
(C) Designation of an office in the Office of the
Secretary of Defense and each of the military depart-
ments that will have lead responsibility for overseeing
implementation of the plan.
(3) The Secretary of Defense shall submit the plan to
Congress at the same time as the President submits the
budget for fiscal year 2004 and shall submit an annual re-
port to Congress describing the progress made in imple-
menting the plan and any additional encroachment prob-
lems.
(b) READINESS REPORTING IMPROVEMENT.—Not later
than June 30, 2003, the Secretary of Defense, using existing
measures within the authority of the Secretary, shall submit
to Congress a report on the plans of the Department of De-
fense to improve the Global Status of Resources and Train-
ing System—
(1) to better reflect the increasing challenges
units of the Armed Forces must overcome to achieve
training requirements; and
(2) to quantify the extent to which encroachment
and other individual factors are making military
lands, marine areas, and airspace less available to
support unit accomplishment of training plans and
readiness goals.
(c) TRAINING RANGE INVENTORY.—The Secretary of
Defense shall develop and maintain a training range data
bank for each of the Armed Forces—
(1) to identify all available operational training
ranges;
(2) to identify all training capacities and capa-
bilities available at each training range;
(3) to identify all current encroachment threats
or other potential limitations on training that are, or
are likely to, adversely affect training and readiness;
and
(4) to provide a point of contact for each train-
ing range.
(d) GAO EVALUATION.—(1) With respect to each re-
port submitted under this section, the Comptroller General
shall submit to Congress, within 60 days after receiving the
report, an evaluation of the report.
(e) ARMED FORCES DEFINED.—In this section, the
term ‘‘Armed Forces’’ means the Army, Navy, Air Force,
and Marine Corps.
SEC. 366. AMENDMENTS TO CERTAIN EDUCATION AND NU-
TRITION LAWS RELATING TO ACQUISITION
AND IMPROVEMENT OF MILITARY HOUSING.
(a) ELIGIBILITY FOR HEAVILY IMPACTED LOCAL EDU-
CATIONAL AGENCIES AFFECTED
BY PRIVATIZATION
OF
MILITARY HOUSING.—Section 8003(b)(2) of the Elemen-
tary and Secondary Education Act of 1965 (20 U.S.C.
7703(b)(2)) is amended by adding at the end the following:
‘‘(H) ELIGIBILITY FOR HEAVILY IMPACTED
LOCAL
EDUCATIONAL
AGENCIES
AFFECTED
BY
PRIVATIZATION OF MILITARY HOUSING.—
‘‘(i) ELIGIBILITY.—For any fiscal year
beginning with fiscal year 2003, a heavily
impacted local educational agency that re-
ceived a basic support payment under sub-
paragraph (A) for the prior fiscal year, but
is ineligible for such payment for the cur-
rent fiscal year under subparagraph (B) or
(C), as the case may be, by reason of the
conversion of military housing units to pri-
vate housing described in clause (iii), shall
be deemed to meet the eligibility require-
ments under subparagraph (B) or (C), as
the case may be, for the period during
which the housing units are undergoing
such conversion.
‘‘(ii) 
AMOUNT
OF
PAYMENT.—The
amount of a payment to a heavily impacted
local educational agency for a fiscal year by
reason of the application of clause (i), and
calculated in accordance with subparagraph
(D) or (E) (as the case may be), shall be
based on the number of children in average
daily attendance in the schools of such
agency for the fiscal year.
‘‘(iii) CONVERSION OF MILITARY HOUS-
ING
UNITS
TO
PRIVATE
HOUSING
DE-
SCRIBED.—For purposes of clause (i), ‘con-
version of military housing units to private
housing’ means the conversion of military
housing units to private housing units pur-
suant to subchapter IV of chapter 169 of
title 10, United States Code, or pursuant to
any other related provision of law.’’.
(b) EXCLUSION OF CERTAIN MILITARY BASIC ALLOW-
ANCES FOR HOUSING FOR DETERMINATION OF ELIGIBILITY
FOR FREE AND REDUCED PRICE MEALS.—Section 9(b)(3)
of the Richard B. Russell National School Lunch Act (42
U.S.C. 1758(b)(3)) is amended by adding at the end the
following: ‘‘For the one-year period beginning on the date
of the enactment of this sentence, the amount of a basic al-
lowance provided under section 403 of title 37, United
States Code, on behalf of an individual who is a member
of the uniformed services for housing that is acquired or
constructed under the authority of subchapter IV of chapter
169 of title 10, United States Code, or any other related
provision of law, shall not be considered to be income for
purposes of determining the eligibility of a child of the indi-
vidual for free or reduced price lunches under this Act.’’.
TITLE IV—MILITARY PERSONNEL
AUTHORIZATIONS
Subtitle A—Active Forces
SEC. 401. END STRENGTHS FOR ACTIVE FORCES.
The Armed Forces are authorized strengths for active
duty personnel as of September 30, 2003, as follows:
(1) The Army, 484,800.
‘‘(f) Upon determination by the Secretary of a mili-
tary department that such action would enhance manning
and readiness in essential units or in critical specialties
or ratings, the Secretary may increase the end strength au-
thorized pursuant to subsection (a)(1)(A) for a fiscal year
for the armed force under the jurisdiction of that Secretary
or, in the case of the Secretary of the Navy, for any of the
armed forces under the jurisdiction of that Secretary. Any
such increase for a fiscal year—
‘‘(1) shall be by a number equal to not more
than 1 percent of such authorized end strength; and
‘‘(2) shall be counted as part of the increase for
that armed force for that fiscal year authorized under
subsection (c)(1).’’.
(b) EFFECTIVE DATE.—Subsection (f) of section 115
of title 10, United States Code, as added by subsection (a),
shall take effect on October 1, 2002, or the date of the enact-
ment of this Act, whichever is later.
SEC. 404. GENERAL AND FLAG OFFICER MANAGEMENT.
(a) EXCLUSION OF SENIOR MILITARY ASSISTANT TO
THE SECRETARY OF DEFENSE FROM LIMITATION ON AC-
TIVE DUTY OFFICERS IN GRADES ABOVE MAJOR GENERAL
AND REAR ADMIRAL.—Effective on the date specified in
subsection (e), section 525(b) of title 10, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(8) An officer while serving in a position designated
by the Secretary of Defense as Senior Military Assistant
to the Secretary of Defense, if serving in the grade of lieu-
tenant general or vice admiral, is in addition to the number
that otherwise would be permitted for that officer’s armed
force for that grade under paragraph (1) or (2). Only one
officer may be designated as Senior Military Assistant to
the Secretary of Defense for purposes of this paragraph.’’.
(b) INCREASE IN NUMBER OF LIEUTENANT GENERALS
AUTHORIZED FOR THE MARINE CORPS.—Effective on the
date specified in subsection (e), paragraph (2)(B) of such
section is amended by striking ‘‘16.2 percent’’ and inserting
‘‘17.5 percent’’.
(c) GRADE OF CHIEF OF VETERINARY CORPS OF THE
ARMY.—(1) Effective on the date specified in subsection (e),
chapter 307 of such title is amended by adding at the end
the following new section:
‘‘§ 3084. Chief of Veterinary Corps: grade
‘‘The Chief of the Veterinary Corps of the Army serves
in the grade of brigadier general. An officer appointed to
that position who holds a lower grade shall be appointed
in the grade of brigadier general.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘3084. Chief of Veterinary Corps: grade.’’.
(d) REVIEW OF ACTIVE DUTY AND RESERVE GENERAL
AND FLAG OFFICER AUTHORIZATIONS.—(1) The Secretary
of Defense shall submit to Congress a report containing any
recommendations of the Secretary (together with the ration-
ale of the Secretary for the recommendations) concerning
the following:
(A) Revision of the limitations on general and
flag officer grade authorizations and distribution in
grade prescribed by sections 525, 526, and 12004 of
title 10, United States Code.
(B) Statutory designation of the positions and
grades of any additional general and flag officers in
the commands specified in chapter 1006 of title 10,
United States Code, and the reserve component offices
specified in sections 3038, 5143, 5144, and 8038 of
such title.
(2) The provisions of subsection (b) through (e) of sec-
tion 1213 of the National Defense Authorization Act for Fis-
cal Year 1997 (Public Law 104–201; 110 Stat. 2694) shall
apply to the report under paragraph (1) in the same man-
ner as they applied to the report required by subsection (a)
of that section.
(e) EFFECTIVE DATE.—The amendments made by sub-
sections (a), (b), and (c) shall take effect on the date of the
receipt by Congress of the report required by subsection (d).
SEC. 405. EXTENSION OF CERTAIN AUTHORITIES RELATING
TO MANAGEMENT OF NUMBERS OF GENERAL
AND FLAG OFFICERS IN CERTAIN GRADES.
(a) SENIOR
JOINT
OFFICER
POSITIONS.—Section
604(c) of title 10, United States Code, is amended by strik-
ing ‘‘September 30, 2003’’ and inserting ‘‘December 31,
2004’’.
(b) DISTRIBUTION OF OFFICERS ON ACTIVE DUTY IN
GENERAL
AND
FLAG
OFFICER
GRADES.—Section
525(b)(5)(C) of such title is amended by striking ‘‘Sep-
tember 30, 2003’’ and inserting ‘‘December 31, 2004’’.
(c) AUTHORIZED STRENGTH FOR GENERAL AND FLAG
OFFICERS ON ACTIVE DUTY.—Section 526(b)(3) of such
title is amended by striking ‘‘October 1, 2002’’ and insert-
ing ‘‘December 31, 2004’’.
Subtitle B—Reserve Forces
SEC. 411. END STRENGTHS FOR SELECTED RESERVE.
(a) IN GENERAL.—The Armed Forces are authorized
strengths for Selected Reserve personnel of the reserve com-
ponents as of September 30, 2003, as follows:
(1) The Army National Guard of the United
States, 350,000.
(2) The Army Reserve, 205,000.
(3) The Naval Reserve, 87,800.
(4) The Marine Corps Reserve, 39,558.
(5) The Air National Guard of the United
States, 106,600.
(6) The Air Force Reserve, 75,600.
(7) The Coast Guard Reserve, 9,000.
(b) ADJUSTMENTS.—The end strengths prescribed by
subsection (a) for the Selected Reserve of any reserve compo-
nent shall be proportionately reduced by—
(1) the total authorized strength of units orga-
nized to serve as units of the Selected Reserve of such
component which are on active duty (other than for
training) at the end of the fiscal year; and
(2) the total number of individual members not
in units organized to serve as units of the Selected
Reserve of such component who are on active duty
(other than for training or for unsatisfactory partici-
pation in training) without their consent at the end
of the fiscal year.
Whenever such units or such individual members are re-
leased from active duty during any fiscal year, the end
strength prescribed for such fiscal year for the Selected Re-
serve of such reserve component shall be proportionately in-
creased by the total authorized strengths of such units and
by the total number of such individual members.
SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE
DUTY IN SUPPORT OF THE RESERVES.
Within the end strengths prescribed in section 411(a),
the reserve components of the Armed Forces are authorized,
as of September 30, 2003, the following number of Reserves
to be serving on full-time active duty or full-time duty, in
the case of members of the National Guard, for the purpose
of organizing, administering, recruiting, instructing, or
training the reserve components:
(1) The Army National Guard of the United
States, 24,562.
(2) The Army Reserve, 14,070.
(3) The Naval Reserve, 14,572.
(4) The Marine Corps Reserve, 2,261.
(5) The Air National Guard of the United
States, 11,697.
(6) The Air Force Reserve, 1,498.
SEC. 413. END STRENGTHS FOR MILITARY TECHNICIANS
(DUAL STATUS).
The minimum number of military technicians (dual
status) as of the last day of fiscal year 2003 for the reserve
components of the Army and the Air Force (notwith-
standing section 129 of title 10, United States Code) shall
be the following:
(1) For the Army National Guard of the
United States, 24,102.
(2) For the Army Reserve, 6,599.
(3) For the Air National Guard of the
United States, 22,495.
(4) For the Air Force Reserve, 9,911.
SEC. 414. FISCAL YEAR 2003 LIMITATION ON NON-DUAL STA-
TUS TECHNICIANS.
(a) ARMY.—The number of non-dual status techni-
cians employed by the reserve components of the Army as
of September 30, 2003, may not exceed the following:
(1) For the Army Reserve, 995.
(2) For the Army National Guard of the United
States, 1,600, to be counted within the limitation
specified in section 10217(c)(2) of title 10, United
States Code.
(b) AIR FORCE.—The number of non-dual status tech-
nicians employed by the reserve components of the Army
and the Air Force as of September 30, 2003, may not exceed
the following:
(1) For the Air Force Reserve, 90.
(2) For the Air National Guard of the United
States, 350, to be counted within the limitation speci-
fied in section 10217(c)(2) of title 10, United States
Code.
(c) NON-DUAL STATUS TECHNICIANS DEFINED.—In
this section, the term ‘‘non-dual status technician’’ has the
meaning given that term in section 10217(a) of title 10,
United States Code.
(d) TECHNICAL AMENDMENTS.—Effective October 1,
2002, section 10217(c)(2) of title 10, United States Code,
is amended—
(1) in the first sentence, by striking ‘‘Effective
October 1, 2002, the’’ and inserting ‘‘The’’; and
(2) in the second sentence, by striking ‘‘after the
preceding sentence takes effect’’.
Subtitle C—Authorization of
Appropriations
SEC. 421. AUTHORIZATION OF APPROPRIATIONS FOR MILI-
TARY PERSONNEL.
There is hereby authorized to be appropriated to the
Department of Defense for military personnel for fiscal year
2003 a total of $93,725,028,000. The authorization in the
preceding sentence supersedes any other authorization of
appropriations (definite or indefinite) for such purpose for
fiscal year 2003.
TITLE V—MILITARY PERSONNEL
POLICY
SEC. 
501. 
INCREASE 
IN 
NUMBER 
OF 
DEPUTY
COMMANDANTS OF THE MARINE CORPS.
Section 5045 of title 10, United States Code, is amend-
ed by striking ‘‘five’’ and inserting ‘‘six’’.
SEC. 502. EXTENSION OF GOOD-OF-THE-SERVICE WAIVER
AUTHORITY FOR OFFICERS APPOINTED TO A
RESERVE CHIEF OR GUARD DIRECTOR POSI-
TION.
(a) WAIVER
OF REQUIREMENT
FOR SIGNIFICANT
JOINT
DUTY
EXPERIENCE.—Sections 
3038(b)(4),
5143(b)(4), 5144(b)(4), 8038(b)(4), and 10506(a)(3)(D) of
title 10, United States Code, are each amended by striking
‘‘October 1, 2003’’ and inserting ‘‘December 31, 2004’’.
(b) REPORT ON FUTURE IMPLEMENTATION OF RE-
QUIREMENT.—Not later than one year after the date of the
enactment of this Act, the Secretary of Defense shall submit
to the Committee on Armed Services of the Senate and the
Committee on Armed Services of the House of Representa-
tives a report setting forth the steps being taken (and pro-
posed to be taken) by the Secretary, the Secretaries of the
military departments, and the Chairman of the Joint Chiefs
of Staff to ensure that no further extension of the waiver
authority under the sections amended by subsection (a) is
required and that after December 31, 2004, appointment
of officers to serve in the positions covered by those sections
shall be made from officers with the requisite joint duty ex-
perience.
Subtitle B—Reserve Component
Management
SEC. 511. REVIEWS OF NATIONAL GUARD STRENGTH AC-
COUNTING AND MANAGEMENT AND OTHER
ISSUES.
(a) COMPTROLLER
GENERAL
ASSESSMENTS.—Not
later than one year after the date of the enactment of this
Act, the Comptroller General shall submit to Congress a re-
port on management of the National Guard. The report
shall include the following:
(1) The Comptroller General’s assessment of the
effectiveness of the implementation of Department of
Defense plans for improving management and ac-
counting for personnel strengths in the National
Guard, including an assessment of the process that
the Department of Defense, the National Guard Bu-
reau, the Army National Guard and State-level Na-
tional Guard leadership, and leadership in the other
reserve components have for identifying and address-
ing in a timely manner specific units in which non-
participation rates are significantly in excess of the
established norms.
(2) The Comptroller General’s assessment of the
effectiveness of the process for Federal recognition of
senior National Guard officers and recommendations
for improvement to that process.
(3) The Comptroller General’s assessment of the
process for, and the nature and extent of, the admin-
istrative or judicial corrective action taken by the
Secretary of Defense, the Secretary of the Army, and
the Secretary of the Air Force as a result of Inspector
General investigations or other investigations in
which allegations against senior National Guard offi-
cers are substantiated in whole or in part.
(4) The Comptroller General’s determination of
the effectiveness of the Federal protections provided
for members or employees of the National Guard who
report allegations of waste, fraud, abuse, or mis-
management and the nature and extent to which cor-
rective action is taken against those in the National
Guard who retaliate against such members or employ-
ees.
(b) SECRETARY OF DEFENSE REPORT ON DIFFERENT
ARMY AND AIR FORCE PROCEDURES.—Not later than six
months after the date of the enactment of this Act, the Sec-
retary of Defense shall submit to Congress a report on the
differing Army and Air Force policies for taking adverse
administrative actions against National Guard officers in
a State status. The report shall include the Secretary’s de-
termination as to whether changes should be made in those
policies, especially through requiring the Air Force to adopt
the same policy as the Army for such administrative ac-
tions.
SEC. 512. COURTS-MARTIAL FOR THE NATIONAL GUARD
WHEN NOT IN FEDERAL SERVICE.
(a) MANNER OF PRESCRIBING PUNISHMENTS.—Sec-
tion 326 of title 32, United States Code, is amended by add-
ing at the end the following new sentence: ‘‘Punishments
shall be as provided by the laws of the respective States and
Territories, Puerto Rico, and the District of Columbia.’’.
(b) CONVENING AUTHORITY.—Section 327 of such title
is amended to read as follows:
‘‘§ 327. Courts-martial of National Guard not in Fed-
eral service: convening authority
‘‘(a) In the National Guard not in Federal service,
general, special, and summary courts-martial may be con-
vened as provided by the laws of the States and Territories,
Puerto Rico, and the District of Columbia.
‘‘(b) In addition to convening authorities as provided
under subsection (a), in the National Guard not in Federal
service—
‘‘(1) general courts-martial may be convened by
the President;
‘‘(2) special courts-martial may be convened—
‘‘(A) by the commanding officer of a garri-
son, fort, post, camp, air base, auxiliary air
base, or other place where troops are on duty; or
‘‘(B) by the commanding officer of a divi-
sion, brigade, regiment, wing, group, detached
battalion, separate squadron, or other detached
command; and
‘‘(3) 
summary 
courts-martial 
may 
be
convened—
‘‘(A) by the commanding officer of a garri-
son, fort, post, camp, air base, auxiliary air
base, or other place where troops are on duty; or
‘‘(B) by the commanding officer of a divi-
sion, brigade, regiment, wing, group, detached
battalion, detached squadron, detached company,
or other detachment.’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 3 of such title is amend-
ed to read as follows:
‘‘327. Courts-martial of National Guard not in Federal service: convening author-
ity.’’.
(c) REPEAL OF SUPERSEDED AND OBSOLETE PROVI-
SIONS.—
(1) Sections 328, 329, 330, 331, 332, and 333 of
title 32, United States Code, are repealed.
(2) The table of sections at the beginning of
chapter 3 of such title is amended by striking the
items relating to sections 328, 329, 330, 331, 332, and
333.
(d) PREPARATION OF MODEL STATE CODE OF MILI-
TARY JUSTICE AND MODEL STATE MANUAL FOR COURTS-
MARTIAL.—(1) The Secretary of Defense shall prepare, for
consideration for enactment by the States, a model State
code of military justice and a model State manual of courts-
martial for use with respect to the National Guard not in
Federal service. Both such models shall be consistent with
the recommendations contained in the report, issued in
1998, by the panel known as the Department of Defense
Panel to Study Military Justice in the National Guard not
in Federal Service.
(2) The Secretary shall ensure that adequate support
for the preparation of such model State code and model
State manual (including the detailing of attorneys and
other staff) is provided by the General Counsel of the De-
partment of Defense, the Secretary of the Army, the Sec-
retary of the Air Force, and the Chief of the National Guard
Bureau.
(3) If the amounts available to the Chief of the Na-
tional Guard Bureau are not adequate for the costs required
to provide support under paragraph (2) (including costs for
increased pay when members of the National Guard are or-
dered to active duty, cost of detailed attorneys and other
staff, allowances, and travel expenses), the Secretary shall,
upon request of the Chief of the Bureau, provide such addi-
tional amounts as are necessary.
(4) Not later than one year after the date of the enact-
ment of this Act, the Secretary shall submit to the Com-
mittee on Armed Services of the Senate and the Committee
on Armed Services of the House of Representatives a report
on the implementation of this subsection. The report shall
include proposals in final form of both the model State code
and the model State manual required by paragraph (1) and
shall set forth the efforts being made to present those pro-
posals to the States for their consideration for enactment.
(5) In this subsection, the term ‘‘State’’ includes the
District of Columbia, the Commonwealth of Puerto Rico,
the Virgin Islands, and Guam.
100
SEC. 513. MATCHING FUNDS REQUIREMENTS UNDER NA-
TIONAL GUARD YOUTH CHALLENGE PRO-
GRAM.
Effective October 1, 2002, subsection (d) of section 509
of title 32, United States Code, is amended to read as fol-
lows:
‘‘(d) MATCHING FUNDS REQUIRED.—The amount of
assistance provided under this section to a State program
of the National Guard Challenge Program for a fiscal year
may not exceed 75 percent of the costs of operating the State
program during that fiscal year.’’.
Subtitle C—Reserve Component
Officer Personnel Policy
SEC. 521. EXEMPTION FROM ACTIVE STATUS STRENGTH
LIMITATION FOR RESERVE COMPONENT GEN-
ERAL AND FLAG OFFICERS SERVING ON AC-
TIVE DUTY IN CERTAIN JOINT DUTY ASSIGN-
MENTS DESIGNATED BY THE CHAIRMAN OF
THE JOINT CHIEFS OF STAFF.
Section 12004 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(f)(1) A general or flag officer who is on active duty
but who is not counted under section 526(a) of this title
by reason of section 526(b)(2)(B) of this title shall also be
excluded from being counted under subsection (a).
101
‘‘(2) This subsection shall cease to be effective on the
date specified in section 526(b)(3) of this title.’’.
SEC. 522. ELIGIBILITY FOR CONSIDERATION FOR PRO-
MOTION TO GRADE OF MAJOR GENERAL FOR
CERTAIN RESERVE COMPONENT BRIGADIER
GENERALS WHO DO NOT OTHERWISE QUAL-
IFY FOR CONSIDERATION FOR PROMOTION
UNDER THE ONE-YEAR RULE.
Section 14301(g) of title 10, United States Code, is
amended to read as follows:
‘‘(g) BRIGADIER GENERALS.—(1) An officer who is a
reserve component brigadier general of the Army or the Air
Force who is not eligible for consideration for promotion
under subsection (a) because the officer is not on the reserve
active status list (as required by paragraph (1) of that sub-
section for such eligibility) is nevertheless eligible for consid-
eration for promotion to the grade of major general by a
promotion board convened under section 14101(a) of this
title if—
‘‘(A) as of the date of the convening of the pro-
motion board, the officer has been in an inactive sta-
tus for less than one year; and
‘‘(B) immediately before the date of the officer’s
most recent transfer to an inactive status, the officer
had continuously served on the reserve active status
102
list or the active-duty list (or a combination of the re-
serve active status list and the active-duty list) for at
least one year.
‘‘(2) An officer who is a reserve component brigadier
general of the Army or the Air Force who is on the reserve
active status list but who is not eligible for consideration
for promotion under subsection (a) because the officer’s serv-
ice does not meet the one-year-of-continuous-service require-
ment under paragraph (2) of that subsection is nevertheless
eligible for consideration for promotion to the grade of
major general by a promotion board convened under section
14101(a) of this title if—
‘‘(A) the officer was transferred from an inactive
status to the reserve active status list during the one-
year period preceding the date of the convening of the
promotion board;
‘‘(B) immediately before the date of the officer’s
most recent transfer to an active status, the officer
had been in an inactive status for less than one year;
and
‘‘(C) immediately before the date of the officer’s
most recent transfer to an inactive status, the officer
had continuously served for at least one year on the
reserve active status list or the active-duty list (or a
103
combination of the reserve active status list and the
active-duty list).’’.
SEC. 523. RETENTION OF PROMOTION ELIGIBILITY FOR RE-
SERVE COMPONENT GENERAL AND FLAG OF-
FICERS TRANSFERRED TO AN INACTIVE STA-
TUS.
Section 14317 of title 10, United States Code, is
amended by adding at the end the following new subsection:
‘‘(f) EFFECT
OF TRANSFER
OF OFFICERS
IN PAY
GRADE O–7 TO INACTIVE STATUS.—Notwithstanding sub-
section (a), if a reserve officer on the active-status list in
the grade of brigadier general or rear admiral (lower half)
is transferred to an inactive status after having been rec-
ommended for promotion to the grade of major general or
rear admiral under this chapter, or after having been found
qualified for Federal recognition in the grade of major gen-
eral under title 32, but before being promoted, the officer
shall retain promotion eligibility and, if otherwise quali-
fied, may be promoted to the higher grade after returning
to an active status.’’.
104
SEC. 524. AUTHORITY FOR LIMITED EXTENSION OF MED-
ICAL DEFERMENT OF MANDATORY RETIRE-
MENT OR SEPARATION FOR RESERVE OFFI-
CERS.
(a) DEFERMENT OF RETIREMENT OR SEPARATION FOR
MEDICAL REASONS.—Chapter 1407 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 14519. Deferment of retirement or separation for
medical reasons
‘‘(a) If the Secretary of the military department con-
cerned determines that the evaluation of the physical condi-
tion of a Reserve officer and determination of the officer’s
entitlement to retirement or separation for physical dis-
ability require hospitalization or medical observation and
that such hospitalization or medical observation cannot be
completed with confidence in a manner consistent with the
officer’s well-being before the date on which the officer would
otherwise be required to be separated, retired, or transferred
to the Retired Reserve under this title, the Secretary may
defer the separation, retirement, or transfer of the officer
under this title.
‘‘(b) A deferral under subsection (a) of separation, re-
tirement, or transfer to the Retired Reserve may not extend
for more than 30 days after completion of the evaluation
requiring hospitalization or medical observation.’’.
105
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘14519. Deferment of retirement or separation for medical reasons.’’.
Subtitle D—Education and
Training
SEC. 531. AUTHORITY FOR PHASED INCREASE TO 4,400 IN
AUTHORIZED STRENGTHS FOR THE SERVICE
ACADEMIES.
(a) MILITARY ACADEMY.—Section 4342 of title 10,
United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following: ‘‘or
such higher number as may be prescribed by the Sec-
retary of the Army under subsection (j)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(j)(1) Beginning with the 2003–2004 academic year,
the Secretary of the Army may prescribe annual increases
in the cadet strength limit in effect under subsection (a).
For any academic year, any such increase shall be by no
more than 100 cadets or such lesser number as applies
under paragraph (3) for that year. Such annual increases
may be prescribed until the cadet strength limit is 4,400.
However, no increase may be prescribed for any academic
year after the 2007–2008 academic year.
106
‘‘(2) Any increase in the cadet strength limit under
paragraph (1) with respect to an academic year shall be
prescribed not later than the date on which the budget of
the President is submitted to Congress under section 1105
of title 31 for the fiscal year beginning in the same year
as the year in which that academic year begins. Whenever
the Secretary prescribes such an increase, the Secretary
shall submit to Congress a notice in writing of the increase.
The notice shall state the amount of the increase in the cadet
strength limit and the new cadet strength limit, as so in-
creased, and the amount of the increase in Senior Army
Reserve Officers’ Training Corps enrollment under each of
sections 2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the cadet strength limit for an academic year may not
exceed the increase (if any) for the preceding academic year
in the total number of cadets enrolled in the Army Senior
Reserve Officers’ Training Corps program under chapter
103 of this title who have entered into an agreement under
section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘cadet strength limit’
means the authorized maximum strength of the Corps of
Cadets of the Academy.’’.
(b) NAVAL ACADEMY.—Section 6954 of title 10, United
States Code, is amended—
107
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following: ‘‘or
such higher number as may be prescribed by the Sec-
retary of the Navy under subsection (h)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(h)(1) Beginning with the 2003–2004 academic year,
the Secretary of the Navy may prescribe annual increases
in the midshipmen strength limit in effect under subsection
(a). For any academic year, any such increase shall be by
no more than 100 midshipmen or such lesser number as
applies under paragraph (3) for that year. Such annual
increases may be prescribed until the midshipmen strength
limit is 4,400. However, no increase may be prescribed for
any academic year after the 2007–2008 academic year.
‘‘(2) Any increase in the midshipmen strength limit
under paragraph (1) with respect to an academic year shall
be prescribed not later than the date on which the budget
of the President is submitted to Congress under section 1105
of title 31 for the fiscal year beginning in the same year
as the year in which that academic year begins. Whenever
the Secretary prescribes such an increase, the Secretary
shall submit to Congress a notice in writing of the increase.
The notice shall state the amount of the increase in the mid-
shipmen strength limit and the new midshipmen strength
108
limit, as so increased, and the amount of the increase in
Senior Navy Reserve Officers’ Training Corps enrollment
under each of sections 2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the midshipmen strength limit for an academic year
may not exceed the increase (if any) for the preceding aca-
demic year in the total number of midshipmen enrolled in
the Navy Senior Reserve Officers’ Training Corps program
under chapter 103 of this title who have entered into an
agreement under section 2104 or 2107 of this title.
‘‘(4) In this subsection, the term ‘midshipmen strength
limit’ means the authorized maximum strength of the Bri-
gade of Midshipmen.’’.
(c) AIR FORCE ACADEMY.—Section 9342 of title 10,
United States Code, is amended—
(1) in subsection (a), by inserting before the pe-
riod at the end of the first sentence the following: ‘‘or
such higher number as may be prescribed by the Sec-
retary of the Air Force under subsection (j)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(j)(1) Beginning with the 2003–2004 academic year,
the Secretary of the Air Force may prescribe annual in-
creases in the cadet strength limit in effect under subsection
(a). For any academic year, any such increase shall be by
109
no more than 100 cadets or such lesser number as applies
under paragraph (3) for that year. Such annual increases
may be prescribed until the cadet strength limit is 4,400.
However, no increase may be prescribed for any academic
year after the 2007–2008 academic year.
‘‘(2) Any increase in the cadet strength limit under
paragraph (1) with respect to an academic year shall be
prescribed not later than the date on which the budget of
the President is submitted to Congress under sections 1105
of title 31 for the fiscal year beginning in the same year
as the year in which that academic year begins. Whenever
the Secretary prescribes such an increase, the Secretary
shall submit to Congress a notice in writing of the increase.
The notice shall state the amount of the increase in the cadet
strength limit and the new cadet strength limit, as so in-
creased, and the amount of the increase in Senior Air Force
Reserve Officers’ Training Corps enrollment under each of
sections 2104 and 2107 of this title.
‘‘(3) The amount of an increase under paragraph (1)
in the cadet strength limit for an academic year may not
exceed the increase (if any) for the preceding academic year
in the total number of cadets enrolled in the Air Force Sen-
ior Reserve Officers’ Training Corps program under chap-
ter 103 of this title who have entered into an agreement
under section 2104 or 2107 of this title.
110
‘‘(4) In this subsection, the term ‘cadet strength limit’
means the authorized maximum strength of Air Force Ca-
dets of the Academy.’’.
(d) TARGET FOR INCREASES IN NUMBER OF ROTC
SCHOLARSHIP PARTICIPANTS.—Section 2107 of such title
is amended by adding at the end the following new sub-
section:
‘‘(i) The Secretary of each military department shall
seek to achieve an increase in the number of agreements
entered into under this section so as to achieve an increase,
by the 2006–2007 academic year, of not less than 400 in
the number of cadets or midshipmen, as the case may be,
enrolled under this section, compared to such number en-
rolled for the 2002–2003 academic year. In the case of the
Secretary of the Navy, the Secretary shall seek to ensure
that not less than one-third of such increase in agreements
under this section are with students enrolled (or seeking to
enroll) in programs of study leading to a baccalaureate de-
gree in nuclear engineering or another appropriate tech-
nical, scientific, or engineering field of study.’’.
(e) REPEAL OF LIMIT ON NUMBER OF ROTC SCHOL-
ARSHIPS.—Section 2107 of such title is further amended
by striking the first sentence of subsection (h)(1).
111
(f) REPEAL
OF
OBSOLETE
LANGUAGE.—Section
4342(i) of such title is amended by striking ‘‘(beginning
with the 2001–2002 academic year)’’.
SEC. 532. ENHANCEMENT OF RESERVE COMPONENT DE-
LAYED TRAINING PROGRAM.
(a) INCREASE IN TIME FOLLOWING ENLISTMENT FOR
COMMENCEMENT OF INITIAL PERIOD OF ACTIVE DUTY FOR
TRAINING.—Section 12103(d) of title 10, United States
Code, is amended by striking ‘‘270 days’’ in the last sen-
tence and inserting ‘‘one year’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall apply with respect to enlistments under
section 12103(d) of title 10, United States Code, after the
end of the 90–day period beginning on the date of the enact-
ment of this Act.
(c) TRANSITION.—In the case of a person who enlisted
under section 12103(d) of title 10, United States Code, be-
fore the date of the enactment of this Act and who as of
such date has not commenced the required initial period
of active duty for training under that section, the amend-
ment made by subsection (a) may be applied to that person,
but only with the agreement of that person and the Sec-
retary concerned.
112
SEC. 533. PREPARATION FOR, PARTICIPATION IN, AND CON-
DUCT OF ATHLETIC COMPETITIONS BY THE
NATIONAL GUARD AND MEMBERS OF THE NA-
TIONAL GUARD.
(a) ATHLETIC AND SMALL ARMS COMPETITIONS.—
Section 504 of title 32, United States Code, is amended by
adding at the end the following new subsection:
‘‘(c) CONDUCT OF AND PARTICIPATION IN CERTAIN
COMPETITIONS.—(1) Under regulations prescribed by the
Secretary of Defense, members and units of the National
Guard may conduct and compete in a qualifying athletic
competition or a small arms competition so long as—
‘‘(A) the conduct of, or participation in, the com-
petition does not adversely affect the quality of train-
ing or otherwise interfere with the ability of a mem-
ber or unit of the National Guard to perform the
military functions of the member or unit;
‘‘(B) National Guard personnel will enhance
their military skills as a result of conducting or par-
ticipating in the competition; and
‘‘(C) the conduct of or participation in the com-
petition will not result in a significant increase in
National Guard costs.
‘‘(2) Facilities and equipment of the National Guard,
including military property and vehicles described in sec-
tion 508(c) of this title, may be used in connection with
113
the conduct of or participation in a qualifying athletic com-
petition or a small arms competition under paragraph
(1).’’.
(b) OTHER MATTERS.—Such section is further amend-
ed by adding after subsection (c), as added by subsection
(a) of this section, the following new subsections:
‘‘(d) AVAILABILITY OF FUNDS.—(1) Subject to para-
graph (2) and such limitations as may be enacted in appro-
priations Acts and such regulations as the Secretary of De-
fense may prescribe, amounts appropriated for the National
Guard may be used to cover—
‘‘(A) the costs of conducting or participating in
a qualifying athletic competition or a small arms
competition under subsection (c); and
‘‘(B) the expenses of members of the National
Guard under subsection (a)(3), including expenses of
attendance and participation fees, travel, per diem,
clothing, equipment, and related expenses.
‘‘(2) Not more than $2,500,000 may be obligated or
expended in any fiscal year under subsection (c).
‘‘(e) 
QUALIFYING
ATHLETIC
COMPETITION
DE-
FINED.—In this section, the term ‘qualifying athletic com-
petition’ means a competition in athletic events that require
skills relevant to military duties or involve aspects of phys-
ical fitness that are evaluated by the armed forces in deter-
114
mining whether a member of the National Guard is fit for
military duty.’’.
(c) STYLISTIC AMENDMENTS.—Such section is further
amended—
(1) in subsection (a), by inserting ‘‘AUTHORIZED
ACTIVITIES.—’’ after ‘‘(a)’’; and
(2) in subsection (b), by inserting ‘‘AUTHORIZED
LOCATIONS.—’’ after ‘‘(b)’’.
(d) CONFORMING AND CLERICAL AMENDMENTS.—(1)
Subsection (a) of such section is amended—
(A) in paragraph (1), by inserting ‘‘and’’ after
the semicolon;
(B) in paragraph (2), by striking ‘‘; or’’ and in-
serting a period; and
(C) by striking paragraph (3).
(2) The heading of such section is amended to read
as follows:
‘‘§ 504. National Guard schools; small arms competi-
tions; athletic competitions’’.
(3) The item relating to section 504 in the table of
sections at the beginning of chapter 5 of title 32, United
States Code, is amended to read as follows:
‘‘504. National Guard schools; small arms competitions; athletic competitions.’’.
115
Subtitle E—Decorations and
Awards
SEC. 541. WAIVER OF TIME LIMITATIONS FOR AWARD OF
CERTAIN DECORATIONS TO CERTAIN PER-
SONS.
(a) WAIVER.—Any limitation established by law or
policy for the time within which a recommendation for the
award of a military decoration or award must be submitted
shall not apply to awards of decorations described in this
section, the award of each such decoration having been de-
termined by the Secretary concerned to be warranted in ac-
cordance with section 1130 of title 10, United States Code.
(b) DISTINGUISHED FLYING CROSS.—Subsection (a)
applies to the award of the Distinguished Flying Cross (in-
cluding multiple awards to the same individual) in the case
of each individual concerning whom the Secretary of the
military department concerned (or a designated official act-
ing on behalf of the Secretary of the military department
concerned) submitted to the Committee on Armed Services
of the House of Representatives and the Committee on
Armed Services of the Senate, during the period beginning
on December 28, 2001, and ending on the day before the
date of the enactment of this Act, a notice as provided in
section 1130(b) of title 10, United States Code, that the
award of the Distinguished Flying Cross to that individual
116
is warranted and that a waiver of time restrictions pre-
scribed by law for recommendation for such award is rec-
ommended.
SEC. 542. OPTION TO CONVERT AWARD OF ARMED FORCES
EXPEDITIONARY MEDAL AWARDED FOR OP-
ERATION 
FREQUENT 
WIND 
TO 
VIETNAM
SERVICE MEDAL.
(a) IN GENERAL.—The Secretary of the military de-
partment concerned shall, upon the application of an indi-
vidual who is an eligible Vietnam evacuation veteran,
award that individual the Vietnam Service Medal, notwith-
standing any otherwise applicable requirements for the
award of that medal. Any such award shall be made in
lieu of the Armed Forces Expeditionary Medal awarded the
individual for participation in Operation Frequent Wind.
(b) ELIGIBLE VIETNAM EVACUATION VETERAN.—For
purposes of this section, the term ‘‘eligible Vietnam evacu-
ation veteran’’ means a member or former member of the
Armed Forces who was awarded the Armed Forces Expedi-
tionary Medal for participation in military operations des-
ignated as Operation Frequent Wind arising from the evac-
uation of Vietnam on April 29 and 30, 1975.
117
Subtitle F—Administrative Matters
SEC. 551. STAFFING AND FUNDING FOR DEFENSE PRIS-
ONER OF WAR/MISSING PERSONNEL OFFICE.
(a) REQUIREMENT FOR STAFFING AND FUNDING AT
LEVELS REQUIRED FOR PERFORMANCE OF FULL RANGE
OF MISSIONS.—Subsection (a) of section 1501 of title 10,
United States Code, is amended by adding at the end the
following new paragraph:
‘‘(5)(A) The Secretary of Defense shall ensure that the
office is provided sufficient military and civilian personnel
levels, and sufficient funding, to enable the office to fully
perform its complete range of missions. The Secretary shall
ensure that Department of Defense programming, planning,
and budgeting procedures are structured so as to ensure
compliance with the preceding sentence for each fiscal year.
‘‘(B) For any fiscal year, the number of military and
civilian personnel assigned or detailed to the office may not
be less than the number requested in the President’s budget
for fiscal year 2003, unless a level below such number is
expressly required by law.
‘‘(C) For any fiscal year, the level of funding allocated
to the office within the Department of Defense may not be
below the level requested for such purposes in the President’s
budget for fiscal year 2003, unless such a level of funding
is expressly required by law.’’.
118
(b) NAME
OF OFFICE.—Such subsection is further
amended by inserting after the first sentence of paragraph
(1) the following new sentence: ‘‘Such office shall be known
as the Defense Prisoner of War/Missing Personnel Office.’’.
SEC. 552. THREE-YEAR FREEZE ON REDUCTIONS OF PER-
SONNEL OF AGENCIES RESPONSIBLE FOR RE-
VIEW 
AND 
CORRECTION 
OF 
MILITARY
RECORDS.
(a) IN GENERAL.—Chapter 79 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 1559. Personnel limitation
‘‘(a) LIMITATION.—During fiscal years 2003, 2004,
and 2005, the Secretary of a military department may not
carry out any reduction in the number of military and ci-
vilian personnel assigned to duty with the service review
agency for that military department below the baseline
number for that agency until—
‘‘(1) the Secretary submits to Congress a report
that—
‘‘(A) describes the reduction proposed to be
made;
‘‘(B) provides the Secretary’s rationale for
that reduction; and
119
‘‘(C) specifies the number of such personnel
that would be assigned to duty with that agency
after the reduction; and
‘‘(2) a period of 90 days has elapsed after the
date on which the report is submitted.
‘‘(b) BASELINE NUMBER.—The baseline number for a
service review agency under this section is—
‘‘(1) for purposes of the first report with respect
to a service review agency under this section, the
number of military and civilian personnel assigned to
duty with that agency as of January 1, 2002; and
‘‘(2) for purposes of any subsequent report with
respect to a service review agency under this section,
the number of such personnel specified in the most re-
cent report with respect to that agency under this sec-
tion.
‘‘(c) SERVICE REVIEW AGENCY DEFINED.—In this sec-
tion, the term ‘service review agency’ means—
‘‘(1) with respect to the Department of the Army,
the Army Review Boards Agency;
‘‘(2) with respect to the Department of the Navy,
the Board for Correction of Naval Records; and
‘‘(3) with respect to the Department of the Air
Force, the Air Force Review Boards Agency.’’.
120
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘1559. Personnel limitation.’’.
SEC. 553. DEPARTMENT OF DEFENSE SUPPORT FOR PER-
SONS PARTICIPATING IN MILITARY FUNERAL
HONORS DETAILS.
Section 1491(d) of title 10, United States Code, is
amended—
(1) by striking ‘‘To provide a’’ after ‘‘SUP-
PORT.—’’ and inserting ‘‘(1) To support a’’;
(2) by redesignating paragraph (1) as subpara-
graph (A) and amending such subparagraph, as so
redesignated, to read as follows:
‘‘(A) For a person who participates in a funeral
honors detail (other than a person who is a member
of the armed forces not in a retired status or an em-
ployee of the United States), either transportation (or
reimbursement for transportation) and expenses or
the daily stipend prescribed under paragraph (2).’’;
(3) by redesignating paragraph (2) as subpara-
graph (B) and in that subparagraph—
(A) by striking ‘‘Materiel, equipment, and
training for’’ and inserting ‘‘For’’; and
121
(B) by inserting before the period at the end
‘‘and for members of the armed forces in a re-
tired status, materiel, equipment, and training’’;
(4) by redesignating paragraph (3) as subpara-
graph (C) and in that subparagraph—
(A) by striking ‘‘Articles of clothing for’’
and inserting ‘‘For’’; and
(B) by inserting ‘‘, articles of clothing’’
after ‘‘subsection (b)(2)’’; and
(5) by adding at the end the following new para-
graphs:
‘‘(2) The Secretary of Defense shall prescribe annually
a flat rate daily stipend for purposes of paragraph (1)(A).
Such stipend shall be set at a rate so as to encompass typ-
ical costs for transportation and other miscellaneous ex-
penses for persons participating in funeral honors details
who are members of the armed forces in a retired status
and other persons are not members of the armed forces or
employees of the United States.
‘‘(3) A stipend paid under this subsection to a member
of the armed forces in a retired status is in addition to
any compensation to which the member is entitled under
section 435(a)(2) of title 37 and any other compensation
to which the member may be entitled.’’.
122
SEC. 554. AUTHORITY FOR USE OF VOLUNTEERS AS PROC-
TORS FOR ADMINISTRATION OF ARMED SERV-
ICES VOCATIONAL APTITUDE BATTERY TEST.
Section 1588(a) of title 10, United States Code, is
amended by adding at the end the following new paragraph:
‘‘(6) Voluntary services as a proctor for adminis-
tration to secondary school students of the test known
as the ‘Armed Services Vocational Aptitude Bat-
tery’.’’.
SEC. 555. ANNUAL REPORT ON STATUS OF FEMALE MEM-
BERS OF THE ARMED FORCES.
(a) IN GENERAL.—Chapter 23 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 488. Status of female members of the armed forces:
annual report
‘‘(a) ANNUAL REPORT.—The Secretary of Defense shall
submit to Congress an annual report on the status of female
members of the armed forces. Information in the report shall
be shown for the Department of Defense as a whole and
separately for each of the Army, Navy, Air Force, and Ma-
rine Corps.
‘‘(b) MATTERS TO BE INCLUDED.—Each report under
subsection (a) shall include, at a minimum, the following
information with respect to female members:
‘‘(1) Access to health care.
123
‘‘(2) Positions open.
‘‘(3) Assignment policies.
‘‘(4) Joint spouse assignments.
‘‘(5) Deployment availability rates.
‘‘(6) Promotion and retention rates.
‘‘(7) Assignments in nontraditional fields.
‘‘(8) Assignments to command positions.
‘‘(9) Selection for service schools.
‘‘(10) Sexual harassment.’’.
(b) CLERICAL AMENDMENT.—The table of sections at
the beginning of such chapter is amended by adding at the
end the following new item:
‘‘488. Status of female members of the armed forces: annual report.’’.
Subtitle G—Benefits
SEC. 561. VOLUNTARY LEAVE SHARING PROGRAM FOR MEM-
BERS OF THE ARMED FORCES.
(a) IN GENERAL.—(1) Chapter 40 of title 10, United
States Code, is amended by adding at the end the following
new section:
‘‘§ 709. Voluntary transfers of leave
‘‘(a) PROGRAM.—The Secretary concerned shall, by
regulation, establish a program under which leave accrued
by a member of an armed force may be transferred to an-
other member of the same armed force who requires addi-
tional leave because of a qualifying emergency. Any such
transfer of leave may be made only upon the voluntary
124
written application of the member whose leave is to be
transferred.
‘‘(b) APPROVAL
OF
COMMANDING
OFFICER
RE-
QUIRED.—Any transfer of leave under a program under
this section may only be made with the approval of the com-
manding officer of the leave donor and the leave recipient.
‘‘(c) QUALIFYING EMERGENCY.—In this section, the
term ‘qualifying emergency’, with respect to a member of
the armed forces, means a circumstance that—
‘‘(1) is likely to require the prolonged absence of
the member from duty; and
‘‘(2) is due to—
‘‘(A) a medical condition of a member of the
immediate family of the member; or
‘‘(B) any other hardship that the Secretary
concerned determines appropriate for purposes of
this section.
‘‘(d) MILITARY DEPARTMENT REGULATIONS.—Regula-
tions prescribed under this section by the Secretaries of the
military department shall be as uniform as practicable and
shall be subject to approval by the Secretary of Defense.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by adding at the end the following new item:
‘‘709. Voluntary transfers of leave.’’.
(b) DEADLINE FOR IMPLEMENTING REGULATIONS.—
Regulations to implement section 709 of title 10, United
125
States Code, as added by subsection (a), shall be prescribed
not later than six months after the date of the enactment
of this Act.
SEC. 562. ENHANCED FLEXIBILITY IN MEDICAL LOAN RE-
PAYMENT PROGRAM.
(a) ELIGIBLE PERSONS.—Subsection (d) of section
2173 of title 10, United States Code, is amended by striking
‘‘Participants’’ and all that follows through ‘‘and students’’
and inserting ‘‘Students’’.
(b) LOAN REPAYMENT AMOUNTS.—Subsection (e)(2) of
such section is amended by striking the last sentence.
SEC. 563. EXPANSION OF OVERSEAS TOUR EXTENSION BEN-
EFITS.
Section 705(b)(2) of title 10, United States Code, is
amended—
(1) by striking ‘‘recuperative’’ and inserting ‘‘re-
cuperation’’; and
(2) by inserting before the period at the end the
following: ‘‘, or to an alternate location at a cost not
to exceed the cost of transportation to the nearest port
in the 48 contiguous States, and return’’.
126
SEC. 564. VEHICLE STORAGE IN LIEU OF TRANSPORTATION
WHEN MEMBER IS ORDERED TO A NONFOR-
EIGN DUTY STATION OUTSIDE CONTINENTAL
UNITED STATES.
(a) STORAGE COSTS AUTHORIZED.—Subsection (b) of
section 2634 of title 10, United States Code, is amended
by striking paragraphs (1) and (2) and inserting the fol-
lowing:
‘‘(b)(1) When a member receives a vehicle storage
qualifying order, the member may elect to have a motor
vehicle described in subsection (a) stored at the expense of
the United States at a location approved by the Secretary
concerned. In the case of a vehicle storage qualifying order
that is to make a change of permanent station, such storage
is in lieu of transportation authorized by subsection (a).
‘‘(2) In this subsection, the term ‘vehicle storage quali-
fying order’ means any of the following:
‘‘(A) An order to make a change of permanent
station to a foreign country in a case in which the
laws, regulations, or other restrictions imposed by the
foreign country or by the United States either—
‘‘(i) preclude entry of a motor vehicle de-
scribed in subsection (a) into that country; or
‘‘(ii) would require extensive modification
of the vehicle as a condition to entry.
127
‘‘(B) An order to make a change of permanent
station to a nonforeign area outside the continental
United States in a case in which the laws, regula-
tions, or other restrictions imposed by that area or by
the United States either—
‘‘(i) preclude entry of a motor vehicle de-
scribed in subsection (a) into that area; or
‘‘(ii) would require extensive modification
of the vehicle as a condition to entry.
‘‘(C) An order under which a member is trans-
ferred or assigned in connection with a contingency
operation to duty at a location other than the perma-
nent station of the member for a period of more than
30 consecutive days but which is not considered a
change of permanent station.’’.
(b) NONFOREIGN AREA OUTSIDE THE CONTINENTAL
UNITED STATES DEFINED.—Subsection (h) of such section
is amended by adding at the end the following new para-
graph:
‘‘(3) The term ‘nonforeign area outside the conti-
nental United States’ means any of the following: the
States of Alaska and Hawaii, the Commonwealths of
Puerto Rico and the Northern Mariana Islands, and
any possession of the United States.’’.
128
(c) EFFECTIVE DATE.—The amendments made by this
section apply to orders to make a change of permanent sta-
tion to a nonforeign area outside the continental United
States (as such term is defined in subsection (h)(3) of sec-
tion 2634 of title 10, United States Code, as added by sub-
section (b)) that are issued on or after the date of the enact-
ment of this Act.
Subtitle H—Military Justice
Matters
SEC. 571. RIGHT OF CONVICTED ACCUSED TO REQUEST
SENTENCING BY MILITARY JUDGE.
(a) SENTENCING BY JUDGE.—(1) Chapter 47 of title
10, United States Code (the Uniform Code of Military Jus-
tice), is amended by inserting after section 852 (article 52)
the following new section:
‘‘§ 852a. Art. 52a. Right of accused to request sen-
tencing by military judge rather than by
members
‘‘(a) In the case of an accused convicted of an offense
by a court-martial composed of a military judge and mem-
bers, the sentence shall be tried before and adjudged by the
military judge rather than the members if, after the find-
ings are announced and before evidence in the sentencing
proceeding is introduced, the accused, knowing the identity
of the military judge and after consultation with defense
129
counsel, requests orally on the record or in writing that the
sentence be tried before and adjudged by the military judge
rather than the members.
‘‘(b) This section shall not apply with respect to an
offense for which the death penalty may be adjudged unless
the case has been previously referred to trial as a noncapital
case.’’.
(2) The table of sections at the beginning of subchapter
VII of such chapter is amended by inserting after the item
relating to section 852 (article 52) the following new item:
‘‘852a. 52a. Right of accused to request sentencing by military judge rather than
by members.’’.
(b) EFFECTIVE DATE.—Section 852a of title 10,
United States Code (article 52a of the Uniform Code of
Military Justice), as added by subsection (a), shall apply
with respect to offenses committed on or after January 1,
2003.
SEC. 572. REPORT ON DESIRABILITY AND FEASIBILITY OF
CONSOLIDATING 
SEPARATE 
COURSES 
OF
BASIC INSTRUCTION FOR JUDGE ADVOCATES.
Not later than February 1, 2003, the Secretary of De-
fense shall submit to the Committee on Armed Services of
the Senate and the Committee on Armed Services of the
House of Representatives a report on the desirability and
feasibility of consolidating the separate Army, Navy, and
Air Force courses of basic instruction for judge advocates
130
into a single course to be conducted at a single location.
The report shall include—
(1) an assessment of the advantages and dis-
advantages of such a consolidation;
(2) a recommendation as to whether such a con-
solidation is desirable and feasible; and
(3) any proposal for legislative action that the
Secretary considers appropriate for carrying out such
a consolidation.
TITLE VI—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 601. INCREASE IN BASIC PAY FOR FISCAL YEAR 2003.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The ad-
justment to become effective during fiscal year 2003 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, 2003, the rates of monthly basic pay for members of the
uniformed services within each pay grade are as follows:
131
COMMISSIONED OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–10 2
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 ....
0.00
0.00
0.00
0.00
0.00
O–8 ....
7,474.50
7,719.30
7,881.60
7,927.20
8,129.40
O–7 ....
6,210.90
6,499.20
6,633.00
6,739.20
6,930.90
O–6 ....
4,603.20
5,057.10
5,388.90
5,388.90
5,409.60
O–5 ....
3,837.60
4,323.00
4,622.40
4,678.50
4,864.80
O–4 ....
3,311.10
3,832.80
4,088.70
4,145.70
4,383.00
O–3 3
2,911.20
3,300.30
3,562.20
3,883.50
4,069.50
O–2 3
2,515.20
2,864.70
3,299.40
3,410.70
3,481.20
O–1 3
2,183.70
2,272.50
2,746.80
2,746.80
2,746.80
Over 8
Over 10
Over 12
Over 14
Over 16
O–10 2
$0.00
$0.00
$0.00
$0.00
$0.00
O–9 ....
0.00
0.00
0.00
0.00
0.00
O–8 ....
8,468.70
8,547.30
8,868.90
8,961.30
9,238.20
O–7 ....
7,120.80
7,340.40
7,559.40
7,779.00
8,468.70
O–6 ....
5,641.20
5,672.10
5,672.10
5,994.60
6,564.30
O–5 ....
4,977.00
5,222.70
5,403.00
5,635.50
5,991.90
O–4 ....
4,637.70
4,954.50
5,201.40
5,372.70
5,471.10
O–3 3
4,273.50
4,405.80
4,623.30
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
Over 18
Over 20
Over 22
Over 24
Over 26
O–10 2
$0.00
$12,077.70
$12,137.10
$12,389.40
$12,829.20
O–9 ....
0.00
10,563.60
10,715.70
10,935.60
11,319.60
O–8 ....
9,639.00
10,008.90
10,255.80
10,255.80
10,255.80
O–7 ....
9,051.30
9,051.30
9,051.30
9,051.30
9,096.90
O–6 ....
6,898.80
7,233.30
7,423.50
7,616.10
7,989.90
O–5 ....
6,161.70
6,329.10
6,519.60
6,519.60
6,519.60
O–4 ....
5,528.40
5,528.40
5,528.40
5,528.40
5,528.40
O–3 3
4,736.10
4,736.10
4,736.10
4,736.10
4,736.10
O–2 3
3,481.20
3,481.20
3,481.20
3,481.20
3,481.20
O–1 3
2,746.80
2,746.80
2,746.80
2,746.80
2,746.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for com-
missioned officers in pay grades 0–7 through O–10 may not exceed the rate of pay for level III of the
Executive Schedule and the actual rate of basic pay for all other officers may not exceed the rate of
pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, while serving as Chairman or Vice Chairman of the Joint
Chiefs of Staff, Chief of Staff of the Army, Chief of Naval Operations, Chief of Staff of the Air Force,
Commandant of the Marine Corps, or Commandant of the Coast Guard, the rate of basic pay for this
grade is $14,155.50, regardless of cumulative years of service computed under section 205 of title 37,
United States Code.
3 This table does not apply to commissioned officers in pay grade O–1, O–2, or O–3 who have been
credited with over 4 years of active duty service as an enlisted member or warrant officer.
132
COMMISSIONED OFFICERS WITH OVER 4 YEARS OF ACTIVE DUTY SERVICE
AS AN ENLISTED MEMBER OR WARRANT OFFICER
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
O–3E
$0.00
$0.00
$0.00
$3,883.50
$4,069.50
O–2E
0.00
0.00
0.00
3,410.70
3,481.20
O–1E
0.00
0.00
0.00
2,746.80
2,933.70
Over 8
Over 10
Over 12
Over 14
Over 16
O–3E
$4,273.50
$4,405.80
$4,623.30
$4,806.30
$4,911.00
O–2E
3,591.90
3,778.80
3,923.40
4,031.10
4,031.10
O–1E
3,042.00
3,152.70
3,261.60
3,410.70
3,410.70
Over 18
Over 20
Over 22
Over 24
Over 26
O–3E
$5,054.40
$5,054.40
$5,054.40
$5,054.40
$5,054.40
O–2E
4,031.10
4,031.10
4,031.10
4,031.10
4,031.10
O–1E
3,410.70
3,410.70
3,410.70
3,410.70
3,410.70
WARRANT OFFICERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
W–5 ...
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ...
3,008.10
3,236.10
3,329.10
3,420.60
3,578.10
W–3 ...
2,747.10
2,862.00
2,979.30
3,017.70
3,141.00
W–2 ...
2,416.50
2,554.50
2,675.10
2,763.00
2,838.30
W–1 ...
2,133.90
2,308.50
2,425.50
2,501.10
2,662.50
Over 8
Over 10
Over 12
Over 14
Over 16
W–5 ...
$0.00
$0.00
$0.00
$0.00
$0.00
W–4 ...
3,733.50
3,891.00
4,044.60
4,203.60
4,356.00
W–3 ...
3,281.70
3,467.40
3,580.50
3,771.90
3,915.60
W–2 ...
2,993.10
3,148.50
3,264.00
3,376.50
3,453.90
W–1 ...
2,782.20
2,888.40
3,006.90
3,085.20
3,203.40
Over 18
Over 20
Over 22
Over 24
Over 26
W–5 ...
$0.00
$5,169.30
$5,346.60
$5,524.50
$5,703.30
W–4 ...
4,512.00
4,664.40
4,822.50
4,978.20
5,137.50
W–3 ...
4,058.40
4,201.50
4,266.30
4,407.00
4,548.00
W–2 ...
3,579.90
3,705.90
3,831.00
3,957.30
3,957.30
W–1 ...
3,320.70
3,409.50
3,409.50
3,409.50
3,409.50
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for war-
rant officers may not exceed the rate of pay for level V of the Executive Schedule.
133
ENLISTED MEMBERS 1
Years of service computed under section 205 of title 37, United States Code
Pay
Grade
2 or less
Over 2
Over 3
Over 4
Over 6
E–9 2
$0.00
$0.00
$0.00
$0.00
$0.00
E–8 ....
0.00
0.00
0.00
0.00
0.00
E–7 ....
2,068.50
2,257.80
2,343.90
2,428.20
2,516.40
E–6 ....
1,770.60
1,947.60
2,033.70
2,117.10
2,204.10
E–5 ....
1,625.40
1,733.70
1,817.40
1,903.50
2,037.00
E–4 ....
1,502.70
1,579.80
1,665.30
1,749.30
1,824.00
E–3 ....
1,356.90
1,442.10
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
3 1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 8
Over 10
Over 12
Over 14
Over 16
E–9 2
$0.00
$3,564.30
$3,645.00
$3,747.00
$3,867.00
E–8 ....
2,975.40
3,061.20
3,141.30
3,237.60
3,342.00
E–7 ....
2,667.90
2,753.40
2,838.30
2,990.40
3,066.30
E–6 ....
2,400.90
2,477.40
2,562.30
2,636.70
2,663.10
E–5 ....
2,151.90
2,236.80
2,283.30
2,283.30
2,283.30
E–4 ....
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ....
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
Over 18
Over 20
Over 22
Over 24
Over 26
E–9 2
$3,987.30
$4,180.80
$4,344.30
$4,506.30
$4,757.40
E–8 ....
3,530.10
3,625.50
3,787.50
3,877.50
4,099.20
E–7 ....
3,138.60
3,182.70
3,331.50
3,427.80
3,671.40
E–6 ....
2,709.60
2,709.60
2,709.60
2,709.60
2,709.60
E–5 ....
2,283.30
2,283.30
2,283.30
2,283.30
2,283.30
E–4 ....
1,824.00
1,824.00
1,824.00
1,824.00
1,824.00
E–3 ....
1,528.80
1,528.80
1,528.80
1,528.80
1,528.80
E–2 ....
1,290.00
1,290.00
1,290.00
1,290.00
1,290.00
E–1 ....
1,150.80
1,150.80
1,150.80
1,150.80
1,150.80
1 Notwithstanding the basic pay rates specified in this table, the actual rate of basic pay for en-
listed members may not exceed the rate of pay for level V of the Executive Schedule.
2 Subject to the preceding footnote, while serving as Sergeant Major of the Army, Master Chief
Petty Officer of the Navy, Chief Master Sergeant of the Air Force, Sergeant Major of the Marine
Corps, or Master Chief Petty Officer of the Coast Guard, basic pay for this grade is $5,732.70, re-
gardless of cumulative years of service computed under section 205 of title 37, United States Code.
3 In the case of members in pay grade E–1 who have served less than 4 months on active duty, the
rate of basic pay is $1,064.70.
SEC. 602. EXPANSION OF BASIC ALLOWANCE FOR HOUSING
LOW-COST OR NO-COST MOVES AUTHORITY
TO MEMBERS ASSIGNED TO DUTY OUTSIDE
UNITED STATES.
Section 403(c) of title 37, United States Code, is
amended by adding at the end the following new paragraph:
134
‘‘(4) In the case of a member who is assigned to duty
outside of the United States, the location or the cir-
cumstances of which make it necessary that the member be
reassigned under the conditions of low-cost or no-cost per-
manent change of station or permanent change of assign-
ment, the member may be treated as if the member were
not reassigned if the Secretary concerned determines that
it would be inequitable to base the member’s entitlement to,
and amount of, a basic allowance for housing on the cost
of housing in the area to which the member is reassigned.’’.
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND
SPECIAL PAY AUTHORITIES FOR RESERVE
FORCES.
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f ) of title 37, United States Code, is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(c) SPECIAL PAY FOR ENLISTED MEMBERS ASSIGNED
TO CERTAIN HIGH PRIORITY UNITS.—Section 308d(c) of
135
such title is amended by striking ‘‘December 31, 2002’’ and
inserting ‘‘December 31, 2003’’.
(d) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(e) READY RESERVE ENLISTMENT
AND REENLIST-
MENT BONUS.—Section 308h(g) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(f) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f ) of such title is amended by striking ‘‘December 31,
2002’’ and inserting ‘‘December 31, 2003’’.
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND
SPECIAL PAY AUTHORITIES FOR CERTAIN
HEALTH CARE PROFESSIONALS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States Code,
is amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
(b) REPAYMENT OF EDUCATION LOANS FOR CERTAIN
HEALTH PROFESSIONALS WHO SERVE IN THE SELECTED
RESERVE.—Section 16302(d) of such title is amended by
striking ‘‘January 1, 2003’’ and inserting ‘‘January 1,
2004’’.
136
(c) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking ‘‘December 31, 2002’’ and inserting
‘‘December 31, 2003’’.
(d) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(e) SPECIAL PAY FOR SELECTED RESERVE HEALTH
PROFESSIONALS IN CRITICALLY SHORT WARTIME SPECIAL-
TIES.—Section 302g(f ) of such title is amended by striking
‘‘December 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(f) ACCESSION BONUS FOR DENTAL OFFICERS.—Sec-
tion 302h(a)(1) of such title is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND
BONUS AUTHORITIES FOR NUCLEAR OFFI-
CERS.
(a) SPECIAL PAY FOR NUCLEAR-QUALIFIED OFFICERS
EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312(e)
of title 37, United States Code, is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(b) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of such title is amended by striking ‘‘December 31,
2002’’ and inserting ‘‘December 31, 2003’’.
137
(c) NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—
Section 312c(d) of such title is amended by striking ‘‘De-
cember 31, 2002’’ and inserting ‘‘December 31, 2003’’.
SEC. 614. ONE-YEAR EXTENSION OF OTHER BONUS AND
SPECIAL PAY AUTHORITIES.
(a) AVIATION OFFICER RETENTION BONUS.—Section
301b(a) of title 37, United States Code, is amended by strik-
ing ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
(b) REENLISTMENT BONUS FOR ACTIVE MEMBERS.—
Section 308(g) of such title is amended by striking ‘‘Decem-
ber 31, 2002’’ and inserting ‘‘December 31, 2003’’.
(c) ENLISTMENT BONUS FOR ACTIVE MEMBERS.—Sec-
tion 309(e) of such title is amended by striking ‘‘December
31, 2002’’ and inserting ‘‘December 31, 2003’’.
(d) RETENTION BONUS FOR MEMBERS WITH CRITICAL
MILITARY SKILLS.—Section 323(i) of such title is amended
by striking ‘‘December 31, 2002’’ and inserting ‘‘December
31, 2003’’.
(e) ACCESSION BONUS FOR NEW OFFICERS IN CRIT-
ICAL SKILLS.—Section 324(g) of such title is amended by
striking ‘‘December 31, 2002’’ and inserting ‘‘December 31,
2003’’.
138
SEC. 615. MINIMUM LEVELS OF HARDSHIP DUTY PAY FOR
DUTY ON THE GROUND IN ANTARCTICA OR
ON ARCTIC ICEPACK.
Section 305 of title 37, United States Code, is
amended—
(1) by redesignating subsection (b) as subsection
(c); and
(2) by inserting after subsection (a), the fol-
lowing new subsection:
‘‘(b) DUTY IN CERTAIN LOCATIONS.—(1) In the case
of duty at a location described in paragraph (2) at any
time during a month, the member of a uniformed service
performing that duty is entitled to special pay under this
section at a monthly rate of not less than $240, but not
to exceed the monthly rate specified in subsection (a). For
each day of that duty during the month, the member shall
receive an amount equal to 1⁄30 of the monthly rate pre-
scribed under this subsection.
‘‘(2) Paragraph (1) applies with respect to duty per-
formed on the ground in Antarctica or on the Arctic ice-
pack.’’.
SEC. 616. INCREASE IN MAXIMUM RATES FOR PRIOR SERV-
ICE ENLISTMENT BONUS.
Section 308i(b)(1) of title 37, United States Code, is
amended—
139
(1) in subparagraph (A), by striking ‘‘$5,000’’
and inserting ‘‘$8,000’’;
(2) in subparagraph (B), by striking ‘‘$2,500’’
and inserting ‘‘$4,000’’; and
(3) in subparagraph (C), by striking ‘‘$2,000’’
and inserting ‘‘$3,500’’.
SEC. 617. RETENTION INCENTIVES FOR HEALTH CARE PRO-
VIDERS QUALIFIED IN A CRITICAL MILITARY
SKILL.
(a) EXCEPTION TO LIMITATION ON MAXIMUM BONUS
AMOUNT.—Subsection (d) of section 323 of title 37, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘A member’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The limitation in paragraph (1) on the total
bonus payments that a member may receive under this sec-
tion does not apply with respect to an officer who is as-
signed duties as a health care provider.’’.
(b) EXCEPTION TO YEARS OF SERVICE LIMITATION.—
Subsection (e) of such section is amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively;
(2) by inserting ‘‘(1)’’ before ‘‘A retention’’; and
140
(3) by adding at the end the following new para-
graph:
‘‘(2) The limitations in paragraph (1) do not apply
with respect to an officer who is assigned duties as a health
care provider during the period of active duty for which
the bonus is being offered.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 631. EXTENSION OF LEAVE TRAVEL DEFERRAL PERIOD
FOR MEMBERS PERFORMING CONSECUTIVE
OVERSEAS TOURS OF DUTY.
(a) AUTHORIZED DEFERRAL PERIOD.—Section 411b
of title 37, United States Code is amended by inserting after
subsection (a) the following new subsection:
‘‘(b) AUTHORITY TO DEFER TRAVEL; LIMITATIONS.—
(1) Under the regulations referred to subsection (a), a mem-
ber may defer the travel for which the member is paid travel
and transportation allowances under this section until any-
time before the completion of the consecutive tour at the
same duty station or the completion of the tour of duty at
the new duty station under the order involved, as the case
may be.
‘‘(2) If a member is unable to undertake the travel be-
fore expiration of the deferral period under paragraph (1)
because of duty in connection with a contingency operation,
141
the member may defer the travel until not more than one
year after the date on which the member’s duty in connec-
tion with the contingency operation ends.’’.
(b) CONFORMING AND CLERICAL AMENDMENTS.—Such
section is further amended—
(1) in subsection (a)—
(A) by striking ‘‘(a)(1)’’ and inserting ‘‘(a)
ALLOWANCES AUTHORIZED.—’’; and
(B) by striking paragraph (2); and
(2) by striking ‘‘(b) The allowances’’ and insert-
ing ‘‘(c) LIMITATION ON ALLOWANCE RATE.—’’.
(c) APPLICATION OF AMENDMENT.—Subsection (b) of
section 411b of title 37, United States Code, as added by
subsection (a), shall apply with respect to members of the
uniformed services in a deferred leave travel status under
such section as of the date of the enactment of this Act or
after that date.
142
Subtitle D—Retired Pay and
Survivors Benefits
SEC. 641. PHASE-IN OF FULL CONCURRENT RECEIPT OF
MILITARY RETIRED PAY AND VETERANS DIS-
ABILITY COMPENSATION FOR MILITARY RE-
TIREES WITH DISABILITIES RATED AT 60 PER-
CENT OR HIGHER.
(a) CONCURRENT RECEIPT.—Section 1414 of title 10,
United States Code, is amended to read as follows:
‘‘§ 1414. Members eligible for retired pay who have
service-connected disabilities rated at 60
percent or higher: concurrent payment of
retired pay and veterans’ disability com-
pensation
‘‘(a) PAYMENT OF BOTH RETIRED PAY AND COM-
PENSATION.—Subject to subsection (b), a member or former
member of the uniformed services who is entitled for any
month to retired pay and who is also entitled for that
month to veterans’ disability compensation for a qualifying
service-connected disability (hereinafter in this section re-
ferred to as a ‘qualified retiree’) is entitled to be paid both
for that month without regard to sections 5304 and 5305
of title 38. For fiscal years 2003 through 2006, payment
of retired pay to such a member or former member is subject
to subsection (c).
143
‘‘(b) SPECIAL RULES FOR CHAPTER 61 DISABILITY
RETIREES.—
‘‘(1) CAREER RETIREES.—The retired pay of a
member retired under chapter 61 of this title with 20
years or more of service otherwise creditable under
section 1405 of this title at the time of the member’s
retirement is subject to reduction under sections 5304
and 5305 of title 38, but only to the extent that the
amount of the member’s retired pay under chapter 61
of this title exceeds the amount of retired pay to
which the member would have been entitled under any
other provision of law based upon the member’s serv-
ice in the uniformed services if the member had not
been retired under chapter 61 of this title.
‘‘(2) DISABILITY RETIREES WITH LESS THAN 20
YEARS OF SERVICE.—Subsection (a) does not apply to
a member retired under chapter 61 of this title with
less than 20 years of service otherwise creditable
under section 1405 of this title at the time of the
member’s retirement.
‘‘(c) PHASE-IN OF FULL CONCURRENT RECEIPT.—For
fiscal years 2003 through 2006, retired pay payable to a
qualified retiree shall be determined as follows:
‘‘(1) FISCAL YEAR 2003.—For a month during
fiscal year 2003, the amount of retired pay payable
144
to a qualified retiree is the amount (if any) of retired
pay in excess of the current baseline offset plus the
following:
‘‘(A) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
total, $750.
‘‘(B) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
90 percent, $500.
‘‘(C) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
80 percent, $250.
‘‘(D) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
70 percent, $250.
‘‘(E) For a month for which the retiree re-
ceives veterans’ disability compensation for a
qualifying service-connected disability rated as
60 percent, $125.
145
‘‘(2) FISCAL YEAR 2004.—For a month during
fiscal year 2004, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount specified in paragraph (1)
for that qualified retiree; and
‘‘(B) 23 percent of the difference between (i)
the current baseline offset, and (ii) the amount
specified in paragraph (1) for that member’s dis-
ability.
‘‘(3) FISCAL YEAR 2005.—For a month during
fiscal year 2005, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount determined under para-
graph (2) for that qualified retiree; and
‘‘(B) 30 percent of the difference between (i)
the current baseline offset, and (ii) the amount
determined under paragraph (2) for that quali-
fied retiree.
‘‘(4) FISCAL YEAR 2006.—For a month during
fiscal year 2006, the amount of retired pay payable
to a qualified retiree is the sum of—
‘‘(A) the amount determined under para-
graph (3) for that qualified retiree; and
‘‘(B) 64 percent of the difference between (i)
the current baseline offset, and (ii) the amount
146
determined under paragraph (3) for that quali-
fied retiree.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) RETIRED PAY.—The term ‘retired pay’ in-
cludes retainer pay, emergency officers’ retirement
pay, and naval pension.
‘‘(2) VETERANS’ DISABILITY
COMPENSATION.—
The term ‘veterans’ disability compensation’ has the
meaning given the term ‘compensation’ in section
101(13) of title 38.
‘‘(3) SERVICE-CONNECTED.—The term ‘service-
connected’ has the meaning given that term in section
101(16) of title 38.
‘‘(4) 
QUALIFYING
SERVICE-CONNECTED
DIS-
ABILITY.—The term ‘qualifying service-connected dis-
ability’ means a service-connected disability or com-
bination of service-connected disabilities that is rated
as not less than 60 percent disabling by the Secretary
of Veterans Affairs.
‘‘(5) DISABILITY RATED AS TOTAL.—The term
‘disability rated as total’ means—
‘‘(A) a disability, or combination of disabil-
ities, that is rated as total under the standard
schedule of rating disabilities in use by the De-
partment of Veterans Affairs; or
147
‘‘(B) a disability, or combination of disabil-
ities, for which the scheduled rating is less than
total but for which a rating of total is assigned
by reason of inability of the disabled person con-
cerned to secure or follow a substantially gainful
occupation as a result of service-connected dis-
abilities.
‘‘(6) CURRENT BASELINE OFFSET.—
‘‘(A) IN GENERAL.—The term ‘current base-
line offset’ for any qualified retiree means the
amount for any month that is the lesser of—
‘‘(i) the amount of the applicable
monthly retired pay of the qualified retiree
for that month; and
‘‘(ii) the amount of monthly veterans’
disability compensation to which the quali-
fied retiree is entitled for that month.
‘‘(B) APPLICABLE RETIRED PAY.—In sub-
paragraph (A), the term ‘applicable retired pay’
for a qualified retiree means the amount of
monthly retired pay to which the qualified re-
tiree is entitled, determined without regard to
this section or sections 5304 and 5305 of title
38), except that in the case of such a retiree who
was retired under chapter 61 of this title, such
148
amount is the amount of retired pay to which
the member would have been entitled under any
other provision of law based upon the member’s
service in the uniformed services if the member
had not been retired under chapter 61 of this
title.’’.
(b) REPEAL
OF SPECIAL COMPENSATION AUTHOR-
ITY.—Section 1413 of title 10, United States Code, is re-
pealed.
(c) PAYMENT OF INCREASED RETIRED PAY COSTS
DUE TO CONCURRENT RECEIPT.—(1) Section 1465(b) of
such title is amended by adding at the end the following
new paragraph:
‘‘(3) At the same time that the Secretary of Defense
makes the determination required by paragraph (1) for any
fiscal year, the Secretary shall determine the amount of the
Treasury contribution to be made to the Fund for the next
fiscal year under section 1466(b)(2)(D) of this title. That
amount shall be determined in the same manner as the de-
termination under paragraph (1) of the total amount of De-
partment of Defense contributions to be made to the Fund
during that fiscal year under section 1466(a) of this title,
except that for purposes of this paragraph the Secretary,
in making the calculations required by subparagraphs (A)
and (B) of that paragraph, shall use the single level percent-
149
ages determined under subsection (c)(4), rather than those
determined under subsection (c)(1).’’.
(2) Section 1465(c) of such title is amended—
(A) in paragraph (1)—
(i) in subparagraph (A), by inserting before
the semicolon at the end the following: ‘‘, to be
determined without regard to section 1414 of this
title’’;
(ii) in subparagraph (B), by inserting be-
fore the period at the end the following: ‘‘, to be
determined without regard to section 1414 of this
title’’; and
(iii) in the sentence following subparagraph
(B), by striking ‘‘subsection (b)’’ and inserting
‘‘subsection (b)(1)’’;
(B) by redesignating paragraph (4) as para-
graph (5); and
(C) by inserting after paragraph (3) the fol-
lowing new paragraph (4):
‘‘(4) Whenever the Secretary carries out an actuarial
valuation under paragraph (1), the Secretary shall include
as part of such valuation the following:
‘‘(A) A determination of a single level percentage
determined in the same manner as applies under sub-
150
paragraph (A) of paragraph (1), but based only upon
the provisions of section 1414 of this title.
‘‘(B) A determination of a single level percentage
determined in the same manner as applies under sub-
paragraph (B) of paragraph (1), but based only upon
the provisions of section 1414 of this title.
Such single level percentages shall be used for the purposes
of subsection (b)(3).’’.
(3) Section 1466(b) of such title is amended—
(A) in paragraph (1), by striking ‘‘sections
1465(a) 
and 
1465(c)’’ 
and 
inserting 
‘‘sections
1465(a), 1465(b)(3), 1465(c)(2), and 1465(c)(3)’’; and
(B) by adding at the end of paragraph (2) the
following new subparagraph:
‘‘(D) The amount for that year determined by
the Secretary of Defense under section 1465(b)(3) of
this title for the cost to the Fund arising from in-
creased amounts payable from the Fund by reason of
section 1414 of this title.’’.
(d) CLERICAL AMENDMENTS.—The table of sections at
the beginning of chapter 71 of such title is amended—
(1) by striking the item relating to section 1413;
and
(2) by striking the item relating to section 1414
and inserting the following:
151
‘‘1414. Members eligible for retired pay who have service-connected disabilities
rated at 60 percent or higher: concurrent payment of retired pay
and veterans’ disability compensation.’’.
(e) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to retired pay payable for
months after September 2002.
SEC. 642. CHANGE IN SERVICE REQUIREMENTS FOR ELIGI-
BILITY FOR RETIRED PAY FOR NON-REGULAR
SERVICE.
(a) REDUCTION IN REQUIREMENT FOR YEARS OF RE-
SERVE COMPONENT SERVICE BEFORE RETIRED PAY ELIGI-
BILITY.—Section 12731(a)(3) of title 10, United States
Code, is amended by striking ‘‘eight years’’ and inserting
‘‘six years’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect on October 1, 2002.
SEC. 643. ELIMINATION OF POSSIBLE INVERSION IN RE-
TIRED 
PAY 
COST-OF-LIVING 
ADJUSTMENT
FOR INITIAL COLA COMPUTATION.
(a) ELIMINATION OF POSSIBLE COLA INVERSION.—
Section 1401a of title 10, United States Code, is amended—
(1) in subsections (c)(1), (d), and (e), by insert-
ing ‘‘but subject to subsection (f)(2)’’ after ‘‘Notwith-
standing subsection (b)’’;
(2) in subsection (c)(2), by inserting ‘‘(subject to
subsection (f)(2) as applied to other members whose
retired pay is computed on the current rates of basic
152
pay in the most recent adjustment under this sec-
tion)’’ after ‘‘shall be increased’’; and
(3) in subsection (f)—
(A) by designating the text after the sub-
section heading as paragraph (1), indenting that
text two ems, and inserting ‘‘(1) PREVENTION OF
RETIRED PAY INVERSIONS.—’’ before ‘‘Notwith-
standing’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) PREVENTION
OF
COLA
INVERSIONS.—The
percentage of the first adjustment under this section
in the retired pay of any person, as determined under
subsection (c)(1), (c)(2), (d), or (e), may not exceed
the percentage increase in retired pay determined
under subsection (b)(2) that is effective on the same
date as the effective date of such first adjustment.’’.
(b) TECHNICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (d), by inserting ‘‘or on or after
August 1, 1986, if the member or former member did
not elect to receive a bonus under section 322 of title
37’’ after ‘‘August 1, 1986,’’; and
153
(2) in subsection (e), by inserting ‘‘and elected to
receive a bonus under section 322 of title 37’’ after
‘‘August 1, 1986,’’.
SEC. 644. TECHNICAL REVISIONS TO SO-CALLED ‘‘FORGOT-
TEN WIDOWS’’ ANNUITY PROGRAM.
(a) 
CLARIFICATION
OF
ELIGIBILITY.—Subsection
(a)(1) of section 644 of the National Defense Authorization
Act for Fiscal Year 1998 (Public Law 105–85; 10 U.S.C.
1448 note) is amended—
(1) in subparagraph (A), by inserting after
‘‘(A)’’ the following: ‘‘became entitled to retired or re-
tainer pay before September 21, 1972,’’; and
(2) in subparagraph (B), by striking ‘‘was a
member of a reserve component of the Armed Forces’’
and inserting ‘‘died’’.
(b) CLARIFICATION OF INTERACTION WITH OTHER
BENEFITS.—(1) Subsection (a)(2) of such section is amend-
ed by striking ‘‘and who’’ and all that follows through
‘‘note)’’.
(2) Subsection (b)(2) of such section is amended to
read as follows:
‘‘(2) The amount of an annuity to which a surviving
spouse is entitled under this section for any period shall
be reduced (but not below zero) by any amount paid to that
154
surviving spouse for the same period under any of the fol-
lowing provisions of law:
‘‘(A) Section 1311(a) of title 38, United States
Code (relating to dependency and indemnity com-
pensation payable by the Secretary of Veterans Af-
fairs).
‘‘(B) Chapter 73 of title 10, United States Code.
‘‘(C) Section 4 of Public Law 92–425 (10 U.S.C.
1448 note).’’.
(c) CLARIFICATION
OF DEFINITION
OF SURVIVING
SPOUSE.—Subsection (d)(2) of such section is amended by
striking ‘‘the terms’’ and all that follows through ‘‘and (8)’’
and inserting ‘‘such term in paragraph (9)’’.
(d) CLARIFICATION OF EFFECTIVE DATE OF BENE-
FITS.—Subsection (e) of such section is amended—
(1) in paragraph (1), by striking ‘‘the month in
which this Act is enacted’’ and inserting ‘‘November
1997’’;
(2) in paragraph (2), by striking ‘‘the first
month that begins after the month in which this Act
is enacted’’ and inserting ‘‘December 1997’’; and
(3) by adding at the end the following new para-
graph:
‘‘(3) In the case of a person entitled to an annuity
under this section who applies for the annuity after the date
155
of the enactment of this paragraph, such annuity shall be
paid only for months beginning after the date on which such
application is submitted.’’.
(e) SPECIFICATION IN LAW OF CURRENT BENEFIT
AMOUNT.—Subsection (b) of such section is amended—
(1) in paragraph (1), by striking ‘‘$165’’ and in-
serting ‘‘$185.58’’; and
(2) in paragraph (3)—
(A) by striking ‘‘the date of the enactment
of this Act’’ and inserting ‘‘May 1, 2002,’’; and
(B) by striking the last sentence.
Subtitle E—Reserve Component
Montgomery GI Bill
SEC. 651. EXTENSION OF MONTGOMERY GI BILL-SELECTED
RESERVE ELIGIBILITY PERIOD.
Section 16133(a) of title 10, United States Code, is
amended by striking ‘‘10-year’’ and inserting ‘‘14-year’’.
Subtitle F—Other Matters
SEC. 661. ADDITION OF DEFINITION OF CONTINENTAL
UNITED STATES IN TITLE 37.
(a) DEFINITION.—Section 101(1) of title 37, United
States Code, is amended by adding at the end the following
new sentence: ‘‘The term ‘continental United States’ means
the 48 contiguous States and the District of Columbia.’’.
156
(b) CONFORMING AMENDMENTS.—Title 37, United
States Code, is amended as follows:
(1) Section 314(a)(3) is amended by striking
‘‘the 48 contiguous States and the District of Colum-
bia’’ and inserting ‘‘the continental United States’’.
(2) Section 403b(i) is amended by striking para-
graph (6).
(3) Section 409 is amended by striking sub-
section (e).
(4) Section 411b(a) is amended by striking ‘‘the
48 contiguous States and the District of Columbia’’
both places it appears and inserting ‘‘the continental
United States’’.
(5) Section 411d is amended by striking sub-
section (d).
(6) Section 430 is amended by striking sub-
section (f) and inserting the following new subsection
(f):
‘‘(f) DEFINITIONS.—In this section:
‘‘(1) The term ‘formal education’ means the fol-
lowing:
‘‘(A) A secondary education.
‘‘(B) An undergraduate college education.
157
‘‘(C) A graduate education pursued on a
full-time basis at an institution of higher edu-
cation.
‘‘(D) Vocational education pursued on a
full-time basis at a postsecondary vocational in-
stitution.
‘‘(2) The term ‘institution of higher education’
has the meaning given that term in section 101 of the
Higher Education Act of 1965 (20 U.S.C. 1001).
‘‘(3) The term ‘postsecondary vocational institu-
tion’ has the meaning given that term in section
102(c) of the Higher Education Act of 1965 (20
U.S.C. 1002(c)).’’.
TITLE VII—HEALTH CARE
MATTERS
Subtitle A—Health Care Program
Improvements
SEC. 701. ELIMINATION OF REQUIREMENT FOR TRICARE
PREAUTHORIZATION OF INPATIENT MENTAL
HEALTH 
CARE 
FOR 
MEDICARE-ELIGIBLE
BENEFICIARIES.
(a) ELIMINATION OF REQUIREMENT.—Section 1079(i)
of title 10, United States Code, is amended in paragraph
(3) by inserting ‘‘or in the case of a person eligible for
health care benefits under section 1086(d)(2) of this title
158
for whom payment for such services is made under sub-
section 1086(d)(3) of this title’’ after ‘‘an emergency’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect October 1, 2004.
SEC. 702. EXPANSION OF TRICARE PRIME REMOTE FOR
CERTAIN DEPENDENTS.
(a) EXPANSION OF ELIGIBILITY.—Section 1079(p) of
title 10, United States Code, is amended in paragraph
(1)—
(1) by inserting ‘‘(A)’’ after ‘‘(1)’’;
(2) by striking ‘‘referred to in subsection (a) of
a member of the uniformed services referred to in
1074(c)(3) of this title who are residing with the
member’’ and inserting ‘‘described in subparagraph
(B)’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(B) A dependent referred to in subparagraph (A) is—
‘‘(i) a dependent referred to in subsection (a) of
a member of the uniformed services referred to in sec-
tion 1074(c)(3) of this title, who is residing with the
member; or
‘‘(ii) a dependent referred to in subsection (a) of
a member of the uniformed services with a permanent
duty assignment for which the dependent is not au-
159
thorized to accompany the member and one of the fol-
lowing circumstances exists:
‘‘(I) The dependent continues to reside at
the location of the former duty assignment of the
member (or residence in the case of a member of
a reserve component ordered to active duty for a
period of more than 30 days), and that location
is more than 50 miles, or approximately one
hour of driving time, from the nearest military
medical treatment facility that can adequately
provide needed health care.
‘‘(II) There is no reasonable expectation the
member will return to the location of the former
duty assignment, and the dependent moves to a
location that is more than 50 miles, or approxi-
mately one hour of driving time, from the near-
est military medical treatment facility that can
adequately provide needed health care.’’.
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect October 1, 2002.
SEC. 703. ENABLING DEPENDENTS OF CERTAIN MEMBERS
WHO DIED WHILE ON ACTIVE DUTY TO EN-
ROLL IN THE TRICARE DENTAL PROGRAM.
Section 1076a(k)(2) of title 10, United States Code, is
amended by inserting ‘‘(or, if not enrolled, if the member
160
discontinued participation under subsection (f))’’ after
‘‘subsection (a)’’.
SEC. 704. IMPROVEMENTS REGARDING THE DEPARTMENT
OF DEFENSE MEDICARE-ELIGIBLE RETIREE
HEALTH CARE FUND.
(a) SOURCE OF FUNDS FOR MONTHLY ACCRUAL PAY-
MENTS
INTO
THE FUND.—Section 1116(c) of title 10,
United States Code, is amended to read as follows:
‘‘(c) Amounts paid into the Fund under subsection (a)
shall be paid from funds available for the pay of members
of the participating uniformed services under the jurisdic-
tion of the respective administering Secretaries.’’.
(b) MANDATORY PARTICIPATION
OF OTHER UNI-
FORMED
SERVICES.—Section 1111(c) of such title is
amended—
(1) in the first sentence, by striking ‘‘may enter
into an agreement with any other administering Sec-
retary’’ and inserting ‘‘shall enter into an agreement
with each other administering Secretary’’; and
(2) in the second sentence, by striking ‘‘Any’’
and inserting ‘‘Each’’.
161
SEC. 705. CERTIFICATION OF INSTITUTIONAL AND NON-IN-
STITUTIONAL 
PROVIDERS 
UNDER 
THE
TRICARE PROGRAM.
(a) IN GENERAL.—Section 1079 of title 10, United
States Code, is amended by adding at the end the following
new subsection:
‘‘(q) For purposes of designating institutional and
non-institutional health care providers authorized to pro-
vide care under this section, the Secretary of Defense shall
prescribe regulations (in consultation with the other admin-
istering Secretaries) that will, to the extent practicable and
subject to the limitations of subsection (a), so designate any
provider authorized to provide care under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.).’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect October 1, 2003.
SEC. 706. TECHNICAL CORRECTION REGARDING TRANSI-
TIONAL HEALTH CARE.
Effective as of December 28, 2001, section 1145(a)(1)
of title 10, United States Code, is amended by inserting
‘‘(and the dependents of the member)’’ after ‘‘separated from
active duty as described in paragraph (2)’’. The amendment
made by the preceding sentence shall be deemed to have been
enacted as part of section 736 of the National Defense Au-
thorization Act for Fiscal Year 2002 (Public Law 107–107).
162
Subtitle B—Reports
SEC. 711. COMPTROLLER GENERAL REPORT ON TRICARE
CLAIMS PROCESSING.
Not later than March 31, 2003, the Comptroller Gen-
eral shall submit to Congress an evaluation of the con-
tinuing impediments to a cost effective and provider- and
beneficiary-friendly system for claims processing under the
TRICARE program. The evaluation shall include a discus-
sion of the following:
(1) The extent of progress implementing im-
provements in claims processing, particularly regard-
ing the application of best industry practices.
(2) The extent of progress in simplifying claims
processing procedures, including the elimination of, or
reduction in, the complexity of the Health Care Serv-
ice Record requirements.
(3) The suitability of a medicare-compatible
claims processing system with the data requirements
necessary to administer the TRICARE program and
related information systems.
(4) The extent to which the claims processing
system for the TRICARE program impedes provider
participation and beneficiary access.
(5) Recommendations for improving the claims
processing system that will reduce processing and ad-
163
ministration costs, create greater competition, and
improve fraud-prevention activities.
SEC. 712. COMPTROLLER GENERAL REPORT ON PROVISION
OF CARE UNDER THE TRICARE PROGRAM.
Not later than March 31, 2003, the Comptroller Gen-
eral shall submit to Congress an evaluation of the nature
of, reasons for, extent of, and trends regarding network pro-
vider instability under the TRICARE program, and the ef-
fectiveness of efforts by the Department of Defense and man-
aged care support contractors to measure and mitigate such
instability. The evaluation shall include a discussion of the
following:
(1) The adequacy of measurement tools of
TRICARE network instability and their use by the
Department of Defense and managed care support
contractors to assess network adequacy and stability.
(2) Recommendations for improvements needed
in measurement tools or their application.
(3) The relationship of reimbursement rates and
administration 
requirements 
(including
preauthorization requirements) to TRICARE network
instability.
(4) The extent of problems under the TRICARE
program and likely future trends with and without
intervention using existing authority.
164
(5) Use of existing authority by the Department
of Defense and TRICARE managed care support con-
tractors to apply higher reimbursement rates in spe-
cific geographic areas.
(6) Recommendations for specific fiscally pru-
dent measures that could mitigate negative trends or
improve provider and network stability.
SEC. 713. REPEAL OF REPORT REQUIREMENT.
Notwithstanding subsection (f)(2) of section 712 of the
Floyd D. Spence National Defense Authorization Act for
Fiscal Year 2001 (as enacted into law by Public Law 106-
398; 114 Stat. 1654A–179), the amendment made by sub-
section (e) of such section shall not take effect and the para-
graph amended by such subsection is repealed.
Subtitle C—Department of Defense-
Department of Veterans Affairs
Health Resources Sharing
SEC. 721. SHORT TITLE.
This subtitle may be cited as the ‘‘Department of De-
fense-Department of Veterans Affairs Health Resources
Sharing and Performance Improvement Act of 2002’’.
165
SEC. 722. FINDINGS AND SENSE OF CONGRESS CON-
CERNING STATUS OF HEALTH RESOURCES
SHARING BETWEEN THE DEPARTMENT OF
VETERANS AFFAIRS AND THE DEPARTMENT
OF DEFENSE.
(a) FINDINGS.—Congress makes the following findings:
(1) Federal health care resources are scarce and
thus should be effectively and efficiently used.
(2) In 1982, Congress, in Public Law 97–174,
authorized the sharing of health resources between De-
partment of Defense medical treatment facilities and
Department of Veterans Affairs health care facilities
in order to allow more effective and efficient use of
those health resources.
(3) Health care beneficiaries of the Departments
of Defense and Veterans Affairs, whether active
servicemembers, veterans, retirees, or family members
of active or retired servicemembers, should have full
access to the health care and services that Congress
has authorized for them.
(4) The Secretary of Defense and the Secretary
of Veterans Affairs, and the appropriate officials of
each of the Departments of Defense and Veterans Af-
fairs with responsibilities related to health care, have
not taken full advantage of the opportunities provided
by law to make their respective health resources avail-
166
able to health care beneficiaries of the other Depart-
ment in order to provide improved health care for the
whole number of beneficiaries.
(5) After the many years of support and encour-
agement from Congress, the Departments have made
little progress in health resource sharing and the in-
tended results of the sharing authority have not been
achieved.
(b) SENSE OF CONGRESS.—Congress urges the Sec-
retary of Defense and the Secretary of Veterans Affairs—
(1) to commit their respective Departments to
significantly improve mutually beneficial sharing and
coordination of health care resources and services dur-
ing peace and war;
(2) to build organizational cultures supportive of
improved sharing and coordination of health care re-
sources and services; and
(3) to establish and achieve measurable goals to
facilitate increased sharing and coordination of
health care resources and services.
(c) PURPOSE.—It is the purpose of this Act—
(1) to authorize a program to advance mutually
beneficial sharing and coordination of health care re-
sources between the two Departments consistent with
the longstanding intent of Congress; and
167
(2) to establish a basis for improved strategic
planning by the Department of Defense and Depart-
ment of Veterans Affairs health systems to ensure that
scarce health care resources are used more effectively
and efficiently in order to enhance access to high
quality health care for their respective beneficiaries.
SEC. 723. REVISED COORDINATION AND SHARING GUIDE-
LINES.
(a) IN GENERAL.—(1) Section 8111 of title 38, United
States Code, is amended to read as follows:
‘‘§ 8111. Sharing of Department of Veterans Affairs
and Department of Defense health care
resources
‘‘(a) REQUIRED COORDINATION
AND SHARING
OF
HEALTH CARE RESOURCES.—The Secretary of Veterans
Affairs and the Secretary of Defense shall enter into agree-
ments and contracts for the mutually beneficial coordina-
tion, use, or exchange of use of the health care resources
of the Department of Veterans Affairs and the Department
of Defense with the goal of improving the access to, and
quality and cost effectiveness of, the health care provided
by the Veterans Health Administration and the Military
Health System to the beneficiaries of both Departments.
‘‘(b) JOINT REQUIREMENTS
FOR SECRETARIES
OF
VETERANS AFFAIRS AND DEFENSE.—To facilitate the mu-
168
tually beneficial coordination, use, or exchange of use of the
health care resources of the two Departments, the two Secre-
taries shall carry out the following functions:
‘‘(1) Develop and publish a joint strategic vision
statement and a joint strategic plan to shape, focus,
and prioritize the coordination and sharing efforts
among appropriate elements of the two Departments
and incorporate the goals and requirements of the
joint sharing plan into the strategic and performance
plan of each Department under the Government Per-
formance and Results Act.
‘‘(2) Jointly fund the interagency committee pro-
vided for under subsection (c).
‘‘(3) Continue to facilitate and improve sharing
between individual Department of Veterans Affairs
and Department of Defense health care facilities, but
giving priority of effort to initiatives (A) that im-
prove sharing and coordination of health resources at
the intraregional and nationwide levels, and (B) that
improve the ability of both Departments to provide
coordinated health care.
‘‘(4) Establish a joint incentive program under
subsection (d).
‘‘(c) DOD–VA HEALTH EXECUTIVE COMMITTEE.—(1)
There is established an interagency committee to be known
169
as the Department of Veterans Affairs-Department of De-
fense Health Executive Committee (hereinafter in this sec-
tion referred to as the ‘Committee’). The Committee is com-
posed of—
‘‘(A) the Deputy Secretary of the Department of
Veterans Affairs and such other officers and employees
of the Department of Veterans Affairs as the Secretary
of Veterans Affairs may designate; and
‘‘(B) the Under Secretary of Defense for Per-
sonnel and Readiness and such other officers and em-
ployees of the Department of Defense as the Secretary
of Defense may designate.
‘‘(2)(A) During odd-numbered fiscal years, the Deputy
Secretary of Veterans Affairs shall chair the Committee.
During even-numbered fiscal years, the Under Secretary of
Defense shall chair the Committee.
‘‘(B) The Deputy Secretary and the Under Secretary
shall determine the size and structure of the Committee, as
well as the administrative and procedural guidelines for the
operation of the Committee. The two Departments shall
share equally the Committee’s cost of personnel and admin-
istrative support and services. Support for such purposes
shall be provided at a level sufficient for the efficient oper-
ation of the Committee, including a permanent staff and,
170
as required, other temporary working groups of appropriate
departmental staff and outside experts.
‘‘(3) The Committee shall recommend to the Secretaries
strategic direction for the joint coordination and sharing
efforts between and within the two Departments under this
section and shall oversee implementation of those efforts.
‘‘(4) The Committee shall submit to the two Secretaries
and to Congress an annual report containing such rec-
ommendations as the Committee considers appropriate. The
two Secretaries shall implement the Committee’s rec-
ommendations unless, with respect to any such rec-
ommendation, either Secretary formally determines that the
recommendation should not be implemented or should be
implemented in a modified form. Upon making such a de-
termination, the Secretary making the determination shall
submit to Congress notice of the Secretary’s determination
and the Secretary’s rationale for the determination.
‘‘(5) In order to enable the Committee to make rec-
ommendations in its annual report under paragraph (4),
the Committee shall do the following:
‘‘(A) Review existing policies, procedures, and
practices relating to the coordination and sharing of
health care resources between the two Departments.
‘‘(B) Identify changes in policies, procedures,
and practices that, in the judgment of the Committee,
171
would promote mutually beneficial coordination, use,
or exchange of use of the health care resources of the
two Departments, with the goal of improving the ac-
cess to, and quality and cost effectiveness of, the
health care provided by the Veterans Health Adminis-
tration and the Military Health System to the bene-
ficiaries of both Departments.
‘‘(C) Identify and assess further opportunities for
the coordination and sharing of health care resources
between the Departments that, in the judgment of the
Committee, would not adversely affect the range of
services, the quality of care, or the established prior-
ities for care provided by either Department.
‘‘(D) Review the plans of both Departments for
the acquisition of additional health care resources, es-
pecially new facilities and major equipment and tech-
nology, in order to assess the potential effect of such
plans on further opportunities for the coordination
and sharing of health care resources.
‘‘(E) Review the implementation of activities de-
signed to promote the coordination and sharing of
health care resources between the Departments. To as-
sist in this effort, the Committee chairman, under
procedures jointly developed by the Secretaries of both
172
Departments, may task the Inspectors General of ei-
ther or both Departments.
‘‘(d) JOINT INCENTIVES PROGRAM.—(1) Pursuant to
subsection (b)(4), the two Secretaries shall carry out a pro-
gram to identify, provide incentives to, implement, fund,
and evaluate creative coordination and sharing initiatives
at the facility, intraregional and nationwide levels. The
program shall be administered by the Committee established
in subsection (c), under procedures jointly prescribed by the
two Secretaries.
‘‘(2) To facilitate the incentive program, there is estab-
lished in the Treasury, effective on October 1, 2003, a
DOD–VA Health Care Sharing Incentive Fund. Each Sec-
retary shall annually contribute to the fund a minimum
of $15,000,000 from the funds appropriated to that Sec-
retary’s Department. Such funds shall remain available
until expended.
‘‘(3)(A) The implementation and effectiveness of the
program under this subsection shall be reviewed annually
by the joint Department of Defense-Department of Veterans
Affairs Inspector General review team established in section
724(i) of the Department of Defense-Department of Veterans
Affairs Health Resources Sharing and Performance Im-
provement Act of 2002. On completion of the annual review,
the review team shall submit a report to the two Secretaries
173
on the results of the review. Such report shall be submitted
through the Committee to the Secretaries not later than De-
cember 31 of each calendar year. The Secretaries shall for-
ward each report, without change, to the Committees on
Armed Services and Veterans’ Affairs of the Senate and
House of Representatives not later than February 28 of the
following year.
‘‘(B) Each such report shall describe activities carried
out under the program under this subsection during the pre-
ceding fiscal year. Each report shall include at least the
following:
‘‘(i) An analysis of the initiatives funded by the
Committee, and the funds so expended by such initia-
tives, from the Health Care Sharing Incentive Fund,
including the purposes and effects of those initiatives
on improving access to care by beneficiaries, improve-
ments in the quality of care received by those bene-
ficiaries, and efficiencies gained in delivering services
to those beneficiaries.
‘‘(ii) Other matters of interest, including rec-
ommendations from the review team to make legisla-
tive improvements to the program.
‘‘(4) The program under this subsection shall termi-
nate on September 30, 2007.
251
cilitate the development and production of safer, more
reliable, and more effective nuclear weapons.
SEC. 1022. TIME FOR TRANSMITTAL OF ANNUAL DEFENSE
AUTHORIZATION LEGISLATIVE PROPOSAL.
(a) IN GENERAL.—Chapter 2 of title 10, United States
Code, is amended by inserting after section 113 the fol-
lowing new section:
‘‘§ 113a. Transmission of annual defense authoriza-
tion request
‘‘(a) TIME FOR TRANSMITTAL.—The Secretary of De-
fense shall transmit to Congress the annual defense author-
ization request for a fiscal year during the first 30 days
after the date on which the President transmits to Congress
the budget for that fiscal year pursuant to section 1105 of
title 31.
‘‘(b) 
DEFENSE
AUTHORIZATION
REQUEST
DE-
FINED.—In this section, the term ‘defense authorization re-
quest’, with respect to a fiscal year, means a legislative pro-
posal submitted to Congress for the enactment of the fol-
lowing:
‘‘(1) Authorizations of appropriations for that
fiscal year, as required by section 114 of this title.
‘‘(2) Personnel strengths for that fiscal year, as
required by section 115 of this title.