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continuous hospitalization of the member as a
patient in a United States hospital that began
while the member was on active duty for a pe-
riod of more than 30 days; or
‘‘(B) is not covered by subparagraph (A)
and, while in a retired status by reason of eligi-
bility to retire under chapter 61 of this title, dies
during a continuous hospitalization of the person
that began while the person was on active duty
as a Regular of an armed force, or a member of
an armed force without component, under the
Secretary’s jurisdiction.’’.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) takes effect on the date of the enactment of this
Act and applies with respect to deaths occurring on or after
that date.
SEC. 634. SURVIVOR BENEFIT PLAN OPEN ENROLLMENT PE-
RIOD.
(a) PERSONS NOT CURRENTLY PARTICIPATING
IN
SURVIVOR BENEFIT PLAN.—
(1) ELECTION OF SBP COVERAGE.—An eligible
retired or former member may elect to participate in
the Survivor Benefit Plan during the open enrollment
period specified in subsection (d).
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(2) ELECTION OF SUPPLEMENTAL ANNUITY COV-
ERAGE.—An eligible retired or former member who
elects under paragraph (1) to participate in the Sur-
vivor Benefit Plan may also elect during the open en-
rollment period to participate in the Supplemental
Survivor Benefit Plan.
(3) ELIGIBLE RETIRED OR FORMER MEMBER.—
For purposes of paragraphs (1) and (2), an eligible
retired or former member is a member or former
member of the uniformed services who on the day be-
fore the first day of the open enrollment period is not
a participant in the Survivor Benefit Plan and—
(A) is entitled to retired pay; or
(B) would be entitled to retired pay under
chapter 1223 of title 10, United States Code (or
chapter 67 of such title as in effect before October
5, 1994), but for the fact that such member or
former member is under 60 years of age.
(4) STATUS UNDER SBP OF PERSONS MAKING
ELECTIONS.—
(A) STANDARD ANNUITY.—A person making
an election under paragraph (1) by reason of eli-
gibility under paragraph (3)(A) shall be treated
for all purposes as providing a standard annuity
under the Survivor Benefit Plan.
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(B) 
RESERVE-COMPONENT
ANNUITY.—A
person making an election under paragraph (1)
by reason of eligibility under paragraph (3)(B)
shall be treated for all purposes as providing a
reserve-component annuity under the Survivor
Benefit Plan.
(b) MANNER OF MAKING ELECTIONS.—
(1) IN GENERAL.—An election under this section
must be made in writing, signed by the person mak-
ing the election, and received by the Secretary con-
cerned before the end of the open enrollment period.
Except as provided in paragraph (2), any such elec-
tion shall be made subject to the same conditions, and
with the same opportunities for designation of bene-
ficiaries and specification of base amount, that apply
under the Survivor Benefit Plan or the Supplemental
Survivor Benefit Plan, as the case may be. A person
making an election under subsection (a) to provide a
reserve-component annuity shall make a designation
described in section 1448(e) of title 10, United States
Code.
(2) ELECTION MUST BE VOLUNTARY.—An elec-
tion under this section is not effective unless the per-
son making the election declares the election to be vol-
untary. An election to participate in the Survivor
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Benefit Plan under this section may not be required
by any court. An election to participate or not to
participate in the Survivor Benefit Plan is not sub-
ject to the concurrence of a spouse or former spouse
of the person.
(c) EFFECTIVE DATE FOR ELECTIONS.—Any such elec-
tion shall be effective as of the first day of the first calendar
month following the month in which the election is received
by the Secretary concerned.
(d) OPEN ENROLLMENT PERIOD DEFINED.—The open
enrollment period is the one-year period beginning on
March 1, 1999.
(e) EFFECT OF DEATH OF PERSON MAKING ELECTION
WITHIN TWO YEARS OF MAKING ELECTION.—If a person
making an election under this section dies before the end
of the two-year period beginning on the effective date of the
election, the election is void and the amount of any reduc-
tion in retired pay of the person that is attributable to the
election shall be paid in a lump sum to the person who
would have been the deceased person’s beneficiary under the
voided election if the deceased person had died after the end
of such two-year period.
(f) APPLICABILITY
OF
CERTAIN
PROVISIONS
OF
LAW.—The provisions of sections 1449, 1453, and 1454 of
title 10, United States Code, are applicable to a person
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making an election, and to an election, under this section
in the same manner as if the election were made under the
Survivor Benefit Plan or the Supplemental Survivor Bene-
fit Plan, as the case may be.
(g) PREMIUMS FOR OPEN ENROLLMENT ELECTION.—
(1) PREMIUMS TO BE CHARGED.—The Secretary
of Defense shall prescribe in regulations premiums
which a person electing under this section shall be re-
quired to pay for participating in the Survivor Bene-
fit Plan pursuant to the election. The total amount of
the premiums to be paid by a person under the regu-
lations shall be equal to the sum of—
(A) the total amount by which the retired
pay of the person would have been reduced before
the effective date of the election if the person had
elected to participate in the Survivor Benefit
Plan (for the same base amount specified in the
election) at the first opportunity that was af-
forded the member to participate under chapter
73 of title 10, United States Code;
(B) interest on the amounts by which the
retired pay of the person would have been so re-
duced, computed from the dates on which the re-
tired pay would have been so reduced at such
rate or rates and according to such methodology
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as the Secretary of Defense determines reason-
able; and
(C) any additional amount that the Sec-
retary determines necessary to protect the actu-
arial soundness of the Department of Defense
Military Retirement Fund against any increased
risk for the fund that is associated with the elec-
tion.
(2) PREMIUMS TO BE CREDITED TO RETIREMENT
FUND.—Premiums paid under the regulations shall be
credited to the Department of Defense Military Re-
tirement Fund.
(h) DEFINITIONS.—In this section:
(1) The term ‘‘Survivor Benefit Plan’’ means the
program established under subchapter II of chapter
73 of title 10, United States Code.
(2) The term ‘‘Supplemental Survivor Benefit
Plan’’ means the program established under sub-
chapter III of chapter 73 of title 10, United States
Code.
(3) The term ‘‘retired pay’’ includes retainer pay
paid under section 6330 of title 10, United States
Code.
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(4) The terms ‘‘uniformed services’’ and ‘‘Sec-
retary concerned’’ have the meanings given those
terms in section 101 of title 37, United States Code.
(5) The term ‘‘Department of Defense Military
Retirement Fund’’ means the Department of Defense
Military Retirement Fund established under section
1461(a) of title 10, United States Code.
SEC. 635. ELIGIBILITY FOR PAYMENTS OF CERTAIN SUR-
VIVORS OF CAPTURED AND INTERNED VIET-
NAMESE OPERATIVES WHO WERE UNMAR-
RIED AND CHILDLESS AT DEATH.
Section 657(b) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 110 Stat.
2585) is amended by adding at the end the following:
‘‘(3) In the case of a decedent who had not been
married at the time of death—
‘‘(A) to the surviving parents; or
‘‘(B) if there are no surviving parents, to
the surviving siblings by blood of the decedent, in
equal shares.’’.
SEC. 636. CLARIFICATION OF RECIPIENT OF PAYMENTS TO
PERSONS 
CAPTURED 
OR 
INTERNED 
BY
NORTH VIETNAM.
Section 657(f)(1) of the National Defense Authoriza-
tion Act for Fiscal Year 1997 (Public Law 104–201; 110
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Stat. 2585) is amended by striking out ‘‘The actual dis-
bursement’’ and inserting in lieu thereof ‘‘Notwithstanding
any agreement (including a power of attorney) to the con-
trary, the actual disbursement’’.
SEC. 637. PRESENTATION OF UNITED STATES FLAG TO
MEMBERS OF THE ARMED FORCES.
(a) ARMY.—(1) Chapter 353 of title 10, United States
Code, is amended by inserting after the table of sections the
following:
‘‘§ 3681. Presentation of flag upon retirement at end of
active duty service
‘‘(a) REQUIREMENT.—The Secretary of the Army shall
present a United States flag to a member of any component
of the Army upon the release of the member from active
duty for retirement.
‘‘(b) MULTIPLE PRESENTATIONS NOT AUTHORIZED.—
A member is not eligible for a presentation of a flag under
subsection (a) if the member has previously been presented
a flag under this section or section 6141 or 8681 of this
title.
‘‘(c) NO COST TO RECIPIENT.—The presentation of a
flag under his section shall be at no cost to the recipient.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting before the item relating to sec-
tion 3684 the following:
‘‘3681. Presentation of flag upon retirement at end of active duty service.’’.
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‘‘§ 8681. Presentation of flag upon retirement at end of
active duty service
‘‘(a) REQUIREMENT.—The Secretary of the Air Force
shall present a United States flag to a member of any com-
ponent of the Air Force upon the release of the member from
active duty for retirement.
‘‘(b) MULTIPLE PRESENTATIONS NOT AUTHORIZED.—
A member is not eligible for a presentation of a flag under
subsection (a) if the member has previously been presented
a flag under this section or section 3681 or 6141 of this
title.
‘‘(c) NO COST TO RECIPIENT.—The presentation of a flag
under his section shall be at no cost to the recipient.’’.
(2) The table of sections at the beginning of such chap-
ter is amended by inserting before the item relating to sec-
tion 8684 the following:
‘‘8681. Presentation of flag upon retirement at end of active duty service.’’.
(d) REQUIREMENT FOR ADVANCE APPROPRIATIONS.—
The Secretary of a military department may present flags
under authority provided the Secretary in section 3681,
6141, or 8681 title 10, United States Code (as added by
this section), only to the extent that funds for such presen-
tations are appropriated for that purpose in advance.
(e) EFFECTIVE DATE.—Sections 3681, 6141, and 8681
of title 10, United States Code (as added by this section
shall take effect on October 1, 1998, and shall apply with
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respect to releases described in those sections on or after that
date.
SEC. 638. ELIMINATION OF BACKLOG OF UNPAID RETIRED
PAY.
(a) REQUIREMENT.—The Secretary of the Army shall
take such actions as are necessary to eliminate, by Decem-
ber 31, 1998, the backlog of unpaid retired pay for members
and former members of the Army (including members and
former members of the Army Reserve and the Army Na-
tional Guard).
(b) REPORT.—Not later than 30 days after the date
of the enactment of this Act, the Secretary of the Army shall
submit to Congress a report on the backlog of unpaid retired
pay. The report shall include the following:
(1) The actions taken under subsection (a).
(2) The extent of the remaining backlog.
(3) A discussion of any additional actions that
are necessary to ensure that retired pay is paid in a
timely manner.
(c) FUNDING.—Of the amount authorized to be appro-
priated under section 421, $1,700,000 shall be available for
carrying out this section.
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Subtitle E—Other Matters
SEC. 641. DEFINITION OF POSSESSIONS OF THE UNITED
STATES FOR PAY AND ALLOWANCES PUR-
POSES.
Section 101(2) of title 37, United States Code, is
amended by striking out ‘‘the Canal Zone,’’.
SEC. 642. FEDERAL 
EMPLOYEES’ 
COMPENSATION 
COV-
ERAGE FOR STUDENTS PARTICIPATING IN
CERTAIN OFFICER CANDIDATE PROGRAMS.
(a) PERIODS OF COVERAGE.—Subsection (a)(2) of sec-
tion 8140 of title 5, United States Code, is amended to read
as follows:
‘‘(2) during the period of the member’s attend-
ance at training or a practice cruise under chapter
103 of title 10, beginning when the authorized travel
to the training or practice cruise begins and ending
when authorized travel from the training or practice
cruise ends.’’.
(b) LINE OF DUTY.—Subsection (b) of such section is
amended to read as follows:
‘‘(b) For the purpose of this section, an injury, disabil-
ity, death, or illness of a member referred to in subsection
(a) may be considered as incurred or contracted in line of
duty only if the injury, disability, or death is incurred, or
the illness is contracted, by the member during a period
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described in that subsection. Subject to review by the Sec-
retary of Labor, the Secretary of the military department
concerned (under regulations prescribed by that Secretary),
shall determine whether an injury, disability, or death was
incurred, or an illness was contracted, by a member in line
of duty.’’.
(c) CLARIFICATION OF CASUALTIES COVERED.—Sub-
section (a) of such section, as amended by subsection (a)
of this section, is further amended by inserting ‘‘, or an
illness contracted,’’ after ‘‘death incurred’’ in the matter
preceding paragraph (1).
(d) EFFECTIVE
DATE
AND
APPLICABILITY.—The
amendments made by subsections (a) and (b) shall take ef-
fect on the date of the enactment of this Act and apply with
respect to injuries, illnesses, disabilities, and deaths in-
curred or contracted on or after that date.
SEC. 643. AUTHORITY TO PROVIDE FINANCIAL ASSISTANCE
FOR EDUCATION OF CERTAIN DEFENSE DE-
PENDENTS OVERSEAS.
Section 1407(b) of the Defense Dependents’ Education
Act of 1978 (20 U.S.C. 926(b)) is amended—
(1) by striking out ‘‘(b) Under such cir-
cumstances as he may by regulation prescribe, the
Secretary of Defense’’ and inserting in lieu thereof
‘‘(b) TUITION AND ASSISTANCE WHEN SCHOOLS UN-
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AVAILABLE.—(1) Under such circumstances as the
Secretary of Defense may prescribe in regulations, the
Secretary’’; and
(2) by adding at the end the following:
‘‘(2)(A) The Secretary of Defense, and the Secretary
of Transportation with respect to the Coast Guard when
it is not operating as a service of the Navy, may provide
financial assistance to sponsors of dependents in overseas
areas where schools operated by the Secretary of Defense
under subsection (a) are not reasonably available in order
to assist the sponsors to defray the costs incurred by the
sponsors for the attendance of the dependents at schools in
such areas other than schools operated by the Secretary of
Defense.
‘‘(B) The Secretary of Defense and the Secretary of
Transportation shall each prescribe regulations relating to
the availability of financial assistance under subparagraph
(A). Such regulations shall, to the maximum extent prac-
ticable, be consistent with Department of State regulations
relating to the availability of financial assistance for the
education of dependents of Department of State personnel
overseas.’’.
SEC. 644. VOTING RIGHTS OF MILITARY PERSONNEL.
(a) GUARANTEE OF RESIDENCY.—Article VII of the
Soldiers’ and Sailors’ Civil Relief Act of 1940 (50 U.S.C.
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App. 590 et seq.) is amended by adding at the end the fol-
lowing:
‘‘SEC. 704. (a) For purposes of voting for an office of
the United States or of a State, a person who is absent from
a State in compliance with military or naval orders shall
not, solely by reason of that absence—
‘‘(1) be deemed to have lost a residence or domi-
cile in that State;
‘‘(2) be deemed to have acquired a residence or
domicile in any other State; or
‘‘(3) be deemed to have become resident in or a
resident of any other State.
‘‘(b) In this section, the term ‘State’ includes a terri-
tory or possession of the United States, a political subdivi-
sion of a State, territory, or possession, and the District
of Columbia.’’.
(b) STATE RESPONSIBILITY TO GUARANTEE MILITARY
VOTING RIGHTS.—(1) Section 102 of the Uniformed and
Overseas Citizens Absentee Voting Act (42 U.S.C. 1973ff–
1) is amended—
(A) by inserting ‘‘(a) ELECTIONS FOR FEDERAL
OFFICES.—’’ before ‘‘Each State shall—’’; and
(B) by adding at the end the following:
‘‘(b) ELECTIONS FOR STATE AND LOCAL OFFICES.—
Each State shall—