H. R. 1540—135 
after the item relating to section 1565a the following new 
item: 
‘‘1565b. Victims of sexual assault: access to legal assistance and services of Sexual 
Assault Response Coordinators and Sexual Assault Victim Advocates.’’. 
SEC. 582. CONSIDERATION OF APPLICATION FOR PERMANENT CHANGE 
OF STATION OR UNIT TRANSFER BASED ON HUMANI-
TARIAN CONDITIONS FOR VICTIM OF SEXUAL ASSAULT OR 
RELATED OFFENSE. 
(a) IN GENERAL.—Chapter 39 of title 10, United States Code, 
is amended by inserting after section 672 the following new section: 
‘‘§ 673. Consideration of application for permanent change 
of station or unit transfer for members on active 
duty who are the victim of a sexual assault or 
related offense 
‘‘(a) TIMELY CONSIDERATION AND ACTION.—The Secretary con-
cerned shall provide for timely determination and action on an 
application for consideration of a change of station or unit transfer 
submitted by a member of the armed forces serving on active 
duty who was a victim of a sexual assault or other offense covered 
by section 920, 920a, or 920c of this title (article 120, 120a, or 
120c) so as to reduce the possibility of retaliation against the 
member for reporting the sexual assault or other offense. 
‘‘(b) REGULATIONS.—The Secretaries of the military depart-
ments shall issue regulations to carry out this section, within guide-
lines provided by the Secretary of Defense. These guidelines shall 
provide that the application submitted by a member described in 
subsection (a) for a change of station or unit transfer must be 
approved or disapproved by the member’s commanding officer 
within 72 hours of the submission of the application. Additionally, 
if the application is disapproved by the commanding officer, the 
member shall be given the opportunity to request review by the 
first general officer or flag officer in the chain of command of 
the member, and that decision must be made within 72 hours 
of submission of the request for review.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 672 the following new item: 
‘‘673. Consideration of application for permanent change of station or unit transfer 
for members on active duty who are the victim of a sexual assault or 
related offense.’’. 
SEC. 
583. 
DIRECTOR 
OF 
SEXUAL 
ASSAULT 
PREVENTION 
AND 
RESPONSE OFFICE. 
Section 1611(a) of the Ike Skelton National Defense Authoriza-
tion Act for Fiscal Year 2011 (Public Law 111–383; 10 U.S.C. 
1561 note) is amended by adding before the period at the end 
of the first sentence the following: ‘‘, who shall be appointed from 
among general or flag officers of the Armed Forces or employees 
of the Department of Defense in a comparable Senior Executive 
Service position’’. 
SEC. 584. SEXUAL ASSAULT RESPONSE COORDINATORS AND SEXUAL 
ASSAULT VICTIM ADVOCATES. 
(a) ASSIGNMENT OF COORDINATORS.—
H. R. 1540—136 
(1) ASSIGNMENT
REQUIREMENTS.—At least one full-time 
Sexual Assault Response Coordinator shall be assigned to each 
brigade or equivalent unit level of the armed forces. The Sec-
retary of the military department concerned may assign addi-
tional Sexual Assault Response Coordinators as necessary 
based on the demographics or needs of the unit. An additional 
Sexual Assault Response Coordinator may serve on a full- 
time or part-time basis at the discretion of the Secretary. 
(2) ELIGIBLE PERSONS.—On and after October 1, 2013, only 
members of the armed forces and civilian employees of the 
Department of Defense may be assigned to duty as a Sexual 
Assault Response Coordinator. 
(b) ASSIGNMENT OF VICTIM ADVOCATES.— 
(1) ASSIGNMENT
REQUIREMENTS.—At least one full-time 
Sexual Assault Victim Advocate shall be assigned to each bri-
gade or equivalent unit level of the armed forces. The Secretary 
of the military department concerned may assign additional 
Victim Advocates as necessary based on the demographics or 
needs of the unit. An additional Victim Advocate may serve 
on a full-time or part-time basis at the discretion of the Sec-
retary. 
(2) ELIGIBLE PERSONS.—On and after October 1, 2013, only 
members of the armed forces and civilian employees of the 
Department of Defense may be assigned to duty as a Victim 
Advocate. 
(c) TRAINING AND CERTIFICATION.— 
(1) TRAINING AND CERTIFICATION PROGRAM.—As part of the 
sexual assault prevention and response program, the Secretary 
of Defense shall establish a professional and uniform training 
and certification program for Sexual Assault Response 
Coordinators assigned under subsection (a) and Sexual Assault 
Victim Advocates assigned under subsection (b). The program 
shall be structured and administered in a manner similar to 
the professional training available for Equal Opportunity 
Advisors through the Defense Equal Opportunity Management 
Institute. 
(2) CONSULTATION.—In developing the curriculum and 
other components of the program, the Secretary of Defense 
shall work with experts outside of the Department of Defense 
who are experts in victim advocacy and sexual assault preven-
tion and response training. 
(3) EFFECTIVE DATE.—On and after October 1, 2013, before 
a member or civilian employee may be assigned to duty as 
a Sexual Assault Response Coordinator under subsection (a) 
or Victim Advocate under subsection (b), the member or 
employee must have completed the training program required 
by paragraph (1) and obtained the certification. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘armed forces’’ means the Army, Navy, Air 
Force, and Marine Corps. 
(2) The term ‘‘sexual assault prevention and response pro-
gram’’ has the meaning given such term in section 1601(a) 
of the Ike Skelton National Defense Authorization Act for Fiscal 
Year 2011 (Public Law 111–383; 10 U.S.C. 1561 note).
H. R. 1540—137 
SEC. 585. TRAINING AND EDUCATION PROGRAMS FOR SEXUAL 
ASSAULT PREVENTION AND RESPONSE PROGRAM. 
(a) SEXUAL ASSAULT PREVENTION AND RESPONSE TRAINING AND 
EDUCATION.— 
(1) DEVELOPMENT
OF
CURRICULUM.—Not later than one 
year after the date of the enactment of this Act, the Secretary 
of each military department shall develop a curriculum to pro-
vide sexual assault prevention and response training and edu-
cation for members of the Armed Forces under the jurisdiction 
of the Secretary and civilian employees of the military depart-
ment to strengthen individual knowledge, skills, and capacity 
to prevent and respond to sexual assault. In developing the 
curriculum, the Secretary shall work with experts outside of 
the Department of Defense who are experts sexual assault 
prevention and response training. 
(2) SCOPE
OF
TRAINING
AND
EDUCATION.—The sexual 
assault prevention and response training and education shall 
encompass initial entry and accession programs, annual 
refresher training, professional military education, peer edu-
cation, and specialized leadership training. Training shall be 
tailored for specific leadership levels and local area require-
ments. 
(3) CONSISTENT TRAINING.—The Secretary of Defense shall 
ensure that the sexual assault prevention and response training 
provided to members of the Armed Forces and Department 
of Defense civilian employees is consistent throughout the mili-
tary departments. 
(b) INCLUSION
IN PROFESSIONAL MILITARY EDUCATION.—The 
Secretary of Defense shall provide for the inclusion of a sexual 
assault prevention and response training module at each level of 
professional military education. The training shall be tailored to 
the new responsibilities and leadership requirements of members 
of the Armed Forces as they are promoted. 
(c) INCLUSION IN FIRST RESPONDER TRAINING.— 
(1) IN
GENERAL.—The Secretary of Defense shall direct 
that managers of specialty skills associated with first 
responders described in paragraph (2) integrate sexual assault 
response training in initial and recurring training courses. 
(2) COVERED FIRST RESPONDERS.—First responders referred 
to in paragraph (1) include firefighters, emergency medical 
technicians, law enforcement officers, military criminal inves-
tigators, healthcare personnel, judge advocates, and chaplains. 
SEC. 586. DEPARTMENT OF DEFENSE POLICY AND PROCEDURES ON 
RETENTION AND ACCESS TO EVIDENCE AND RECORDS 
RELATING TO SEXUAL ASSAULTS INVOLVING MEMBERS OF 
THE ARMED FORCES. 
(a) COMPREHENSIVE POLICY
ON RETENTION
AND ACCESS
TO 
RECORDS.—Not later than October 1, 2012, the Secretary of Defense 
shall, in consultation with the Secretary of Veterans Affairs, develop 
a comprehensive policy for the Department of Defense on the reten-
tion of and access to evidence and records relating to sexual assaults 
involving members of the Armed Forces. 
(b) OBJECTIVES.—The comprehensive policy required by sub-
section (a) shall include policies and procedures (including systems 
of records) necessary to ensure preservation of records and evidence 
for periods of time that ensure that members of the Armed Forces
H. R. 1540—138 
and veterans of military service who were the victims of sexual 
assault during military service are able to substantiate claims for 
veterans benefits, to support criminal or civil prosecutions by mili-
tary or civil authorities, and for such purposes relating to the 
documentation of the incidence of sexual assault in the Armed 
Forces as the Secretary of Defense considers appropriate. 
(c) 
ELEMENTS.—In 
developing 
the 
comprehensive 
policy 
required by subsection (a), the Secretary of Defense shall consider, 
at a minimum, the following matters: 
(1) Identification of records, including non-Department of 
Defense records, relating to an incident of sexual assault, that 
must be retained. 
(2) Criteria for collection and retention of records. 
(3) Identification of physical evidence and non-documentary 
forms of evidence relating to sexual assaults that must be 
retained. 
(4) Length of time records, including Department of Defense 
Forms 2910 and 2911, and evidence must be retained, except 
that— 
(A) the length of time physical evidence and forensic 
evidence must be retained shall be not less than five years; 
and 
(B) the length of time documentary evidence relating 
to sexual assaults must be retained shall be not less than 
the length of time investigative records relating to reports 
of sexual assaults of that type (restricted or unrestricted 
reports) must be retained. 
(5) Locations where records must be stored. 
(6) Media which may be used to preserve records and 
assure access, including an electronic systems of records. 
(7) Protection of privacy of individuals named in records 
and status of records under section 552 of title 5, United 
States Code (commonly referred to as the ‘‘Freedom of Informa-
tion Act’’), section 552a of title 5, United States Code (commonly 
referred to as the ‘‘Privacy Act’’), restricted reporting cases, 
and laws related to privilege. 
(8) Access to records by victims of sexual assault, the 
Department of Veterans Affairs, and others, including alleged 
assailants and law enforcement authorities. 
(9) Responsibilities for record retention by the military 
departments. 
(10) Education and training on record retention require-
ments. 
(11) Uniform collection of data on the incidence of sexual 
assaults and on disciplinary actions taken in substantiated 
cases of sexual assault. 
(d) UNIFORM APPLICATION
TO MILITARY DEPARTMENTS.—The 
Secretary of Defense shall ensure that, to the maximum extent 
practicable, the policy developed under subsection (a) is imple-
mented uniformly by the military departments. 
(e) COPY OF RECORDS OF COURT-MARTIAL TO VICTIM OF SEXUAL 
ASSAULT.—Section 854 of title 10, United States Code (article 54 
of the Uniform Code of Military Justice), is amended by adding 
at the end the following new subsection: 
‘‘(e) In the case of a general or special court-martial involving 
a sexual assault or other offense covered by section 920 of this 
title (article 120), a copy of all prepared records of the proceedings
H. R. 1540—139 
of the court-martial shall be given to the victim of the offense 
if the victim testified during the proceedings. The records of the 
proceedings shall be provided without charge and as soon as the 
records are authenticated. The victim shall be notified of the oppor-
tunity to receive the records of the proceedings.’’. 
Subtitle I—Other Matters 
SEC. 588. DEPARTMENT OF DEFENSE AUTHORITY TO CARRY OUT PER-
SONNEL RECOVERY REINTEGRATION AND POST-ISOLA-
TION SUPPORT ACTIVITIES. 
(a) IN GENERAL.—Chapter 53 of title 10, United States Code, 
is amended by inserting after section 1056 the following new section: 
‘‘§ 1056a. Reintegration of recovered Department of Defense 
personnel; post-isolation support activities for 
other recovered personnel 
‘‘(a) REINTEGRATION AND SUPPORT AUTHORIZED.—The Secretary 
of Defense may carry out the following: 
‘‘(1) Reintegration activities for recovered persons who are 
Department of Defense personnel. 
‘‘(2) Post-isolation support activities for or on behalf of 
other recovered persons who are officers or employees of the 
United States Government, military or civilian officers or 
employees of an allied or coalition partner of the United States, 
or other United States or foreign nationals. 
‘‘(b) ACTIVITIES AUTHORIZED.—(1) The activities authorized by 
subsection (a) for or on behalf of a recovered person may include 
the following: 
‘‘(A) The provision of food, clothing, necessary medical sup-
port, and essential sundry items for the recovered person. 
‘‘(B) In accordance with regulations prescribed by the Sec-
retary of Defense, travel and transportation allowances for 
not more than three family members, or other designated 
individuals, determined by the commander or head of a military 
medical treatment facility to be beneficial for the reintegration 
of the recovered person and whose presence may contribute 
to improving the physical and mental health of the recovered 
person. 
‘‘(C) Transportation or reimbursement for transportation 
in connection with the attendance of the recovered person at 
events or functions determined by the commander or head 
of a military medical treatment facility to contribute to the 
physical and mental health of the recovered person. 
‘‘(2) Medical support may be provided under paragraph (1)(A) 
to a recovered person who is not a member of the armed forces 
for not more than 20 days. 
‘‘(c) DEFINITIONS.—In this section: 
‘‘(1) The term ‘post-isolation support’, in the case of a 
recovered person, means— 
‘‘(A) the debriefing of the recovered person following 
a separation as described in paragraph (2); 
‘‘(B) activities to promote or support the physical and 
mental health of the recovered person following such a 
separation; and
H. R. 1540—140 
‘‘(C) other activities to facilitate return of the recovered 
person to military or civilian life as expeditiously as pos-
sible following such a separation. 
‘‘(2) The term ‘recovered person’ means an individual who 
is returned alive from separation (whether as an individual 
or a group) while participating in or in association with a 
United States-sponsored military activity or mission in which 
the individual was detained in isolation or held in captivity 
by a hostile entity. 
‘‘(3) The term ‘reintegration’, in the case of a recovered 
person, means— 
‘‘(A) the debriefing of the recovered person following 
a separation as described in paragraph (2); 
‘‘(B) activities to promote or support for the physical 
and mental health of the recovered person following such 
a separation; and 
‘‘(C) other activities to facilitate return of the recovered 
person to military duty or employment with the Depart-
ment of Defense as expeditiously as possible following such 
a separation.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of chapter 53 of such title is amended by inserting after 
the item relating to section 1056 the following new item: 
‘‘1056a. Reintegration of recovered Department of Defense personnel; post-isolation 
support activities for other recovered personnel.’’. 
SEC. 589. MILITARY ADAPTIVE SPORTS PROGRAM. 
(a) PROGRAM AUTHORIZED.—Chapter 152 of title 10, United 
States Code, is amended by inserting after section 2564 the fol-
lowing new section: 
‘‘§ 2564a. Provision of assistance for adaptive sports pro-
grams for members of the armed forces 
‘‘(a) PROGRAM AUTHORIZED.—(1) The Secretary of Defense may 
establish a military adaptive sports program to support the provi-
sion of adaptive sports programming for members of the armed 
forces who are eligible to participate in adaptive sports because 
of an injury or wound incurred in the line of duty in the armed 
forces. 
‘‘(2) In establishing the military adaptive sports program, the 
Secretary of Defense shall— 
‘‘(A) consult with the Secretary of Veterans Affairs; and 
‘‘(B) avoid duplicating programs conducted by the Secretary 
of Veterans Affairs under section 521A of title 38. 
‘‘(b) PROVISION OF ASSISTANCE; PURPOSE.—(1) Under such cri-
teria as the Secretary of Defense may establish under the military 
adaptive sports program, the Secretary may award grants to, or 
enter into contracts and cooperative agreements with, entities for 
the purpose of planning, developing, managing, and implementing 
adaptive sports programming for members described in subsection 
(a). 
‘‘(2) The Secretary of Defense shall use competitive procedures 
to award any grant or to enter into any contract or cooperative 
agreement under this subsection. 
‘‘(c) USE OF ASSISTANCE.—Assistance provided under the mili-
tary adaptive sports program shall be used— 
‘‘(1) for the purposes specified in subsection (b); and
H. R. 1540—141 
‘‘(2) for such related activities and expenses as the Sec-
retary of Defense may authorize.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 717 the following new item: 
‘‘2564a. Provision of assistance for adaptive sports programs for members of the 
armed forces.’’. 
SEC. 590. ENHANCEMENT AND IMPROVEMENT OF YELLOW RIBBON 
REINTEGRATION PROGRAM. 
(a) INCLUSION OF PROGRAMS OF OUTREACH IN PROGRAM.—Sub-
section (b) of section 582 of the National Defense Authorization 
Act for Fiscal Year 2008 (10 U.S.C. 10101 note) is amended by 
inserting ‘‘(including programs of outreach)’’ after ‘‘informational 
events and activities’’. 
(b) RESTATEMENT OF FUNCTIONS OF CENTER FOR EXCELLENCE 
IN REINTEGRATION AND INCLUSION IN FUNCTIONS OF IDENTIFICATION 
OF BEST PRACTICES IN PROGRAMS OF OUTREACH.—Subsection (d)(2) 
of such section is amended by striking the second, third, and fourth 
sentences and inserting the following: ‘‘The Center shall have the 
following functions: 
‘‘(A) To collect and analyze ‘lessons learned’ and sugges-
tions from State National Guard and Reserve organizations 
with existing or developing reintegration programs. 
‘‘(B) To assist in developing training aids and briefing 
materials and training representatives from State National 
Guard and Reserve organizations. 
‘‘(C) To develop and implement a process for evaluating 
the effectiveness of the Yellow Ribbon Reintegration Pro-
gram in supporting the health and well-being of members 
of the Armed Forces and their families throughout the 
deployment cycle described in subsection (g). 
‘‘(D) To develop and implement a process for identifying 
best practices in the delivery of information and services 
in programs of outreach as described in subsection (j).’’. 
(c) STATE-LED PROGRAMS OF OUTREACH.—Such section is fur-
ther amended by adding at the end the following new subsection: 
‘‘(j) STATE-LED PROGRAMS OF OUTREACH.—The Office for Re-
integration Programs may work with the States, whether acting 
through or in coordination with their National Guard and Reserve 
organizations, to assist the States and such organizations in devel-
oping and carrying out programs of outreach for members of the 
Armed Forces and their families to inform and educate them on 
the assistance and services available to them under the Yellow 
Ribbon Reintegration Program, including the assistance and serv-
ices described in subsection (h).’’. 
(d) SCOPE OF ACTIVITIES UNDER PROGRAMS OF OUTREACH.— 
Such section is further amended by adding at the end the following 
new subsection: 
‘‘(k) SCOPE OF ACTIVITIES UNDER PROGRAMS OF OUTREACH.— 
For purposes of this section, the activities and services provided 
under programs of outreach may include personalized and sub-
stantive care coordination services targeted specifically to individual 
members of the Armed Forces and their families.’’. 
SEC. 591. ARMY NATIONAL MILITARY CEMETERIES. 
(a) MANAGEMENT RESPONSIBILITIES AND OVERSIGHT.—
H. R. 1540—142 
(1) IN GENERAL.—Title 10, United States Code, is amended 
by inserting after chapter 445 the following new chapter: 
‘‘CHAPTER 446—ARMY NATIONAL MILITARY 
CEMETERIES 
‘‘Sec. 
‘‘4721. Authority and responsibilities of the Secretary of the Army. 
‘‘4722. Interment and inurnment policy. 
‘‘4723. Advisory committee on Arlington National Cemetery. 
‘‘4724. Executive Director. 
‘‘4725. Superintendents. 
‘‘4726. Oversight and inspections. 
‘‘§ 4721. Authority and responsibilities of the Secretary of 
the Army 
‘‘(a) GENERAL AUTHORITY.—The Secretary of the Army shall 
develop, operate, manage, administer, oversee, and fund the Army 
National Military Cemeteries specified in subsection (b) in a manner 
and to standards that fully honor the service and sacrifices of 
the deceased members of the armed forces buried or inurned in 
the Cemeteries. 
‘‘(b) ARMY
NATIONAL
MILITARY
CEMETERIES.—The Army 
National Military Cemeteries (in this chapter referred to as the 
‘Cemeteries’) consist of the following: 
‘‘(1) Arlington National Cemetery in Arlington, Virginia. 
‘‘(2) The United States Soldiers’ and Airmen’s Home 
National Cemetery in the District of Colombia. 
‘‘(c) ADMINISTRATIVE JURISDICTION.—The Cemeteries shall be 
under the jurisdiction of Headquarters, Department of the Army. 
‘‘(d) REGULATIONS AND OTHER POLICIES.—The Secretary of the 
Army shall prescribe such regulations and policies as may be nec-
essary to administer the Cemeteries. 
‘‘(e) BUDGETARY
AND REPORTING REQUIREMENTS.—The Sec-
retary of the Army shall submit to the congressional defense 
committees and the Committees on Veterans’ Affairs of the Senate 
and House of Representatives an annual budget request (and 
detailed justifications for the amount of the request) to fund 
administration, operation and maintenance, and construction 
related to the Cemeteries. The Secretary may include, as necessary, 
proposals for new or amended statutory authority related to the 
Cemeteries. 
‘‘§ 4722. Interment and inurnment policy 
‘‘(a) ELIGIBILITY DETERMINATIONS GENERALLY.—(1) The Sec-
retary of the Army, with the approval of the Secretary of Defense, 
shall determine eligibility for interment or inurnment in the Ceme-
teries. 
‘‘(2) The Secretary of the Army, with the approval of the Sec-
retary of Defense, shall establish policy and procedures for 
reviewing and determining requests for exceptions to interment 
and inurnment eligibility policy, which shall include a requirement, 
before granting the request for an exception, for notification of 
the Committees on Armed Services and the Committees on Veterans 
Affairs of the Senate and the House of Representatives. 
‘‘(b) REMOVAL
OF REMAINS.—Under such regulations as the 
Secretary of the Army may prescribe under section 4721(d) of this 
title, the Secretary of the Army may authorize the removal of
H. R. 1540—143 
the remains of a person described in subsection (c) from one of 
the Cemeteries for re-interment or re-inurnment if, upon the death 
of the primary person eligible for interment or inurnment in the 
Cemeteries, the deceased primary eligible person will not be buried 
in the same or an adjoining grave. 
‘‘(c) COVERED PERSONS.—Except as provided in subsection (d), 
the persons whose remains may be removed pursuant to subsection 
(b) are the deceased spouse, a minor child, and, in the discretion 
of the Secretary of the Army, an unmarried adult child of a member 
eligible for interment or inurnment in the Cemeteries. 
‘‘(d) EXCEPTIONS.—The remains of a person described in sub-
section (c) may not be removed from one of the Cemeteries under 
subsection (b) if the primary person eligible for burial in the Ceme-
teries is a person— 
‘‘(1) who is missing in action; 
‘‘(2) whose remains have not been recovered or identified; 
‘‘(3) whose remains were buried at sea, whether by the 
choice of the person or otherwise; 
‘‘(4) whose remains were donated to science; or 
‘‘(5) whose remains were cremated and whose ashes were 
scattered without interment of any portion of the ashes. 
‘‘§ 4723. Advisory committee on Arlington National Cemetery 
‘‘(a) APPOINTMENT.—The Secretary of the Army shall appoint 
an advisory committee on Arlington National Cemetery. 
‘‘(b) ROLE.—The Secretary of the Army shall advise and consult 
with the advisory committee with respect to the administration 
of Arlington National Cemetery, the erection of memorials at the 
cemetery, and master planning for the cemetery. 
‘‘(c) REPORTS AND RECOMMENDATIONS.—The advisory committee 
shall make periodic reports and recommendations to the Secretary 
of the Army. 
‘‘(d) SUBMISSION TO CONGRESS.—Not later than 90 days after 
receiving a report or recommendations from the advisory committee 
under subsection (c), the Secretary of the Army shall submit the 
report or recommendations to the congressional defense committees 
and the Committees on Veterans’ Affairs of the Senate and House 
of Representatives and include such comments and recommenda-
tions of the Secretary as the Secretary considers appropriate. 
‘‘§ 4724. Executive Director 
‘‘(a) APPOINTMENT
AND QUALIFICATIONS.—(1) There shall be 
an Executive Director of the Army National Military Cemeteries 
who shall meet such professional qualifications as may be estab-
lished by the Secretary of the Army. 
‘‘(2) The Executive Director reports directly to the Secretary. 
‘‘(b) RESPONSIBILITIES.—The Executive Director is responsible 
for the following: 
‘‘(1) Exercising authority, direction and control over all 
aspects of the Cemeteries. 
‘‘(2) Establishing and maintaining full accountability for 
all gravesites and inurnment niches in the Cemeteries. 
‘‘(3) Oversight of the construction, operation and mainte-
nance, and repair of the buildings, structures, and utilities 
of the Cemeteries. 
‘‘(4) Acquisition and maintenance of real property and 
interests in real property for the Cemeteries.
H. R. 1540—144 
‘‘(5) Planning and conducting private ceremonies at the 
Cemeteries, including funeral and memorial services for inter-
ment and inurnment, and planning and conducting public cere-
monies, as directed by the Secretary of the Army. 
‘‘(6) Formulating, promulgating, administering, and over-
seeing policies and addressing proposals for the placement of 
memorials and monuments in the Cemeteries. 
‘‘(7) Formulating and implementing a master plan for 
Arlington National Cemetery that, at a minimum, addresses 
interment and inurnment capacity, visitor accommodation, 
operation and maintenance, capital requirements, preservation 
of the cemetery’s special features, and other matters the Execu-
tive Director considers appropriate. 
‘‘(8) Overseeing the programming, planning, budgeting, and 
execution of funds authorized and appropriated for the Ceme-
teries. 
‘‘(9) Providing recommendations regarding any request for 
an exception to interment and inurnment eligibility policy. 
‘‘(10) Supervising the superintendents of the Cemeteries. 
‘‘§ 4725. Superintendents 
‘‘(a) APPOINTMENT AND QUALIFICATIONS.—An individual serving 
as the superintendent of one of the Cemeteries should have, as 
determined by the Secretary of the Army— 
‘‘(1) experience in the administration, management, and 
operation of cemeteries under the jurisdiction of the National 
Cemeteries System administered by the Department of Vet-
erans Affairs; or 
‘‘(2) experience in the administration, management, and 
operation of large civilian cemeteries equivalent to the experi-
ence described in paragraph (1). 
‘‘(b) DUTIES.—The superintendents of the Cemeteries report 
directly to the Executive Director and performs such duties and 
responsibilities as the Executive Director prescribes. 
‘‘§ 4726. Oversight and inspections 
‘‘(a) INSPECTIONS REQUIRED.—The Secretary of the Army shall 
provide for the oversight of the Cemeteries to ensure the highest 
quality standards are maintained by providing for the periodic 
inspection of the administration, operation and maintenance, and 
construction elements applicable to the Cemeteries. The inspections 
shall be conducted by personnel of the Department of the Army 
with the assistance, as the Secretary considers appropriate, of per-
sonnel from other Federal agencies and civilian experts. 
‘‘(b) SUBMISSION OF RESULTS.—Not later than 120 days after 
the completion of an inspection conducted under subsection (a), 
the Secretary of the Army shall submit to the congressional defense 
committees a report containing the results of the inspection and 
recommendations and a plan for corrective actions to be taken 
in response to the inspection.’’. 
(2) TABLE
OF
CHAPTERS.—The table of chapters at the 
beginning of subtitle B of such title and at the beginning 
of part IV of such subtitle are amended by inserting after 
the item relating to chapter 445 the following new item: 
‘‘446. Army National Military Cemeteries ............................................................ 4721’’. 
(b) DIGITIZATION OF ARLINGTON NATIONAL CEMETERY INTER-
MENT AND INURNMENT RECORDS.—
H. R. 1540—145 
(1) DEADLINE FOR CONVERSION AND USE.—Not later than 
June 1, 2012, all records related to interments and inurnments 
at Arlington National Cemetery shall be converted to a digitized 
format. Thereafter, use of the digitized format shall be the 
method by which all subsequent records related to interments 
and inurnments at Arlington National Cemetery are preserved 
and utilized. 
(2) DIGITIZED
FORMAT
DEFINED.—In this subsection, the 
term ‘‘digitized format’’ refers to the use of an electronic data-
base for recordkeeping and includes the full accounting of all 
records of each specific gravesite and niche location at Arlington 
National Cemetery and the identification of the individual 
interred or inurned at each specific gravesite and niche location. 
(c) ADDITIONAL INSPECTION REQUIREMENT.—During fiscal years 
2013 and 2015, the Inspector General of the Department of Defense 
shall conduct an inspection of— 
(1) Arlington National Cemetery in Arlington, Virginia; 
and 
(2) the United States Soldiers’ and Airmen’s Home National 
Cemetery in the District of Colombia. 
SEC. 592. INSPECTION OF MILITARY CEMETERIES UNDER JURISDIC-
TION OF THE MILITARY DEPARTMENTS. 
(a) 
INSPECTION
AND
RECOMMENDATIONS
REQUIRED.—The 
Inspector General of each military department shall conduct an 
inspection of each military cemetery under the jurisdiction of that 
military department and, based on the findings of those inspections, 
make recommendations for the regulation, management, oversight, 
and operation of the military cemeteries. 
(b) ELEMENTS OF INSPECTION.—The inspection of military ceme-
teries conducted by the Inspector General of a military department 
under subsection (a) shall include an assessment of the following: 
(1) The adequacy of the statutes, policies, and regulations 
governing the management, oversight, operations, and inter-
ments or inurnments (or both) by the military cemeteries under 
the jurisdiction of that military department and the adherence 
of such military cemeteries to such statutes, policies, and regu-
lations. 
(2) The system employed to fully account for and accurately 
identify the remains interred or inurned in such military ceme-
teries. 
(3) The contracts and contracting processes and oversight 
of those contracts and processes with regard to compliance 
with Department of Defense and military department guide-
lines. 
(4) The history and adequacy of the oversight conducted 
by the Secretary of the military department over such military 
cemeteries and the adequacy of corrective actions taken as 
a result of that oversight. 
(5) The statutory and policy guidance governing the 
authorization for the Secretary of the military department to 
operate such military cemeteries and an assessment of the 
budget and appropriations structure and history of such mili-
tary cemeteries. 
(6) Such other matters as the Inspector General considers 
to be appropriate. 
(c) INSPECTION OF ADDITIONAL CEMETERIES.—
H. R. 1540—146 
(1) INSPECTION REQUIRED.—In addition to the inspections 
required by subsection (a), the Inspector General of the Depart-
ment of Defense shall conduct an inspection of a statistically 
valid sample of cemeteries located at current or former military 
installations inside and outside the United States that are 
under the jurisdiction of the military departments for the pur-
pose of obtaining an assessment of the adequacy of and adher-
ence to the statutes, policies, and regulations governing the 
management, 
oversight, 
operations, 
and 
interments 
or 
inurnments (or both) by those cemeteries. 
(2) EXCLUSION.—Paragraph (1) does not apply to the ceme-
teries maintained by the American Battle Monuments Commis-
sion and the military cemeteries identified in subsection (e). 
(d) SUBMISSION
OF
INSPECTION
RESULTS
AND
CORRECTIVE 
ACTION PLANS.— 
(1) MILITARY CEMETERY INSPECTIONS.—Not later than May 
15, 2012, the Secretaries of the military departments shall 
submit to the Committees on Armed Services of the Senate 
and the House of Representatives a report containing— 
(A) the findings of the inspections of the military ceme-
teries conducted under subsection (a); 
(B) the recommendations of the Inspectors General 
of the military departments based on such inspections; 
and 
(C) a plan for corrective action. 
(2) INSPECTION OF ADDITIONAL CEMETERIES.—Not later than 
December 31, 2012, the Inspector General of the Department 
of Defense shall submit to the Committees on Armed Services 
of the Senate and the House of Representatives a report con-
taining the findings of the inspections conducted under sub-
section (c) and the recommendations of the Inspector General 
based on such inspections. Not later than April 1, 2013, the 
Secretaries of the military departments shall submit to such 
committees a plan for corrective action. 
(e) MILITARY CEMETERY DEFINED.—In subsections (a) and (b), 
the term ‘‘military cemetery’’ means the cemeteries that are under 
the jurisdiction of a Secretary of a military department at the 
following locations: 
(1) The United States Military Academy. 
(2) The United States Naval Academy. 
(3) The United States Air Force Academy. 
SEC. 593. AUTHORIZATION FOR AWARD OF THE DISTINGUISHED 
SERVICE CROSS FOR CAPTAIN FREDRICK L. SPAULDING 
FOR ACTS OF VALOR DURING THE VIETNAM WAR. 
(a) AUTHORIZATION.—Notwithstanding the time limitations 
specified in section 3744 of title 10, United States Code, or any 
other time limitation with respect to the awarding of certain medals 
to persons who served in the Armed Forces, the Secretary of the 
Army is authorized to award the Distinguished Service Cross under 
section 3742 of such title to Captain Fredrick L. Spaulding for 
acts of valor during the Vietnam War described in subsection (b). 
(b) ACTS
OF VALOR DESCRIBED.—The acts of valor referred 
to in subsection (a) are the actions of Fredrick L. Spaulding, on 
July 23, 1970, as a member of the United States Army serving 
in the grade of Captain in the Republic of Vietnam while assigned
H. R. 1540—147 
with Headquarters and Headquarters Company, 3d Brigade, 101st 
Airborne Division. 
SEC. 594. AUTHORIZATION AND REQUEST FOR AWARD OF MEDAL OF 
HONOR TO EMIL KAPAUN FOR ACTS OF VALOR DURING 
THE KOREAN WAR. 
(a) AUTHORIZATION.—Notwithstanding the time limitations 
specified in section 3744 of title 10, United States Code, or any 
other time limitation with respect to the awarding of certain medals 
to persons who served in the Armed Forces, the President is author-
ized and requested to award the Medal of Honor posthumously 
under section 3741 of such title to Emil Kapaun for the acts of 
valor during the Korean War described in subsection (b). 
(b) ACTS
OF VALOR DESCRIBED.—The acts of valor referred 
to in subsection (a) are the actions of then Captain Emil Kapaun 
as a member of the 8th Cavalry Regiment during the Battle of 
Unsan on November 1 and 2, 1950, and while a prisoner of war 
until his death on May 23, 1951, during the Korean War. 
SEC. 595. REVIEW REGARDING AWARD OF MEDAL OF HONOR TO 
JEWISH AMERICAN WORLD WAR I VETERANS. 
(a) REVIEW REQUIRED.—The Secretary of the Army and the 
Secretary of the Navy shall review the service of each Jewish 
American World War I veteran described in subsection (b) to deter-
mine whether such veteran should be posthumously awarded the 
Medal of Honor. 
(b) COVERED JEWISH AMERICAN WAR VETERANS.—The Jewish 
American World War I veterans whose service is to be reviewed 
under subsection (a) are any Jewish American World War I veterans 
awarded the Distinguished Service Cross or the Navy Cross for 
heroism during World War I and whose name and supporting 
material for upgrade of the award are submitted to the Secretary 
concerned for such purpose before the end of the one-year period 
beginning on the date of the enactment of this Act. 
(c) RECOMMENDATION BASED ON REVIEW.—If the Secretary con-
cerned determines, based upon the review under subsection (a) 
that the award of the Medal of Honor to a veteran is warranted, 
the Secretary shall submit to the Secretary of Defense a rec-
ommendation that the Medal of Honor be awarded posthumously 
to the veteran. 
(d) WORLD WAR I DEFINED.—In this section, the term ‘‘World 
War I’’ means the period beginning on April 6, 1917, and ending 
on November 11, 1918. 
SEC. 596. REPORT ON PROCESS FOR EXPEDITED DETERMINATION OF 
DISABILITY OF MEMBERS OF THE ARMED FORCES WITH 
CERTAIN DISABLING CONDITIONS. 
(a) IN GENERAL.—Not later than September 1, 2012, the Sec-
retary of Defense shall submit to the congressional defense commit-
tees a report setting forth an assessment of the feasibility and 
advisability of the establishment by the military departments of 
a process to expedite the determination of disability with respect 
to members of the Armed Forces, including regular members and 
members of the reserve components, who suffer from certain dis-
abling diseases or conditions. If the establishment of such a process 
is considered feasible and advisable, the report shall set forth 
such recommendations for legislative and administrative action as
H. R. 1540—148 
the Secretary considers appropriate for the establishment of such 
process. 
(b) REQUIREMENTS FOR REPORT.— 
(1) EVALUATION OF APPROPRIATE ELEMENTS OF SIMILAR FED-
ERAL
PROGRAMS.—In preparing the report required by sub-
section (a), the Secretary of Defense shall evaluate elements 
of programs for expedited determinations of disability that are 
currently carried out by other departments and agencies of 
the Federal Government, including the Quick Disability Deter-
mination program and the Compassionate Allowances program 
of the Social Security Administration. 
(2) CONSULTATION.—The Secretary of Defense shall conduct 
the study in consultation with the Secretary of Veterans Affairs. 
SEC. 597. COMPTROLLER GENERAL STUDY OF MILITARY NECESSITY 
OF SELECTIVE SERVICE SYSTEM AND ALTERNATIVES. 
(a) STUDY REQUIRED.—The Comptroller General of the United 
States shall conduct a study— 
(1) to assess the necessity of the Selective Service System 
to the Department of Defense in meeting future military man-
power requirements that are in excess of the ability of the 
all-volunteer force; and 
(2) to determine the fiscal and national security impacts 
of— 
(A) disestablishing the Selective Service System; 
(B) putting the Selective Service System into a deep 
standby mode, defined as retaining only personnel suffi-
cient to conduct necessary functions, to include maintaining 
the registration database; and 
(C) requiring the Department of Defense, or other Fed-
eral department, upon disestablishment of the Selective 
Service System and repeal of registration requirements, 
to assume responsibility for securing the Selective Service 
System registration data bases, and keeping them updated. 
(b) ADDITIONAL CONSIDERATIONS FOR EACH OPTION.—As part 
of considering the impacts of disestablishment of the Selective 
Service System, putting it into a deep standby mode, or transferring 
responsibilities as described in subsection (a)(2)(C), the Comptroller 
General shall provide for each option— 
(1) an estimate of the annual cost or savings of each option 
to the Federal government; and 
(2) the feasibility, cost, and time required for each option— 
(A) to reestablish the capability to meet the Selective 
Service System mission, as it existed before disestablish-
ment; and 
(B) to provide the Department of Defense the required 
number of conscripts for training, should conscription be 
authorized by Congress. 
(c) SPECIAL CONSIDERATIONS REGARDING REGISTRATION.—The 
study shall also include an assessment of the feasibility, cost, and 
time required to meet registration requirements by— 
(1) using existing Federal and State government institu-
tions as an alternative to Selective Service registration to main-
tain an accurate, comprehensive database of Americans who, 
according to existing Selective Service System registration 
requirements, would be subject to conscription should conscrip-
tion be authorized; and
H. R. 1540—149 
(2) integrating various alternative registration databases 
for use in connection with conscription and provide a means 
to keep updated and accurate the Selective Service System 
database under each of the options described in subsection 
(a)(2). 
(d) SUBMISSION
OF RESULTS.—Not later than May 1, 2012, 
the Comptroller General shall submit the Committees on Armed 
Services of the Senate and House of Representatives a report con-
taining the results of the study. 
SEC. 598. EVALUATION OF ISSUES AFFECTING DISPOSITION OF 
REMAINS OF AMERICAN SAILORS KILLED IN THE EXPLO-
SION OF THE KETCH U.S.S. INTREPID IN TRIPOLI HARBOR 
ON SEPTEMBER 4, 1804. 
(a) EVALUATION REQUIRED.—Not later than 270 days after the 
date of the enactment of this Act, the Secretary of Defense and 
the Secretary of the Navy shall conduct an evaluation of the fol-
lowing issues with respect to the disposition of the remains of 
American sailors killed in the explosion of the ketch U.S.S. Intrepid 
in Tripoli Harbor on September 4, 1804: 
(1) The feasibility of recovery of the remains based on 
historical information, factual considerations, costs, and 
precedential effect. 
(2) The ability to make identifications of the remains within 
a two-year period based on conditions and facts that would 
have to exist for positive scientific identification of the remains. 
(3) The diplomatic and inter-governmental issues that 
would have to be addressed in order to provide for exhuming 
and removing the remains consistent with the sovereignty of 
the Libyan government. 
(b) PARTICIPATION
AND
CONSULTATION.—The Secretary of 
Defense and the Secretary of the Navy shall conduct the evaluation 
under subsection (a) with the participation of the Defense POW/ 
Missing Personnel Office and the Joint POW/MIA Accounting Com-
mand and in consultation with the Secretary of State. 
(c) SUBMISSION OF RECOMMENDATION.—Upon completion of the 
evaluation as required by subsection (a), the Secretary of Defense 
and the Secretary of State shall submit to the Committees on 
Armed Services of the Senate and the House of Representatives 
their recommendation regarding the proposal to exhume, identify, 
and relocate the remains of the American sailors referred to in 
such subsection and the reasons supporting their recommendation. 
TITLE VI—COMPENSATION AND OTHER 
PERSONNEL BENEFITS 
Subtitle A—Pay and Allowances 
Sec. 601. Resumption of authority to provide temporary increase in rates of basic 
allowance for housing under certain circumstances. 
Sec. 602. Lodging accommodations for members assigned to duty in connection with 
commissioning or fitting out of a ship. 
Subtitle B—Bonuses and Special and Incentive Pays 
Sec. 611. One-year extension of certain bonus and special pay authorities for re-
serve forces. 
Sec. 612. One-year extension of certain bonus and special pay authorities for health 
care professionals.
H. R. 1540—150 
Sec. 613. One-year extension of special pay and bonus authorities for nuclear offi-
cers. 
Sec. 614. One-year extension of authorities relating to title 37 consolidated special 
pay, incentive pay, and bonus authorities. 
Sec. 615. One-year extension of authorities relating to payment of other title 37 bo-
nuses and special pays. 
Sec. 616. Modification of qualifying period for payment of hostile fire and imminent 
danger special pay and hazardous duty special pay. 
Subtitle C—Travel and Transportation Allowances Generally 
Sec. 621. One-year extension of authority to reimburse travel expenses for inactive- 
duty training outside of normal commuting distance. 
Subtitle D—Consolidation and Reform of Travel and Transportation Authorities 
Sec. 631. Consolidation and reform of travel and transportation authorities of the 
uniformed services. 
Sec. 632. Transition provisions. 
Subtitle E—Commissary and Nonappropriated Fund Instrumentality Benefits and 
Operations 
Sec. 641. Discretion of the Secretary of the Navy to select categories of merchandise 
to be sold by ship stores afloat. 
Sec. 642. Access of military exchange stores system to credit available through Fed-
eral Financing Bank. 
Sec. 643. Designation of Fisher House for the Families of the Fallen and Medita-
tion Pavilion, Dover Air Force Base, Delaware, as a Fisher House. 
Subtitle F—Disability, Retired Pay and Survivor Benefits 
Sec. 651. Death gratuity and related benefits for Reserves who die during an au-
thorized stay at their residence during or between successive days of in-
active duty training. 
Subtitle G—Other Matters 
Sec. 661. Report on basic allowance for housing for National Guard members 
transitioning between active duty and full-time National Guard duty. 
Sec. 662. Report on incentives for recruitment and retention of health care profes-
sionals. 
Subtitle A—Pay and Allowances 
SEC. 601. RESUMPTION OF AUTHORITY TO PROVIDE TEMPORARY 
INCREASE IN RATES OF BASIC ALLOWANCE FOR HOUSING 
UNDER CERTAIN CIRCUMSTANCES. 
Section 403(b)(7)(E) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2009’’ and inserting ‘‘December 31, 2012’’. 
SEC. 602. LODGING ACCOMMODATIONS FOR MEMBERS ASSIGNED TO 
DUTY IN CONNECTION WITH COMMISSIONING OR FITTING 
OUT OF A SHIP. 
(a) EXTENSION
TO PRECOMMISSIONING UNIT SAILORS.—Sub-
section (a) of section 7572 of title 10, United States Code, is 
amended— 
(1) by inserting ‘‘or assigned to duty in connection with 
commissioning or fitting out of a ship’’ after ‘‘sea duty’’; and 
(2) by inserting ‘‘, because the ship is under construction 
and is not yet habitable,’’ after ‘‘because of repairs,’’. 
(b) EXTENSION TO ENLISTED MEMBERS.—Subsection (d) of such 
section is amended— 
(1) in paragraph (1)— 
(A) by striking ‘‘After the expiration of the authority 
provided in subsection (b), an officer’’ and inserting ‘‘A 
member’’; 
(B) by striking ‘‘officer’s quarters’’ and inserting ‘‘mem-
ber’s quarters’’;
H. R. 1540—151 
(C) by striking ‘‘obtaining quarters’’ and inserting 
‘‘obtaining housing’’; and 
(D) by striking ‘‘the officer’’ and inserting ‘‘the 
member’’; 
(2) in paragraph (2)— 
(A) by striking ‘‘an officer’’ both places it appears and 
inserting ‘‘a member’’; 
(B) by striking ‘‘quarters’’ and inserting ‘‘housing’’; and 
(C) by striking ‘‘officer’s grade’’ and inserting ‘‘mem-
ber’s grade’’; and 
(3) in paragraph (3)— 
(A) by striking ‘‘an officer’’ and inserting ‘‘a member’’; 
and 
(B) by striking ‘‘quarters’’ and inserting ‘‘housing’’. 
(c) SHIPYARDS AFFECTED BY BRAC 2005.—Such section is fur-
ther amended by adding at the end the following new subsection: 
‘‘(e)(1) The Secretary may reimburse a member of the naval 
service assigned to duty in connection with commissioning or fitting 
out of a ship in Pascagoula, Mississippi, or Bath, Maine, who 
is deprived of quarters on board a ship because the ship is under 
construction and is not yet habitable, or because of other conditions 
that make the member’s quarters uninhabitable, for expenses 
incurred in obtaining housing, but only when the Navy is unable 
to furnish the member with lodging accommodations under sub-
section (a). 
‘‘(2) The total amount that a member may be reimbursed under 
this subsection may not exceed an amount equal to the basic allow-
ance for housing of a member without dependents of that member’s 
grade. 
‘‘(3) A member without dependents, or a member who resides 
with dependents while assigned to duty in connection with commis-
sioning or fitting out of a ship at one of the locations specified 
in paragraph (1), may not be reimbursed under this subsection. 
‘‘(4) The Secretary may prescribe regulations to carry out this 
subsection.’’. 
(d) CONFORMING AMENDMENTS.— 
(1) SECTION
HEADING.—The heading of such section is 
amended to read as follows: 
‘‘§ 7572. Quarters: accommodations in place for members on 
sea duty or assigned to duty in connection with 
commissioning or fitting out of a ship’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 649 of such title is amended by striking
H. R. 1540—152 
the item relating to section 7572 and inserting the following 
new item: 
‘‘7572. Quarters: accommodations in place for members on sea duty or assigned to 
duty in connection with commissioning or fitting out of a ship.’’. 
Subtitle B—Bonuses and Special and 
Incentive Pays 
SEC. 611. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR RESERVE FORCES. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2012’’: 
(1) Section 308b(g), relating to Selected Reserve reenlist-
ment bonus. 
(2) Section 308c(i), relating to Selected Reserve affiliation 
or enlistment bonus. 
(3) Section 308d(c), relating to special pay for enlisted 
members assigned to certain high-priority units. 
(4) Section 308g(f)(2), relating to Ready Reserve enlistment 
bonus for persons without prior service. 
(5) Section 308h(e), relating to Ready Reserve enlistment 
and reenlistment bonus for persons with prior service. 
(6) Section 308i(f), relating to Selected Reserve enlistment 
and reenlistment bonus for persons with prior service. 
(7) Section 910(g), relating to income replacement payments 
for reserve component members experiencing extended and fre-
quent mobilization for active duty service. 
SEC. 612. ONE-YEAR EXTENSION OF CERTAIN BONUS AND SPECIAL 
PAY AUTHORITIES FOR HEALTH CARE PROFESSIONALS. 
(a) TITLE 10 AUTHORITIES.—The following sections of title 10, 
United States Code, are amended by striking ‘‘December 31, 2011’’ 
and inserting ‘‘December 31, 2012’’: 
(1) Section 2130a(a)(1), relating to nurse officer candidate 
accession program. 
(2) Section 16302(d), relating to repayment of education 
loans for certain health professionals who serve in the Selected 
Reserve. 
(b) TITLE 37 AUTHORITIES.—The following sections of title 37, 
United States Code, are amended by striking ‘‘December 31, 2011’’ 
and inserting ‘‘December 31, 2012’’: 
(1) Section 302c–1(f), relating to accession and retention 
bonuses for psychologists. 
(2) Section 302d(a)(1), relating to accession bonus for reg-
istered nurses. 
(3) Section 302e(a)(1), relating to incentive special pay for 
nurse anesthetists. 
(4) Section 302g(e), relating to special pay for Selected 
Reserve health professionals in critically short wartime special-
ties. 
(5) Section 302h(a)(1), relating to accession bonus for dental 
officers. 
(6) Section 302j(a), relating to accession bonus for pharmacy 
officers.
H. R. 1540—153 
(7) Section 302k(f), relating to accession bonus for medical 
officers in critically short wartime specialties. 
(8) Section 302l(g), relating to accession bonus for dental 
specialist officers in critically short wartime specialties. 
SEC. 613. ONE-YEAR EXTENSION OF SPECIAL PAY AND BONUS 
AUTHORITIES FOR NUCLEAR OFFICERS. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2012’’: 
(1) Section 312(f), relating to special pay for nuclear-quali-
fied officers extending period of active service. 
(2) Section 312b(c), relating to nuclear career accession 
bonus. 
(3) Section 312c(d), relating to nuclear career annual incen-
tive bonus. 
SEC. 614. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO TITLE 
37 CONSOLIDATED SPECIAL PAY, INCENTIVE PAY, AND 
BONUS AUTHORITIES. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2012’’: 
(1) Section 331(h), relating to general bonus authority for 
enlisted members. 
(2) Section 332(g), relating to general bonus authority for 
officers. 
(3) Section 333(i), relating to special bonus and incentive 
pay authorities for nuclear officers. 
(4) Section 334(i), relating to special aviation incentive 
pay and bonus authorities for officers. 
(5) Section 335(k), relating to special bonus and incentive 
pay authorities for officers in health professions. 
(6) Section 351(h), relating to hazardous duty pay. 
(7) Section 352(g), relating to assignment pay or special 
duty pay. 
(8) Section 353(i), relating to skill incentive pay or pro-
ficiency bonus. 
(9) Section 355(h), relating to retention incentives for mem-
bers qualified in critical military skills or assigned to high 
priority units. 
SEC. 615. ONE-YEAR EXTENSION OF AUTHORITIES RELATING TO PAY-
MENT OF OTHER TITLE 37 BONUSES AND SPECIAL PAYS. 
The following sections of title 37, United States Code, are 
amended by striking ‘‘December 31, 2011’’ and inserting ‘‘December 
31, 2012’’: 
(1) Section 301b(a), relating to aviation officer retention 
bonus. 
(2) Section 307a(g), relating to assignment incentive pay. 
(3) Section 308(g), relating to reenlistment bonus for active 
members. 
(4) Section 309(e), relating to enlistment bonus. 
(5) Section 324(g), relating to accession bonus for new offi-
cers in critical skills. 
(6) Section 326(g), relating to incentive bonus for conversion 
to military occupational specialty to ease personnel shortage.
H. R. 1540—154 
(7) Section 327(h), relating to incentive bonus for transfer 
between armed forces. 
(8) Section 330(f), relating to accession bonus for officer 
candidates. 
SEC. 616. MODIFICATION OF QUALIFYING PERIOD FOR PAYMENT OF 
HOSTILE FIRE AND IMMINENT DANGER SPECIAL PAY AND 
HAZARDOUS DUTY SPECIAL PAY. 
(a) HOSTILE FIRE AND IMMINENT DANGER PAY.—Section 310 
of title 37, United States Code, is amended— 
(1) in subsection (a), by striking ‘‘for any month or portion 
of a month’’ and inserting ‘‘for any day or portion of a day’’; 
(2) by striking subsection (b) and inserting the following 
new subsection (b): 
‘‘(b) SPECIAL PAY AMOUNT.—(1) Except as provided in para-
graph (2), the amount of special pay authorized by subsection 
(a) for qualifying service during a day or portion of a day shall 
be the amount equal to 1/30th of the maximum monthly amount 
of special pay payable to a member as specified in paragraph 
(3). 
‘‘(2) In the case of a member who is exposed to hostile fire 
or a hostile mine explosion event in or for a day or portion of 
a day, the Secretary concerned may, at the election of the Secretary, 
pay the member special pay under subsection (a) for such service 
in an amount not to exceed the maximum monthly amount of 
special pay payable to a member as specified in paragraph (3). 
‘‘(3) The maximum monthly amount of special pay payable 
to a member under this subsection for any month is $225.’’. 
(3) in subsection (c)(1), by inserting ‘‘for any day (or portion 
of a day) of’’ before ‘‘not more than three additional months’’; 
and 
(4) in subsection (d)(2), by striking ‘‘any month’’ and 
inserting ‘‘any day’’. 
(b) HAZARDOUS DUTY PAY.—Section 351(c)(2) of such title is 
amended by striking ‘‘receipt of hazardous duty pay,’’ and all that 
follows and inserting ‘‘receipt of hazardous duty pay— 
‘‘(A) in the case of hazardous duty pay payable under 
paragraph (1) of subsection (a), the Secretary concerned— 
‘‘(i) shall prorate the payment amount to reflect 
the duration of the member’s actual qualifying service 
during the month; or 
‘‘(ii) in the case of a member who is exposed to 
hostile fire or an explosion of a hostile explosive device 
in or for a day or portion of a day, may, at the election 
of the Secretary, pay the member hazardous duty pay 
in an amount not to exceed the entire amount of haz-
ardous duty pay that would be payable to the member 
under such paragraph (1) for the month in which the 
duty concerned occurs (with the total amount of haz-
ardous duty pay paid the member under this clause 
in any given month not to exceed such entire amount); 
and 
‘‘(B) in the case of hazardous duty pay payable under 
paragraph (2) or (3) of subsection (a), the Secretary con-
cerned may prorate the payment amount to reflect the 
duration of the member’s actual qualifying service during 
the month.’’.
H. R. 1540—155 
Subtitle C—Travel and Transportation 
Allowances Generally 
SEC. 621. ONE-YEAR EXTENSION OF AUTHORITY TO REIMBURSE 
TRAVEL EXPENSES FOR INACTIVE-DUTY TRAINING OUT-
SIDE OF NORMAL COMMUTING DISTANCE. 
Section 408a(e) of title 37, United States Code, is amended 
by striking ‘‘December 31, 2011’’ and inserting ‘‘December 31, 2012’’. 
Subtitle D—Consolidation and Reform of 
Travel and Transportation Authorities 
SEC. 631. CONSOLIDATION AND REFORM OF TRAVEL AND TRANSPOR-
TATION AUTHORITIES OF THE UNIFORMED SERVICES. 
(a) PURPOSE.—This section establishes general travel and 
transportation provisions for members of the uniformed services 
and other travelers authorized to travel under official conditions. 
Recognizing the complexities and the changing nature of travel, 
the amendments made by this section provide the Secretary of 
Defense and the other administering Secretaries with the authority 
to prescribe and implement travel and transportation policy that 
is simple, clear, efficient, and flexible, and that meets mission 
and servicemember needs, while realizing cost savings that should 
come with a more efficient and less cumbersome system for travel 
and transportation. 
(b) CONSOLIDATED AUTHORITIES.—Title 37, United States Code, 
is amended by inserting after chapter 7 the following new chapter: 
‘‘CHAPTER 8—TRAVEL AND TRANSPORTATION 
ALLOWANCES 
‘‘Sec. 
‘‘SUBCHAPTER I—TRAVEL AND TRANSPORTATION AUTHORITIES—NEW LAW 
‘‘451. Definitions. 
‘‘452. Allowable travel and transportation: general authorities. 
‘‘453. Allowable travel and transportation: specific authorities. 
‘‘454. Travel and transportation: pilot programs. 
‘‘455. Appropriations for travel: may not be used for attendance at certain meetings. 
‘‘SUBCHAPTER II—ADMINISTRATIVE PROVISIONS 
‘‘461. Relationship to other travel and transportation authorities. 
‘‘462. Travel and transportation allowances paid to members that are unauthorized 
or in excess of authorized amounts: requirement for repayment. 
‘‘463. Program of compliance; electronic processing of travel claims. 
‘‘464. Regulations. 
‘‘SUBCHAPTER III—TRAVEL AND TRANSPORTATION AUTHORITIES—OLD LAW 
‘‘471. Travel authorities transition expiration date. 
‘‘472. Definitions and other incorporated provisions of chapter 7. 
‘‘474. Travel and transportation allowances: general. 
‘‘474a. Travel and transportation allowances: temporary lodging expenses. 
‘‘474b. Travel and transportation allowances: payment of lodging expenses at tem-
porary duty location during authorized absence of member. 
‘‘475. Travel and transportation allowances: per diem while on duty outside the con-
tinental United States. 
‘‘475a. Travel and transportation allowances: departure allowances. 
‘‘476. Travel and transportation allowances: dependents; baggage and household ef-
fects.
H. R. 1540—156 
‘‘476a. Travel and transportation allowances: authorized for travel performed under 
orders that are canceled, revoked, or modified. 
‘‘476b. Travel and transportation allowances: members of the uniformed services at-
tached to a ship overhauling or inactivating. 
‘‘476c. Travel and transportation allowances: members assigned to a vessel under 
construction. 
‘‘477. Travel and transportation allowances: dislocation allowance. 
‘‘478. Travel and transportation allowances: travel within limits of duty station. 
‘‘478a. Travel and transportation allowances: inactive duty training outside of the 
normal commuting distances. 
‘‘479. Travel and transportation allowances: house trailers and mobile homes. 
‘‘480. Travel and transportation allowances: miscellaneous categories. 
‘‘481. Travel and transportation allowances: administrative provisions. 
‘‘481a. Travel and transportation allowances: travel performed in connection with 
convalescent leave. 
‘‘481b. Travel and transportation allowances: travel performed in connection with 
leave between consecutive overseas tours. 
‘‘481c. Travel and transportation allowances: travel performed in connection with 
rest and recuperative leave from certain stations in foreign countries. 
‘‘481d. Travel and transportation allowances: transportation incident to personal 
emergencies for certain members and dependents. 
‘‘481e. Travel and transportation allowances: transportation incident to certain 
emergencies for members performing temporary duty. 
‘‘481f. Travel and transportation allowances: transportation for survivors of deceased 
member to attend the member’s burial ceremonies. 
‘‘481h. Travel and transportation allowances: transportation of designated individ-
uals incident to hospitalization of members for treatment of wounds, ill-
ness, or injury. 
‘‘481i. Travel and transportation allowances: parking expenses. 
‘‘481j. Travel and transportation allowances: transportation of family members inci-
dent to the repatriation of members held captive. 
‘‘481k. Travel and transportation allowances: non-medical attendants for members 
determined to be very seriously or seriously wounded, ill, or injured. 
‘‘481l. Travel and transportation allowances: attendance of members and others at 
Yellow Ribbon Reintegration Program events. 
‘‘484. Travel and transportation: dependents of members in a missing status; house-
hold and personal effects; trailers; additional movements; motor vehi-
cles; sale of bulky items; claims for proceeds; appropriation chargeable. 
‘‘488. Allowance for recruiting expenses. 
‘‘489. Travel and transportation allowances: minor dependent schooling. 
‘‘490. Travel and transportation: dependent children of members stationed overseas. 
‘‘491. Benefits for certain members assigned to the Defense Intelligence Agency. 
‘‘492. Travel and transportation: members escorting certain dependents. 
‘‘494. Subsistence reimbursement relating to escorts of foreign arms control inspec-
tion teams. 
‘‘495. Funeral honors duty: allowance. 
‘‘SUBCHAPTER I—TRAVEL AND TRANSPORTATION 
AUTHORITIES—NEW LAW 
‘‘§ 451. Definitions 
‘‘(a) DEFINITIONS RELATING TO PERSONS.—In this subchapter 
and subchapter II: 
‘‘(1) The term ‘administering Secretary’ or ‘administering 
Secretaries’ means the following: 
‘‘(A) The Secretary of Defense, with respect to the 
armed forces (including the Coast Guard when it is oper-
ating as a service in the Navy). 
‘‘(B) The Secretary of Homeland Security, with respect 
to the Coast Guard when it is not operating as a service 
in the Navy. 
‘‘(C) The Secretary of Commerce, with respect to the 
National Oceanic and Atmospheric Administration. 
‘‘(D) The Secretary of Health and Human Services, 
with respect to the Public Health Service.
H. R. 1540—157 
‘‘(2) The term ‘authorized traveler’ means a person who 
is authorized travel and transportation allowances when per-
forming official travel ordered or authorized by the admin-
istering Secretary. Such term includes the following: 
‘‘(A) A member of the uniformed services. 
‘‘(B) A family member of a member of the uniformed 
services. 
‘‘(C) A person acting as an escort or attendant for 
a member or family member who is traveling on official 
travel or is traveling with the remains of a deceased 
member. 
‘‘(D) A person who participates in a military funeral 
honors detail. 
‘‘(E) A Senior Reserve Officers’ Training Corps cadet 
or midshipman. 
‘‘(F) An applicant or rejected applicant for enlistment. 
‘‘(G) Any person whose employment or service is consid-
ered directly related to a Government official activity or 
function under regulations prescribed under section 464 
of this title. 
‘‘(H) Any other person not covered by subparagraphs 
(A) through (G) who is determined by the administering 
Secretary pursuant to regulations prescribed under section 
464 of this title as warranting the provision of travel bene-
fits for purposes of the following: 
‘‘(i) Transportation of survivors to attend burial 
services or transfer of deceased members after death 
overseas as provided in section 481f of this title. 
‘‘(ii) Transportation of designated individuals 
incident to the hospitalization of members as provided 
in section 481h of this title. 
‘‘(iii) Transportation of designated individuals 
incident to the repatriation of members as provided 
in section 481j of this title. 
‘‘(iv) Transportation of non-medical attendants as 
provided in section 481k of this title. 
‘‘(v) Transportation of designated individuals to 
attend Yellow Ribbon Reintegration Program events 
as provided in section 481l of this title. 
‘‘(vi) Transportation of a person with regard to 
a single event when the administering Secretary deter-
mines that the travel is necessary to ensure fairness 
and equity, respond to emergency or humanitarian 
circumstances, or serve the best interests of the 
Government. 
‘‘(3) The term ‘family member’, with respect to a member 
of the uniformed services, means the following: 
‘‘(A) A dependent, as defined in section 401(a) of this 
title. 
‘‘(B) A child, as defined in section 401(b)(1) of this 
title. 
‘‘(C) A parent, as defined in section 401(b)(2) of this 
title. 
‘‘(D) A sibling of the member. 
‘‘(E) A former spouse of the member. 
‘‘(b) DEFINITIONS RELATING TO TRAVEL AND TRANSPORTATION 
ALLOWANCES.—In this subchapter and subchapter II:
H. R. 1540—158 
‘‘(1) The term ‘official travel’ means the following: 
‘‘(A) Military duty or official business performed by 
an authorized traveler away from a duty assignment loca-
tion or other authorized location. 
‘‘(B) Travel performed by an authorized traveler 
ordered to relocate from a permanent duty station to 
another permanent duty station. 
‘‘(C) Travel performed by an authorized traveler 
ordered to the first permanent duty station, or separated 
or retired from uniformed service. 
‘‘(D) Local travel in or around the temporary duty 
or permanent duty station. 
‘‘(E) Other travel as authorized or ordered by the 
administering Secretary. 
‘‘(2) The term ‘actual and necessary expenses’ means 
expenses incurred in fact by an authorized traveler as a reason-
able consequence of official travel. 
‘‘(3) The term ‘travel allowances’ means the daily lodging, 
meals, and other related expenses, including relocation 
expenses, incurred by an authorized traveler while on official 
travel. 
‘‘(4) The term ‘transportation allowances’ means the costs 
of temporarily or permanently moving an authorized traveler, 
the personal property of an authorized traveler, or a combina-
tion thereof. 
‘‘(5) The term ‘transportation-, lodging-, or meals-in-kind’ 
means transportation, lodging, or meals provided by the 
Government without cost to an authorized traveler. 
‘‘(6) The term ‘miscellaneous expenses’ means authorized 
expenses incurred in addition to authorized allowances during 
the performance of official travel by an authorized traveler. 
‘‘(7) The term ‘personal property’, with respect to transpor-
tation allowances, includes baggage, furniture, and other house-
hold items, clothing, privately owned vehicles, house trailers, 
mobile homes, and any other personal items that would not 
otherwise be prohibited by any other provision of law or regula-
tion prescribed under section 464 of this title. 
‘‘(8) The term ‘relocation allowances’ means the costs associ-
ated with relocating a member of the uniformed services and 
the member’s dependents between an old and new temporary 
or permanent duty assignment location or other authorized 
location. 
‘‘(9) The term ‘dislocation allowances’ means the costs asso-
ciated with relocation of the household of a member of the 
uniformed services and the member’s dependents in relation 
to a change in the member’s permanent duty assignment loca-
tion ordered for the convenience of the Government or incident 
to an evacuation. 
‘‘§ 452. Allowable travel and transportation: general authori-
ties 
‘‘(a) IN GENERAL.—Except as otherwise prohibited by law, a 
member of the uniformed services or other authorized traveler 
may be provided transportation-, lodging-, or meals-in-kind, or 
actual and necessary expenses of travel and transportation, for, 
or in connection with, official travel under circumstances as speci-
fied in regulations prescribed under section 464 of this title.
H. R. 1540—159 
‘‘(b) SPECIFIC CIRCUMSTANCES.—The authority under subsection 
(a) includes travel under or in connection with, but not limited 
to, the following circumstances, to the extent specified in regulations 
prescribed under section 464 of this title: 
‘‘(1) Temporary duty that requires travel between a perma-
nent duty assignment location and another authorized tem-
porary duty location, and travel in or around the temporary 
duty location. 
‘‘(2) Permanent change of station that requires travel 
between an old and new temporary or permanent duty assign-
ment location or other authorized location. 
‘‘(3) Temporary duty or assignment relocation related to 
consecutive overseas tours or in-place-consecutive overseas 
tours. 
‘‘(4) Recruiting duties for the armed forces. 
‘‘(5) Assignment or detail to another Government depart-
ment or agency. 
‘‘(6) Rest and recuperative leave. 
‘‘(7) Convalescent leave. 
‘‘(8) Reenlistment leave. 
‘‘(9) Reserve component inactive-duty training performed 
outside the normal commuting distance of the member’s perma-
nent residence. 
‘‘(10) Ready Reserve muster duty. 
‘‘(11) Unusual, extraordinary, hardship, or emergency cir-
cumstances. 
‘‘(12) Presence of family members at a military medical 
facility incident to the illness or injury of members. 
‘‘(13) Presence of family members at the repatriation of 
members held captive. 
‘‘(14) Presence of non-medical attendants for very seriously 
or seriously wounded, ill, or injured members. 
‘‘(15) Attendance at Yellow Ribbon Reintegration Program 
events. 
‘‘(16) Missing status, as determined by the Secretary con-
cerned under chapter 10 of this title. 
‘‘(17) Attendance at or participation in international sports 
competitions described under section 717 of title 10. 
‘‘(c) MATTERS INCLUDED.—Travel and transportation allowances 
which may be provided under subsection (a) include the following: 
‘‘(1) Allowances for transportation, lodging, and meals. 
‘‘(2) Dislocation or relocation allowances paid in connection 
with a change in a member’s temporary or permanent duty 
assignment location. 
‘‘(3) Other related miscellaneous expenses. 
‘‘(d) MODE OF PROVIDING TRAVEL AND TRANSPORTATION ALLOW-
ANCES.—Any authorized travel and transportation may be pro-
vided— 
‘‘(1) as an actual expense; 
‘‘(2) as an authorized allowance; 
‘‘(3) in-kind; or 
‘‘(4) using a combination of the authorities under para-
graphs (1), (2), and (3). 
‘‘(e) TRAVEL AND TRANSPORTATION ALLOWANCES WHEN TRAVEL 
ORDERS ARE MODIFIED, ETC.—An authorized traveler whose travel 
and transportation order or authorization is canceled, revoked, or 
modified may be allowed actual and necessary expenses or travel
H. R. 1540—160 
and transportation allowances in connection with travel performed 
pursuant to such order or authorization. 
‘‘(f) ADVANCE
PAYMENTS.—An authorized traveler may be 
allowed advance payments for authorized travel and transportation 
allowances. 
‘‘(g) RESPONSIBILITY
FOR
UNAUTHORIZED
EXPENSES.—Any 
unauthorized travel or transportation expense is not the responsi-
bility of the United States. 
‘‘(h) RELATIONSHIP TO OTHER AUTHORITIES.—The administering 
Secretary may not provide payment under this section for an 
expense for which payment may be provided from any other appro-
priate Government or non-Government entity. 
‘‘§ 453. Allowable travel and transportation: specific authori-
ties 
‘‘(a) IN GENERAL.—In addition to any other authority for the 
provision of travel and transportation allowances, the administering 
Secretaries may provide travel and transportation allowances under 
this subchapter in accordance with this section. 
‘‘(b) AUTHORIZED ABSENCE FROM TEMPORARY DUTY LOCATION.— 
An authorized traveler may be paid travel and transportation allow-
ances, or reimbursed for actual and necessary expenses of travel, 
incurred at a temporary duty location during an authorized absence 
from that location. 
‘‘(c) MOVEMENT OF PERSONAL PROPERTY.—(1) A member of a 
uniformed service may be allowed moving expenses and transpor-
tation allowances for self and dependents associated with the move-
ment of personal property and household goods, including such 
expenses when associated with a self-move. 
‘‘(2) The authority in paragraph (1) includes the movement 
and temporary and non-temporary storage of personal property, 
household goods, and privately owned vehicles (but not to exceed 
one privately owned vehicle per member household) in connection 
with the temporary or permanent move between authorized loca-
tions. 
‘‘(3) For movement of household goods, the administering Secre-
taries shall prescribe weight allowances in regulations under section 
464 of this title. The prescribed weight allowances may not exceed 
18,000 pounds (including packing, crating, and household goods 
in temporary storage), except that the administering Secretary may, 
on a case-by-case basis, authorize additional weight allowances 
as necessary. 
‘‘(4) The administering Secretary may prescribe the terms, 
rates, and conditions that authorize a member of the uniformed 
services to ship or store a privately owned vehicle. 
‘‘(5) No carrier, port agent, warehouseman, freight forwarder, 
or other person involved in the transportation of property may 
have any lien on, or hold, impound, or otherwise interfere with, 
the movement of baggage and household goods being transported 
under this section. 
‘‘(d) UNUSUAL OR EMERGENCY CIRCUMSTANCES.—An authorized 
traveler may be provided travel and transportation allowances 
under this section for unusual, extraordinary, hardship, or emer-
gency circumstances, including circumstances warranting evacu-
ation from a permanent duty assignment location. 
‘‘(e) PARTICULAR SEPARATION PROVISIONS.—The administering 
Secretary may provide travel-in-kind and transportation-in-kind for
H. R. 1540—161 
the following persons in accordance with regulations prescribed 
under section 464 of this title: 
‘‘(1) A member who is retired, or is placed on the temporary 
disability retired list, under chapter 61 of title 10. 
‘‘(2) A member who is retired with pay under any other 
law or who, immediately following at least eight years of contin-
uous active duty with no single break therein of more than 
90 days, is discharged with separation pay or is involuntarily 
released from active duty with separation pay or readjustment 
pay. 
‘‘(3) A member who is discharged under section 1173 of 
title 10. 
‘‘(f) ATTENDANCE AT MEMORIAL CEREMONIES AND SERVICES.— 
A family member or member of the uniformed services who attends 
a deceased member’s repatriation, burial, or memorial ceremony 
or service may be provided travel and transportation allowances 
to the extent provided in regulations prescribed under section 464 
of this title. 
‘‘§ 454. Travel and transportation: pilot programs 
‘‘(a) PILOT PROGRAMS.—Except as otherwise prohibited by law, 
the Secretary of Defense may conduct pilot programs to evaluate 
alternative travel and transportation programs, policies, and proc-
esses for Department of Defense authorized travelers. Any such 
pilot program shall be designed to enhance cost savings or other 
efficiencies that accrue to the Government and be conducted so 
as to evaluate one or more of the following: 
‘‘(1) Alternative methods for performing and reimbursing 
travel. 
‘‘(2) Means for limiting the need for travel. 
‘‘(3) Means for reducing the environmental impact of travel. 
‘‘(b) LIMITATIONS.—(1) Not more than three pilot programs may 
be carried out under subsection (a) at any one time. 
‘‘(2) The duration of a pilot program may not exceed four 
years. 
‘‘(3) The authority to carry out a pilot program is subject 
to the availability of appropriated funds. 
‘‘(c) REPORTS.—(1) Not later than 30 days before the commence-
ment of a pilot program under subsection (a), the Secretary shall 
submit to the congressional defense committees a report on the 
pilot program. The report on a pilot program under this paragraph 
shall set forth a description of the pilot program, including the 
following: 
‘‘(A) The purpose of the pilot program. 
‘‘(B) The duration of the pilot program. 
‘‘(C) The cost savings or other efficiencies anticipated to 
accrue to the Government under the pilot program. 
‘‘(2) Not later than 60 days after the completion of a pilot 
program, the Secretary shall submit to the congressional defense 
committees a report on the pilot program. The report on a pilot 
program under this paragraph shall set forth the following: 
‘‘(A) A description of results of the pilot program. 
‘‘(B) Such recommendations for legislative or administrative 
action as the Secretary considers appropriate in light of the 
pilot program.
H. R. 1540—162 
‘‘(d) CONGRESSIONAL DEFENSE COMMITTEES DEFINED.—In this 
section, the term ‘congressional defense committees’ has the 
meaning given that term in section 101(a)(16) of title 10. 
‘‘SUBCHAPTER II—ADMINISTRATIVE PROVISIONS 
‘‘§ 461. Relationship to other travel and transportation 
authorities 
‘‘An authorized traveler may not be paid travel and transpor-
tation allowances or receive travel-in-kind and transportation-in- 
kind, or a combination thereof, under both subchapter I and sub-
chapter III for official travel performed under a single or related 
travel and transportation order or authorization by the admin-
istering Secretary. 
‘‘§ 462. Travel and transportation allowances paid to mem-
bers that are unauthorized or in excess of author-
ized amounts: requirement for repayment 
‘‘(a) REPAYMENT REQUIRED.—Except as provided in subsection 
(b), a member of the uniformed services or other person who is 
paid travel and transportation allowances under subchapter I shall 
repay to the United States any amount of such payment that 
is determined to be unauthorized or in excess of the applicable 
authorized amount. 
‘‘(b) EXCEPTION.—The regulations prescribed under section 464 
of this title shall specify procedures for determining the cir-
cumstances under which an exception to repayment otherwise 
required by subsection (a) may be granted. 
‘‘(c) EFFECT OF BANKRUPTCY.—An obligation to repay the United 
States under this section is, for all purposes, a debt owed the 
United States. A discharge in bankruptcy under title 11 does not 
discharge a person from such debt if the discharge order is entered 
less than five years after the date on which the debt was incurred. 
‘‘§ 463. Programs of compliance; electronic processing of 
travel claims 
‘‘(a) PROGRAMS OF COMPLIANCE.—The administering Secretaries 
shall provide for compliance with the requirements of this chapter 
through programs of compliance established and maintained for 
that purpose. 
‘‘(b) ELEMENTS.—The programs of compliance under subsection 
(a) shall— 
‘‘(1) minimize the provision of benefits under this chapter 
based on inaccurate claims, unauthorized claims, overstated 
or inflated claims, and multiple claims for the same benefits 
through the electronic verification of travel claims on a near- 
time basis and such other means as the administering Secre-
taries may establish for purposes of the programs of compliance; 
and 
‘‘(2) ensure that benefits provided under this chapter do 
not exceed reasonable or actual and necessary expenses of 
travel claimed or reasonable allowances based on commercial 
travel rates. 
‘‘(c) ELECTRONIC PROCESSING OF TRAVEL CLAIMS.—(1) By not 
later than the date that is five years after the date of the enactment 
of the National Defense Authorization Act for Fiscal Year 2012, 
any travel claim under this chapter shall be processed electronically.
H. R. 1540—163 
‘‘(2) The administering Secretary, or the Secretary’s designee, 
may waive the requirement in paragraph (1) with respect to a 
particular claim in the interests of the department concerned. 
‘‘(3) The electronic processing of claims under this subsection 
shall be subject to the regulations prescribed by the Secretary 
of Defense under section 464 of this title which shall apply uni-
formly to all members of the uniformed services and, to the extent 
practicable, to all other authorized travelers. 
‘‘§ 464. Regulations 
‘‘This subchapter and subchapter I shall be administered under 
terms, rates, conditions, and regulations prescribed by the Secretary 
of Defense in consultation with the other administering Secretaries 
for members of the uniformed services. Such regulations shall be 
uniform for the Department of Defense and shall apply as uniformly 
as practicable to the uniformed services under the jurisdiction of 
the other administering Secretaries. 
‘‘SUBCHAPTER III—TRAVEL AND TRANSPORTATION 
AUTHORITIES—OLD LAW 
‘‘§ 471. Travel authorities transition expiration date 
‘‘In this subchapter, the term ‘travel authorities transition 
expiration date’ means the last day of the 10-year period beginning 
on the first day of the first month beginning after the date of 
the enactment of the National Defense Authorization Act for Fiscal 
Year 2012. 
‘‘§ 472. Definitions and other incorporated provisions of 
chapter 7 
‘‘(a) DEFINITIONS.—The provisions of section 401 of this title 
apply to this subchapter. 
‘‘(b) OTHER PROVISIONS.—The provisions of sections 421 and 
423 of this title apply to this subchapter.’’. 
(c) REPEAL
OF OBSOLETE AUTHORITY.—Section 411g of title 
37, United States Code, is repealed. 
(d) TRANSFER OF SECTIONS.— 
(1) TRANSFER TO SUBCHAPTER I.—Section 412 of title 37, 
United States Code, is transferred to chapter 8 of such title, 
as added by subsection (b), inserted after section 454, and 
redesignated as section 455. 
(2) TRANSFER OF CURRENT CHAPTER 7 AUTHORITIES TO SUB-
CHAPTER III.—Sections 404, 404a, 404b, 405, 405a, 406, 406a, 
406b, 406c, 407, 408, 408a, 409, 410, 411, 411a through 411f, 
411h through 411l, 428 through 432, 434, and 435 of such 
title are transferred (in that order) to chapter 8 of such title, 
as added by subsection (b), inserted after section 472, and 
redesignated as follows: 
Section: 
Redesignated Section: 
404 
474 
404a 
474a 
404b 
474b 
405 
475 
405a 
475a 
406 
476
H. R. 1540—164 
406a 
476a 
406b 
476b 
406c 
476c 
407 
477 
408 
478 
408a 
478a 
409 
479 
410 
480 
411 
481 
411a 
481a 
411b 
481b 
411c 
481c 
411d 
481d 
411e 
481e 
411f 
481f 
411h 
481h 
411i 
481i 
411j 
481j 
411k 
481k 
411l 
481l 
428 
488 
429 
489 
430 
490 
432 
492 
434 
494 
435 
495 
(3) TRANSFER OF SECTION 554.—Section 554 of such title 
is transferred to chapter 8 of such title, as added by subsection 
(b), inserted after section 481l (as transferred and redesignated 
by paragraph (2)), and redesignated as section 484. 
(e) SUNSET
OF OLD-LAW AUTHORITIES.—Provisions of sub-
chapter III of chapter 8 of title 37, United States Code, as trans-
ferred and redesignated by paragraphs (2) and (3) of subsection 
(c), are amended as follows: 
(1) Section 474 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(k) No travel and transportation allowance or reimbursement 
may be provided under this section for travel that begins after 
the travel authorities transition expiration date.’’. 
(2) Section 474a is amended by adding at the end the 
following new subsection: 
‘‘(f) TERMINATION.—No payment or reimbursement may be pro-
vided under this section with respect to a change of permanent 
station for which orders are issued after the travel authorities 
transition expiration date.’’. 
(3) Section 474b is amended by adding at the end the 
following new subsection: 
‘‘(e) TERMINATION.—No payment or reimbursement may be pro-
vided under this section with respect to an authorized absence 
that begins after the travel authorities transition expiration date.’’.
H. R. 1540—165 
(4) Section 475 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(f) TERMINATION.—During and after the travel authorities 
expiration date, no per diem may be paid under this section for 
any period.’’. 
(5) Section 475a is amended by adding at the end the 
following new subsection: 
‘‘(c) During and after the travel authorities expiration date, 
no allowance under subsection (a) or transportation or reimburse-
ment under subsection (b) may be provided with respect to an 
authority or order to depart.’’. 
(6) Section 476 is amended by adding at the end the fol-
lowing new subsection: 
‘‘(n) No transportation, reimbursement, allowance, or per diem 
may be provided under this section— 
‘‘(1) with respect to a change of temporary or permanent 
station for which orders are issued after the travel authorities 
transition expiration date; or 
‘‘(2) in a case covered by this section when such orders 
are not issued, with respect to a movement of baggage or 
household effects that begins after such date.’’. 
(7) Section 476a is amended— 
(A) by inserting ‘‘(a) AUTHORITY.—’’ before ‘‘Under uni-
form regulations’’; and 
(B) by adding at the end the following new subsection: 
‘‘(b) TERMINATION.—No transportation or travel or transpor-
tation allowance may be provided under this section for travel 
that begins after the travel authorities transition expiration date.’’. 
(8) Section 476b is amended by adding at the end the 
following new subsection: 
‘‘(e) No transportation or allowance may be provided under 
this section for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(9) Section 476c is amended by adding at the end the 
following new subsection: 
‘‘(e) TERMINATION.—No transportation or allowance may be pro-
vided under this section for travel that begins after the travel 
authorities transition expiration date.’’. 
(10) Section 477 is amended by adding at the end the 
following new subsection: 
‘‘(i) TERMINATION.—No dislocation allowance may be paid under 
this section for a move that begins after the travel authorities 
transition expiration date.’’. 
(11) Section 478 is amended by adding at the end the 
following new subsection: 
‘‘(c) No travel or transportation allowance, payment, or 
reimbursement may be provided under this section for travel that 
begins after the travel authorities transition expiration date.’’. 
(12) Section 479 is amended by adding at the end the 
following new subsection: 
‘‘(e) No transportation of a house trailer or mobile home, or 
storage or payment in connection therewith, may be provided under 
this section for transportation that begins after the travel authori-
ties transition expiration date.’’. 
(13) Section 480 is amended by adding at the end the 
following new subsection:
H. R. 1540—166 
‘‘(c) No travel or transportation allowance may be provided 
under this section for travel that begins after the travel authorities 
transition expiration date.’’. 
(14) Section 481 is amended by adding at the end the 
following new subsection: 
‘‘(e) The regulations prescribed under this section shall cease 
to be in effect as of the travel authorities transition expiration 
date.’’. 
(15) Section 481a is amended by adding at the end the 
following new subsection: 
‘‘(c) No travel and transportation allowance may be provided 
under this section for travel that is authorized after the travel 
authorities transition expiration date.’’. 
(16) Section 481b is amended by adding at the end the 
following new subsection: 
‘‘(d) TERMINATION.—No travel and transportation allowance 
may be provided under this section for travel that is authorized 
after the travel authorities transition expiration date.’’. 
(17) Section 481c is amended by adding at the end the 
following new subsection: 
‘‘(c) No transportation may be provided under this section after 
the travel authorities transition expiration date, and no payment 
may be made under this section for transportation that begins 
after that date.’’. 
(18) Section 481d is amended by adding at the end the 
following new subsection: 
‘‘(d) No transportation may be provided under this section after 
the travel authorities transition expiration date.’’. 
(19) Section 481e is amended by adding at the end the 
following new subsection: 
‘‘(c) No travel and transportation allowance or reimbursement 
may be provided under this section for travel that begins after 
the travel authorities transition expiration date.’’. 
(20) Section 481f is amended by adding at the end the 
following new subsection: 
‘‘(h) TERMINATION.—No travel and transportation allowance or 
reimbursement may be provided under this section for travel that 
begins after the travel authorities transition expiration date.’’. 
(21) Section 481h is amended by adding at the end the 
following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, reimburse-
ment, or per diem may be provided under this section for travel 
that begins after the travel authorities transition expiration date.’’. 
(22) Section 481i is amended by adding at the end the 
following new subsection: 
‘‘(c) TERMINATION.—No reimbursement may be provided under 
this section for expenses incurred after the travel authorities transi-
tion expiration date.’’. 
(23) Section 481j is amended by adding at the end the 
following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, reimburse-
ment, or per diem may be provided under this section for travel 
that begins after the travel authorities transition expiration date.’’. 
(24) Section 481k is amended by adding at the end the 
following new subsection:
H. R. 1540—167 
‘‘(e) TERMINATION.—No transportation, allowance, reimburse-
ment, or per diem may be provided under this section for travel 
that begins after the travel authorities transition expiration date.’’. 
(25) Section 481l is amended by adding at the end the 
following new subsection: 
‘‘(e) TERMINATION.—No transportation, allowance, reimburse-
ment, or per diem may be provided under this section for travel 
that begins after the travel authorities transition expiration date.’’. 
(26) Section 484 is amended by adding at the end the 
following new subsection: 
‘‘(k) No transportation, allowance, or reimbursement may be 
provided under this section for a move that begins after the travel 
authorities transition expiration date.’’. 
(27) Section 488 is amended— 
(A) by inserting ‘‘(a) AUTHORITY.—’’ before ‘‘In addi-
tion’’; and 
(B) by adding at the end the following new subsection: 
‘‘(b) TERMINATION.—No reimbursement may be provided under 
this section for expenses incurred after the travel authorities transi-
tion expiration date.’’. 
(28) Section 489 is amended— 
(A) by inserting ‘‘(a) AUTHORITY.—’’ before ‘‘In addi-
tion’’; and 
(B) by adding at the end the following new subsection: 
‘‘(b) TERMINATION.—No transportation or allowance may be pro-
vided under this section for travel that begins after the travel 
authorities transition expiration date.’’. 
(29) Section 490 is amended by adding at the end the 
following new subsection: 
‘‘(g) TERMINATION.—No transportation, allowance, reimburse-
ment, or per diem may be provided under this section for travel 
that begins after the travel authorities transition expiration date.’’. 
(30) Section 492 is amended by adding at the end the 
following new subsection: 
‘‘(c) No transportation or allowance may be provided under 
this section for travel that begins after the travel authorities transi-
tion expiration date.’’. 
(31) Section 494 is amended by adding at the end the 
following new subsection: 
‘‘(d) TERMINATION.—No reimbursement may be provided under 
this section for expenses incurred after the travel authorities transi-
tion expiration date.’’. 
(32) Section 495 is amended by adding at the end the 
following new subsection: 
‘‘(c) TERMINATION.—No allowance may be paid under this sec-
tion for any day after the travel authorities transition expiration 
date.’’. 
(f) TECHNICAL AND CLERICAL AMENDMENTS.— 
(1) CHAPTER HEADING.—The heading of chapter 7 of such 
title is amended to read as follows: ‘‘CHAPTER 7—ALLOW-
ANCES OTHER THAN TRAVEL AND TRANSPOR-
TATION ALLOWANCES’’. 
(2) TABLE OF CHAPTERS.—The table of chapter preceding 
chapter 1 of such title is amended by striking the item relating 
to chapter 7 and inserting the following: 
‘‘7. Allowances Other Than Travel and Transportation Allowances ..................
401
‘‘8. Travel and Transportation Allowances ...........................................................
451’’.
H. R. 1540—168 
(3) TABLES OF SECTIONS.— 
(A) The table of sections at the beginning of chapter 
7 of such title is amended by striking the items relating 
to sections 404 through 412, 428 through 432, 434, and 
435. 
(B) The table of sections at the beginning of chapter 
9 of such title is amended by striking the item relating 
to section 554. 
(4) CROSS-REFERENCES.— 
(A) Any section of title 10, 32, or 37, United States 
Code, that includes a reference to a section of title 37 
that is transferred and redesignated by subsection (c) is 
amended so as to conform the reference to the section 
number of the section as so redesignated. 
(B) Any reference in a provision of law other than 
a section of title 10, 32, or 37, United States Code, to 
a section of title 37 that is transferred and redesignated 
by subsection (c) is deemed to refer to the section as so 
redesignated. 
SEC. 632. TRANSITION PROVISIONS. 
(a) IMPLEMENTATION PLAN.—The Secretary of Defense shall 
develop a plan to implement subchapters I and II of chapter 8 
of title 37, United States Code (as added by section 631(b) of 
this Act), and to transition all of the travel and transportation 
programs for members of the uniformed services under chapter 
7 of title 37, United States Code, solely to provisions of those 
subchapters by the end of the transition period. 
(b) AUTHORITY FOR MODIFICATIONS TO OLD-LAW AUTHORITIES 
DURING TRANSITION PERIOD.—During the transition period, the Sec-
retary of Defense and the Secretaries concerned, in using the 
authorities under subchapter III of chapter 8 of title 37, United 
States Code (as so added), may apply those authorities subject 
to the terms of such provisions and such modifications as the 
Secretary of Defense may include in the implementation plan 
required under subsection (a) or in any subsequent modification 
to that implementation plan. 
(c) COORDINATION.—The Secretary of Defense shall prepare the 
implementation plan under subsection (a) and any modification 
to that plan under subsection (b) in coordination with— 
(1) the Secretary of Homeland Security, with respect to 
the Coast Guard; 
(2) the Secretary of Health and Human Services, with 
respect to the commissioned corps of the Public Health Service; 
and 
(3) the Secretary of Commerce, with respect to the National 
Oceanic and Atmospheric Administration. 
(d) PROGRAM OF COMPLIANCE.—The Secretary of Defense and 
the other administering Secretaries shall commence the operation 
of the programs of compliance required by section 463 of title 
37, United States Code (as so added), by not later than one year 
after the date of the enactment of this Act. 
(e) TRANSITION PERIOD.—In this section, the term ‘‘transition 
period’’ means the 10-year period beginning on the first day of 
the first month beginning after the date of the enactment of this 
Act.
H. R. 1540—169 
Subtitle 
E—Commissary 
and 
Non-
appropriated Fund Instrumentality Ben-
efits and Operations 
SEC. 641. DISCRETION OF THE SECRETARY OF THE NAVY TO SELECT 
CATEGORIES OF MERCHANDISE TO BE SOLD BY SHIP 
STORES AFLOAT. 
Section 7604(c) of title 10, United States Code, is amended 
by striking ‘‘shall’’ and inserting ‘‘may’’. 
SEC. 642. ACCESS OF MILITARY EXCHANGE STORES SYSTEM TO CREDIT 
AVAILABLE THROUGH FEDERAL FINANCING BANK. 
Section 2487 of title 10, United States Code, is amended by 
adding at the end the following new subsection: 
‘‘(c) ACCESS
OF
EXCHANGE
STORES
SYSTEM
TO
FEDERAL 
FINANCING BANK.—To facilitate the provision of in-store credit to 
patrons of the exchange stores system while reducing the costs 
of providing such credit, the Army and Air Force Exchange Service, 
Navy Exchange Service Command, and Marine Corps exchanges 
may issue and sell their obligations to the Federal Financing Bank 
as provided in section 6 of the Federal Financing Bank Act of 
1973 (12 U.S.C. 2285).’’. 
SEC. 643. DESIGNATION OF FISHER HOUSE FOR THE FAMILIES OF 
THE FALLEN AND MEDITATION PAVILION, DOVER AIR 
FORCE BASE, DELAWARE, AS A FISHER HOUSE. 
The Fisher House for the Families of the Fallen and Meditation 
Pavilion at Dover Air Force Base, Delaware, is hereby designated 
as a Fisher House for purposes of section 2493 of title 10, United 
States Code. 
Subtitle F—Disability, Retired Pay and 
Survivor Benefits 
SEC. 651. DEATH GRATUITY AND RELATED BENEFITS FOR RESERVES 
WHO DIE DURING AN AUTHORIZED STAY AT THEIR RESI-
DENCE DURING OR BETWEEN SUCCESSIVE DAYS OF INAC-
TIVE DUTY TRAINING. 
(a) DEATH GRATUITY.— 
(1) PAYMENT AUTHORIZED.—Section 1475(a)(3) of title 10, 
United States Code, is amended by inserting before the semi-
colon the following: ‘‘or while staying at the Reserve’s residence, 
when so authorized by proper authority, during the period 
of such inactive duty training or between successive days of 
inactive duty training’’. 
(2) 
TREATMENT
AS
DEATH
DURING
INACTIVE
DUTY 
TRAINING.—Section 1478(a) of such title is amended— 
(A) by redesignating paragraphs (4) through (8) as 
paragraphs (5) through (9), respectively; and 
(B) by inserting after paragraph (3) the following new 
paragraph (4): 
‘‘(4) A person covered by subsection (a)(3) of section 1475 
of this title who died while on authorized stay at the person’s 
residence during a period of inactive duty training or between
H. R. 1540—170 
successive days of inactive duty training is considered to have 
been on inactive duty training on the date of his death.’’. 
(b) RECOVERY, CARE, AND
DISPOSITION
OF
REMAINS
AND 
RELATED BENEFITS.—Section 1481(a)(2) of such title is amended— 
(1) by redesignating subparagraph (E) and (F) as subpara-
graphs (F) and (G), respectively; and 
(2) by inserting after subparagraph (D) the following new 
subparagraph (E): 
‘‘(E) staying at the member’s residence, when so 
authorized by proper authority, during a period of inactive 
duty training or between successive days of inactive duty 
training;’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date of the enactment of this Act, and 
shall apply with respect to deaths that occur on or after that 
date. 
Subtitle G—Other Matters 
SEC. 661. REPORT ON BASIC ALLOWANCE FOR HOUSING FOR 
NATIONAL GUARD MEMBERS TRANSITIONING BETWEEN 
ACTIVE DUTY AND FULL-TIME NATIONAL GUARD DUTY. 
(a) STUDY.—The Secretary of Defense shall conduct a study 
on the implications for the monthly amount of basic allowance 
for housing of the transitions of members of the Army National 
Guard of the United States and Air National Guard of the United 
States as follows: 
(1) From active duty under title 10, United States Code, 
to full-time National Guard duty under title 32, United States 
Code. 
(2) From full-time National Guard duty under title 32, 
United States Code, to active duty under title 10, United States 
Code. 
(b) REQUIREMENTS
FOR
STUDY.—In conducting the study 
required by subsection (a), the Secretary shall— 
(1) take into account all potential variations of circumstance 
involving housing location, basic allowance for housing rates, 
duration of service, duration of break in service, and duty 
status; 
(2) take into account all current applicable policies, prac-
tices, and regulations; 
(3) assess potential modifications of policy and law, and 
develop recommendations for modifications of policy and law 
if determined appropriate; and 
(4) take into account the welfare of members of the Armed 
Forces and their families when developing recommendations, 
if any, under paragraph (3). 
(c) REPORT.—Not later than five months after the date of the 
enactment of this Act, the Secretary shall submit to the congres-
sional defense committees a report on the study required by sub-
section (a). The report shall set forth the results of the study, 
including a description of the manner in which each matter specified 
in subsection (b) was met, and include such comments and rec-
ommendations on the results of the study as the Secretary considers 
appropriate.
H. R. 1540—171 
SEC. 662. REPORT ON INCENTIVES FOR RECRUITMENT AND RETEN-
TION OF HEALTH CARE PROFESSIONALS. 
Not later than 90 days after the date of the enactment of 
this Act, the Surgeons General of the Army, Navy, and Air Force 
shall submit to Congress a report on their staffing needs for health 
care professionals in the active and reserve components of the 
Armed Forces. Such report shall— 
(1) identify the positions in most critical need for additional 
health care professionals, including— 
(A) the number of physicians needed; and 
(B) whether additional behavioral health professionals 
are needed to treat members of the Armed Forces for 
post traumatic stress disorder and traumatic brain injury; 
and 
(2) recommend incentives for healthcare professionals with 
more than 20 years of clinical experience to join the active 
or reserve components, including changes in age or length 
of service requirements to qualify for partial retired pay for 
non-regular service. 
TITLE VII—HEALTH CARE PROVISIONS 
Subtitle A—Improvements to Health Benefits 
Sec. 701. Annual enrollment fees for certain retirees and dependents. 
Sec. 702. Mental health assessments for members of the Armed Forces deployed in 
support of a contingency operation. 
Sec. 703. Behavioral health support for members of the reserve components of the 
Armed Forces. 
Sec. 704. Provision of food to certain members and dependents not receiving inpa-
tient care in military medical treatment facilities. 
Sec. 705. Travel for anesthesia services for childbirth for command-sponsored de-
pendents of members assigned to remote locations outside the conti-
nental United States. 
Sec. 706. Transitional health benefits for certain members with extension of active 
duty following active duty in support of a contingency operation. 
Sec. 707. Provision of rehabilitative equipment under Wounded Warrior Act. 
Sec. 708. Transition enrollment of uniformed services family health plan medicare- 
eligible retirees to TRICARE for life. 
Subtitle B—Health Care Administration 
Sec. 711. Codification and improvement of procedures for mental health evalua-
tions for members of the Armed Forces. 
Sec. 712. Extension of time limit for submittal of claims under the TRICARE pro-
gram for care provided outside the United States. 
Sec. 713. Expansion of State licensure exception for certain health care profes-
sionals. 
Sec. 714. Clarification on confidentiality of medical quality assurance records. 
Sec. 715. Maintenance of the adequacy of provider networks under the TRICARE 
program. 
Sec. 716. Review of the administration of the military health system. 
Sec. 717. Limitation on availability of funds for the future electronic health records 
program. 
Subtitle C—Reports and Other Matters 
Sec. 721. Modification of authorities on surveys on continued viability of TRICARE 
Standard and TRICARE Extra. 
Sec. 722. Treatment of wounded warriors. 
Sec. 723. Report on research and treatment of post-traumatic stress disorder. 
Sec. 724. Report on memorandum regarding traumatic brain injuries. 
Sec. 725. Comptroller General report on women-specific health services and treat-
ment for female members of the Armed Forces. 
Sec. 726. Comptroller General report on contract health care staffing for military 
medical treatment facilities.
H. R. 1540—172 
Subtitle A—Improvements to Health 
Benefits 
SEC. 701. ANNUAL ENROLLMENT FEES FOR CERTAIN RETIREES AND 
DEPENDENTS. 
(a) ANNUAL ENROLLMENT FEES.—Section 1097(e) of title 10, 
United States Code, is amended— 
(1) by striking ‘‘The Secretary of Defense’’ and inserting 
‘‘(1) The Secretary of Defense’’; 
(2) by striking ‘‘A premium,’’ and inserting ‘‘Except as 
provided by paragraph (2), a premium,’’; and 
(3) by adding at the end the following new paragraph: 
‘‘(2) Beginning October 1, 2012, the Secretary of Defense may 
only increase in any year the annual enrollment fees described 
in paragraph (1) by an amount equal to the percentage by which 
retired pay is increased under section 1401a of this title.’’. 
(b) CLARIFICATION OF APPLICATION FOR FISCAL YEAR 2013.— 
The Secretary of Defense shall determine the maximum enrollment 
fees for TRICARE Prime under section 1097(e)(2) of title 10, United 
States Code, as added by subsection (a), for fiscal year 2013 and 
thereafter as if the enrollment fee for each enrollee during fiscal 
year 2012 was the amount charged to an enrollee who enrolled 
for the first time during such fiscal year. 
SEC. 702. MENTAL HEALTH ASSESSMENTS FOR MEMBERS OF THE 
ARMED FORCES DEPLOYED IN SUPPORT OF A CONTIN-
GENCY OPERATION. 
(a) MENTAL HEALTH EXAMINATIONS DURING A DEPLOYMENT.— 
(1) IN GENERAL.—Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1074l the following 
new section: 
‘‘§ 1074m. Mental health assessments for members of the 
armed forces deployed in support of a contin-
gency operation 
‘‘(a) MENTAL HEALTH ASSESSMENTS.—(1) The Secretary of 
Defense shall provide a person-to-person mental health assessment 
for each member of the armed forces who is deployed in support 
of a contingency operation as follows: 
‘‘(A) Once during the period beginning 120 days before 
the date of the deployment. 
‘‘(B) Once during the period beginning 90 days after the 
date of redeployment from the contingency operation and 
ending 180 days after such redeployment date. 
‘‘(C) Subject to subsection (d), not later than once during 
each of— 
‘‘(i) the period beginning 180 days after the date of 
redeployment from the contingency operation and ending 
one year after such redeployment date; and 
‘‘(ii) the period beginning 18 months after such 
redeployment date and ending 30 months after such 
redeployment date. 
‘‘(2) A mental health assessment is not required for a member 
of the armed forces under subparagraph (B) and (C) of paragraph 
(1) if the Secretary determines that—
H. R. 1540—173 
‘‘(A) the member was not subjected or exposed to oper-
ational risk factors during deployment in the contingency oper-
ation concerned; or 
‘‘(B) providing such assessment to the member during the 
time periods under such subparagraphs would remove the 
member from forward deployment or put members or oper-
ational objectives at risk. 
‘‘(b) PURPOSE.—The purpose of the mental health assessments 
provided pursuant to this section shall be to identify post-traumatic 
stress disorder, suicidal tendencies, and other behavioral health 
conditions identified among members described in subsection (a) 
in order to determine which such members are in need of additional 
care and treatment for such health conditions. 
‘‘(c) ELEMENTS.—(1) The mental health assessments provided 
pursuant to this section shall— 
‘‘(A) be performed by personnel trained and certified to 
perform such assessments and may be performed— 
‘‘(i) by licensed mental health professionals if such 
professionals are available and the use of such professionals 
for the assessments would not impair the capacity of such 
professionals to perform higher priority tasks; and 
‘‘(ii) by personnel at private facilities in accordance 
with section 1074(c) of this title; 
‘‘(B) include a person-to-person dialogue between members 
described in subsection (a) and the professionals or personnel 
described by subparagraph (A), as applicable, on such matters 
as the Secretary shall specify in order that the assessments 
achieve the purpose specified in subsection (b) for such assess-
ments; 
‘‘(C) be conducted in a private setting to foster trust and 
openness in discussing sensitive health concerns; 
‘‘(D) be provided in a consistent manner across the military 
departments; and 
‘‘(E) include a review of the health records of the member 
that are related to each previous deployment of the member 
or other relevant activities of the member while serving in 
the armed forces, as determined by the Secretary. 
‘‘(2) The Secretary may treat periodic health assessments and 
other person-to-person assessments that are provided to members 
of the armed forces, including examinations under section 1074f 
of this title, as meeting the requirements for mental health assess-
ments required under this section if the Secretary determines that 
such assessments and person-to-person assessments meet the 
requirements for mental health assessments established by this 
section. 
‘‘(d) CESSATION OF ASSESSMENTS.—No mental health assess-
ment is required to be provided to an individual under subsection 
(a)(1)(C) after the individual’s discharge or release from the armed 
forces. 
‘‘(e) SHARING OF INFORMATION.—(1) The Secretary of Defense 
shall share with the Secretary of Veterans Affairs such information 
on members of the armed forces that is derived from confidential 
mental health assessments, including mental health assessments 
provided pursuant to this section and health assessments and other 
person-to-person assessments provided before the date of the enact-
ment of this section, as the Secretary of Defense and the Secretary 
of Veterans Affairs jointly consider appropriate to ensure continuity
H. R. 1540—174 
of mental health care and treatment of members of the armed 
forces during the transition from health care and treatment pro-
vided by the Department of Defense to health care and treatment 
provided by the Department of Veterans Affairs. 
‘‘(2) Any sharing of information under paragraph (1) shall occur 
pursuant to a protocol jointly established by the Secretary of 
Defense and the Secretary of Veterans Affairs for purposes of this 
subsection. Any such protocol shall be consistent with the following: 
‘‘(A) Applicable provisions of the Wounded Warrior Act 
(title XVI of Public Law 110–181; 10 U.S.C. 1071 note), 
including section 1614 of such Act (122 Stat. 443; 10 U.S.C. 
1071 note). 
‘‘(B) Section 1720F of title 38. 
‘‘(3) Before each mental health assessment is conducted under 
subsection (a), the Secretary of Defense shall ensure that the 
member is notified of the sharing of information with the Secretary 
of Veterans Affairs under this subsection. 
‘‘(f) REGULATIONS.—(1) The Secretary of Defense, in consultation 
with the other administering Secretaries, shall prescribe regulations 
for the administration of this section. 
‘‘(2) Not later than 270 days after the date of the issuance 
of the regulations prescribed under paragraph (1), the Secretary 
shall 
notify 
the 
congressional 
defense 
committees 
of 
the 
implementation of the regulations by the military departments.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 55 of such title is amended by inserting 
after the item relating to section 1074l the following new item: 
‘‘1074m. Mental health assessments for members of the armed forces deployed in 
support of a contingency operation.’’. 
(3) REGULATIONS.—The Secretary of Defense shall prescribe 
an interim final rule with respect to the amendment made 
by paragraph (1), effective not later than 90 days after the 
date of the enactment of this Act. 
(b) CONFORMING REPEAL.—Section 708 of the National Defense 
Authorization Act for Fiscal Year 2010 (Public Law 111–84; 123 
Stat. 2376; 10 U.S.C. 1074f note) is repealed. 
SEC. 703. BEHAVIORAL HEALTH SUPPORT FOR MEMBERS OF THE 
RESERVE COMPONENTS OF THE ARMED FORCES. 
(a) MENTAL HEALTH ASSESSMENTS.—Section 1074a of title 10, 
United States Code, is amended— 
(1) by redesignating subsection (h) as subsection (i); 
(2) by inserting after subsection (g) the following new sub-
section (h): 
‘‘(h)(1) The Secretary of Defense may provide to any member 
of the reserve components performing inactive-duty training during 
scheduled unit training assemblies access to mental health assess-
ments with a licensed mental health professional who shall be 
available for referrals during duty hours on the premises of the 
principal duty location of the member’s unit. 
‘‘(2) Mental health services provided to a member under this 
subsection shall be at no cost to the member.’’; and 
(3) in subsection (i), as redesignated by paragraph (1), 
by striking ‘‘medical and dental readiness’’ and inserting ‘‘med-
ical, dental, and behavioral health readiness’’. 
(b) BEHAVIORAL HEALTH SUPPORT.—
H. R. 1540—175 
(1) IN GENERAL.—Each member of a reserve component 
of the Armed Forces participating in annual training or indi-
vidual duty training shall have access, while so participating, 
to the behavioral health support programs for members of 
the reserve components described in paragraph (2). 
(2) BEHAVIORAL HEALTH SUPPORT PROGRAMS.—The behav-
ioral health support programs for members of the reserve 
components described in this paragraph shall include one or 
any combination of the following: 
(A) Programs providing access to licensed mental 
health providers in armories, reserve centers, or other 
places for scheduled unit training assemblies. 
(B) Programs providing training on suicide prevention 
and post-suicide response. 
(C) Psychological health programs. 
(D) Such other programs as the Secretary of Defense, 
in consultation with the Surgeon General for the National 
Guard of the State in which the members concerned reside, 
the Director of Psychological Health of the State in which 
the members concerned reside, the Department of Mental 
Health or the equivalent agency of the State in which 
the members concerned reside, or the Director of the 
Psychological Health Program of the National Guard 
Bureau, considers appropriate. 
(3) FUNDING.—Behavioral health support programs pro-
vided to members of the reserve components under this sub-
section shall be provided using amounts made available for 
operation and maintenance for the reserve components. 
(4) STATE DEFINED.—In this subsection, the term ‘‘State’’ 
has the meaning given that term in section 10001 of title 
10, United States Code. 
SEC. 704. PROVISION OF FOOD TO CERTAIN MEMBERS AND DEPEND-
ENTS NOT RECEIVING INPATIENT CARE IN MILITARY MED-
ICAL TREATMENT FACILITIES. 
(a) IN GENERAL.—Chapter 55 of title 10, United States Code, 
is amended by inserting after section 1078a the following new 
section: 
‘‘§ 1078b. Provision of food to certain members and depend-
ents not receiving inpatient care in military med-
ical treatment facilities 
‘‘(a) IN GENERAL.—(1) Under regulations prescribed by the Sec-
retary of Defense, the Secretary may provide food and beverages 
to an individual described in paragraph (2) at no cost to the indi-
vidual. 
‘‘(2) An individual described in this paragraph is the following: 
‘‘(A) A member of the uniformed services or dependent— 
‘‘(i) who is receiving outpatient medical care at a mili-
tary medical treatment facility; and 
‘‘(ii) whom the Secretary determines is unable to pur-
chase food and beverages while at such facility by virtue 
of receiving such care. 
‘‘(B) A member of the uniformed services or dependent— 
‘‘(i) who is a family member of an infant receiving 
inpatient medical care at a military medical treatment 
facility;
H. R. 1540—176 
‘‘(ii) who provides care to the infant while the infant 
receives such inpatient medical care; and 
‘‘(iii) whom the Secretary determines is unable to pur-
chase food and beverages while at such facility by virtue 
of providing such care to the infant. 
‘‘(C) A member of the uniformed services or dependent 
whom the Secretary determines is under similar circumstances 
as a member or dependent described in subparagraph (A) or 
(B). 
‘‘(b) REGULATIONS.—The Secretary shall ensure that regulations 
prescribed under this section are consistent with generally accepted 
practices in private medical treatment facilities.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 1078a the following new item: 
‘‘1078b. Provision of food to certain members and dependents not receiving inpatient 
care in military medical treatment facilities.’’. 
(c) EFFECTIVE DATE.—The amendments made by this section 
shall take effect on the date that is 90 days after the date of 
the enactment of this Act. 
SEC. 705. TRAVEL FOR ANESTHESIA SERVICES FOR CHILDBIRTH FOR 
COMMAND-SPONSORED 
DEPENDENTS 
OF 
MEMBERS 
ASSIGNED TO REMOTE LOCATIONS OUTSIDE THE CONTI-
NENTAL UNITED STATES. 
Section 1040(a) of title 10, United States Code, is amended— 
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2)(A) Except as provided by subparagraph (E), for purposes 
of paragraph (1), required medical attention of a dependent includes, 
in the case of a dependent authorized to accompany a member 
at a location described in that paragraph, obstetrical anesthesia 
services for childbirth equivalent to the obstetrical anesthesia serv-
ices for childbirth available in a military treatment facility in the 
United States. 
‘‘(B) In the case of a dependent at a remote location outside 
the continental United States who elects services described in 
subparagraph (A) and for whom air transportation would be needed 
to travel under paragraph (1) to the nearest appropriate medical 
facility in which adequate medical care is available, the Secretary 
may authorize the dependent to receive transportation under that 
paragraph to the continental United States and be treated at the 
military treatment facility that can provide appropriate obstetrical 
services that is nearest to the closest port of entry into the conti-
nental United States from such remote location. 
‘‘(C) The second through sixth sentences of paragraph (1) shall 
apply to a dependent provided transportation by reason of this 
paragraph. 
‘‘(D) The total cost incurred by the United States for the provi-
sion of transportation and expenses (including per diem) with 
respect to a dependent by reason of this paragraph may not exceed 
the cost the United States would otherwise incur for the provision 
of transportation and expenses with respect to that dependent 
under paragraph (1) if the transportation and expenses were pro-
vided to that dependent without regard to this paragraph. 
‘‘(E) The Secretary may not provide transportation to a 
dependent under this paragraph if the Secretary determines that—
H. R. 1540—177 
‘‘(i) the dependent would otherwise receive obstetrical anes-
thesia services at a military treatment facility; and 
‘‘(ii) such facility, in carrying out the required number 
of necessary obstetric cases, would not maintain competency 
of its obstetrical staff unless the facility provides such services 
to such dependent. 
‘‘(F) The authority under this paragraph shall expire on Sep-
tember 30, 2016.’’. 
SEC. 706. TRANSITIONAL HEALTH BENEFITS FOR CERTAIN MEMBERS 
WITH EXTENSION OF ACTIVE DUTY FOLLOWING ACTIVE 
DUTY IN SUPPORT OF A CONTINGENCY OPERATION. 
Section 1145(a)(4) of title 10, United States Code, is amended 
by adding at the end the following new sentence: ‘‘For purposes 
of the preceding sentence, in the case of a member on active duty 
as described in subparagraph (B), (C), or (D) of paragraph (2) 
who, without a break in service, is extended on active duty for 
any reason, the 180-day period shall begin on the date on which 
the member is separated from such extended active duty.’’. 
SEC. 
707. 
PROVISION 
OF 
REHABILITATIVE 
EQUIPMENT 
UNDER 
WOUNDED WARRIOR ACT. 
Section 1631 of the Wounded Warrior Act (title XVI of Public 
Law 110–181; 10 U.S.C. 1071 note) is amended by adding at the 
end the following: 
‘‘(c) REHABILITATIVE EQUIPMENT FOR MEMBERS OF THE ARMED 
FORCES.— 
‘‘(1) IN GENERAL.—Subject to the availability of appropria-
tions for such purpose, the Secretary of Defense may provide 
an active duty member of the Armed Forces with a severe 
injury or illness with rehabilitative equipment, including rec-
reational sports equipment that provide an adaption or 
accommodation for the member, regardless of whether such 
equipment is intentionally designed to be adaptive equipment. 
‘‘(2) CONSULTATION.—In carrying out this subsection, the 
Secretary of Defense shall consult with the Secretary of Vet-
erans Affairs regarding similar programs carried out by the 
Secretary of Veterans Affairs.’’. 
SEC. 708. TRANSITION ENROLLMENT OF UNIFORMED SERVICES 
FAMILY HEALTH PLAN MEDICARE-ELIGIBLE RETIREES TO 
TRICARE FOR LIFE. 
Section 724(e) of the National Defense Authorization Act for 
Fiscal Year 1997 (Public Law 104–201; 10 U.S.C. 1073 note) is 
amended— 
(1) by striking ‘‘If a covered beneficiary’’ and inserting 
‘‘(1) Except as provided in paragraph (2), if a covered bene-
ficiary’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(2) After September 30, 2012, a covered beneficiary (other 
than a beneficiary under section 1079 of title 10, United States 
Code) who is also entitled to hospital insurance benefits under 
part A of title XVIII of the Social Security Act due to age may 
not enroll in the managed care program of a designated provider 
unless the beneficiary was enrolled in that program on September 
30, 2012.’’.
H. R. 1540—178 
Subtitle B—Health Care Administration 
SEC. 711. CODIFICATION AND IMPROVEMENT OF PROCEDURES FOR 
MENTAL HEALTH EVALUATIONS FOR MEMBERS OF THE 
ARMED FORCES. 
(a) CODIFICATION AND IMPROVEMENT OF PROCEDURES.— 
(1) IN GENERAL.—Chapter 55 of title 10, United States 
Code, is amended by inserting after section 1090 the following 
new section: 
‘‘§ 1090a. Commanding officer and supervisor referrals of 
members for mental health evaluations 
‘‘(a) REGULATIONS.—The Secretary of Defense shall prescribe 
and maintain regulations relating to commanding officer and super-
visor referrals of members of the armed forces for mental health 
evaluations. The regulations shall incorporate the requirements 
set forth in subsections (b), (c), and (d) and such other matters 
as the Secretary considers appropriate. 
‘‘(b) REDUCTION
OF
PERCEIVED
STIGMA.—The regulations 
required by subsection (a) shall, to the greatest extent possible— 
‘‘(1) seek to eliminate perceived stigma associated with 
seeking and receiving mental health services, promoting the 
use of mental health services on a basis comparable to the 
use of other medical and health services; and 
‘‘(2) clarify the appropriate action to be taken by com-
manders or supervisory personnel who, in good faith, believe 
that a subordinate may require a mental health evaluation. 
‘‘(c) PROCEDURES
FOR INPATIENT EVALUATIONS.—The regula-
tions required by subsection (a) shall provide that, when a com-
mander or supervisor determines that it is necessary to refer a 
member of the armed forces for a mental health evaluation— 
‘‘(1) the health evaluation shall only be conducted in the 
most appropriate clinical setting, in accordance with the least 
restrictive alternative principle; and 
‘‘(2) only a psychiatrist, or, in cases in which a psychiatrist 
is not available, another mental health professional or a physi-
cian, may admit the member pursuant to the referral for a 
mental health evaluation to be conducted on an inpatient basis. 
‘‘(d) PROHIBITION ON USE OF REFERRALS FOR MENTAL HEALTH 
EVALUATIONS TO RETALIATE AGAINST WHISTLEBLOWERS.—The regu-
lations required by subsection (a) shall provide that no person 
may refer a member of the armed forces for a mental health 
evaluation as a reprisal for making or preparing a lawful commu-
nication of the type described in section 1034(c)(2) of this title, 
and applicable regulations. For purposes of this subsection, such 
communication shall also include a communication to any appro-
priate authority in the chain of command of the member. 
‘‘(e) DEFINITIONS.—In this section: 
‘‘(1) The term ‘mental health professional’ means a psychia-
trist or clinical psychologist, a person with a doctorate in clinical 
social work, or a psychiatric clinical nurse specialist. 
‘‘(2) The term ‘mental health evaluation’ means a psy-
chiatric examination or evaluation, a psychological examination 
or evaluation, an examination for psychiatric or psychological 
fitness for duty, or any other means of assessing the state 
of mental health of a member of the armed forces.
H. R. 1540—179 
‘‘(3) The term ‘least restrictive alternative principle’ means 
a principle under which a member of the armed forces com-
mitted for hospitalization and treatment shall be placed in 
the most appropriate and therapeutic available setting— 
‘‘(A) that is no more restrictive than is conducive to 
the most effective form of treatment; and 
‘‘(B) in which treatment is available and the risks 
of physical injury or property damage posed by such place-
ment are warranted by the proposed plan of treatment.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of chapter 55 of such title is amended by inserting 
after the item relating to section 1090 the following new item: 
‘‘1090a. Commanding officer and supervisor referrals of members for mental health 
evaluations.’’. 
(b) CONFORMING REPEAL.—Section 546 of the National Defense 
Authorization Act for Fiscal Year 1993 (Public Law 102–484; 106 
Stat. 2416; 10 U.S.C. 1074 note) is repealed. 
SEC. 712. EXTENSION OF TIME LIMIT FOR SUBMITTAL OF CLAIMS 
UNDER THE TRICARE PROGRAM FOR CARE PROVIDED 
OUTSIDE THE UNITED STATES. 
Section 1106(b) of title 10, United States Code, is amended 
by striking ‘‘not later than’’ and all that follows and inserting 
the following: ‘‘as follows: 
‘‘(1) In the case of services provided outside the United 
States, the Commonwealth of Puerto Rico, or the possessions 
of the United States, by not later than three years after the 
services are provided. 
‘‘(2) In the case of any other services, by not later than 
one year after the services are provided.’’. 
SEC. 713. EXPANSION OF STATE LICENSURE EXCEPTION FOR CERTAIN 
HEALTH CARE PROFESSIONALS. 
(a) EXPANSION.—Section 1094(d) of title 10, United States Code, 
is amended— 
(1) in paragraph (1)— 
(A) by inserting ‘‘at any location’’ before ‘‘in any State’’; 
and 
(B) by striking ‘‘regardless’’ and all that follows through 
the period at the end and inserting ‘‘regardless of where 
such health-care professional or the patient are located, 
so long as the practice is within the scope of the authorized 
Federal duties.’’; and 
(2) in paragraph (2), by striking ‘‘member of the armed 
forces’’ and inserting ‘‘member of the armed forces, civilian 
employee of the Department of Defense, personal services con-
tractor under section 1091 of this title, or other health-care 
professional credentialed and privileged at a Federal health 
care institution or location specially designated by the Secretary 
for this purpose’’. 
(b) REGULATIONS.—The Secretary of Defense shall prescribe 
regulations to carry out the amendments made by this section. 
SEC. 714. CLARIFICATION ON CONFIDENTIALITY OF MEDICAL QUALITY 
ASSURANCE RECORDS. 
(a) IN GENERAL.—Section 1102(j) of title 10, United States 
Code, is amended—
H. R. 1540—180 
(1) in paragraph (1), by striking ‘‘any activity carried out’’ 
and inserting ‘‘any peer review activity carried out’’; and 
(2) by adding at the end the following new paragraph: 
‘‘(4) The term ‘peer review’ means any assessment of the 
quality of medical care carried out by a health care professional, 
including any such assessment of professional performance, 
any patient safety program root cause analysis or report, or 
any similar activity described in regulations prescribed by the 
Secretary under subsection (i).’’. 
(b) EFFECTIVE DATE.—The amendments made by subsection 
(a) shall take effect on January 1, 2012. 
SEC. 715. MAINTENANCE OF THE ADEQUACY OF PROVIDER NETWORKS 
UNDER THE TRICARE PROGRAM. 
Section 1097b(a) of title 10, United States Code, is amended 
by adding at the end the following new paragraph: 
‘‘(3) In establishing rates and procedures for reimbursement 
of providers and other administrative requirements, including those 
contained in provider network agreements, the Secretary shall, 
to the extent practicable, maintain adequate networks of providers, 
including institutional, professional, and pharmacy. For the purpose 
of determining whether network providers under such provider 
network agreements are subcontractors for purposes of the Federal 
Acquisition Regulation or any other law, a TRICARE managed 
care support contract that includes the requirement to establish, 
manage, or maintain a network of providers may not be considered 
to be a contract for the performance of health care services or 
supplies on the basis of such requirement.’’. 
SEC. 716. REVIEW OF THE ADMINISTRATION OF THE MILITARY HEALTH 
SYSTEM. 
(a) PROHIBITION ON RESTRUCTURE OR REORGANIZATION.— 
(1) IN GENERAL.—The Secretary of Defense may not restruc-
ture or reorganize the military health system until a 120- 
day period has elapsed following the date on which the report 
under subsection (b)(3) is submitted by the Comptroller General 
of the United States to the congressional defense committees. 
(2) REPORT.—The Secretary shall submit to the congres-
sional defense committees a report that includes the following: 
(A) A description of each of the options developed and 
considered by the task force established by the Deputy 
Secretary of Defense to review the governance model 
options for the military health system (in this section 
referred to as the ‘‘task force’’). 
(B) The goals to be achieved by restructure or reorga-
nization and the principles upon which they are based. 
(C) A description of how each option would affect readi-
ness, quality of care, and beneficiary satisfaction. 
(D) An explanation of the costs of each option so consid-
ered. 
(E) An analysis of the strengths and weaknesses of 
each option. 
(F) An estimate of the cost savings, if any, to be 
achieved by each option compared to the military health 
system in place on the date of the enactment of this Act. 
(b) COMPTROLLER GENERAL REVIEW.— 
(1) REVIEW
REQUIRED.—The Comptroller General of the 
United States shall carry out a review of the options described
H. R. 1540—181 
under subsection (a)(2)(A) and the recommendations made by 
the task force. 
(2) ELEMENTS.—The review under paragraph (1) shall 
include the following: 
(A) An analysis of the strengths and weaknesses of 
each option. 
(B) A comparison of each option to each of the govern-
ance models for the military health system adopted as 
of October 1, 1991. 
(C) An estimate of the costs to implement each option. 
(D) An estimate of the cost savings, if any, to be 
achieved by each option compared to the military health 
system in place on the date of the enactment of this Act. 
(3) REPORT.—Not later than 180 days after the date on 
which the Secretary submits the report under subsection (a)(2), 
the Comptroller General shall submit to the congressional 
defense committees a report on the review. 
SEC. 717. LIMITATION ON AVAILABILITY OF FUNDS FOR THE FUTURE 
ELECTRONIC HEALTH RECORDS PROGRAM. 
(a) LIMITATION.—Of the funds authorized to be appropriated 
by this Act or otherwise made available for fiscal year 2012 for 
the procurement, research, development, test, and evaluation, or 
operation and maintenance of the future electronic health records 
program, not more than 10 percent may be obligated or expended 
until the date that is 30 days after the date on which the Secretary 
of Defense submits to the congressional defense committees a report 
addressing— 
(1) an architecture to guide the transition of the electronic 
health records of the Department of Defense to a future state 
that is cost-effective and interoperable; 
(2) the process for selecting investments in information 
technology that support the architecture described in paragraph 
(1); 
(3) the report required by section 715 of the Ike Skelton 
National Defense Authorization Act for Fiscal Year 2011 (Public 
Law 111–383; 124 Stat. 4249); 
(4) the role of the Interagency Program Office to manage 
or oversee efforts with respect to the future electronic health 
records program; and 
(5) any other matters the Secretary considers appropriate. 
(b) 
FUTURE
ELECTRONIC
HEALTH
RECORDS
PROGRAM 
DEFINED.—In this section, the term ‘‘future electronic health records 
program’’ means the programs of the Department of Defense 
referred to as the ‘‘EHR way ahead’’ and the ‘‘virtual lifetime 
electronic record’’. 
Subtitle C—Reports and Other Matters 
SEC. 721. MODIFICATION OF AUTHORITIES ON SURVEYS ON CONTIN-
UED VIABILITY OF TRICARE STANDARD AND TRICARE 
EXTRA. 
(a) SCOPE OF CERTAIN SURVEYS.—Subsection (a)(3)(A) of section 
711 of the National Defense Authorization Act for Fiscal Year 
2008 (Public Law 110–181; 122 Stat. 190; 10 U.S.C. 1073 note) 
is amended by striking ‘‘2011’’ and inserting ‘‘2015’’.
H. R. 1540—182 
(b) FREQUENCY OF SUBMITTAL OF GAO REVIEWS.—Subsection 
(b)(2) of such section is amended by striking ‘‘bi-annual basis’’ 
and inserting ‘‘biennial basis’’. 
SEC. 722. TREATMENT OF WOUNDED WARRIORS. 
The Secretary of Defense may establish a program to enter 
into partnerships to enable coordinated, rapid clinical evaluation 
and the application of evidence-based treatment strategies for 
wounded service members, with an emphasis on the most common 
musculoskeletal injuries, that will address the priorities of the 
Armed Forces with respect to retention and readiness. 
SEC. 723. REPORT ON RESEARCH AND TREATMENT OF POST-TRAU-
MATIC STRESS DISORDER. 
Not later than one year after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the congressional 
defense committees a report assessing the benefits of neuroimaging 
research in an effort to identify, and improve the diagnosis of, 
post-traumatic stress disorder. 
SEC. 724. REPORT ON MEMORANDUM REGARDING TRAUMATIC BRAIN 
INJURIES. 
Not later than 180 days after the date of the enactment of 
this Act, the Secretary of Defense shall submit to the congressional 
defense committees a report on— 
(1) the implementation of the policy of the Department 
of Defense related to the management of concussion and mild 
traumatic brain injury in the deployed setting; 
(2) the effectiveness of such policy with respect to identi-
fying and treating blast-related concussive injuries; and 
(3) the effect of such policy on operational effectiveness 
in theater. 
SEC. 725. COMPTROLLER GENERAL REPORT ON WOMEN-SPECIFIC 
HEALTH SERVICES AND TREATMENT FOR FEMALE MEM-
BERS OF THE ARMED FORCES. 
(a) IN GENERAL.—The Comptroller General of the United States 
shall carry out a review of women-specific health services and 
treatment for female members of the Armed Forces. 
(b) ELEMENTS.—The review required by subsection (a) shall 
address, at a minimum, the following: 
(1) The need for women-specific health outreach, preven-
tion, and treatment services for female members of the Armed 
Forces. 
(2) The access to and efficacy of existing women-specific 
mental health outreach, prevention, and treatment services 
and programs (including substance abuse programs). 
(3) The availability of women-specific services and treat-
ment for female members of the Armed Forces who experience 
sexual assault or sexual abuse. 
(4) The access to and need for military medical treatment 
facilities to provide for the women-specific health care needs 
of female members of the Armed Forces. 
(5) The access to and efficacy of women-specific breast 
cancer services and programs with respect to outreach, preven-
tion, and treatment.
H. R. 1540—183 
(6) The need for further clinical research on the women- 
specific health care needs of female members of the Armed 
Forces who served in a combat zone. 
(7) An assessment of the policies, procedures, and programs 
of the Department of Defense that include specific force health 
protection and access to care for female members of the Armed 
Forces as an element of readiness. 
(c) REPORT.—Not later than December 31, 2012, the Comp-
troller General shall submit to the congressional defense committees 
a report on the review required by subsection (a). 
SEC. 726. COMPTROLLER GENERAL REPORT ON CONTRACT HEALTH 
CARE STAFFING FOR MILITARY MEDICAL TREATMENT 
FACILITIES. 
(a) REPORT.—Not later than March 31, 2012, the Comptroller 
General of the United States shall submit to the Committee on 
Armed Services of the House of Representatives and the Committee 
on Armed Services of the Senate a report on the contracting activi-
ties of the military departments with respect to providing health 
care professional services to members of the Armed Forces, depend-
ents, and retirees. 
(b) MATTERS INCLUDED.—The report under subsection (a) shall 
include the following: 
(1) A review of the contracting practices used by the mili-
tary departments to provide health care professional services 
by civilian providers. 
(2) An assessment of whether the contracting practices 
described in paragraph (1) are the most cost effective means 
to provide necessary care. 
(3) A determination of— 
(A) the percentage of contract health care professionals 
who provide services to members of the Armed Forces, 
dependents, or retirees in military medical treatment facili-
ties or other on-base facilities; and 
(B) the percentage of contract health care professionals 
who provide services to members of the Armed Forces, 
dependents, or retirees in off-base private facilities. 
(4) A comparison of the cost associated with the provision 
of care by contract health care professionals described in sub-
paragraphs (A) and (B) of paragraph (3). 
(5) An assessment of whether or not consolidating health 
care staffing requirements for military medical treatment facili-
ties and other on-base clinics in defined geographic areas 
(including regions or catchment areas) would achieve economies 
of scale and cost savings or avoidance with respect to con-
tracting for health care professionals. 
(6) An assessment of whether private sector entities that 
provide health care professional staff on a contract basis to 
military medical treatment facilities and other on-base clinics 
meet certain basic standards of professionalism, including those 
described in section 732(c)(2)(A) of the National Defense 
Authorization Act for Fiscal Year 2007 (Public Law 109–364; 
120 Stat. 2297). 
(7) An assessment of the acquisition training and experi-
ence of the contracting officers or other personnel within mili-
tary medical treatment facilities that award or administer con-
tracts regarding the services of health care professionals.
H. R. 1540—184 
(8) Any recommendations the Comptroller General con-
siders appropriate regarding improving the contracting activi-
ties of the military departments with respect to providing health 
care professional services. 
TITLE VIII—ACQUISITION POLICY, AC-
QUISITION MANAGEMENT, AND RE-
LATED MATTERS 
Subtitle A—Acquisition Policy and Management 
Sec. 801. Requirements relating to core depot-level maintenance and repair capa-
bilities for Milestone A and Milestone B and elimination of references 
to Key Decision Points A and B. 
Sec. 802. Revision to law relating to disclosures to litigation support contractors. 
Sec. 803. Extension of applicability of the senior executive benchmark compensa-
tion amount for purposes of allowable cost limitations under defense 
contracts. 
Sec. 804. Extension of availability of funds in the Defense Acquisition Workforce 
Development Fund. 
Sec. 805. Defense Contract Audit Agency annual report. 
Sec. 806. Inclusion of data on contractor performance in past performance data-
bases for source selection decisions. 
Sec. 807. Implementation of recommendations of Defense Science Board Task Force 
on Improvements to Service Contracting. 
Sec. 808. Temporary limitation on aggregate annual amount available for contract 
services. 
Sec. 809. Annual report on single-award task and delivery order contracts. 
Subtitle B—Amendments to General Contracting Authorities, Procedures, and 
Limitations 
Sec. 811. Calculation of time period relating to report on critical changes in major 
automated information systems. 
Sec. 812. Change in deadline for submission of Selected Acquisition Reports from 
60 to 45 days. 
Sec. 813. Extension of sunset date for certain protests of task and delivery order 
contracts. 
Sec. 814. Clarification of Department of Defense authority to purchase right-hand 
drive passenger sedan vehicles and adjustment of threshold for infla-
tion. 
Sec. 815. Rights in technical data and validation of proprietary data restrictions. 
Sec. 816. Covered contracts for purposes of requirements on contractor business 
systems. 
Sec. 817. Compliance with defense procurement requirements for purposes of inter-
nal controls of non-defense agencies for procurements on behalf of the 
Department of Defense. 
Sec. 818. Detection and avoidance of counterfeit electronic parts. 
Sec. 819. Modification of certain requirements of the Weapon Systems Acquisition 
Reform Act of 2009. 
Sec. 820. Inclusion of contractor support requirements in Department of Defense 
planning documents. 
Sec. 821. Amendment relating to buying tents, tarpaulins, or covers from American 
sources. 
Sec. 822. Repeal of sunset of authority to procure fire resistant rayon fiber from 
foreign sources for the production of uniforms. 
Sec. 823. Prohibition on collection of political information. 
Subtitle C—Provisions Relating to Major Defense Acquisition Programs 
Sec. 831. Waiver of requirements relating to new milestone approval for certain 
major defense acquisition programs experiencing critical cost growth 
due to change in quantity purchased. 
Sec. 832. Assessment, management, and control of operating and support costs for 
major weapon systems. 
Sec. 833. Clarification of responsibility for cost analyses and targets for contract ne-
gotiation purposes. 
Sec. 834. Modification of requirements for guidance on management of manufac-
turing risk in major defense acquisition programs.
H. R. 1540—185 
Sec. 835. Management of developmental test and evaluation for major defense ac-
quisition programs. 
Sec. 836. Assessment of risk associated with development of major weapon systems 
to be procured under cooperative projects with friendly foreign countries. 
Sec. 837. Competition in maintenance and sustainment of subsystems of major 
weapon systems. 
Sec. 838. Oversight of and reporting requirements with respect to Evolved Expend-
able Launch Vehicle program. 
Sec. 839. Implementation of acquisition strategy for Evolved Expendable Launch 
Vehicle. 
Subtitle D—Provisions Relating to Contracts in Support of Contingency Operations 
in Iraq or Afghanistan 
Sec. 841. Prohibition on contracting with the enemy in the United States Central 
Command theater of operations. 
Sec. 842. Additional access to contractor and subcontractor records in the United 
States Central Command theater of operations. 
Sec. 843. Reach-back contracting authority for Operation Enduring Freedom and 
Operation New Dawn. 
Sec. 844. Competition and review of contracts for property or services in support 
of a contingency operation. 
Sec. 845. Inclusion of associated support services in rapid acquisition and deploy-
ment procedures for supplies. 
Sec. 846. Joint Urgent Operational Needs Fund to rapidly meet urgent operational 
needs. 
Subtitle E—Defense Industrial Base Matters 
Sec. 851. Assessment of the defense industrial base pilot program. 
Sec. 852. Strategy for securing the defense supply chain and industrial base. 
Sec. 853. Assessment of feasability and advisability of establishment of rare earth 
material inventory. 
Sec. 854. Department of Defense assessment of industrial base for night vision 
image intensification sensors. 
Sec. 855. Technical amendment relating to responsibilities of Deputy Assistant Sec-
retary of Defense for Manufacturing and Industrial Base Policy. 
Subtitle F—Other Matters 
Sec. 861. Clarification of jurisdiction of the United States district courts to hear bid 
protest disputes involving maritime contracts. 
Sec. 862. Encouragement of contractor Science, Technology, Engineering, and Math 
(STEM) programs. 
Sec. 863. Sense of Congress and report on authorities available to the Department 
of Defense for multiyear contracts for the purchase of alternative fuels. 
Sec. 864. Acquisition workforce improvements. 
Sec. 865. Modification of delegation of authority to make determinations on entry 
into cooperative research and development agreements with NATO and 
other friendly organizations and countries. 
Sec. 866. Three-year extension of test program for negotiation of comprehensive 
small business subcontracting plans. 
Sec. 867. Five-year extension of Department of Defense Mentor-Protege Program. 
Subtitle A—Acquisition Policy and 
Management 
SEC. 801. REQUIREMENTS RELATING TO CORE DEPOT-LEVEL MAINTE-
NANCE AND REPAIR CAPABILITIES FOR MILESTONE A AND 
MILESTONE B AND ELIMINATION OF REFERENCES TO KEY 
DECISION POINTS A AND B. 
(a) ADDITIONAL MILESTONE A REQUIREMENTS.— 
(1) ADDITIONAL ITEMS OF CERTIFICATION.—Subsection (a) 
of section 2366a of title 10, United States Code, is amended— 
(A) in paragraph (2), by striking ‘‘core competency’’ 
and inserting ‘‘function’’; 
(B) by redesignating paragraphs (4) and (5) as para-
graphs (6) and (7), respectively;
H. R. 1540—186 
(C) by inserting after paragraph (3) the following new 
paragraph (4): 
‘‘(4) that a determination of applicability of core depot- 
level maintenance and repair capabilities requirements has 
been made;’’; and 
(D) in paragraph (6) (as so redesignated), by striking 
‘‘develop and procure’’ and inserting ‘‘develop, procure, and 
sustain’’. 
(2) DEFINITION.—Subsection (c) of such section is amended 
by adding at the end the following new paragraph: 
‘‘(7) The term ‘core depot-level maintenance and repair 
capabilities’’ means the core depot-level maintenance and repair 
capabilities identified under section 2464(a) of this title.’’. 
(b) ADDITIONAL MILESTONE B REQUIREMENTS.— 
(1) ADDITIONAL ITEM OF CERTIFICATION.—Subsection (a)(3) 
of section 2366b of title 10, United States Code, is amended— 
(A) by redesignating subparagraph (E) as subpara-
graph (G); 
(B) by striking ‘‘and’’ at the end of subparagraph (D); 
and 
(C) by inserting after subparagraph (D) the following 
new subparagraphs: 
‘‘(E) life-cycle sustainment planning, including corro-
sion prevention and mitigation planning, has identified 
and evaluated relevant sustainment costs throughout 
development, production, operation, sustainment, and dis-
posal of the program, and any alternatives, and that such 
costs are reasonable and have been accurately estimated; 
‘‘(F) an estimate has been made of the requirements 
for core depot-level maintenance and repair capabilities, 
as well as the associated logistics capabilities and the asso-
ciated sustaining workloads required to support such 
requirements; and’’. 
(2) DEFINITION.—Subsection (g) of such section is amended 
by striking paragraph (5) (relating to Key Decision Point B) 
and inserting the following new paragraph (5): 
‘‘(5) The term ‘core logistics capabilities’ means the core 
logistics capabilities identified under section 2464(a) of this 
title.’’. 
(c) REQUIREMENTS PRIOR TO LOW-RATE INITIAL PRODUCTION.— 
Prior to entering into a contract for low-rate initial production 
of a major defense acquisition program, the Secretary of Defense 
shall ensure that the detailed requirements for core depot-level 
maintenance and repair capabilities, as well as the associated logis-
tics capabilities and the associated sustaining workloads required 
to support such requirements, have been defined. 
(d) GUIDANCE.—Not later than 120 days after the date of the 
enactment of this Act, the Secretary of Defense shall issue guidance 
implementing the amendments made by subsections (a) and (b), 
and subsection (c), in a manner that is consistent across the Depart-
ment of Defense. 
(e) ELIMINATION OF REFERENCES TO KEY DECISION POINTS A 
AND B.— 
(1) AMENDMENTS TO SECTION 2366a.—Section 2366a of title 
10, United States Code, is amended— 
(A) in the section heading, by striking ‘‘or Key Deci-
sion Point’’;
H. R. 1540—187 
(B) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘, or Key Decision Point A approval in 
the case of a space program,’’ and by striking ‘‘, or Key 
Decision Point B approval in the case of a space program,’’; 
and 
(C) in subsection (b)— 
(i) in paragraph (1), by striking ‘‘(or Key Decision 
Point A approval in the case of a space program)’’; 
and 
(ii) in paragraph (2)(C)(ii), by striking ‘‘, or Key 
Decision Point A approval in the case of a space pro-
gram,’’. 
(2) AMENDMENTS TO SECTION 2366b.—Section 2366b of such 
title is amended— 
(A) in the section heading, by striking ‘‘or Key Deci-
sion Point B’’; 
(B) in subsection (a), in the matter preceding paragraph 
(1), by striking ‘‘, or Key Decision Point B approval in 
the case of a space program,’’; and 
(C) in subsections (b)(2) and (d)(1), by striking ‘‘(or 
Key Decision Point B approval in the case of a space 
program)’’ each place it appears. 
(3) AMENDMENTS
TO
TABLE
OF
SECTIONS.—The items 
relating to sections 2366a and 2366b in the table of sections 
at the beginning of chapter 139 of such title are amended 
to read as follows: 
‘‘2366a. Major defense acquisition programs: certification required before Milestone 
A approval. 
‘‘2366b. Major defense acquisition programs: certification required before Milestone 
B approval.’’. 
(4) 
ADDITIONAL
CONFORMING
AMENDMENTS.—Section 
2433a(c)(1) of such title is amended by striking ‘‘, or Key Deci-
sion Point approval in the case of a space program,’’ each 
place it appears in subparagraphs (B) and (C). 
SEC. 802. REVISION TO LAW RELATING TO DISCLOSURES TO LITIGA-
TION SUPPORT CONTRACTORS. 
(a) IN GENERAL.— 
(1) REVISED
AUTHORITY
TO
COVER
DISCLOSURES
UNDER 
LITIGATION SUPPORT CONTRACTS.—Chapter 3 of title 10, United 
States Code, is amended by inserting after section 129c the 
following new section: 
‘‘§ 129d. Disclosure to litigation support contractors 
‘‘(a) DISCLOSURE AUTHORITY.—An officer or employee of the 
Department of Defense may disclose sensitive information to a 
litigation support contractor if— 
‘‘(1) the disclosure is for the sole purpose of providing 
litigation support to the Government in the form of administra-
tive, technical, or professional services during or in anticipation 
of litigation; and 
‘‘(2) under a contract with the Government, the litigation 
support contractor agrees to and acknowledges— 
‘‘(A) that sensitive information furnished will be 
accessed and used only for the purposes stated in the 
relevant contract;
H. R. 1540—188 
‘‘(B) that the contractor will take all precautions nec-
essary to prevent disclosure of the sensitive information 
provided to the contractor; 
‘‘(C) that such sensitive information provided to the 
contractor under the authority of this section shall not 
be used by the contractor to compete against a third party 
for Government or non-Government contracts; and 
‘‘(D) that the violation of subparagraph (A), (B), or 
(C) is a basis for the Government to terminate the litigation 
support contract of the contractor. 
‘‘(b) DEFINITIONS.—In this section: 
‘‘(1) The term ‘litigation support contractor’ means a con-
tractor (including an expert or technical consultant) under con-
tract with the Department of Defense to provide litigation 
support. 
‘‘(2) The term ‘sensitive information’ means confidential 
commercial, financial, or proprietary information, technical 
data, or other privileged information.’’. 
(2) CLERICAL AMENDMENT.—The table of sections at the 
beginning of such chapter is amended by inserting after the 
item relating to section 129c the following new item: 
‘‘129d. Disclosure to litigation support contractors.’’. 
(b) REPEAL OF SUPERSEDED PROVISIONS ENACTED IN PUBLIC 
LAW 111–383.—Section 2320 of such title is amended— 
(1) in subsection (c)(2)— 
(A) by striking ‘‘subsection (a)’’ and all that follows 
through ‘‘a covered Government’’ and inserting ‘‘subsection 
(a), allowing a covered Government’’; and 
(B) by striking subparagraph (B); and 
(2) by striking subsection (g). 
SEC. 803. EXTENSION OF APPLICABILITY OF THE SENIOR EXECUTIVE 
BENCHMARK COMPENSATION AMOUNT FOR PURPOSES OF 
ALLOWABLE COST LIMITATIONS UNDER DEFENSE CON-
TRACTS. 
(a) CERTAIN COMPENSATION NOT ALLOWABLE UNDER DEFENSE 
CONTRACTS.—Subsection (e)(1)(P) of section 2324 of title 10, United 
States Code, is amended— 
(1) by striking ‘‘senior executives of contractors’’ and 
inserting ‘‘any contractor employee’’; and 
(2) by adding before the period at the end the following: 
‘‘, except that the Secretary of Defense may establish one or 
more narrowly targeted exceptions for scientists and engineers 
upon a determination that such exceptions are needed to ensure 
that the Department of Defense has continued access to needed 
skills and capabilities’’. 
(b) CONFORMING AMENDMENT.—Subsection (l) of such section 
is amended by striking paragraph (5). 
(c) EFFECTIVE DATE.—The amendments made by this section— 
(1) shall be implemented in the Federal Acquisition Regula-
tion within 180 days after the date of the enactment of this 
Act; and 
(2) shall apply with respect to costs of compensation 
incurred after January 1, 2012, under contracts entered into 
before, on, or after the date of the enactment of this Act.
H. R. 1540—189 
SEC. 804. EXTENSION OF AVAILABILITY OF FUNDS IN THE DEFENSE 
ACQUISITION WORKFORCE DEVELOPMENT FUND. 
(a) AVAILABILITY.—Paragraph (6) of section 1705(e) of title 10, 
United States Code, is amended to read as follows: 
‘‘(6) DURATION OF AVAILABILITY.—Amounts credited to the 
Fund in accordance with subsection (d)(2), transferred to the 
Fund pursuant to subsection (d)(3), appropriated to the Fund, 
or deposited to the Fund shall remain available for obligation 
in the fiscal year for which credited, transferred, appropriated, 
or deposited and the two succeeding fiscal years.’’. 
(b) EFFECTIVE
DATE.—Paragraph (6) of such section, as 
amended by subsection (a), shall not apply to funds directly appro-
priated to the Fund before the date of the enactment of this Act. 
SEC. 805. DEFENSE CONTRACT AUDIT AGENCY ANNUAL REPORT. 
(a) DEFENSE CONTRACT AUDIT AGENCY ANNUAL REPORT.— 
Chapter 137 of title 10, United States Code, is amended by inserting 
after section 2313 the following new section: 
‘‘§ 2313a. Defense Contract Audit Agency: annual report 
‘‘(a) REQUIRED REPORT.—The Director of the Defense Contract 
Audit Agency shall prepare an annual report of the activities of 
the Agency during the previous fiscal year. The report shall include, 
at a minimum— 
‘‘(1) a description of significant problems, abuses, and defi-
ciencies encountered during the conduct of contractor audits; 
‘‘(2) statistical tables showing— 
‘‘(A) the total number of audit reports completed and 
pending; 
‘‘(B) the priority given to each type of audit; 
‘‘(C) the length of time taken for each type of audit; 
‘‘(D) the total dollar value of questioned costs (including 
a separate category for the dollar value of unsupported 
costs); and 
‘‘(E) an assessment of the number and types of audits 
pending for a period longer than allowed pursuant to guid-
ance of the Defense Contract Audit Agency; 
‘‘(3) a summary of any recommendations of actions or 
resources needed to improve the audit process; and 
‘‘(4) any other matters the Director considers appropriate. 
‘‘(b) SUBMISSION OF ANNUAL REPORT.—Not later than March 
30 of each year, the Director shall submit to the congressional 
defense committees the report required by subsection (a). 
‘‘(c) PUBLIC AVAILABILITY.—Not later than 60 days after the 
submission of an annual report to the congressional defense commit-
tees under subsection (b), the Director shall make the report avail-
able on the publicly available website of the Agency or such other 
publicly available website as the Director considers appropriate.’’. 
(b) CLERICAL AMENDMENT.—The table of sections at the begin-
ning of such chapter is amended by inserting after the item relating 
to section 2313 the following new item: 
‘‘2313a. Defense Contract Audit Agency: annual report.’’.
H. R. 1540—190 
SEC. 806. INCLUSION OF DATA ON CONTRACTOR PERFORMANCE IN 
PAST PERFORMANCE DATABASES FOR SOURCE SELEC-
TION DECISIONS. 
(a) STRATEGY ON INCLUSION REQUIRED.—Not later than 180 
days after the date of the enactment of this Act, the Under Secretary 
of Defense for Acquisition, Technology, and Logistics shall develop 
a strategy for ensuring that timely, accurate, and complete informa-
tion on contractor performance is included in past performance 
databases used for making source selection decisions. 
(b) ELEMENTS.—The strategy required by subsection (a) shall, 
at a minimum— 
(1) establish standards for the timeliness and completeness 
of past performance submissions for purposes of databases 
described in subsection (a); 
(2) assign responsibility and management accountability 
for the completeness of past performance submissions for such 
purposes; and 
(3) ensure that past performance submissions for such pur-
poses are consistent with award fee evaluations in cases where 
such evaluations have been conducted. 
(c) CONTRACTOR COMMENTS.—Not later than 180 days after 
the date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall revise the 
Defense Supplement to the Federal Acquisition Regulation to 
require the following: 
(1) That affected contractors are provided, in a timely 
manner, information on contractor performance to be included 
in past performance databases in accordance with subsection 
(a). 
(2) That such contractors are afforded up to 14 calendar 
days, from the date of delivery of the information provided 
in accordance with paragraph (1), to submit comments, 
rebuttals, or additional information pertaining to past perform-
ance for inclusion in such databases. 
(3) That agency evaluations of contractor past performance, 
including any information submitted under paragraph (2), are 
included in the relevant past performance database not later 
than the date that is 14 days after the date of delivery of 
the information provided in accordance with paragraph (1). 
(d) CONSTRUCTION.—Nothing in this section shall be construed 
to prohibit a contractor from submitting comments, rebuttals, or 
additional information pertaining to past performance after the 
period described in paragraph (2) has elapsed or to prohibit a 
contractor from challenging a past performance evaluation in 
accordance with applicable laws, regulations, or procedures. 
(e) COMPTROLLER GENERAL REPORT.—Not later than 18 months 
after the date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the congressional defense 
committees a report on the actions taken by the Under Secretary 
of Defense for Acquisition, Technology, and Logistics pursuant to 
this section, including an assessment of the extent to which such 
actions have achieved the objectives of this section.
H. R. 1540—191 
SEC. 807. IMPLEMENTATION OF RECOMMENDATIONS OF DEFENSE 
SCIENCE BOARD TASK FORCE ON IMPROVEMENTS TO 
SERVICE CONTRACTING. 
(a) PLAN FOR IMPLEMENTATION.—Not later than 180 days after 
the date of the enactment of this Act, the Under Secretary of 
Defense for Acquisition, Technology, and Logistics shall, acting 
pursuant to the Under Secretary’s responsibility under section 2330 
of title 10, United States Code, develop a plan for implementing 
the recommendations of the Defense Science Board Task Force 
on Improvements to Service Contracting. 
(b) ELEMENTS.—The plan developed pursuant to subsection (a) 
shall include, to the extent determined appropriate by the Under 
Secretary for Acquisition, Technology, and Logistics, the following: 
(1) Meaningful incentives to services contractors for high 
performance at low cost, consistent with the objectives of the 
Better Buying Power Initiative established by the Under Sec-
retary. 
(2) Improved means of communication between the Govern-
ment and the services contracting industry in the process of 
developing requirements for services contracts. 
(3) Clear guidance for defense acquisition personnel on 
the use of appropriate contract types for particular categories 
of services contracts. 
(4) Formal certification and training requirements for serv-
ices acquisition personnel, consistent with the requirements 
of sections 1723 and 1724 of title 10, United States Code. 
(5) Appropriate emphasis on the recruiting and training 
of services acquisition personnel, consistent with the strategic 
workforce plan developed pursuant to section 115b of title 10, 
United States Code, and the funds available through the 
Department of Defense Acquisition Workforce Development 
Fund established pursuant to section 1705 of title 10, United 
States Code. 
(6) Policies and guidance on career development for services 
acquisition personnel, consistent with the requirements of sec-
tions 1722a and 1722b of title 10, United States Code. 
(7) Actions to ensure that the military departments dedi-
cate portfolio-specific commodity managers to coordinate the 
procurement of key categories of contract services, as required 
by section 2330(b)(3)(C) of title 10, United States Code. 
(8) Actions to ensure that the Department of Defense con-
ducts realistic exercises and training that account for services 
contracting during contingency operations, as required by sec-
tion 2333(e) of title 10, United States Code. 
(c) COMPTROLLER GENERAL REPORT.—Not later than 18 months 
after the date of the enactment of this Act, the Comptroller General 
of the United States shall submit to the congressional defense 
committees a report on the following: 
(1) The actions taken by the Under Secretary of Defense 
for Acquisition, Technology, and Logistics to carry out the 
requirements of this section. 
(2) The actions taken by the Under Secretary to carry 
out the requirements of section 2330 of title 10, United States 
Code. 
(3) The actions taken by the military departments to carry 
out the requirements of section 2330 of title 10, United States 
Code.
H. R. 1540—192 
(4) The extent to which the actions described in paragraphs 
(1), (2), and (3) have resulted in the improved acquisition and 
management of contract services. 
SEC. 808. TEMPORARY LIMITATION ON AGGREGATE ANNUAL AMOUNT 
AVAILABLE FOR CONTRACT SERVICES. 
(a) LIMITATION.—Except as provided in subsection (b), the total 
amount obligated by the Department of Defense for contract services 
in fiscal year 2012 or 2013 may not exceed the total amount 
requested for the Department for contract services in the budget 
of the President for fiscal year 2010 (as submitted to Congress 
pursuant to section 1105(b) of title 31, United States Code) adjusted 
for net transfers from funding for overseas contingency operations. 
(b) EXCEPTION.—Notwithstanding the limitation in subsection 
(a), the total amount obligated by the Department for contract 
services in fiscal year 2012 or 2013 may exceed the amount other-
wise provided pursuant to subsection (a) by an amount elected 
by the Secretary of Defense that is not greater than the cost 
of any increase in such fiscal year in the number of civilian billets 
at the Department that has been approved by the Secretary over 
the number of such billets at the Department in fiscal year 2010. 
(c) GUIDANCE.—Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall issue guidance to the 
military departments and the Defense Agencies on implementation 
of this section during fiscal years 2012 and 2013. The guidance 
shall, at a minimum— 
(1) establish a negotiation objective that labor rates and 
overhead rates in any contract or task order for contract serv-
ices with an estimated value in excess of $10,000,000 awarded 
to a contractor in fiscal year 2012 or 2013 shall not exceed 
labor rates and overhead rates paid to the contractor for con-
tract services in fiscal year 2010; 
(2) require the Secretaries of the military departments 
and the heads of the Defense Agencies to approve in writing 
any contract or task order for contract services with an esti-
mated value in excess of $10,000,000 awarded to a contractor 
in fiscal year 2012 or 2013 that provides for continuing services 
at an annual cost that exceeds the annual cost paid by the 
military department or Defense Agency concerned for the same 
or similar services in fiscal year 2010; 
(3) require the Secretaries of the military departments 
and the heads of the Defense Agencies to eliminate any con-
tractor positions identified by the military department or 
Defense Agency concerned as being responsible for the perform-
ance of inherently governmental functions; 
(4) require the Secretaries of the military departments 
and the heads of the Defense Agencies to reduce by 10 percent 
per fiscal year in each of fiscal years 2012 and 2013 the funding 
of the military department or Defense Agency concerned for— 
(A) staff augmentation contracts; and 
(B) contracts for the performance of functions closely 
associated with inherently governmental functions; and 
(5) assign responsibility to the management officials des-
ignated pursuant to section 2330 of title 10, United States 
Code, and section 812(b) of the National Defense Authorization 
Act for Fiscal Year 2006 (Public Law 109–163; 119 Stat. 3378; 
10 U.S.C. 2330 note) to provide oversight and ensure the
H. R. 1540—193 
implementation of the requirements of this section during fiscal 
years 2012 and 2013. 
(d) DEFINITIONS.—In this section: 
(1) The term ‘‘contract services’’ has the meaning given 
that term in section 235 of title 10, United States Code, except 
that the term does not include services that are funded out 
of amounts available for overseas contingency operations. 
(2) The term ‘‘function closely associated with inherently 
governmental functions’’ has the meaning given that term in 
section 2383(b)(3) of title 10, United States Code. 
(3) The term ‘‘staff augmentation contracts’’ means con-
tracts for personnel who are subject to the direction of a govern-
ment official other than the contracting officer for the contract, 
including, but not limited to, contractor personnel who perform 
personal services contracts (as that term is defined in section 
2330a(g)(5) of title 10, United States Code). 
(4) The term ‘‘transfers from funding for overseas contin-
gency operations’’ means amounts funded out of amounts avail-
able for overseas contingency operations in fiscal year 2010 
that are funded out of amounts other than amounts so available 
in fiscal year 2012 or 2013. 
SEC. 809. ANNUAL REPORT ON SINGLE-AWARD TASK AND DELIVERY 
ORDER CONTRACTS. 
(a) ANNUAL REPORT.— 
(1) IN GENERAL.—Paragraph (2) of section 817(d) of the 
Bob Stump National Defense Authorization Act for Fiscal Year 
2003 (Public Law 107–314; 116 Stat. 2611; 10 U.S.C. 2306a 
note) is amended— 
(A) in subparagraph (A), by striking ‘‘and’’ at the end; 
(B) in subparagraph (B), by striking the period at 
the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following new subpara-
graph: 
‘‘(C) with respect to any determination pursuant to section 
2304a(d)(3)(D) of title 10, United States Code, that because 
of exceptional circumstances it is necessary in the public 
interest to award a task or delivery order contract with an 
estimated value in excess of $100,000,000 to a single source, 
an explanation of the basis for the determination.’’. 
(2) CONFORMING AMENDMENT.—The heading of such section 
is amended by striking ‘‘WITH PRICE OR VALUE GREATER THAN 
$15,000,000’’. 
(b) REPEAL OF CASE-BY-CASE REPORTING REQUIREMENT.—Sec-
tion 2304a(d)(3) of title 10, United States Code, is amended— 
(1) by striking subparagraph (B); 
(2) by striking ‘‘(A)’’; 
(3) by redesignating clauses (i), (ii), (iii), and (iv) as sub-
paragraphs (A), (B), (C), and (D), respectively; and 
(4) in subparagraph (B), as redesignated by paragraph 
(3), by redesignating subclauses (I) and (II) as clauses (i) and 
(ii), respectively.
H. R. 1540—194 
Subtitle B—Amendments to General Con-
tracting Authorities, Procedures, and 
Limitations 
SEC. 811. CALCULATION OF TIME PERIOD RELATING TO REPORT ON 
CRITICAL CHANGES IN MAJOR AUTOMATED INFORMATION 
SYSTEMS. 
Section 2445c(d)(2)(A) of title 10, United States Code, is 
amended to read as follows: 
‘‘(A) the automated information system or information 
technology investment failed to achieve a full deployment 
decision within five years after the Milestone A decision 
for the program or, if there was no Milestone A decision, 
the date when the preferred alternative is selected for 
the program (excluding any time during which program 
activity is delayed as a result of a bid protest);’’. 
SEC. 812. CHANGE IN DEADLINE FOR SUBMISSION OF SELECTED 
ACQUISITION REPORTS FROM 60 TO 45 DAYS. 
Section 2432(f) of title 10, United States Code, is amended 
by striking ‘‘60’’ and inserting ‘‘45’’. 
SEC. 813. EXTENSION OF SUNSET DATE FOR CERTAIN PROTESTS OF 
TASK AND DELIVERY ORDER CONTRACTS. 
Paragraph (3) of section 4106(f) of title 41, United States Code, 
is amended to read as follows: 
‘‘(3) EFFECTIVE PERIOD.—Paragraph (1)(B) and paragraph 
(2) of this subsection shall not be in effect after September 
30, 2016.’’. 
SEC. 814. CLARIFICATION OF DEPARTMENT OF DEFENSE AUTHORITY 
TO PURCHASE RIGHT-HAND DRIVE PASSENGER SEDAN 
VEHICLES AND ADJUSTMENT OF THRESHOLD FOR INFLA-
TION. 
(a) CLARIFICATION OF AUTHORITY.—Section 2253(a)(2) of title 
10, United States Code, is amended by striking ‘‘vehicles’’ and 
inserting ‘‘passenger sedans’’. 
(b) ADJUSTMENT FOR INFLATION.—The Department of Defense 
representative to the Federal Acquisition Regulatory Council estab-
lished under section 1302 of title 41, United States Code, shall 
ensure that the threshold established in section 2253 of title 10, 
United States Code, for the acquisition of right-hand drive pas-
senger sedans is included on the list of dollar thresholds that 
are subject to adjustment for inflation in accordance with the 
requirements of section 1908 of title 41, United States Code, and 
is adjusted pursuant to such provision, as appropriate. 
SEC. 815. RIGHTS IN TECHNICAL DATA AND VALIDATION OF PROPRI-
ETARY DATA RESTRICTIONS. 
(a) RIGHTS
IN TECHNICAL DATA.—Section 2320 of title 10, 
United States Code, is amended— 
(1) in subsection (a)— 
(A) in paragraph (2)(D)(i)— 
(i) in subclause (I), by striking ‘‘or’’ at the end; 
(ii) by redesignating subclause (II) as subclause 
(III); and
H. R. 1540—195 
(iii) by inserting after subclause (I) the following 
new subclause (II): 
‘‘(II) is necessary for the segregation of an item 
or process from, or the reintegration of that item or 
process (or a physically or functionally equivalent item 
or process) with, other items or processes; or’’; 
(B) in paragraph (2)(E), by striking ‘‘and shall be based’’ 
and all that follows through ‘‘such rights shall’’ and 
inserting ‘‘. The United States shall have government pur-
pose rights in such technical data, except in any case 
in which the Secretary of Defense determines, on the basis 
of criteria established in such regulations, that negotiation 
of different rights in such technical data would be in the 
best interest of the United States. The establishment of 
any such negotiated rights shall’’; and 
(C) in paragraph (3), by striking ‘‘for the purposes 
of paragraph (2)(B), but shall be considered to be Federal 
funds for the purposes of paragraph (2)(A)’’ and inserting 
‘‘for the purposes of the definitions under this paragraph’’; 
and 
(2) in subsection (b)— 
(A) in paragraph (7), by striking ‘‘and’’ at the end; 
(B) in paragraph (8), by striking the period and 
inserting a semicolon; and 
(C) by adding at the end the following new paragraphs: 
‘‘(9) providing that, in addition to technical data that is 
already subject to a contract delivery requirement, the United 
States may require at any time the delivery of technical data 
that has been generated or utilized in the performance of a 
contract, and compensate the contractor only for reasonable 
costs incurred for having converted and delivered the data 
in the required form, upon a determination that— 
‘‘(A) the technical data is needed for the purpose of 
reprocurement, sustainment, modification, or upgrade 
(including through competitive means) of a major system 
or subsystem thereof, a weapon system or subsystem 
thereof, or any noncommercial item or process; and 
‘‘(B) the technical data— 
‘‘(i) pertains to an item or process developed in 
whole or in part with Federal funds; or 
‘‘(ii) is necessary for the segregation of an item 
or process from, or the reintegration of that item or 
process (or a physically or functionally equivalent item 
or process) with, other items or processes; and 
‘‘(10) providing that the United States is not foreclosed 
from requiring the delivery of the technical data by a failure 
to challenge, in accordance with the requirements of section 
2321(d) of this title, the contractor’s assertion of a use or 
release restriction on the technical data.’’. 
(b) VALIDATION OF PROPRIETARY DATA RESTRICTIONS.—Section 
2321(d)(2) of such title is amended— 
(1) in subparagraph (A)— 
(A) in the matter preceding clause (i), by striking 
‘‘Except as provided in subparagraph (C)’’ and all that 
follows through ‘‘three-year period’’ and inserting ‘‘A chal-
lenge to a use or release restriction asserted by the con-
tractor in accordance with applicable regulations may not
H. R. 1540—196 
be made under paragraph (1) after the end of the six- 
year period’’; 
(B) in clause (ii), by striking ‘‘or’’ at the end; 
(C) in clause (iii) by striking the period and inserting 
‘‘; or’’; and 
(D) by adding at the end the following new clause: 
‘‘(iv) are the subject of a fraudulently asserted use 
or release restriction.’’; 
(2) in subparagraph (B), by striking ‘‘three-year period’’ 
each place it appears and inserting ‘‘six-year period’’; and 
(3) by striking subparagraph (C). 
(c) EFFECTIVE DATE.— 
(1) IN GENERAL.—Except as provided in paragraph (2), the 
amendments made by this section shall take effect on the 
date of the enactment of this Act. 
(2) EXCEPTION.—The amendment made by subsection 
(a)(1)(C) shall take effect on January 7, 2011, immediately 
after the enactment of the Ike Skelton National Defense 
Authorization Act for Fiscal Year 2011 (Public Law 111–383), 
to which such amendment relates. 
SEC. 816. COVERED CONTRACTS FOR PURPOSES OF REQUIREMENTS 
ON CONTRACTOR BUSINESS SYSTEMS. 
Paragraph (3) of section 893(f) of the Ike Skelton National 
Defense Authorization Act for Fiscal Year 2011 (Public Law 111– 
383; 124 Stat. 4312; 10 U.S.C. 2302 note) is amended to read 
as follows: 
‘‘(3) The term ‘covered contract’ means a contract that 
is subject to the cost accounting standards promulgated pursu-
ant to section 1502 of title 41, United States Code, that could 
be affected if the data produced by a contractor business system 
has a significant deficiency.’’. 
SEC. 817. COMPLIANCE WITH DEFENSE PROCUREMENT REQUIRE-
MENTS FOR PURPOSES OF INTERNAL CONTROLS OF NON- 
DEFENSE AGENCIES FOR PROCUREMENTS ON BEHALF OF 
THE DEPARTMENT OF DEFENSE. 
Section 801(d) of the National Defense Authorization Act for 
Fiscal Year 2008 (10 U.S.C. 2304 note) is amended by striking 
‘‘with the requirements’’ and all that follows and inserting ‘‘with 
the following: 
‘‘(1) The Federal Acquisition Regulation and other laws 
and regulations that apply to procurements of property and 
services by Federal agencies. 
‘‘(2) Laws and regulations (including applicable Department 
of Defense financial management regulations) that apply to 
procurements of property and services made by the Department 
of Defense through other Federal agencies.’’. 
SEC. 818. DETECTION AND AVOIDANCE OF COUNTERFEIT ELECTRONIC 
PARTS. 
(a) ASSESSMENT OF DEPARTMENT OF DEFENSE POLICIES AND 
SYSTEMS.—The Secretary of Defense shall conduct an assessment 
of Department of Defense acquisition policies and systems for the 
detection and avoidance of counterfeit electronic parts. 
(b) ACTIONS FOLLOWING ASSESSMENT.—Not later than 180 days 
after the date of the enactment of the Act, the Secretary shall,
H. R. 1540—197 
based on the results of the assessment required by subsection 
(a)— 
(1) establish Department-wide definitions of the terms 
‘‘counterfeit electronic part’’ and ‘‘suspect counterfeit electronic 
part’’, which definitions shall include previously used parts 
represented as new; 
(2) issue or revise guidance applicable to Department 
components engaged in the purchase of electronic parts to 
implement a risk-based approach to minimize the impact of 
counterfeit electronic parts or suspect counterfeit electronic 
parts on the Department, which guidance shall address require-
ments for training personnel, making sourcing decisions, 
ensuring traceability of parts, inspecting and testing parts, 
reporting and quarantining counterfeit electronic parts and sus-
pect counterfeit electronic parts, and taking corrective actions 
(including actions to recover costs as described in subsection 
(c)(2)); 
(3) issue or revise guidance applicable to the Department 
on remedial actions to be taken in the case of a supplier 
who has repeatedly failed to detect and avoid counterfeit elec-
tronic parts or otherwise failed to exercise due diligence in 
the detection and avoidance of such parts, including consider-
ation of whether to suspend or debar a supplier until such 
time as the supplier has effectively addressed the issues that 
led to such failures; 
(4) establish processes for ensuring that Department per-
sonnel who become aware of, or have reason to suspect, that 
any end item, component, part, or material contained in sup-
plies purchased by or for the Department contains counterfeit 
electronic parts or suspect counterfeit electronic parts provide 
a report in writing within 60 days to appropriate Government 
authorities and to the Government-Industry Data Exchange 
Program (or a similar program designated by the Secretary); 
and 
(5) establish a process for analyzing, assessing, and acting 
on reports of counterfeit electronic parts and suspect counterfeit 
electronic parts that are submitted in accordance with the 
processes under paragraph (4). 
(c) REGULATIONS.— 
(1) IN GENERAL.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary shall revise the 
Department of Defense Supplement to the Federal Acquisition 
Regulation to address the detection and avoidance of counterfeit 
electronic parts. 
(2) CONTRACTOR
RESPONSIBILITIES.—The revised regula-
tions issued pursuant to paragraph (1) shall provide that— 
(A) covered contractors who supply electronic parts 
or products that include electronic parts are responsible 
for detecting and avoiding the use or inclusion of counterfeit 
electronic parts or suspect counterfeit electronic parts in 
such products and for any rework or corrective action that 
may be required to remedy the use or inclusion of such 
parts; and 
(B) the cost of counterfeit electronic parts and suspect 
counterfeit electronic parts and the cost of rework or correc-
tive action that may be required to remedy the use or
H. R. 1540—198 
inclusion of such parts are not allowable costs under 
Department contracts. 
(3) TRUSTED
SUPPLIERS.—The revised regulations issued 
pursuant to paragraph (1) shall— 
(A) require that, whenever possible, the Department 
and Department contractors and subcontractors at all 
tiers— 
(i) obtain electronic parts that are in production 
or currently available in stock from the original manu-
facturers of the parts or their authorized dealers, or 
from trusted suppliers who obtain such parts exclu-
sively from the original manufacturers of the parts 
or their authorized dealers; and 
(ii) obtain electronic parts that are not in produc-
tion or currently available in stock from trusted sup-
pliers; 
(B) establish requirements for notification of the 
Department, and inspection, testing, and authentication 
of electronic parts that the Department or a Department 
contractor or subcontractor obtains from any source other 
than a source described in subparagraph (A); 
(C) establish qualification requirements, consistent 
with the requirements of section 2319 of title 10, United 
States Code, pursuant to which the Department may iden-
tify trusted suppliers that have appropriate policies and 
procedures in place to detect and avoid counterfeit elec-
tronic parts and suspect counterfeit electronic parts; and 
(D) authorize Department contractors and subcontrac-
tors to identify and use additional trusted suppliers, pro-
vided that— 
(i) the standards and processes for identifying such 
trusted suppliers comply with established industry 
standards; 
(ii) the contractor or subcontractor assumes 
responsibility for the authenticity of parts provided 
by such suppliers as provided in paragraph (2); and 
(iii) the selection of such trusted suppliers is sub-
ject to review and audit by appropriate Department 
officials. 
(4) REPORTING
REQUIREMENT.—The revised regulations 
issued pursuant to paragraph (1) shall require that any Depart-
ment contractor or subcontractor who becomes aware, or has 
reason to suspect, that any end item, component, part, or 
material contained in supplies purchased by the Department, 
or purchased by a contractor or subcontractor for delivery to, 
or on behalf of, the Department, contains counterfeit electronic 
parts or suspect counterfeit electronic parts report in writing 
within 60 days to appropriate Government authorities and the 
Government-Industry Data Exchange Program (or a similar 
program designated by the Secretary). 
(5) CONSTRUCTION
OF
COMPLIANCE
WITH
REPORTING 
REQUIREMENT.—A Department contractor or subcontractor that 
provides a written report required under this subsection shall 
not be subject to civil liability on the basis of such reporting, 
provided the contractor or subcontractor made a reasonable 
effort to determine that the end item, component, part, or
H. R. 1540—199 
material concerned contained counterfeit electronic parts or 
suspect counterfeit electronic parts. 
(d) INSPECTION PROGRAM.—The Secretary of Homeland Security 
shall establish and implement a risk-based methodology for the 
enhanced targeting of electronic parts imported from any country, 
after consultation with the Secretary of Defense as to sources of 
counterfeit electronic parts and suspect counterfeit electronic parts 
in the supply chain for products purchased by the Department 
of Defense. 
(e) IMPROVEMENT
OF CONTRACTOR SYSTEMS
FOR DETECTION 
AND AVOIDANCE OF COUNTERFEIT ELECTRONIC PARTS.— 
(1) IN GENERAL.—Not later than 270 days after the date 
of the enactment of this Act, the Secretary of Defense shall 
implement a program to enhance contractor detection and 
avoidance of counterfeit electronic parts. 
(2) ELEMENTS.—The program implemented pursuant to 
paragraph (1) shall— 
(A) require covered contractors that supply electronic 
parts or systems that contain electronic parts to establish 
policies and procedures to eliminate counterfeit electronic 
parts from the defense supply chain, which policies and 
procedures shall address— 
(i) the training of personnel; 
(ii) the inspection and testing of electronic parts; 
(iii) processes to abolish counterfeit parts prolifera-
tion; 
(iv) mechanisms to enable traceability of parts; 
(v) use of trusted suppliers; 
(vi) the reporting and quarantining of counterfeit 
electronic parts and suspect counterfeit electronic 
parts; 
(vii) methodologies to identify suspect counterfeit 
parts and to rapidly determine if a suspect counterfeit 
part is, in fact, counterfeit; 
(viii) the design, operation, and maintenance of 
systems to detect and avoid counterfeit electronic parts 
and suspect counterfeit electronic parts; and 
(ix) the flow down of counterfeit avoidance and 
detection requirements to subcontractors; and 
(B) establish processes for the review and approval 
of contractor systems for the detection and avoidance of 
counterfeit electronic parts and suspect counterfeit elec-
tronic parts, which processes shall be comparable to the 
processes established for contractor business systems under 
section 893 of the Ike Skelton National Defense Authoriza-
tion Act for Fiscal Year 2011 (Public Law 111–383; 124 
Stat. 4311; 10 U.S.C. 2302 note). 
(f) DEFINITIONS.—In subsections (a) through (e) of this section: 
(1) The term ‘‘covered contractor’’ has the meaning given 
that term in section 893(f)(2) of the Ike Skelton National 
Defense Authorization Act for Fiscal Year 2011. 
(2) The term ‘‘electronic part’’ means an integrated circuit, 
a discrete electronic component (including, but not limited to, 
a transistor, capacitor, resistor, or diode), or a circuit assembly. 
(g) INFORMATION SHARING.— 
(1) IN GENERAL.—If United States Customs and Border 
Protection suspects a product of being imported in violation
H. R. 1540—200 
of section 42 of the Lanham Act, and subject to any applicable 
bonding requirements, the Secretary of the Treasury may share 
information appearing on, and unredacted samples of, products 
and their packaging and labels, or photographs of such prod-
ucts, packaging, and labels, with the rightholders of the trade-
marks suspected of being copied or simulated for purposes 
of determining whether the products are prohibited from 
importation pursuant to such section. 
(2) SUNSET.—This subsection shall expire on the date of 
the enactment of the Customs Facilitation and Trade Enforce-
ment Reauthorization Act of 2012. 
(3) LANHAM ACT DEFINED.—In this subsection, the term 
‘‘Lanham Act’’ means the Act entitled ‘‘An Act to provide for 
the registration and protection of trademarks used in commerce, 
to carry out the provisions of certain international conventions, 
and for other purposes’’, approved July 5, 1946 (commonly 
referred to as the ‘‘Trademark Act of 1946’’ or the ‘‘Lanham 
Act’’). 
(h) TRAFFICKING IN INHERENTLY DANGEROUS GOODS OR SERV-
ICES.—Section 2320 of title 18, United States Code, is amended 
to read as follows: 
‘‘§ 2320. Trafficking in counterfeit goods or services 
‘‘(a) OFFENSES.—Whoever intentionally— 
‘‘(1) traffics in goods or services and knowingly uses a 
counterfeit mark on or in connection with such goods or serv-
ices, 
‘‘(2) traffics in labels, patches, stickers, wrappers, badges, 
emblems, medallions, charms, boxes, containers, cans, cases, 
hangtags, documentation, or packaging of any type or nature, 
knowing that a counterfeit mark has been applied thereto, 
the use of which is likely to cause confusion, to cause mistake, 
or to deceive, or 
‘‘(3) traffics in goods or services knowing that such good 
or service is a counterfeit military good or service the use, 
malfunction, or failure of which is likely to cause serious bodily 
injury or death, the disclosure of classified information, impair-
ment of combat operations, or other significant harm to a 
combat operation, a member of the Armed Forces, or to national 
security, 
or attempts or conspires to violate any of paragraphs (1) through 
(3) shall be punished as provided in subsection (b). 
‘‘(b) PENALTIES.— 
‘‘(1) IN GENERAL.—Whoever commits an offense under sub-
section (a)— 
‘‘(A) if an individual, shall be fined not more than 
$2,000,000 or imprisoned not more than 10 years, or both, 
and, if a person other than an individual, shall be fined 
not more than $5,000,000; and 
‘‘(B) for a second or subsequent offense under sub-
section (a), if an individual, shall be fined not more than 
$5,000,000 or imprisoned not more than 20 years, or both, 
and if other than an individual, shall be fined not more 
than $15,000,000. 
‘‘(2) SERIOUS BODILY INJURY OR DEATH.— 
‘‘(A) SERIOUS BODILY INJURY.—Whoever knowingly or 
recklessly causes or attempts to cause serious bodily injury
H. R. 1540—201 
from conduct in violation of subsection (a), if an individual, 
shall be fined not more than $5,000,000 or imprisoned 
for not more than 20 years, or both, and if other than 
an individual, shall be fined not more than $15,000,000. 
‘‘(B) DEATH.—Whoever knowingly or recklessly causes 
or attempts to cause death from conduct in violation of 
subsection (a), if an individual, shall be fined not more 
than $5,000,000 or imprisoned for any term of years or 
for life, or both, and if other than an individual, shall 
be fined not more than $15,000,000. 
‘‘(3) COUNTERFEIT MILITARY GOODS OR SERVICES.—Whoever 
commits an offense under subsection (a) involving a counterfeit 
military good or service— 
‘‘(A) if an individual, shall be fined not more than 
$5,000,000, imprisoned not more than 20 years, or both, 
and if other than an individual, be fined not more than 
$15,000,000; and 
‘‘(B) for a second or subsequent offense, if an individual, 
shall be fined not more than $15,000,000, imprisoned not 
more than 30 years, or both, and if other than an indi-
vidual, shall be fined not more than $30,000,000. 
‘‘(c) FORFEITURE
AND DESTRUCTION
OF PROPERTY; RESTITU-
TION.—Forfeiture, destruction, and restitution relating to this sec-
tion shall be subject to section 2323, to the extent provided in 
that section, in addition to any other similar remedies provided 
by law. 
‘‘(d) DEFENSES.—All defenses, affirmative defenses, and limita-
tions on remedies that would be applicable in an action under 
the Lanham Act shall be applicable in a prosecution under this 
section. In a prosecution under this section, the defendant shall 
have the burden of proof, by a preponderance of the evidence, 
of any such affirmative defense. 
‘‘(e) PRESENTENCE REPORT.—(1) During preparation of the 
presentence report pursuant to Rule 32(c) of the Federal Rules 
of Criminal Procedure, victims of the offense shall be permitted 
to submit, and the probation officer shall receive, a victim impact 
statement that identifies the victim of the offense and the extent 
and scope of the injury and loss suffered by the victim, including 
the estimated economic impact of the offense on that victim. 
‘‘(2) Persons permitted to submit victim impact statements shall 
include— 
‘‘(A) producers and sellers of legitimate goods or services 
affected by conduct involved in the offense; 
‘‘(B) holders of intellectual property rights in such goods 
or services; and 
‘‘(C) the legal representatives of such producers, sellers, 
and holders. 
‘‘(f) DEFINITIONS.—For the purposes of this section— 
‘‘(1) the term ‘counterfeit mark’ means— 
‘‘(A) a spurious mark— 
‘‘(i) that is used in connection with trafficking in 
any goods, services, labels, patches, stickers, wrappers, 
badges, emblems, medallions, charms, boxes, con-
tainers, cans, cases, hangtags, documentation, or pack-
aging of any type or nature; 
‘‘(ii) that is identical with, or substantially indistin-
guishable from, a mark registered on the principal
H. R. 1540—202 
register in the United States Patent and Trademark 
Office and in use, whether or not the defendant knew 
such mark was so registered; 
‘‘(iii) that is applied to or used in connection with 
the goods or services for which the mark is registered 
with the United States Patent and Trademark Office, 
or is applied to or consists of a label, patch, sticker, 
wrapper, badge, emblem, medallion, charm, box, con-
tainer, can, case, hangtag, documentation, or packaging 
of any type or nature that is designed, marketed, or 
otherwise intended to be used on or in connection 
with the goods or services for which the mark is reg-
istered in the United States Patent and Trademark 
Office; and 
‘‘(iv) the use of which is likely to cause confusion, 
to cause mistake, or to deceive; or 
‘‘(B) a spurious designation that is identical with, or 
substantially indistinguishable from, a designation as to 
which the remedies of the Lanham Act are made available 
by reason of section 220506 of title 36; 
but such term does not include any mark or designation used 
in connection with goods or services, or a mark or designation 
applied to labels, patches, stickers, wrappers, badges, emblems, 
medallions, charms, boxes, containers, cans, cases, hangtags, 
documentation, or packaging of any type or nature used in 
connection with such goods or services, of which the manufac-
turer or producer was, at the time of the manufacture or 
production in question, authorized to use the mark or designa-
tion for the type of goods or services so manufactured or pro-
duced, by the holder of the right to use such mark or designa-
tion; 
‘‘(2) the term ‘financial gain’ includes the receipt, or 
expected receipt, of anything of value; 
‘‘(3) the term ‘Lanham Act’ means the Act entitled ‘An 
Act to provide for the registration and protection of trademarks 
used in commerce, to carry out the provisions of certain inter-
national conventions, and for other purposes’, approved July 
5, 1946 (15 U.S.C. 1051 et seq.); 
‘‘(4) the term ‘counterfeit military good or service’ means 
a good or service that uses a counterfeit mark on or in connec-
tion with such good or service and that— 
‘‘(A) is falsely identified or labeled as meeting military 
specifications, or 
‘‘(B) is intended for use in a military or national secu-
rity application; and 
‘‘(5) the term ‘traffic’ means to transport, transfer, or other-
wise dispose of, to another, for purposes of commercial advan-
tage or private financial gain, or to make, import, export, obtain 
control of, or possess, with intent to so transport, transfer, 
or otherwise dispose of. 
‘‘(g) LIMITATION ON CAUSE OF ACTION.—Nothing in this section 
shall entitle the United States to bring a criminal cause of action 
under this section for the repackaging of genuine goods or services 
not intended to deceive or confuse. 
‘‘(h) REPORT TO CONGRESS.—(1) Beginning with the first year 
after the date of enactment of this subsection, the Attorney General 
shall include in the report of the Attorney General to Congress
H. R. 1540—203 
on the business of the Department of Justice prepared pursuant 
to section 522 of title 28, an accounting, on a district by district 
basis, of the following with respect to all actions taken by the 
Department of Justice that involve trafficking in counterfeit labels 
for phonorecords, copies of computer programs or computer program 
documentation or packaging, copies of motion pictures or other 
audiovisual works (as defined in section 2318 of this title), criminal 
infringement of copyrights (as defined in section 2319 of this title), 
unauthorized fixation of and trafficking in sound recordings and 
music videos of live musical performances (as defined in section 
2319A of this title), or trafficking in goods or services bearing 
counterfeit marks (as defined in section 2320 of this title): 
‘‘(A) The number of open investigations. 
‘‘(B) The number of cases referred by the United States 
Customs Service. 
‘‘(C) The number of cases referred by other agencies or 
sources. 
‘‘(D) The number and outcome, including settlements, sen-
tences, recoveries, and penalties, of all prosecutions brought 
under sections 2318, 2319, 2319A, and 2320 of title 18. 
‘‘(2)(A) The report under paragraph (1), with respect to criminal 
infringement of copyright, shall include the following: 
‘‘(i) The number of infringement cases in these categories: 
audiovisual (videos and films); audio (sound recordings); literary 
works (books and musical compositions); computer programs; 
video games; and, others. 
‘‘(ii) The number of online infringement cases. 
‘‘(iii) The number and dollar amounts of fines assessed 
in specific categories of dollar amounts. These categories shall 
be: no fines ordered; fines under $500; fines from $500 to 
$1,000; fines from $1,000 to $5,000; fines from $5,000 to 
$10,000; and fines over $10,000. 
‘‘(iv) The total amount of restitution ordered in all copyright 
infringement cases. 
‘‘(B) In this paragraph, the term ‘online infringement cases’ 
as used in paragraph (2) means those cases where the infringer— 
‘‘(i) advertised or publicized the infringing work on the 
Internet; or 
‘‘(ii) made the infringing work available on the Internet 
for download, reproduction, performance, or distribution by 
other persons. 
‘‘(C) The information required under subparagraph (A) shall 
be submitted in the report required in fiscal year 2005 and there-
after. 
‘‘(i) TRANSSHIPMENT AND EXPORTATION.—No goods or services, 
the trafficking in of which is prohibited by this section, shall be 
transshipped through or exported from the United States. Any 
such transshipment or exportation shall be deemed a violation 
of section 42 of an Act to provide for the registration of trademarks 
used in commerce, to carry out the provisions of certain inter-
national conventions, and for other purposes, approved July 5, 
1946 (commonly referred to as the ‘Trademark Act of 1946’ or 
the ‘Lanham Act’).’’.