422 
ber is entitled under subchapter II may not be included 
in computing the amount of— 
‘‘(1) any increase in pay authorized by any 
other provision of this title; or 
‘‘(2) any retired pay, retainer pay, separation 
pay, or disability severance pay. 
‘‘§ 372. Continuation of pays during hospitalization 
and 
rehabilitation 
resulting 
from 
wounds, injury, or illness incurred while 
on duty in a hostile fire area or exposed 
to an event of hostile fire or other hostile 
action 
‘‘(a) CONTINUATION OF PAYS.—If a member of a 
regular or reserve component of a uniformed service incurs 
a wound, injury, or illness in the line of duty while serving 
in a combat operation or a combat zone, while serving in 
a hostile fire area, or while exposed to a hostile fire event, 
as described under section 351 of this title, and is hos-
pitalized for treatment of the wound, injury, or illness, the 
Secretary concerned may continue to pay to the member, 
notwithstanding any provision of this chapter to the con-
trary, all pay and allowances (including any bonus, incen-
tive pay, or similar benefit) that were being paid to the 
member at the time the member incurred the wound, in-
jury, or illness. 
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‘‘(b) DURATION.—The payment of pay and allow-
ances to a member under subsection (a) may continue 
until the end of the first month beginning after the earliest 
of the following dates: 
‘‘(1) The date on which the member is returned 
for assignment to other than a medical or patient 
unit for duty. 
‘‘(2) One year after the date on which the mem-
ber is first hospitalized for the treatment of the 
wound, injury, or illness, except that the Secretary 
concerned may extend the termination date in six- 
month increments. 
‘‘(3) The date on which the member is dis-
charged, separated, or retired (including temporary 
disability retirement) from the uniformed services. 
‘‘(c) BONUS, INCENTIVE PAY, OR SIMILAR BENEFIT 
DEFINED.—In this section, the term ‘bonus, incentive 
pay, or similar benefit’ means a bonus, incentive pay, spe-
cial pay, or similar payment paid to a member of the uni-
formed services under this title or title 10. 
‘‘§ 373. Repayment of unearned portion of bonus, in-
centive pay, or similar benefit when con-
ditions of payment not met 
‘‘(a) REPAYMENT.—Except as provided in subsection 
(b), a member of the uniformed services who is paid a 
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bonus, incentive pay, or similar benefit, the receipt of 
which is contingent upon the member’s satisfaction of cer-
tain service or eligibility requirements, shall repay to the 
United States any unearned portion of the bonus, incen-
tive pay, or similar benefit if the member fails to satisfy 
any such service or eligibility requirement. 
‘‘(b) EXCEPTIONS.—The regulations prescribed to 
administer this section may specify procedures for deter-
mining the circumstances under which an exception to the 
required repayment may be granted. 
‘‘(c) EFFECT OF BANKRUPTCY.—An obligation to 
repay the United States under this section is, for all pur-
poses, a debt owed the United States. A discharge in bank-
ruptcy under title 11 does not discharge a person from 
such debt if the discharge order is entered less than five 
years after— 
‘‘(1) the date of the termination of the agree-
ment or contract on which the debt is based; or 
‘‘(2) in the absence of such an agreement or 
contract, the date of the termination of the service 
on which the debt is based. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) The term ‘bonus, incentive pay, or similar 
benefit’ means a bonus, incentive pay, special pay, or 
similar payment, or an educational benefit or sti-
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425 
pend, paid to a member of the uniformed services 
under a provision of law that refers to the repay-
ment requirements of this section or section 303a(e) 
of this title. 
‘‘(2) The term ‘service’, as used in subsection 
(c)(2), refers to an obligation willingly undertaken 
by a member of the uniformed services, in exchange 
for a bonus, incentive pay, or similar benefit offered 
by the Secretary concerned— 
‘‘(A) to a member in a regular or reserve 
component who remains on active duty or in an 
active status; 
‘‘(B) to perform duty in a specified skill, 
with or without a specified qualification or cre-
dential; 
‘‘(C) to perform duty in a specified assign-
ment, location or unit; or 
‘‘(D) to perform duty for a specified period 
of time. 
‘‘§ 374. Regulations 
‘‘This subchapter and subchapter II shall be adminis-
tered under regulations prescribed by— 
‘‘(1) the Secretary of Defense, with respect to 
the armed forces under the jurisdiction of the Sec-
retary of Defense; 
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‘‘(2) the Secretary of Homeland Security, with 
respect to the Coast Guard when it is not operating 
as a service in the Navy; 
‘‘(3) the Secretary of Health and Human Serv-
ices, with respect to the commissioned corps of the 
Public Health Service; and 
‘‘(4) the Secretary of Commerce, with respect 
to the National Oceanic and Atmospheric Adminis-
tration.’’. 
(b) TRANSFER OF 15-YEAR CAREER STATUS BONUS 
TO SUBCHAPTER II.— 
(1) TRANSFER.—Section 322 of title 37, United 
States Code, is transferred to appear after section 
353 of subchapter II of chapter 5 of such title, as 
added by subsection (a), and is redesignated as sec-
tion 354. 
(2) CONFORMING AMENDMENT.—Subsection (f) 
of such section, as so transferred and redesignated, 
is amended by striking ‘‘section 303a(e)’’ and insert-
ing ‘‘section 373’’. 
(3) CROSS
REFERENCES.—Sections 1401a, 
1409(b)(2), and 1410 of title 10, United States 
Code, are amended by striking ‘‘section 322’’ each 
place it appears and inserting ‘‘section 322 (as in ef-
fect before the enactment of the National Defense 
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Authorization Act for Fiscal Year 2008) or section 
354’’. 
(c) TRANSFER
OF RETENTION INCENTIVES
FOR 
MEMBERS QUALIFIED IN CRITICAL MILITARY SKILLS OR 
ASSIGNED TO HIGH PRIORITY UNITS.— 
(1) TRANSFER.—Section 323 of title 37, United 
States Code, as amended by sections 614 and 622, 
is transferred to appear after section 354 of sub-
chapter II of chapter 5 of such title, as transferred 
and redesignated by subsection (b)(1), and is redes-
ignated as section 355. 
(2) CONFORMING AMENDMENT.—Subsection (g) 
of such section, as so transferred and redesignated, 
is amended by striking ‘‘section 303a(e)’’ and insert-
ing ‘‘section 373’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
at the beginning of chapter 5 of title 37, United States 
Code, is amended to read as follows: 
‘‘SUBCHAPTER I—EXISTING SPECIAL PAY, INCENTIVE PAY, AND BONUS 
AUTHORITIES 
‘‘Sec. 
‘‘301. Incentive pay: hazardous duty. 
‘‘301a. Incentive pay: aviation career. 
‘‘301b. Special pay: aviation career officers extending period of active duty. 
‘‘301c. Incentive pay: submarine duty. 
‘‘301d. Multiyear retention bonus: medical officers of the armed forces. 
‘‘301e. Multiyear retention bonus: dental officers of the armed forces. 
‘‘302. Special pay: medical officers of the armed forces. 
‘‘302a. Special pay: optometrists. 
‘‘302b. Special pay: dental officers of the armed forces. 
‘‘302c. Special pay: psychologists and nonphysician health care providers. 
‘‘302d. Special pay: accession bonus for registered nurses. 
‘‘302e. Special pay: nurse anesthetists. 
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‘‘302f. Special pay: reserve, recalled, or retained health care officers. 
‘‘302g. Special pay: Selected Reserve health care professionals in critically short 
wartime specialties. 
‘‘302h. Special pay: accession bonus for dental officers. 
‘‘302i. Special pay: pharmacy officers. 
‘‘302j. Special pay: accession bonus for pharmacy officers. 
‘‘302k. Special pay: accession bonus for medical officers in critically short war-
time specialties. 
‘‘302l. Special pay: accession bonus for dental specialist officers in critically 
short wartime specialties. 
‘‘303. Special pay: veterinarians. 
‘‘303a. Special pay: general provisions. 
‘‘303b. Waiver of board certification requirements. 
‘‘304. Special pay: diving duty. 
‘‘305. Special pay: hardship duty pay. 
‘‘305a. Special pay: career sea pay. 
‘‘305b. Special pay: service as member of Weapons of Mass Destruction Civil 
Support Team. 
‘‘306. Special pay: officers holding positions of unusual responsibility and of 
critical nature. 
‘‘306a. Special pay: members assigned to international military headquarters. 
‘‘307. Special pay: special duty assignment pay for enlisted members. 
‘‘307a. Special pay: assignment incentive pay. 
‘‘308. Special pay: reenlistment bonus. 
‘‘308b. Special pay: reenlistment bonus for members of the Selected Reserve. 
‘‘308c. Special pay: bonus for affiliation or enlistment in the Selected Reserve. 
‘‘308d. Special pay: members of the Selected Reserve assigned to certain high 
priority units. 
‘‘308g. Special pay: bonus for enlistment in elements of the Ready Reserve other 
than the Selected Reserve. 
‘‘308h. Special pay: bonus for reenlistment, enlistment, or voluntary extension 
of enlistment in elements of the Ready Reserve other than the 
Selected Reserve. 
‘‘308i. Special pay: prior service enlistment bonus. 
‘‘308j. Special pay: affiliation bonus for officers in the Selected Reserve. 
‘‘309. Special pay: enlistment bonus. 
‘‘310. Special pay: duty subject to hostile fire or imminent danger. 
‘‘312. Special pay: nuclear-qualified officers extending period of active duty. 
‘‘312b. Special pay: nuclear career accession bonus. 
‘‘312c. Special pay: nuclear career annual incentive bonus. 
‘‘314. Special pay or bonus: qualified members extending duty at designated lo-
cations overseas. 
‘‘315. Special pay: engineering and scientific career continuation pay. 
‘‘316. Special pay: bonus for members with foreign language proficiency. 
‘‘317. Special pay: officers in critical acquisition positions extending period of 
active duty. 
‘‘318. Special pay: special warfare officers extending period of active duty. 
‘‘319. Special pay: surface warfare officer continuation pay. 
‘‘320. Incentive pay: career enlisted flyers. 
‘‘321. Special pay: judge advocate continuation pay. 
‘‘324. Special pay: accession bonus for new officers in critical skills. 
‘‘325. Incentive bonus: savings plan for education expenses and other contin-
gencies. 
‘‘326. Incentive bonus: conversion to military occupational specialty to ease per-
sonnel shortage. 
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429 
‘‘327. Incentive bonus: transfer between armed forces. 
‘‘328. Combat-related injury rehabilitation pay. 
‘‘329. Incentive bonus: retired members and reserve component members volun-
teering for high-demand, low-density assignments. 
‘‘330. Special pay: accession bonus for officer candidates. 
‘‘SUBCHAPTER II—CONSOLIDATION OF SPECIAL PAY, INCENTIVE PAY, AND 
BONUS AUTHORITIES 
‘‘331. General bonus authority for enlisted members. 
‘‘332. General bonus authority for officers. 
‘‘333. Special bonus and incentive pay authorities for nuclear officers. 
‘‘334. Special aviation incentive pay and bonus authorities for officers. 
‘‘335. Special bonus and incentive pay authorities for officers in health profes-
sions. 
‘‘351. Hazardous duty pay. 
‘‘352. Assignment pay or special duty pay. 
‘‘353. Skill incentive pay or proficiency bonus. 
‘‘354. Special pay: 15-year career status bonus for members entering service on 
or after August 1, 1986. 
‘‘355. Special pay: retention incentives for members qualified in critical military 
skills or assigned to high priority units. 
‘‘SUBCHAPTER III—GENERAL PROVISIONS 
‘‘371. Relationship to other incentives and pays. 
‘‘372. Continuation of pays during hospitalization and rehabilitation resulting 
from wounds, injury, or illness incurred while on duty in a hos-
tile fire area or exposed to an event of hostile fire or other hos-
tile action. 
‘‘373. Repayment of unearned portion of bonus, incentive pay, or similar benefit 
when conditions of payment not met. 
‘‘374. Regulations.’’. 
SEC. 662. TRANSITIONAL PROVISIONS. 
(a) IMPLEMENTATION PLAN.— 
(1) DEVELOPMENT.—The Secretary of Defense 
shall develop a plan to implement subchapters II 
and III of chapter 5 of title 37, United States Code, 
as added by section 661(a), and to correspondingly 
transition all of the special and incentive pay pro-
grams for members of the uniformed services solely 
to provisions of such subchapters. 
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430 
(2) SUBMISSION.—Not later than one year after 
the date of the enactment of this Act, the Secretary 
shall submit the implementation plan to the congres-
sional defense committees. 
(b) TRANSITION PERIOD.—During a transition pe-
riod of not more than 10 years beginning on the date of 
the enactment of this Act, the Secretary of Defense, the 
Secretary of a military department, and the Secretaries 
referred to in subsection (d) may continue to use the au-
thorities in provisions in subchapter I of chapter 5 of title 
37, United States Code, as designated by section 661(a), 
but subject to the terms of such provisions and such modi-
fications as the Secretary of Defense may include in the 
implementation plan, to provide bonuses and special and 
incentive pays for members of the uniformed services. 
(c) NOTICE OF IMPLEMENTATION OF NEW AUTHORI-
TIES.—Not less than 30 days before the date on which 
a special pay or bonus authority provided under sub-
chapter II of chapter 5 of title 37, United States Code, 
as added by section 661(a), is first utilized, the Secretary 
of Defense shall submit to the congressional defense com-
mittees a notice of the implementation of the authority, 
including whether, as a result of implementation of the 
authority, a corresponding authority in subchapter I of 
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431 
such chapter, as designated by section 661(a), will no 
longer be used. 
(d) COORDINATION.—The Secretary of Defense shall 
prepare the implementation plan in coordination with— 
(1) the Secretary of Homeland Security, with 
respect to the Coast Guard; 
(2) the Secretary of Health and Human Serv-
ices, 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 Administra-
tion. 
(e) NO EFFECT ON FISCAL YEAR 2008 OBLIGA-
TIONS.—During fiscal year 2008, obligations incurred 
under subchapters I, II, and III of chapter 5 of title 37, 
United States Code, as amended by section 661, to provide 
bonuses, incentive pays, special pays, and similar pay-
ments to members of the uniformed services under such 
subchapters may not exceed the obligations that would be 
incurred in the absence of the amendments made by such 
section. 
Subtitle G—Other Matters 
SEC. 671. REFERRAL BONUS AUTHORITIES. 
(a) CODIFICATION AND MODIFICATION OF ARMY RE-
FERRAL BONUS AUTHORITY.— 
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432 
(1) ARMY REFERRAL BONUS.—Chapter 333 of 
title 10, United States Code, is amended by insert-
ing after section 3251 the following new section: 
‘‘§ 3252. Bonus to encourage Army personnel to refer 
persons for enlistment in the Army 
‘‘(a) AUTHORITY TO PAY BONUS.— 
‘‘(1) AUTHORITY.—The Secretary of the Army 
may pay a bonus under this section to an individual 
referred to in paragraph (2) who refers to an Army 
recruiter a person who has not previously served in 
an armed force and who, after such referral, enlists 
in the regular component of the Army or in the 
Army National Guard or Army Reserve. 
‘‘(2) INDIVIDUALS ELIGIBLE FOR BONUS.—Sub-
ject to subsection (c), the following individuals are 
eligible for a referral bonus under this section: 
‘‘(A) A member in the regular component 
of the Army. 
‘‘(B) A member of the Army National 
Guard. 
‘‘(C) A member of the Army Reserve. 
‘‘(D) A member of the Army in a retired 
status, including a member under 60 years of 
age who, but for age, would be eligible for re-
tired pay. 
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‘‘(E) A civilian employee of the Depart-
ment of the Army. 
‘‘(b) REFERRAL.—For purposes of this section, a re-
ferral for which a bonus may be paid under subsection 
(a) occurs— 
‘‘(1) when the individual concerned contacts an 
Army recruiter on behalf of a person interested in 
enlisting in the Army; or 
‘‘(2) when a person interested in enlisting in 
the Army contacts the Army recruiter and informs 
the recruiter of the role of the individual concerned 
in initially recruiting the person. 
‘‘(c) CERTAIN REFERRALS INELIGIBLE.— 
‘‘(1) REFERRAL
OF
IMMEDIATE
FAMILY.—A 
member of the Army or civilian employee of the De-
partment of the Army may not be paid a bonus 
under subsection (a) for the referral of an immediate 
family member. 
‘‘(2) MEMBERS
IN
RECRUITING
ROLES.—A 
member of the Army or civilian employee of the De-
partment of the Army serving in a recruiting or re-
tention assignment, or assigned to other duties re-
garding which eligibility for a bonus under sub-
section (a) could (as determined by the Secretary) be 
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435 
‘‘(g) COORDINATION WITH RECEIPT OF RETIRED 
PAY.—A bonus paid under this section to a member of 
the Army in a retired status is in addition to any com-
pensation to which the member is entitled under this title, 
title 37 or 38, or any other provision of law. 
‘‘(h) DURATION OF AUTHORITY.—A bonus may not 
be paid under subsection (a) with respect to any referral 
that occurs after December 31, 2008.’’. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting after the item relating to section 3251 
the following new item: 
‘‘3252. Bonus to encourage Army personnel to refer persons for enlistment in 
the Army.’’. 
(b) BONUS FOR REFERRAL OF PERSONS FOR AP-
POINTMENT AS OFFICERS TO SERVE IN HEALTH PRO-
FESSIONS.— 
(1) 
HEALTH
PROFESSIONS
REFERRAL 
BONUS.—Chapter 53 of such title is amended by in-
serting before section 1031 the following new sec-
tion: 
‘‘§ 1030. Bonus to encourage Department of Defense 
personnel to refer persons for appoint-
ment as officers to serve in health profes-
sions 
‘‘(a) AUTHORITY TO PAY BONUS.— 
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436 
‘‘(1) AUTHORITY.—The Secretary of Defense 
may authorize the appropriate Secretary to pay a 
bonus under this section to an individual referred to 
in paragraph (2) who refers to a military recruiter 
a person who has not previously served in an armed 
force and, after such referral, takes an oath of en-
listment that leads to appointment as a commis-
sioned officer, or accepts an appointment as a com-
missioned officer, in an armed force in a health pro-
fession designated by the appropriate Secretary for 
purposes of this section. 
‘‘(2) INDIVIDUALS ELIGIBLE FOR BONUS.—Sub-
ject to subsection (c), the following individuals are 
eligible for a referral bonus under this section: 
‘‘(A) A member of the armed forces in a 
regular component of the armed forces. 
‘‘(B) A member of the armed forces in a 
reserve component of the armed forces. 
‘‘(C) A member of the armed forces in a 
retired status, including a member under 60 
years of age who, but for age, would be eligible 
for retired or retainer pay. 
‘‘(D) A civilian employee of a military de-
partment or the Department of Defense. 
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437 
‘‘(b) REFERRAL.—For purposes of this section, a re-
ferral for which a bonus may be paid under subsection 
(a) occurs— 
‘‘(1) when the individual concerned contacts a 
military recruiter on behalf of a person interested in 
taking an oath of enlistment that leads to appoint-
ment as a commissioned officer, or accepting an ap-
pointment as a commissioned officer, as applicable, 
in an armed force in a health profession; or 
‘‘(2) when a person interested in taking an oath 
of enlistment that leads to appointment as a com-
missioned officer, or accepting an appointment as a 
commissioned officer, as applicable, in an armed 
force in a health profession contacts a military re-
cruiter and informs the recruiter of the role of the 
individual concerned in initially recruiting the per-
son. 
‘‘(c) CERTAIN REFERRALS INELIGIBLE.— 
‘‘(1) REFERRAL
OF
IMMEDIATE
FAMILY.—A 
member of the armed forces or civilian employee of 
a military department or the Department of Defense 
may not be paid a bonus under subsection (a) for 
the referral of an immediate family member. 
‘‘(2) MEMBERS
IN
RECRUITING
ROLES.—A 
member of the armed forces or civilian employee of 
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438 
a military department or the Department of Defense 
serving in a recruiting or retention assignment, or 
assigned to other duties regarding which eligibility 
for a bonus under subsection (a) could (as deter-
mined by the appropriate Secretary) be perceived as 
creating a conflict of interest, may not be paid a 
bonus under subsection (a). 
‘‘(3) JUNIOR
RESERVE
OFFICERS’ TRAINING 
CORPS
INSTRUCTORS.—A member of the armed 
forces detailed under subsection (c)(1) of section 
2031 of this title to serve as an administrator or in-
structor in the Junior Reserve Officers’ Training 
Corps program or a retired member of the armed 
forces employed as an administrator or instructor in 
the program under subsection (d) of such section 
may not be paid a bonus under subsection (a). 
‘‘(d) AMOUNT OF BONUS.—The amount of the bonus 
payable for a referral under subsection (a) may not exceed 
$2,000. The amount shall be payable as provided in sub-
section (e). 
‘‘(e) PAYMENT.—A bonus payable for a referral of 
a person under subsection (a) shall be paid as follows: 
‘‘(1) Not more than $1,000 shall be paid upon 
the execution by the person of an agreement to serve 
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439 
as an officer in a health profession in an armed 
force for not less than 3 years, 
‘‘(2) Not more than $1,000 shall be paid upon 
the completion by the person of the initial period of 
military training as an officer. 
‘‘(f) RELATION TO PROHIBITION ON BOUNTIES.— 
The referral bonus authorized by this section is not a 
bounty for purposes of section 514(a) of this title. 
‘‘(g) COORDINATION WITH RECEIPT OF RETIRED 
PAY.—A bonus paid under this section to a member of 
the armed forces in a retired status is in addition to any 
compensation to which the member is entitled under this 
title, title 37 or 38, or any other provision of law. 
‘‘(h) APPROPRIATE SECRETARY DEFINED.—In this 
section, the term ‘appropriate Secretary’ means— 
‘‘(1) the Secretary of the Army, with respect to 
matters concerning the Army; 
‘‘(2) the Secretary of the Navy, with respect to 
matters concerning the Navy, the Marine Corps, and 
the Coast Guard when it is operating as a service in 
the Navy; 
‘‘(3) the Secretary of the Air Force, with re-
spect to matters concerning the Air Force; and 
‘‘(4) the Secretary of Defense, with respect to 
personnel of the Department of Defense. 
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440 
‘‘(i) DURATION OF AUTHORITY.—A bonus may not 
be paid under subsection (a) with respect to any referral 
that occurs after December 31, 2008.’’. 
(2) CLERICAL AMENDMENTS.—The table of sec-
tions at the beginning of such chapter is amended 
by inserting before the item relating to section 1031 
the following new item: 
‘‘1030. Bonus to encourage Department of Defense personnel to refer persons 
for appointment as officers to serve in health professions.’’. 
(c) REPEAL
OF
SUPERSEDED
ARMY
REFERRAL 
BONUS AUTHORITY.— 
(1) REPEAL.—Section 645 of the National De-
fense Authorization Act for Fiscal Year 2006 (Pub-
lic Law 109–163) is repealed. 
(2) PAYMENT
OF
BONUSES
UNDER
SUPER-
SEDED AUTHORITY.—Any bonus payable under sec-
tion 645 of the National Defense Authorization Act 
for Fiscal Year 2006, as in effect before its repeal 
by paragraph (1), shall remain payable after that 
date and shall be paid in accordance with the provi-
sions of such section, as in effect on the day before 
the date of the enactment of this Act. 
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SEC. 672. EXPANSION OF EDUCATION LOAN REPAYMENT 
PROGRAM FOR MEMBERS OF THE SELECTED 
RESERVE. 
(a) ADDITIONAL EDUCATIONAL LOANS ELIGIBLE 
FOR REPAYMENT.—Paragraph (1) of subsection (a) of 
section 16301 of title 10, United States Code, is amend-
ed— 
(1) by striking ‘‘or’’ at the end of subparagraph 
(B); 
(2) by striking the period at the end of sub-
paragraph (C) and inserting ‘‘; or’’; and 
(3) by inserting after subparagraph (C) the fol-
lowing new subparagraph: 
‘‘(D) any loan incurred for educational purposes 
made by a lender that is— 
‘‘(i) an agency or instrumentality of a 
State; 
‘‘(ii) a financial or credit institution (in-
cluding an insurance company) that is subject 
to examination and supervision by an agency of 
the United States or any State; 
‘‘(iii) a pension fund approved by the Sec-
retary for purposes of this section; or 
‘‘(iv) a nonprofit private entity designated 
by a State, regulated by that State, and ap-
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proved by the Secretary for purposes of this 
section.’’. 
(b) PARTICIPATION OF OFFICERS IN PROGRAM.— 
Such subsection is further amended— 
(1) in paragraph (2)— 
(A) by striking ‘‘Except as provided in 
paragraph (3), the Secretary’’ and inserting 
‘‘The Secretary’’; and 
(B) by striking ‘‘an enlisted member of the 
Selected Reserve of the Ready Reserve of an 
armed force in a reserve component and mili-
tary specialty’’ and inserting ‘‘a member of the 
Selected Reserve of the Ready Reserve of an 
armed force in a reserve component and in an 
officer program or military specialty’’; and 
(2) by striking paragraph (3). 
(c) CLERICAL AMENDMENTS.— 
(1) SECTION HEADING.—The heading of such 
section is amended to read as follows: 
‘‘§ 16301. Education loan repayment program: mem-
bers of Selected Reserve’’. 
(2) TABLE OF SECTIONS.—The table of sections 
at the beginning of chapter 1609 of such title is 
amended by striking the item relating to section 
16301 and inserting the following new item: 
‘‘16301. Education loan repayment program: members of Selected Reserve.’’. 
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SEC. 673. ENSURING ENTRY INTO UNITED STATES AFTER 
TIME ABROAD FOR PERMANENT RESIDENT 
ALIEN MILITARY SPOUSES AND CHILDREN. 
Section 284 of the Immigration and Nationality Act 
(8 U.S.C. 1354) is amended— 
(1) by striking ‘‘Nothing’’ and inserting ‘‘(a) 
Nothing’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) If a person lawfully admitted for permanent resi-
dence is the spouse or child of a member of the Armed 
Forces of the United States, is authorized to accompany 
the member and reside abroad with the member pursuant 
to the member’s official orders, and is so accompanying 
and residing with the member (in marital union if a 
spouse), then the residence and physical presence of the 
person abroad shall not be treated as— 
‘‘(1) an abandonment or relinquishment of law-
ful permanent resident status for purposes of clause 
(i) of section 101(a)(13)(C); or 
‘‘(2) an absence from the United States for 
purposes of clause (ii) of such section.’’. 
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SEC. 674. OVERSEAS NATURALIZATION FOR MILITARY 
SPOUSES AND CHILDREN. 
(a) SPOUSES.—Section 319 of the Immigration and 
Nationality Act (8 U.S.C. 1430) is amended by adding 
at the end the following new subsection: 
‘‘(e)(1) In the case of a person lawfully admitted for 
permanent residence in the United States who is the 
spouse of a member of the Armed Forces of the United 
States, is authorized to accompany such member and re-
side abroad with the member pursuant to the member’s 
official orders, and is so accompanying and residing with 
the member in marital union, such residence and physical 
presence abroad shall be treated, for purposes of sub-
section (a) and section 316(a), as residence and physical 
presence in— 
‘‘(A) the United States; and 
‘‘(B) any State or district of the Department of 
Homeland Security in the United States. 
‘‘(2) Notwithstanding any other provision of law, a 
spouse described in paragraph (1) shall be eligible for nat-
uralization proceedings overseas pursuant to section 
1701(d) of the National Defense Authorization Act for 
Fiscal Year 2004 (Public Law 108–136; 8 U.S.C. 
1443a).’’. 
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(b) CHILDREN.—Section 322 of the Immigration and 
Nationality Act (8 U.S.C. 1433) is amended by adding 
at the end the following new subsection: 
‘‘(d) In the case of a child of a member of the Armed 
Forces of the United States who is authorized to accom-
pany such member and reside abroad with the member 
pursuant to the member’s official orders, and is so accom-
panying and residing with the member— 
‘‘(1) any period of time during which the mem-
ber of the Armed Forces is residing abroad pursuant 
to official orders shall be treated, for purposes of 
subsection (a)(2)(A), as physical presence in the 
United States; 
‘‘(2) subsection (a)(5) shall not apply; and 
‘‘(3) the oath of allegiance described in sub-
section (b) may be subscribed to abroad pursuant to 
section 1701(d) of the National Defense Authoriza-
tion Act for Fiscal Year 2004 (Public Law 108–136; 
8 U.S.C. 1443a).’’. 
(c) OVERSEAS NATURALIZATION AUTHORITY.—Sec-
tion 1701(d) of the National Defense Authorization Act 
for Fiscal Year 2004 (Public Law 108–136; 8 U.S.C. 
1443a) is amended— 
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(1) in the subsection heading, by inserting 
‘‘AND
THEIR
SPOUSES
AND
CHILDREN’’ after 
‘‘FORCES’’; and 
(2) by inserting ‘‘, and persons made eligible 
for naturalization by section 319(e) or 322(d) of 
such Act,’’ after ‘‘Armed Forces’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall take effect on the date of enactment of 
this Act and apply to any application for naturalization 
or issuance of a certificate of citizenship pending on or 
after such date. 
SEC. 675. MODIFICATION OF AMOUNT OF BACK PAY FOR 
MEMBERS OF NAVY AND MARINE CORPS SE-
LECTED FOR PROMOTION WHILE INTERNED 
AS PRISONERS OF WAR DURING WORLD WAR 
II TO TAKE INTO ACCOUNT CHANGES IN CON-
SUMER PRICE INDEX. 
(a) MODIFICATION.—Section 667(c) of the Floyd D. 
Spence National Defense Authorization Act for Fiscal 
Year 2001 (as enacted into law by Public Law 106–398; 
114 Stat. 1654A–170) is amended by adding at the end 
the following new paragraph: 
‘‘(3) The amount determined for a person under 
paragraph (1) shall be increased to reflect increases in 
cost of living since the basic pay referred to in paragraph 
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(1)(B) was paid to or for that person, calculated on the 
basis of the Consumer Price Index (all items—United 
States city average) published monthly by the Bureau of 
Labor Statistics.’’. 
(b) RECALCULATION OF PREVIOUS PAYMENTS.—In 
the case of any payment of back pay made to or for a 
person under section 667 of the Floyd D. Spence National 
Defense Authorization Act for Fiscal Year 2001 before the 
date of the enactment of this Act, the Secretary of the 
Navy shall— 
(1) recalculate the amount of back pay to which 
the person is entitled by reason of the amendment 
made by subsection (a); and 
(2) if the amount of back pay, as so recal-
culated, exceeds the amount of back pay so paid, pay 
the person, or the surviving spouse of the person, an 
amount equal to the excess. 
TITLE VII—HEALTH CARE 
PROVISIONS 
Subtitle A—Improvements to Military Health Benefits 
Sec. 701. One-year extension of prohibition on increases in certain health care 
costs for members of the uniformed services. 
Sec. 702. Temporary prohibition on increase in copayments under retail phar-
macy system of pharmacy benefits program. 
Sec. 703. Inclusion of TRICARE retail pharmacy program in Federal procure-
ment of pharmaceuticals. 
Sec. 704. Stipend for members of reserve components for health care for cer-
tain dependents. 
Sec. 705. Authority for expansion of persons eligible for continued health bene-
fits coverage. 
Sec. 706. Continuation of eligibility for TRICARE Standard coverage for cer-
tain members of the Selected Reserve. 
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448 
Sec. 707. Extension of pilot program for health care delivery. 
Sec. 708. Inclusion of mental health care in definition of health care and report 
on mental health care services. 
Subtitle B—Studies and Reports 
Sec. 711. Surveys on continued viability of TRICARE Standard and TRICARE 
Extra. 
Sec. 712. Report on training in preservation of remains under combat or com-
bat-related conditions. 
Sec. 713. Report on patient satisfaction surveys. 
Sec. 714. Report on medical physical examinations of members of the Armed 
Forces before their deployment. 
Sec. 715. Report and study on multiple vaccinations of members of the Armed 
Forces. 
Sec. 716. Review of gender- and ethnic group-specific mental health services 
and treatment for members of the Armed Forces. 
Sec. 717. Licensed mental health counselors and the TRICARE program. 
Sec. 718. Report on funding of the Department of Defense for health care. 
Subtitle C—Other Matters 
Sec. 721. Prohibition on conversion of military medical and dental positions to 
civilian medical and dental positions. 
Sec. 722. Establishment of Joint Pathology Center. 
Subtitle A—Improvements to 
Military Health Benefits 
SEC. 701. ONE-YEAR EXTENSION OF PROHIBITION ON IN-
CREASES IN CERTAIN HEALTH CARE COSTS 
FOR MEMBERS OF THE UNIFORMED SERV-
ICES. 
(a) CHARGES UNDER CONTRACTS
FOR MEDICAL 
CARE.—Section 1097(e) of title 10, United States Code, 
is amended by striking ‘‘September 30, 2007’’ and insert-
ing ‘‘September 30, 2008’’. 
(b) CHARGES
FOR
INPATIENT
CARE.—Section 
1086(b)(3) of such title is amended by striking ‘‘Sep-
tember 30, 2007.’’ and inserting ‘‘September 30, 2008’’. 
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(c) PREMIUMS UNDER TRICARE COVERAGE FOR 
CERTAIN MEMBERS IN THE SELECTED RESERVE.—Sec-
tion 1076d(d)(3) of such title is amended by striking 
‘‘September 30, 2007’’ and inserting ‘‘September 30, 
2008’’. 
SEC. 702. TEMPORARY PROHIBITION ON INCREASE IN CO-
PAYMENTS UNDER RETAIL PHARMACY SYS-
TEM OF PHARMACY BENEFITS PROGRAM. 
During the period beginning on October 1, 2007, and 
ending on September 30, 2008, the cost sharing require-
ments established under paragraph (6) of section 
1074g(a) of title 10, United States Code, for pharma-
ceutical agents available through retail pharmacies cov-
ered by paragraph (2)(E)(ii) of such section may not ex-
ceed amounts as follows: 
(1) In the case of generic agents, $3. 
(2) In the case of formulary agents, $9. 
(3) In the case of nonformulary agents, $22. 
SEC. 703. INCLUSION OF TRICARE RETAIL PHARMACY PRO-
GRAM IN FEDERAL PROCUREMENT OF PHAR-
MACEUTICALS. 
(a) IN GENERAL.—Section 1074g of title 10, United 
States Code, is amended— 
(1) by redesignating subsections (f) and (g) as 
subsections (g) and (h), respectively; and 
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(2) by inserting after subsection (e) the fol-
lowing new subsection (f): 
‘‘(f) PROCUREMENT
OF
PHARMACEUTICALS
BY 
TRICARE RETAIL PHARMACY PROGRAM.—With respect 
to any prescription filled on or after the date of the enact-
ment of the National Defense Authorization Act for Fiscal 
Year 2008, the TRICARE retail pharmacy program shall 
be treated as an element of the Department of Defense 
for purposes of the procurement of drugs by Federal agen-
cies under section 8126 of title 38 to the extent necessary 
to ensure that pharmaceuticals paid for by the Depart-
ment of Defense that are provided by pharmacies under 
the program to eligible covered beneficiaries under this 
section are subject to the pricing standards in such section 
8126.’’. 
(b) REGULATIONS.—The Secretary of Defense shall, 
after consultation with the other administering Secretaries 
under chapter 55 of title 10, United States Code, modify 
the regulations under subsection (h) of section 1074g of 
title 10, United States Code (as redesignated by sub-
section (a)(1) of this section), to implement the require-
ments of subsection (f) of section 1074g of title 10, United 
States Code (as amended by subsection (a)(2) of this sec-
tion). The Secretary shall so modify such regulations not 
later than December 31, 2007. 
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451 
SEC. 704. STIPEND FOR MEMBERS OF RESERVE COMPO-
NENTS FOR HEALTH CARE FOR CERTAIN DE-
PENDENTS. 
The Secretary of Defense may, pursuant to regula-
tions prescribed by the Secretary, pay a stipend to a mem-
ber of a reserve component of the Armed Forces who is 
called or ordered to active duty for a period of more than 
30 days for purposes of maintaining civilian health care 
coverage for a dependant whom the Secretary determines 
to possess a special health care need that would be best 
met by remaining in the member’s civilian health plan. In 
making such determination, the Secretary shall consider 
whether— 
(1) the dependent of the member was receiving 
treatment for the special health care need before the 
call or order to active duty of the member; and 
(2) the call or order to active duty would result 
in an interruption in treatment or a change in 
health care provider for such treatment. 
SEC. 705. AUTHORITY FOR EXPANSION OF PERSONS ELIGI-
BLE FOR CONTINUED HEALTH BENEFITS 
COVERAGE. 
(a) AUTHORITY TO SPECIFY ADDITIONAL ELIGIBLE 
PERSONS.—Subsection (b) of section 1078a of title 10, 
United States Code, is amended by adding at the end the 
following new paragraph: 
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