I
105TH CONGRESS
1ST SESSION
H. R. 2858
To provide for an increase in pay and allowances for members of the uni-
formed services for fiscal year 1998, to improve certain authorities relat-
ing to the pay and allowances and the health care of such members,
to authorize appropriations for fiscal year 1998 for military construction,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 6, 1997
Mr. RODRIGUEZ (for himself, Mr. EVERETT, Mr. FAZIO of California, Mr.
BONILLA, Mr. SMITH of Texas, and Mr. MATSUI) introduced the follow-
ing bill; which was referred to the Committee on National Security
A BILL
To provide for an increase in pay and allowances for mem-
bers of the uniformed services for fiscal year 1998, to
improve certain authorities relating to the pay and allow-
ances and the health care of such members, to authorize
appropriations for fiscal year 1998 for military construc-
tion, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; DEFINITION.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Military Readiness Act of 1997’’.
(b) CONGRESSIONAL
DEFENSE
COMMITTEE
DE-
FINED.—For purposes of this Act, the term ‘‘congres-
sional defense committees’’ means—
(1) the Committee on Armed Services and the
Committee on Appropriations of the Senate; and
(2) the Committee on National Security and the
Committee on Appropriations of the House of Rep-
resentatives.
TITLE I—COMPENSATION AND
OTHER PERSONNEL BENEFITS
Subtitle A—Pay and Allowances
SEC. 101. INCREASE IN BASIC PAY FOR FISCAL YEAR 1998.
(a) WAIVER OF SECTION 1009 ADJUSTMENT.—The
adjustment, to become effective during fiscal year 1998,
required by section 1009 of title 37, United States Code
(as amended by section 104), in the rate of monthly basic
pay authorized members of the uniformed services by sec-
tion 203(a) of such title shall not be made.
(b) INCREASE IN BASIC PAY.—Effective on January
1, 1998, the rates of basic pay of members of the uni-
formed services are increased by 2.8 percent.
SEC. 102. REFORM OF BASIC ALLOWANCE FOR SUBSIST-
ENCE.
(a) ENTITLEMENT TO ALLOWANCE.—Section 402 of
title 37, United States Code, is amended to read as fol-
lows:
‘‘§ 402. Basic allowance for subsistence
‘‘(a) ENTITLEMENT TO ALLOWANCE.—(1) Except as
provided in paragraph (2) or otherwise provided by law,
each member of a uniformed service who is entitled to
basic pay is entitled to a basic allowance for subsistence
as set forth in this section.
‘‘(2) An enlisted member is not entitled to the basic
allowance for subsistence during basic training.
‘‘(b) RATES
OF
ALLOWANCE
BASED
ON
FOOD
COSTS.—(1) The monthly rate of basic allowance for sub-
sistence to be in effect for an enlisted member for a year
(beginning on January 1 of that year) shall be the amount
that is halfway between the following amounts, which are
determined by the Secretary of Agriculture as of October
1 of the preceding year:
‘‘(A) The amount equal to the monthly cost of
a moderate-cost food plan for a male in the United
States who is between 20 and 50 years of age.
‘‘(B) The amount equal to the monthly cost of
a liberal food plan for a male in the United States
who is between 20 and 50 years of age.
‘‘(2) The monthly rate of basic allowance for subsist-
ence to be in effect for an officer for a year (beginning
on January 1 of that year) shall be the amount equal to
the monthly rate of basic allowance for subsistence in ef-
fect for officers for the preceding year, increased by the
same percentage by which the rate of basic allowance for
subsistence for enlisted members for the preceding year
is increased effective on such January 1.
‘‘(c) ADVANCE PAYMENT.—The allowance to an en-
listed member may be paid in advance for a period of not
more than three months.
‘‘(d) SPECIAL RULE FOR MEMBERS AUTHORIZED TO
MESS SEPARATELY.—(1) In areas prescribed by the Sec-
retary of Defense, and the Secretary of Transportation
with respect to the Coast Guard when it is not operating
as a service in the Navy, an enlisted member described
in paragraph (2) is entitled to not more than the pro rata
allowance established under subsection (b)(1) for each
meal the member buys from a source other than a messing
facility of the United States.
‘‘(2) An enlisted member referred to in paragraph (1)
is a member who is granted permission to mess separately
and whose duties require the member to buy at least one
meal from a source other than a messing facility of the
United States.
‘‘(e) POLICIES ON USE OF DINING AND MESSING FA-
CILITIES.—The Secretary of Defense, in consultation with
the Secretaries concerned, shall prescribe policies regard-
ing use of dining and field messing facilities of the uni-
formed services.
‘‘(f) REGULATIONS.—(1) The Secretary of Defense
shall prescribe regulations for the administration of this
section. Before prescribing the regulations, the Secretary
shall consult with each Secretary concerned.
‘‘(2) The regulations shall include the specific rates
of basic allowance for subsistence required by subsection
(b).’’.
(b) CONFORMING AMENDMENTS.—(1) Section 404 of
title 37, United States Code, is amended—
(A) by striking out subsection (g); and
(B) by redesignating subsections (h), (i), (j),
and (k) as subsections (g), (h), (i), and (j), respec-
tively.
(2) Section 6081(a) of title 10, United States Code,
is amended by striking out ‘‘Except’’ and all that follows
through ‘‘subsistence, each’’ and inserting in lieu thereof
‘‘Each’’.
(c) TRANSITIONAL AUTHORITY TO PROVIDE BASIC
ALLOWANCE FOR SUBSISTENCE.—
(1) TRANSITIONAL AUTHORITY.—Notwithstand-
ing section 402 of title 37, United States Code, as
amended by subsection (a), during the period begin-
ning on January 1, 1998, and ending on the date
determined under paragraph (2)—
(A) the basic allowance for subsistence
shall not be paid under such section 402;
(B) a member of the uniformed services is
entitled to the basic allowance for subsistence
only as provided in subsection (d);
(C) an enlisted member of the uniformed
services may be paid a partial basic allowance
for subsistence as provided in subsection (e);
and
(D) the rates of the basic allowance for
subsistence are those rates determined under
subsection (f).
(2) TERMINATION OF TRANSITIONAL AUTHOR-
ITY.—The transitional authority provided under
paragraph (1) shall terminate on the first day of the
month immediately following the first month for
which the monthly equivalent of the rate of basic al-
lowance for subsistence payable to enlisted members
of the uniformed services (when permission to mess
separately is granted), as determined under sub-
section (f)(2), is equal to or is exceeded by the
amount that, except for paragraph (1)(A), would
otherwise be the monthly rate of basic allowance for
subsistence for enlisted members under section
402(b)(1) of title 37, United States Code, as amend-
ed by subsection (a).
(d) TRANSITIONAL
ENTITLEMENT
TO
ALLOW-
ANCE.—
(1) ENLISTED MEMBERS.—
(A) TYPES
OF
ENTITLEMENT.—An en-
listed member is entitled to the basic allowance
for subsistence, on a daily basis, of under one
or more of the following circumstances:
(i) When rations in kind are not avail-
able.
(ii) When permission to mess sepa-
rately is granted.
(iii) When assigned to duty under
emergency conditions where no messing fa-
cilities of the United States are available.
(B) 
OTHER
ENTITLEMENT
CIR-
CUMSTANCES.—An enlisted member is entitled
to the allowance while on an authorized leave of
absence, while confined in a hospital, or while
performing travel under orders away from the
member’s designated post of duty other than
field duty or sea duty (as defined in regulations
prescribed by the Secretary of Defense). For
purposes of the preceding sentence, a member
shall not be considered to be performing travel
under orders away from his designated post of
duty if such member—
(i) is an enlisted member serving the
member’s first tour of active duty;
(ii) has not actually reported to a per-
manent duty station pursuant to orders di-
recting such assignment; and
(iii) is not actually traveling between
stations pursuant to orders directing a
change of station.
(C) ADVANCE
PAYMENT.—The allowance
to an enlisted member, when authorized, may
be paid in advance for a period of not more
than three months.
(2) OFFICERS.—An officer of a uniformed serv-
ice who is entitled to basic pay is, at all times, enti-
tled to the basic allowances for subsistence. An avia-
tion cadet of the Navy, Air Force, Marine Corps, or
Coast Guard is entitled to the same basic allowance
for subsistence as is provided for an officer of the
Navy, Air Force, Marine Corps, or Coast Guard, re-
spectively.
(e) TRANSITIONAL AUTHORITY FOR PARTIAL AL-
LOWANCE.—
(1) ENLISTED MEMBERS FURNISHED SUBSIST-
ENCE IN KIND.—The Secretary of Defense may pro-
vide in regulations for an enlisted member of a uni-
formed service to be paid a partial basic allowance
for subsistence when—
(A) rations in kind are available to the
member;
(B) the member is not granted permission
to mess separately; or
(C) the member is assigned to duty under
emergency conditions where messing facilities of
the United States are available.
(2) MONTHLY PAYMENT.—Any partial basic al-
lowance for subsistence authorized under paragraph
(1) shall be calculated on a daily basis and paid on
a monthly basis.
(f) TRANSITIONAL RATES.—
(1) ALLOWANCE FOR OFFICERS.—The monthly
rate of basic allowance for subsistence for a year
(beginning on January 1 of that year) that is pay-
able to officers of the uniformed services shall be the
amount that is equal to 101 percent of the rate of
basic allowance for subsistence that was payable to
officers of the uniformed services for the preceding
year.
(2) ALLOWANCE FOR ENLISTED MEMBER WITH
PERMISSION TO MESS SEPARATELY.—The monthly
rate of basic allowance for subsistence for a year
(beginning on January 1 of that year) that is pay-
able to an enlisted member of the uniformed services
entitled to the allowance under subsection (d)(1)
shall be the amount that is equal to 101 percent of
the rate of basic allowance for subsistence that was
in effect for similarly situated enlisted members of
the uniformed services for the preceding year.
(3) PARTIAL
ALLOWANCE
FOR
OTHER
EN-
LISTED MEMBERS.—The monthly rate of any partial
basic allowance for subsistence for a year (beginning
on January 1 of that year) payable to an enlisted
member of the uniformed services eligible for the al-
lowance under the regulations prescribed under sub-
section (e)(1) shall be the amount equal to the lesser
of the following:
(A) The sum of—
(i) the partial basic allowance for sub-
sistence in effect for the preceding year;
and
(ii) the amount equal to the dif-
ference, if any, between—
(I) the monthly equivalent of the
rate of basic allowance for subsistence
that was in effect for the preceding
year for members of the uniformed
services above grade E–1 (when per-
mission to mess separately is grant-
ed), increased by the same percentage
by which the rates of basic pay for
members of the uniformed services is
increased for the current year; and
(II) the amount equal to 101 per-
cent of the monthly equivalent of the
rate of basic allowance for subsistence
that was in effect for the previous
year for members of the uniformed
services above grade E–1 (when per-
mission to mess separately is grant-
ed),
with the amount so determined under this
clause multiplied by the number of mem-
‘‘(b) BASIC ALLOWANCE FOR HOUSING INSIDE THE
UNITED STATES.—(1) The Secretary of Defense shall de-
termine the costs of adequate housing in a military hous-
ing area in the United States for all members of the uni-
formed services entitled to a basic allowance for housing
in that area. The Secretary shall base the determination
upon the costs of adequate housing for civilians with com-
parable income levels in the same area.
‘‘(2) Subject to paragraph (3), the monthly amount
of a basic allowance for housing for an area of the United
States for a member of a uniformed service is equal to
the difference between—
‘‘(A) the monthly cost of adequate housing in
that area, as determined by the Secretary of De-
fense, for members of the uniformed services serving
in the same pay grade and with the same depend-
ency status as the member; and
‘‘(B) 15 percent of the national average month-
ly cost of adequate housing in the United States, as
determined by the Secretary, for members of the
uniformed services serving in the same pay grade
and with the same dependency status as the mem-
ber.
‘‘(3) The rates of basic allowance for housing shall
be reduced as necessary to comply with this paragraph.
The total amount that may be paid for a fiscal year for
the basic allowance for housing under this subsection is
the product of—
‘‘(A) the total amount authorized to be paid for
such allowance for the preceding fiscal year (as ad-
justed under paragraph (5)); and
‘‘(B) a fraction—
‘‘(i) the numerator of which is the index of
the national average monthly cost of housing
for June of the preceding fiscal year; and
‘‘(ii) the denominator of which is the index
of the national average monthly cost of housing
for June of the fiscal year before the preceding
fiscal year.
‘‘(4) An adjustment in the rates of the basic allow-
ance for housing under this subsection as a result of the
Secretary’s redetermination of housing costs in an area
shall take effect on the same date as the effective date
of the next increase in basic pay under section 1009 of
this title or other provision of law.
‘‘(5) In making a determination under paragraph (3)
for a fiscal year, the amount authorized to be paid for
the preceding fiscal year for the basic allowance for hous-
ing shall be adjusted to reflect changes during the year
for which the determination is made in the number, grade
distribution, geographic distribution in the United States,
and dependency status of members of the uniformed serv-
ices entitled to the allowance from the number of such
members during the preceding fiscal year.
‘‘(6) So long as a member of a uniformed service re-
tains uninterrupted eligibility to receive a basic allowance
for housing within an area of the United States, the
monthly amount of the allowance for the member may not
be reduced as a result of changes in housing costs in the
area, changes in the national average monthly cost of
housing, or the promotion of the member.
‘‘(7) In the case of a member without dependents who
is assigned to duty inside the United States, the location
or the circumstances of which make it necessary that the
member be reassigned under the conditions of low cost or
no cost permanent change of station or permanent change
of assignment, the member may be treated as if the mem-
ber were not reassigned if the Secretary concerned deter-
mines that it would be inequitable to base the member’s
entitlement to, and amount of, a basic allowance for hous-
ing on the cost of housing in the area to which the member
is reassigned.
‘‘(c) BASIC ALLOWANCE FOR HOUSING OUTSIDE THE
UNITED STATES.—(1) The Secretary of Defense may pre-
scribe an overseas basic allowance for housing for a mem-
ber of a uniformed service who is on duty outside of the
United States. The Secretary shall establish the basic al-
lowance for housing under this subsection on the basis of
housing costs in the overseas area in which the member
is assigned.
‘‘(2) So long as a member of a uniformed service re-
tains uninterrupted eligibility to receive a basic allowance
for housing in an overseas area and the actual monthly
cost of housing for the member is not reduced, the month-
ly amount of the allowance in an area outside the United
States may not be reduced as a result of changes in hous-
ing costs in the area or the promotion of the member. The
monthly amount of the allowance may be adjusted to re-
flect changes in currency rates.
‘‘(d) BASIC ALLOWANCE FOR HOUSING WHEN DE-
PENDENTS ARE UNABLE TO ACCOMPANY MEMBER.—(1)
A member of a uniformed service with dependents who is
on permanent duty at a location described in paragraph
(2) is entitled to a family separation basic allowance for
housing under this subsection at a monthly rate equal to
the rate of the basic allowance for housing established
under subsection (b) or the overseas basic allowance for
housing established under subsection (c), whichever ap-
plies to that location, for members in the same grade at
that location without dependents.
‘‘(2) A permanent duty location referred to in para-
graph (1) is a location—
‘‘(A) to which the movement of the member’s
dependents is not authorized at the expense of the
United States under section 406 of this title, and
the member’s dependents do not reside at or near
the location; and
‘‘(B) at which quarters of the United States are
not available for assignment to the member.
‘‘(3) In the case of a member with dependents who
is assigned to duty at a location or under circumstances
that, as determined by the Secretary concerned, require
the member’s dependents to reside at a different location,
the member shall receive a basic allowance for housing,
as provided in subsection (a) or (b), as if the member were
assigned to duty in the area in which the dependents re-
side, regardless of whether the member resides in quarters
of the United States or is also entitled to a family separa-
tion basic allowance for housing by reason of paragraph
(1).
‘‘(4) The family separation basic allowance for hous-
ing under this subsection shall be in addition to any other
allowance or per diem that the member is otherwise enti-
tled to receive under this title. A member may receive a
basic allowance for housing under both paragraphs (1)
and (3).
‘‘(e) EFFECT OF ASSIGNMENT TO QUARTERS.—(1)
Except as otherwise provided by law, a member of a uni-
formed service who is assigned to quarters of the United
States or a housing facility under the jurisdiction of a uni-
formed service appropriate to the grade, rank, or rating
of the member and adequate for the member and depend-
ents of the member, if with dependents, is not entitled to
a basic allowance for housing.
‘‘(2) A member without dependents who is in a pay
grade above pay grade E–6 and who is assigned to quar-
ters in the United States or a housing facility under the
jurisdiction of a uniformed service, appropriate to the
grade or rank of the member and adequate for the mem-
ber, may elect not to occupy those quarters and instead
to receive the basic allowance for housing prescribed for
the member’s pay grade by this section.
‘‘(3) A member without dependents who is in pay
grade E–6 and who is assigned to quarters of the United
States that do not meet the minimum adequacy standards
established by the Secretary of Defense for members in
such pay grade, or to a housing facility under the jurisdic-
tion of a uniformed service that does not meet such stand-
ards, may elect not to occupy such quarters or facility and
instead to receive the basic allowance for housing pre-
scribed for the member’s pay grade under this section.
‘‘(4) The Secretary concerned may deny the right to
make an election under paragraph (2) or (3) if the Sec-
retary determines that the exercise of such an election
would adversely affect a training mission, military dis-
cipline, or military readiness.
‘‘(5) A member with dependents who is assigned to
quarters of the United States or a housing facility under
the jurisdiction of a uniformed service may be paid the
basic allowance for housing if, because of orders of com-
petent authority, the dependents are prevented from occu-
pying those quarters.
‘‘(f) INELIGIBILITY DURING INITIAL FIELD DUTY OR
SEA DUTY.—(1) A member of a uniformed service without
dependents who makes a permanent change of station for
assignment to a unit conducting field operations is not en-
titled to a basic allowance for housing while on that initial
field duty unless the commanding officer of the member
certifies that the member was necessarily required to pro-
cure quarters at the member’s expense.
‘‘(2)(A) Except as provided in subparagraphs (B)
and (C), a member of a uniformed service without depend-
ents who is in a pay grade below pay grade E–6 is not
entitled to a basic allowance for housing while the member
is on sea duty.
‘‘(B) Under regulations prescribed by the Secretary
concerned, the Secretary may authorize the payment of
a basic allowance for housing to a member of a uniformed
service without dependents who is serving in pay grade
E–5 and is assigned to sea duty. In prescribing regula-
tions under this subparagraph, the Secretary concerned
shall consider the availability of quarters for members
serving in pay grade E–5.
‘‘(C) Notwithstanding section 421 of this title, two
members of the uniformed services in a pay grade below
pay grade E–6 who are married to each other, have no
other dependents, and are simultaneously assigned to sea
duty are jointly entitled to one basic allowance for housing
during the period of such simultaneous sea duty. The
amount of the allowance shall be based on the without de-
pendents rate for the pay grade of the senior member of
the couple. However, this subparagraph shall not apply to
a couple if one or both of the members are entitled to
a basic allowance for housing under subparagraph (B).
‘‘(3) The Secretary of Defense, and the Secretary of
Transportation with respect to the Coast Guard when it
is not operating as a service in the Department of the
Navy, shall prescribe regulations defining the terms ‘field
duty’ and ‘sea duty’ for purposes of this section.
‘‘(g) RESERVE MEMBERS.—(1) A member of a re-
serve component without dependents who is called or or-
dered to active duty in support of a contingency operation,
or a retired member without dependents who is ordered
to active duty under section 688(a) of title 10 in support
of a contingency operation, may not be denied a basic al-
lowance for housing if, because of that call or order, the
member is unable to continue to occupy a residence—
‘‘(A) which is maintained as the primary resi-
dence of the member at the time of the call or order;
and
‘‘(B) which is owned by the member or for
which the member is responsible for rental pay-
ments.
‘‘(2) Paragraph (1) shall not apply if the member is
authorized transportation of household goods under sec-
tion 406 of this title as part of the call or order to active
duty described in such paragraph.
‘‘(3) The Secretary of Defense shall establish a rate
of basic allowance for housing to be paid to a member
of a reserve component while the member serves on active
duty under a call or order to active duty specifying a pe-
riod of less than 140 days, unless the call or order to ac-
tive duty is in support of a contingency operation.
‘‘(h) RENTAL
OF
PUBLIC
QUARTERS.—Notwith-
standing any other law (including those restricting the oc-
cupancy of housing facilities under the jurisdiction of a
department or agency of the United States by members,
and their dependents, of the armed forces above specified
grades, or by members, and their dependents, of the Na-
tional Oceanic and Atmospheric Administration and the
Public Health Service), a member of a uniformed service,
and the dependents of the member, may be accepted as
tenants in, and may occupy on a rental basis, any of those
housing facilities, other than public quarters constructed
or designated for assignment to an occupancy without
charge by such a member and the dependents of the mem-
ber, if any. Such a member may not, because of occupancy
under this subsection, be deprived of any money allowance
to which the member is otherwise entitled for the rental
of quarters.
‘‘(i) TEMPORARY HOUSING ALLOWANCE WHILE IN
TRAVEL OR LEAVE STATUS.—A member of a uniformed
service who is in a pay grade E–4 (4 or more years of
service) or above is entitled to a temporary basic allowance
for housing (at a rate determined by the Secretary of De-
fense) while the member is in a travel or leave status be-
tween permanent duty stations, including time granted as
delay en route or proceed time, when the member is not
assigned to quarters of the United States.
‘‘(j) AVIATION CADETS.—The eligibility of an avia-
tion cadet of the Navy, Air Force, Marine Corps, or Coast
Guard for a basic allowance for housing shall be deter-
mined as if the aviation cadet were a member of the uni-
formed services in pay grade E–4.
‘‘(k) ADMINISTRATION.—(1) The Secretary of De-
fense shall prescribe regulations for the administration of
this section.
‘‘(2) The Secretary concerned may make such deter-
minations as may be necessary to administer this section,
including determinations of dependency and relationship.
When warranted by the circumstances, the Secretary con-
cerned may reconsider and change or modify any such de-
termination. The authority of the Secretary concerned
under this subsection may be delegated. Any determina-
tion made under this section with regard to a member of
the uniformed services is final and is not subject to review
by any accounting officer of the United States or a court,
unless there is fraud or gross negligence.
‘‘(3) Parking facilities (including utility connections)
provided members of the uniformed services for house
trailers and mobile homes not owned by the Government
shall not be considered to be quarters for the purposes
of this section or any other provision of law. Any fees es-
tablished by the Government for the use of such a facility
shall be established in an amount sufficient to cover the
cost of maintenance, services, and utilities and to amortize
the cost of construction of the facility over the 25-year
period beginning with the completion of such construction.
‘‘(l) TEMPORARY CONTINUATION
OF ALLOWANCE
FOR DEPENDENTS
OF MEMBERS DYING
ON ACTIVE
DUTY.—(1) The Secretary of Defense, or the Secretary
of Transportation in the case of the Coast Guard when
not operating as a service in the Navy, may allow the de-
pendents of a member of the armed forces who dies on
active duty and whose dependents are occupying family
housing provided by the Department of Defense, or by the
Department of Transportation in the case of the Coast
Guard, other than on a rental basis on the date of the
member’s death to continue to occupy such housing with-
out charge for a period of 180 days.
‘‘(2) The Secretary concerned may pay a basic allow-
ance for housing (at the rate that is payable for members
of the same grade and dependency status as the deceased
member for the area where the dependents are residing)
to the dependents of a member of the uniformed services
who dies while on active duty and whose dependents—
‘‘(A) are not occupying a housing facility under
the jurisdiction of a uniformed service on the date
of the member’s death;
‘‘(B) are occupying such housing on a rental
basis on such date; or
‘‘(C) vacate such housing sooner than 180 days
after the date of the member’s death.
‘‘(3) The payment of the allowance under paragraph
(2) shall terminate 180 days after the date of the mem-
ber’s death.
‘‘(m) MEMBERS PAYING CHILD SUPPORT.—(1) A
member of a uniformed service with dependents may not
be paid a basic allowance for housing at the with depend-
ents rate solely by reason of the payment of child support
by the member if—
‘‘(A) the member is assigned to a housing facil-
ity under the jurisdiction of a uniformed service; or
‘‘(B) the member is assigned to sea duty, and
elects not to occupy assigned quarters for unaccom-
panied personnel, unless the member is in a pay
grade above E–4.
‘‘(2) A member of a uniformed service assigned to
quarters of the United States or a housing facility under
the jurisdiction of a uniformed service who is not other-
wise authorized a basic allowance for housing and who
pays child support is entitled to the basic allowance for
housing differential, except for months for which the
amount payable for the child support is less than the rate
of the differential. Payment of a basic allowance for hous-
ing differential does not affect any entitlement of the
member to a partial allowance for quarters under sub-
section (n).
‘‘(3) The basic allowance for housing differential to
which a member is entitled under paragraph (2) is the
amount equal to the difference between—
‘‘(A) the rate of the basic allowance for quar-
ters (with dependents) for the member’s pay grade,
as such rate was in effect on December 31, 1997,
under this section (as in effect on that date); and
‘‘(B) the rate of the basic allowance for quar-
ters (without dependents) for the member’s pay
grade, as such rate was in effect on December 31,
1997, under this section (as in effect on that date).
‘‘(4) Whenever the rates of basic pay for members
of the uniformed services are increased, the monthly
amount of the basic allowance for housing differential
computed under paragraph (3) shall be increased by the
average percentage increase in the rates of basic pay. The
effective date of the increase shall be the same date as
the effective date of the increase in the rates of basic pay.
‘‘(5) In the case of two members, who have one or
more common dependents (and no others), who are not
married to each other, and one of whom pays child support
to the other, the amount of the basic allowance for housing
paid to each member under this section shall be reduced
in accordance with regulations prescribed by the Secretary
of Defense. The total amount of the basic allowances for
housing paid to the two members may not exceed the sum
of the amounts of the allowance to which each member
would be otherwise entitled under this section.
‘‘(n) PARTIAL ALLOWANCE FOR MEMBERS WITHOUT
DEPENDENTS.—(1) A member of a uniformed service
without dependents who is not entitled to receive a basic
allowance for housing under subsection (b), (c), or (d) is
entitled to a partial basic allowance for housing at a rate
determined by the Secretary of Defense under paragraph
(2).
‘‘(2) The rate of the partial basic allowance for hous-
ing is the partial rate of the basic allowance for quarters
for the member’s pay grade as such partial rate was in
effect on December 31, 1997, under section 1009(c)(2)
of this title (as such section was in effect on such date).’’.
(b) TRANSITION TO BASIC ALLOWANCE FOR HOUS-
ING.—The Secretary of Defense shall develop and imple-
ment a plan to incrementally manage the rate of growth
of the various components of the basic allowance for hous-
ing authorized by section 403 of title 37, United States
Code (as amended by subsection (a)), during a transition
period of not more than six years. During the transition
period, the Secretary may continue to use the authorities
provided under sections 403, 403a, 405(b), and 427(a) of
title 37, United States Code (as in effect on the day before
the date of the enactment of this Act), but subject to such
modifications as the Secretary considers necessary, to pro-
vide allowances for members of the uniformed services.
(c) REPEAL
OF SUPERSEDED AUTHORITIES.—(1)
Section 403a of title 37, United States Code, is repealed.
(2) Section 405 of such title is amended—
(A) by striking out subsection (b); and
(B) by redesignating subsections (c) and (d) as
subsections (b) and (c), respectively.
(3) Section 427 of such title is amended—
(A) by striking out subsection (a); and
(B) in subsection (b)—
(i) by striking out ‘‘(b) ADDITIONAL
SEPARATION ALLOWANCE.—’’ and inserting in
lieu 
thereof 
‘‘(a) 
ENTITLEMENT
TO
ALLOWANCE.—’’;
(ii) in paragraph (1)—
(I) by striking out ‘‘, including sub-
section (a),’’ in the matter preceding the
subparagraphs;
(II) by inserting ‘‘or’’ at the end of
subparagraph (B);
(III) by striking out ‘‘; or’’ at the end
of subparagraph (C) and inserting in lieu
thereof a period; and
(IV) by striking out subparagraph
(D);
(iii) in paragraph (3)—
(I) by striking out ‘‘(3) An allowance’’
and inserting in lieu thereof ‘‘(b) ENTI-
TLEMENT
WHEN
NO
RESIDENCE
OR
HOUSEHOLD MAINTAINED FOR DEPEND-
ENTS.—An allowance’’; and
(II) by striking out ‘‘this subsection’’
and inserting in lieu thereof ‘‘subsection
(a)’’;
(iv) in paragraph (4)—
(I) by striking out ‘‘(4) A member’’
and inserting in lieu thereof ‘‘(c) EFFECT
OF ELECTION TO SERVE UNACCOMPANIED
TOUR OF DUTY.—A member’’; and
(A) in section 101(25), by striking out ‘‘basic
allowance for quarters (including any variable hous-
ing allowance or station housing allowance)’’ and in-
serting in lieu thereof ‘‘basic allowance for housing’’;
(B) in section 406(c), by striking out ‘‘sections
404 and 405’’ and inserting in lieu thereof ‘‘sections
403(c), 404, and 405’’;
(C) in section 420(c), by striking out ‘‘quar-
ters’’ and inserting in lieu thereof ‘‘housing’’;
(D) in section 551(3)(D), by striking out ‘‘basic
allowance for quarters’’ and inserting in lieu thereof
‘‘basic allowance for housing’’; and
(E) in section 1014(a), by striking out ‘‘basic
allowance for quarters’’ and inserting in lieu thereof
‘‘basic allowance for housing’’.
(2) Title 10, United States Code, is amended—
(A) in section 708(c)(1), by striking out ‘‘basic
allowance for quarters or basic allowance for subsist-
ence’’ and inserting in lieu thereof ‘‘basic allowance
for housing under section 403 of title 37, basic al-
lowance for subsistence under section 402 of such
title,’’;
(B) in section 2830(a)—
(i) in paragraph (1), by striking out ‘‘basic
allowance for quarters’’ and inserting in lieu
thereof ‘‘basic allowance for housing under sec-
tion 403 of title 37’’; and
(ii) in paragraph (2), by striking out
‘‘basic allowance for quarters’’ and inserting in
lieu thereof ‘‘basic allowance for housing’’;
(C) in section 2882(b)—
(i) in paragraph (1), by striking out ‘‘sec-
tion 403(b)’’ and inserting in lieu thereof ‘‘sec-
tion 403’’; and
(ii) in paragraph (2), by striking out
‘‘basic allowance for quarters’’ and all that fol-
lows through the end of the paragraph and in-
serting in lieu thereof ‘‘basic allowance for
housing under section 403 of title 37.’’;
(D) in section 7572(b)—
(i) in paragraph (1), by striking out ‘‘the
total of—’’ and all that follows through the end
of the paragraph and inserting in lieu thereof
‘‘the basic allowance for housing payable under
section 403 of title 37 to a member of the same
pay grade without dependents for the period
during which the member is deprived of quar-
ters on board ship.’’; and
(ii) in paragraph (2), by striking out
‘‘basic allowance for quarters’’ and inserting in
lieu thereof ‘‘basic allowance for housing’’; and
(E) in section 7573, by striking out ‘‘basic al-
lowance for quarters’’ and inserting in lieu thereof
‘‘basic allowance for housing under section 403 of
title 37’’.
(3) Section 5561(6)(D) of title 5, United States
Code, is amended by striking out ‘‘basic allowance for
quarters’’ and inserting in lieu thereof ‘‘basic allowance
for housing’’.
(4) Section 107(b) of title 32, United States Code,
is amended by striking out ‘‘and quarters’’ and inserting
in lieu thereof ‘‘and housing’’.
(5) Section 4(k)(10) of the Military Selective Service
Act (50 U.S.C. App. 454(k)(10)) is amended by striking
out ‘‘as such terms’’ and all that follows through ‘‘ex-
tended or amended’’ and inserting in lieu thereof ‘‘shall
be entitled to receive a dependency allowance equal to the
basic allowance for housing provided for persons in pay
grade E–1 under section 403 of title 37, United States
Code,’’.
(e) EFFECTIVE DATE.—This section and the amend-
ments made by this section shall take effect on January
1, 1998.
SEC. 104. REVISION OF AUTHORITY TO ADJUST COMPENSA-
TION NECESSITATED BY REFORM OF SUB-
SISTENCE AND HOUSING ALLOWANCES.
(a) REMOVAL OF REFERENCES TO BAS AND BAQ.—
(1) Section 1009 of title 37, United States Code, is
amended to read as follows:
‘‘§ 1009. Adjustments of monthly basic pay
‘‘(a) ADJUSTMENT REQUIRED.—Whenever the Gen-
eral Schedule of compensation for Federal classified em-
ployees, as contained in section 5332 of title 5, is adjusted
upward as provided in section 5303 of such title, the
President shall immediately make an upward adjustment
in the monthly basic pay authorized members of the uni-
formed services by section 203(a) of this title.
‘‘(b) EFFECTIVENESS OF ADJUSTMENT.—An adjust-
ment under this section shall—
‘‘(1) have the force and effect of law; and
‘‘(2) carry the same effective date as that ap-
plying to the compensation adjustments provided
General Schedule employees.
‘‘(c) EQUAL PERCENTAGE INCREASE FOR ALL MEM-
BERS.—Subject to subsection (d), an adjustment under
this section shall provide all eligible members with an in-
crease in the monthly basic pay which is of the same per-
centage as the overall average percentage increase in the
General Schedule rates of both basic pay and locality pay
for civilian employees.
‘‘(d) ALLOCATION
OF
INCREASE
AMONG
PAY
GRADES AND YEARS-OF-SERVICE.—(1) Subject to para-
graph (2), whenever the President determines such action
to be in the best interest of the Government, he may allo-
cate the overall percentage increase in the monthly basic
pay under subsection (a) among such pay grade and years-
of-service categories as he considers appropriate.
‘‘(2) In making any allocation of an overall percent-
age increase in basic pay under paragraph (1)—
‘‘(A) the amount of the increase in basic pay
for any given pay grade and years-of-service cat-
egory after any allocation made under this sub-
section may not be less than 75 percent of the
amount of the increase in the monthly basic pay that
would otherwise have been effective with respect to
such pay grade and years-of-service category under
subsection (c); and
‘‘(B) the percentage increase in the monthly
basic pay in the case of any member of the uni-
formed services with four years or less service may
not exceed the overall percentage increase in the
General Schedule rates of basic pay for civilian em-
ployees.
‘‘(e) NOTICE
OF
ALLOCATIONS.—Whenever the
President plans to exercise the authority of the President
under subsection (d) with respect to any anticipated in-
crease in the monthly basic pay of members of the uni-
formed services, the President shall advise Congress, at
the earliest practicable time prior to the effective date of
such increase, regarding the proposed allocation of such
increase.
‘‘(f) QUADRENNIAL
ASSESSMENT
OF
ALLOCA-
TIONS.—The allocations of increases made under this sec-
tion shall be assessed in conjunction with the quadrennial
review of military compensation required by section
1008(b) of this title.’’.
(2) The item relating to such section in the table of
sections at the beginning of chapter 19 of such title is
amended to read as follows:
‘‘1009. Adjustments of monthly basic pay.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on January 1, 1998.
SEC. 105. PROTECTION OF TOTAL COMPENSATION OF MEM-
BERS WHILE PERFORMING CERTAIN DUTY.
Section 1009 of title 37, United States Code, as
amended by section 104, is further amended—
(1) by redesignating subsection (f) as sub-
section (g); and
(2) by inserting after subsection (e) the follow-
ing new subsection:
‘‘(f) PROTECTION OF MEMBER’S TOTAL COMPENSA-
TION WHILE PERFORMING CERTAIN DUTY.—(1) The
total daily equivalent amount of the elements of compensa-
tion described in paragraph (3), together with other pay
and allowances under this title, to be paid to a member
of the uniformed services who is temporarily assigned to
duty away from the member’s permanent duty station or
to duty under field conditions at the member’s permanent
duty station shall not be less, for any day during the as-
signment period, than the total amount, for the day imme-
diately preceding the date of the assignment, of the ele-
ments of compensation and other pay and allowances of
the member.
‘‘(2) Paragraph (1) shall not apply with respect to
an element of compensation or other pay or allowance of
a member during an assignment described in such para-
graph to the extent that the element of compensation or
other pay or allowance is reduced or terminated due to
circumstances unrelated to the assignment.
‘‘(3) The elements of compensation referred to in this
subsection mean—
‘‘(A) the monthly basic pay authorized members
of the uniformed services by section 203(a) of this
title;
‘‘(B) the basic allowance for subsistence author-
ized members of the uniformed services by section
402 of this title; and
‘‘(C) the basic allowance for housing authorized
members of the uniformed services by section 403 of
this title.’’
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 111. ONE-YEAR EXTENSION OF CERTAIN BONUSES
AND SPECIAL PAY AUTHORITIES FOR RE-
SERVE FORCES.
(a) SPECIAL PAY FOR HEALTH PROFESSIONALS IN
CRITICALLY
SHORT
WARTIME
SPECIALTIES.—Section
302g(f) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(b) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amend-
ed by striking out ‘‘September 30, 1998’’ and inserting
in lieu thereof ‘‘September 30, 1999’’.
(c) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998’’ and inserting in
lieu thereof ‘‘September 30, 1999’’.
(d) SPECIAL PAY
FOR ENLISTED MEMBERS AS-
SIGNED TO CERTAIN HIGH PRIORITY UNITS.—Section
308d(c) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(e) SELECTED RESERVE AFFILIATION BONUS.—Sec-
tion 308e(e) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998’’ and inserting in
lieu thereof ‘‘September 30, 1999’’.
(f) READY RESERVE ENLISTMENT AND REENLIST-
MENT BONUS.—Section 308h(g) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
(g) PRIOR SERVICE ENLISTMENT BONUS.—Section
308i(f) of title 37, United States Code, as redesignated
by section 622, is amended by striking out ‘‘September
30, 1998’’ and inserting in lieu thereof ‘‘September 30,
1999’’.
(h) REPAYMENT OF EDUCATION LOANS FOR CER-
TAIN HEALTH PROFESSIONALS WHO SERVE IN THE SE-
LECTED RESERVE.—Section 16302(d) of title 10, United
States Code, is amended by striking out ‘‘October 1,
1998’’ and inserting in lieu thereof ‘‘October 1, 1999’’.
SEC. 112. ONE-YEAR EXTENSION OF CERTAIN BONUSES
AND SPECIAL PAY AUTHORITIES FOR NURSE
OFFICER CANDIDATES, REGISTERED NURSES,
AND NURSE ANESTHETISTS.
(a) NURSE OFFICER CANDIDATE ACCESSION PRO-
GRAM.—Section 2130a(a)(1) of title 10, United States
Code, is amended by striking out ‘‘September 30, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
(b) ACCESSION BONUS FOR REGISTERED NURSES.—
Section 302d(a)(1) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 1999’’.
(c) INCENTIVE SPECIAL PAY
FOR NURSE ANES-
THETISTS.—Section 302e(a)(1) of title 37, United States
Code, is amended by striking out ‘‘September 30, 1998’’
and inserting in lieu thereof ‘‘September 30, 1999’’.
SEC. 113. ONE-YEAR EXTENSION OF AUTHORITIES RELAT-
ING TO PAYMENT OF OTHER BONUSES AND
SPECIAL PAYS.
(a) AVIATION OFFICER RETENTION BONUS.—Sec-
tion 301b(a) of title 37, United States Code, is amended
by striking out ‘‘September 30, 1998,’’ and inserting in
lieu thereof ‘‘September 30, 1999,’’.
(b) REENLISTMENT
BONUS
FOR
ACTIVE
MEM-
BERS.—Section 308(g) of title 37, United States Code, is
amended by striking out ‘‘September 30, 1998’’ and in-
serting in lieu thereof ‘‘September 30, 1999’’.
(c) ENLISTMENT BONUSES
FOR MEMBERS WITH
CRITICAL SKILLS.—Sections 308a(c) and 308f(c) of title
37, United States Code, are each amended by striking out
‘‘September 30, 1998’’ and inserting in lieu thereof ‘‘Sep-
tember 30, 1999’’.
(d) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFI-
CERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section
312(e) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(e) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(c) of title 37, United States Code, is amended by
striking out ‘‘September 30, 1998’’ and inserting in lieu
thereof ‘‘September 30, 1999’’.
(f) 
NUCLEAR
CAREER
ANNUAL
INCENTIVE
BONUS.—Section 312c(d) of title 37, United States Code,
is amended by striking out ‘‘October 1, 1998’’ and insert-
ing in lieu thereof ‘‘October 1, 1999’’.
SEC. 114. INCREASE IN MINIMUM MONTHLY RATE OF HAZ-
ARDOUS DUTY INCENTIVE PAY FOR CERTAIN
MEMBERS.
(a) AERIAL FLIGHT CREWMEMBERS.—The table in
subsection (b) of section 301 of title 37, United States
Code, is amended—
(1) by striking out ‘‘110’’ each place it appears
and inserting in lieu thereof ‘‘150’’; and
(2) by striking out ‘‘125’’ each place it appears
and inserting in lieu thereof ‘‘150’’.
(b) AIR WEAPONS CONTROLLER AIRCREW.—The
table in subsection (c)(2)(A) of such section is amended—
(1) by striking out ‘‘100’’ in the first column of
amounts and inserting in lieu thereof ‘‘150’’;
(2) by striking out ‘‘110’’ in the last column of
amounts and inserting in lieu thereof ‘‘150’’; and
(3) by striking out ‘‘125’’ each place it appears
and inserting in lieu thereof ‘‘150’’.
(c) OTHER MEMBERS.—Subsection (c)(1) of such
section is amended—
(1) by striking out ‘‘$110’’ and inserting in lieu
thereof ‘‘$150’’; and
(2) by striking out ‘‘$165’’ and inserting in lieu
thereof ‘‘$225’’.
SEC. 115. INCREASE IN AVIATION CAREER INCENTIVE PAY.
(a) AMOUNTS.—The table in subsection (b)(1) of sec-
tion 301a of title 37, United States Code, is amended—
(1) by inserting at the end of phase I of the
table the following:
‘‘Over 14 ............................................................................................
840’’;
and
(2) by striking out phase II of the table and in-
serting in lieu thereof the following:
‘‘PHASE II
‘‘Monthly
‘‘Years of service as an officer:
rate
‘‘Over 22 ............................................................................................ $585
‘‘Over 23 ............................................................................................
495
‘‘Over 24 ............................................................................................
385
‘‘Over 25 ............................................................................................
250’’.
(b) CONFORMING AMENDMENTS.—Such subsection is
further amended in the matter after the table by striking
out ‘‘18 years’’ both places it appears and inserting in lieu
thereof ‘‘22 years’’.
(c) EFFECTIVE DATE
AND APPLICABILITY.—The
amendments made by subsection (a) shall take effect on
January 1, 1999, and shall apply with respect to months
beginning on or after that date.
SEC. 116. MODIFICATION OF AVIATION OFFICER RETEN-
TION BONUS.
(a) INCREASE IN BONUS AMOUNTS.—Subsection (c)
of section 301b of title 37, United States Code, is amend-
ed—
(1) in paragraph (1), by striking out ‘‘$12,000’’
and inserting in lieu thereof ‘‘$25,000’’; and
(2) in paragraph (2), by striking out ‘‘$6,000’’
and inserting in lieu thereof ‘‘$12,000’’.
(b) DURATION OF AGREEMENT.—Paragraph (2) of
such subsection is further amended by striking out ‘‘one
or two years’’ and inserting in lieu thereof ‘‘one, two, or
three years’’.
(c) CONTENT
OF
ANNUAL REPORT.—Subsection
(i)(1) of such section is amended—
(1) by inserting ‘‘and’’ at the end of subpara-
graph (A);
(2) by striking out ‘‘; and’’ at the end of sub-
paragraph (B) and inserting in lieu thereof a period;
and
(3) by striking out subparagraph (C).
(d) DEFINITION
OF AVIATION SPECIALTY.—Sub-
section (j)(2) of such section is amended by inserting ‘‘spe-
cific’’ before ‘‘community’’ both places it appears.
(e) EFFECTIVE DATES AND APPLICABILITY.—The
amendments made by this section shall take effect as of
October 1, 1996, and shall apply with respect to agree-
ments accepted under section 301b of title 37, United
States Code, on or after that date.
SEC. 117. AVAILABILITY OF MULTIYEAR RETENTION BONUS
FOR DENTAL OFFICERS.
(a) AVAILABILITY OF RETENTION BONUS.—Chapter
5 of title 37, United States Code, is amended by inserting
after section 301d the following new section:
‘‘§ 301e. Multiyear retention bonus: dental officers of
the armed forces
‘‘(a) BONUS AUTHORIZED.—(1) A dental officer de-
scribed in subsection (b) who executes a written agreement
to remain on active duty for two, three, or four years after
completion of any other active-duty service commitment
may, upon acceptance of the written agreement by the
Secretary of the military department concerned, be paid
a retention bonus as provided in this section.
‘‘(2) The amount of a retention bonus under para-
graph (1) may not exceed $14,000 for each year covered
by a four-year agreement. The maximum yearly retention
bonus for two-year and three-year agreements shall be re-
duced to reflect the shorter service commitment.
‘‘(b) OFFICERS AUTOMATICALLY ELIGIBLE.—Sub-
section (a) applies to an officer of the armed forces who—
‘‘(1) is an officer of the Dental Corps of the
Army or the Navy or an officer of the Air Force des-
ignated as a dental officer;
‘‘(2) has a dental specialty in oral and maxillo-
facial surgery;
‘‘(3) is in a pay grade below pay grade 0–7;
‘‘(4) has at least eight years of creditable serv-
ice (computed as described in section 302b(g) of this
title) or has completed any active-duty service com-
mitment incurred for dental education and training;
and
‘‘(5) has completed initial residency training (or
will complete such training before September 30 of
the fiscal year in which the officer enters into an
agreement under subsection (a)).
‘‘(c) EXTENSION OF BONUS TO OTHER DENTAL OF-
FICERS.—At the discretion of the Secretary of the military
department concerned, the Secretary may enter into a
written agreement described in subsection (a)(1) with a
dental officer who does not have the dental specialty speci-
fied in subsection (b)(2), and pay a retention bonus to
such an officer as provided in this section, if the officer
otherwise satisfies the eligibility requirements specified in
subsection (b). The Secretaries shall exercise the authority
provided in this section in a manner consistent with regu-
lations prescribed by the Secretary of Defense.
‘‘(d) REFUNDS.—(1) Refunds shall be required, on
a pro rata basis, of sums paid under this section if the
officer who has received the payment fails to complete the
total period of active duty specified in the agreement, as
conditions and circumstances warrant.
‘‘(2) An obligation to reimburse the United States
imposed under paragraph (1) is for all purposes a debt
owed to the United States.
‘‘(3) A discharge in bankruptcy under title 11, United
States Code, that is entered less than five years after the
termination of an agreement under this section does not
discharge the member signing such agreement from a debt
arising under such agreement or under paragraph (1).
This paragraph applies to any case commenced under title
11 after the date of the enactment of the National Defense
Authorization Act for Fiscal Year 1998.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 301d the following new
item:
‘‘301e. Multiyear retention bonus: dental officers of the armed forces.’’.
SEC. 118. INCREASE IN VARIABLE AND ADDITIONAL SPE-
CIAL PAYS FOR CERTAIN DENTAL OFFICERS.
(a) VARIABLE SPECIAL PAY
FOR JUNIOR OFFI-
CERS.—Paragraph (2) of section 302b(a) of title 37, Unit-
ed States Code, is amended by striking out subparagraphs
(C), (D), (E), and (F) and inserting in lieu thereof the
following new subparagraphs:
‘‘(C) $7,000 per year, if the officer has at least
six but less than eight years of creditable service.
‘‘(D) $12,000 per year, if the officer has at
least eight but less than 12 years of creditable serv-
ice.
‘‘(E) $10,000 per year, if the officer has at
least 12 but less than 14 years of creditable service.
‘‘(F) $9,000 per year, if the officer has at least
14 but less than 18 years of creditable service.
‘‘(G) $8,000 per year, if the officer has 18 or
more years of creditable service.’’.
(b) VARIABLE SPECIAL PAY
FOR SENIOR OFFI-
CERS.—Paragraph (3) of such section is amended by
striking out ‘‘$1,000’’ and inserting in lieu thereof
‘‘$7,000’’.
(c) ADDITIONAL SPECIAL PAY.—Paragraph (4) of
such section is amended by striking out subparagraphs
(B), (C), and (D) and inserting in lieu thereof the follow-
ing new subparagraphs:
‘‘(B) $6,000 per year, if the officer has at least
three but less than 10 years of creditable service.
‘‘(C) $15,000 per year, if the officer has 10 or
more years of creditable service.’’.
SEC. 119. AVAILABILITY OF SPECIAL PAY FOR DUTY AT
DESIGNATED HARDSHIP DUTY LOCATIONS.
(a) SPECIAL PAY AUTHORIZED.—Subsection (a) of
section 305 of title 37, United States Code, is amended
to read as follows:
‘‘(a) SPECIAL PAY AUTHORIZED.—A member of a
uniformed service who is entitled to basic pay may be paid
special pay under this section at a monthly rate not to
exceed $300 while the member is on duty at a location
in the United States or outside the United States des-
ignated by the Secretary of Defense as a hardship duty
location.’’.
(b) CROSS REFERENCES AND REGULATIONS.—Such
section is further amended—
(1) in subsection (b)—
(A) by inserting ‘‘EXCEPTION FOR CER-
TAIN MEMBERS SERVING IN CERTAIN LOCA-
TIONS.—’’ after ‘‘(b)’’; and
(B) by striking out ‘‘as foreign duty pay’’
and inserting in lieu thereof ‘‘as hardship duty
location pay’’;
(2) in subsection (c)—
(A) by inserting ‘‘EXCEPTION FOR MEM-
BERS RECEIVING CAREER SEA PAY.—’’ after
‘‘(c)’’; and
(B) by striking out ‘‘special pay under this
section’’ and inserting in lieu thereof ‘‘hardship
duty location pay under subsection (a)’’; and
(3) by adding at the end the following new sub-
section:
‘‘(d) REGULATIONS.—The Secretary of Defense shall
prescribe regulations for the provision of hardship duty
location pay under subsection (a), including the specific
monthly rates at which the special pay will be available.’’.
(c) CLERICAL AMENDMENTS.—(1) The heading of
such section is amended to read as follows:
‘‘§ 305. Special pay: hardship duty location pay’’.
(2) The table of sections at the beginning of chapter
5 of title 37, United States Code, is amended by striking
out the item relating to section 305 and inserting in lieu
thereof the following new item:
‘‘305. Special pay: hardship duty location pay.’’.
(d) CONFORMING AMENDMENT.—Section 907(d) of
title 37, United States Code, is amended by striking out
‘‘duty at certain places’’ and inserting in lieu thereof
‘‘duty at a hardship duty location’’.
(e) TRANSITION.—Until such time as the Secretary
of Defense prescribes regulations regarding the provision
of hardship duty location pay under section 305 of title
37, United States Code, as amended by this section, the
Secretary may continue to use the authority provided by
such section 305, as in effect on the day before the date
of the enactment of this Act, to provide special pay to en-
listed members of the uniformed services on duty at cer-
tain places.
SEC. 120. DEFINITION OF SEA DUTY FOR PURPOSES OF CA-
REER SEA PAY.
Section 305a(d) of title 37, United States Code, is
amended—
(1) in paragraph (1)(A), by striking out ‘‘, ship-
based staff, or ship-based aviation unit’’;
(2) in paragraph (1)(B), by striking out ‘‘or
ship-based staff’’;
(3) by redesignating paragraphs (2) and (3) as
paragraphs (3) and (4), respectively; and
(4) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) The Secretary concerned may designate duty
performed by a member while serving on a ship the pri-
mary mission of which is accomplished either while under
way or in port as ‘sea duty’ for purposes of this section,
even though the duty is performed while the member is
permanently or temporarily assigned to a ship-based staff
or other unit not covered by paragraph (1).’’.
SEC. 121. MODIFICATION OF SELECTED RESERVE REEN-
LISTMENT BONUS.
(a) ELIGIBLE MEMBERS.—Subsection (a)(1) of sec-
tion 308b of title 37, United States Code, is amended by
striking out ‘‘ten years’’ and inserting in lieu thereof ‘‘14
years’’.
(b) BONUS AMOUNTS; PAYMENT.—Subsection (b) of
such section is amended to read as follows:
‘‘(b) BONUS AMOUNTS; PAYMENT.—(1) The amount
of a bonus under this section may not exceed—
‘‘(A) $5,000, in the case of a member who reen-
lists or extends an enlistment for a period of six
years;
‘‘(B) $2,500, in the case of a member who, hav-
ing never received a bonus under this section, reen-
lists or extends an enlistment for a period of three
years; and
‘‘(C) $2,000, in the case of a member who, hav-
ing received a bonus under this section for a pre-
vious three-year reenlistment or extension of an en-
listment, reenlists or extends the enlistment for an
additional period of three years.
‘‘(2) Any bonus payable under this section shall be
disbursed in one initial payment of an amount not to ex-
ceed one-half of the total amount of the bonus and subse-
quent periodic partial payments of the balance of the
bonus. The Secretary concerned shall prescribe the
amount of each partial payment and the schedule for mak-
ing the partial payments.’’.
(c) SPECIAL ELIGIBILITY REQUIREMENTS; NUMBER
OF INDIVIDUAL BONUSES.—Subsection (c) of such section
is amended to read as follows:
‘‘(c) CONDITION ON ELIGIBILITY; LIMITATION ON
NUMBER OF BONUSES.—(1) To be eligible for a second
bonus under this section in the amount specified in sub-
section (b)(1)(C), a member must—
‘‘(A) enter into the subsequent reenlistment or
extension of an enlistment for a period of three
years not later than the date on which the enlist-
ment or extension for which the first bonus was paid
would expire; and
‘‘(B) still satisfy the designated skill or unit re-
quirements required under subsection (a)(2).
‘‘(2) A member may not be paid more than one six-
year bonus or two three-year bonuses under this section.’’.
(d) EFFECT
OF FAILURE TO SERVE SATISFAC-
TORILY.—Subsection (d) of such section is amended to
read as follows:
‘‘(d) REPAYMENT OF BONUS.—A member who re-
ceives a bonus under this section and who fails, during
the period for which the bonus was paid, to serve satisfac-
torily in the element of the Selected Reserve of the Ready
Reserve with respect to which the bonus was paid shall
refund to the United States an amount that bears the
same ratio to the amount of the bonus paid to the member
as the period that the member failed to serve satisfactorily
bears to the total period for which the bonus was paid.’’.
(e) CLERICAL AMENDMENTS.—Such section is fur-
ther amended—
(1) in subsection (a), by inserting ‘‘AUTHORITY
AND ELIGIBILITY REQUIREMENTS.—’’ after ‘‘(a)’’;
(2) in subsection (e), by inserting ‘‘REGULA-
TIONS.—’’ after ‘‘(e)’’; and
(3) in subsection (f), by inserting ‘‘TERMI-
NATION OF AUTHORITY.—’’ after ‘‘(f)’’.
SEC. 122. MODIFICATION OF SELECTED RESERVE ENLIST-
MENT BONUS FOR FORMER ENLISTED MEM-
BERS.
(a) ELIGIBLE PERSONS.—Subsection (a)(2) of sec-
tion 308i of title 37, United States Code, is amended—
(1) in subparagraph (A), by striking out ‘‘10
years’’ and inserting in lieu thereof ‘‘14 years’’;
(2) in subparagraph (C), by striking out ‘‘and’’;
(3) by redesignating subparagraph (D) as sub-
paragraph (E);
(4) in subparagraph (E) (as so redesignated),
by inserting ‘‘(except under this section)’’ after
‘‘bonus’’; and
(5) by inserting after subparagraph (C) the fol-
lowing new subparagraph:
‘‘(D) is projected to occupy a position as a
member of the Selected Reserve in a specialty in
which—
‘‘(i) the person successfully served while a
member on active duty; and
‘‘(ii) the person attained a level of quali-
fication while a member on active duty com-
mensurate with the grade and years of service
of the member; and’’.
(b) BONUS AMOUNTS; PAYMENT.—Subsection (b) of
such section is amended to read as follows:
‘‘(b) BONUS AMOUNTS; PAYMENT.—(1) The amount
of a bonus under this section may not exceed—
‘‘(A) $5,000, in the case of a person who enlists
for a period of six years;
‘‘(B) $2,500, in the case of a person who, hav-
ing never received a bonus under this section, enlists
for a period of three years; and
‘‘(C) $2,000, in the case of a person who, hav-
ing received a bonus under this section for a pre-
vious three-year enlistment, reenlists or extends the
enlistment for an additional period of three years.
‘‘(2) Any bonus payable under this section shall be
disbursed in one initial payment of an amount not to ex-
ceed one-half of the total amount of the bonus and subse-
quent periodic partial payments of the balance of the
bonus. The Secretary concerned shall prescribe the
amount of each partial payment and the schedule for mak-
ing the partial payments.’’.
(c) SPECIAL ELIGIBILITY REQUIREMENTS; NUMBER
OF INDIVIDUAL BONUSES.—Subsection (c) of such section
is amended to read as follows:
‘‘(c) CONDITION ON ELIGIBILITY; LIMITATION ON
NUMBER OF BONUSES.—(1) To be eligible for a second
bonus under this section in the amount specified in sub-
section (b)(1)(C), a person must—
‘‘(A) enter into a reenlistment or extension of
an enlistment for a period of three years not later
than the date on which the enlistment for which the
first bonus was paid would expire; and
‘‘(B) still satisfy the eligibility requirements
under subsection (a).
‘‘(2) A person may not be paid more than one six-
year bonus or two three-year bonuses under this section.’’.
(d) REORGANIZATION OF SECTION.—Such section is
further amended—
(1) by redesignating subsections (e), (f), and
(g) as paragraphs (2), (3), and (4), respectively, of
subsection (d); and
(2) by redesignating subsections (h) and (i) as
subsections (e) and (f), respectively.
(e) CONFORMING AND CLERICAL AMENDMENTS.—
Such section is further amended—
(1) in subsection (a), by inserting ‘‘AUTHORITY
AND ELIGIBILITY REQUIREMENTS.—’’ after ‘‘(a)’’;
(2) in subsection (d)—
(A) 
by 
inserting 
‘‘REPAYMENT
OF
BONUS.—(1)’’ after ‘‘(d)’’;
(B) in paragraphs (2) and (4), as redesig-
nated by subsection (d)(1), by striking out
‘‘subsection (d)’’ and inserting in lieu thereof
‘‘paragraph (1)’’; and
(C) in paragraph (3), as redesignated by
subsection (d)(1)—
(i) by striking out ‘‘subsection (h)’’
and inserting in lieu thereof ‘‘subsection
(e)’’; and
(ii) by striking out ‘‘subsection (d)’’
and inserting in lieu thereof ‘‘paragraph
(1)’’;
(3) in subsection (e), as redesignated by sub-
section (d)(2), by inserting ‘‘REGULATIONS.—’’ after
‘‘(e)’’; and
(4) in subsection (f), as redesignated by sub-
section (d)(2), by inserting ‘‘TERMINATION OF AU-
THORITY.—’’ after ‘‘(f)’’.
SEC. 123. EXPANSION OF RESERVE AFFILIATION BONUS TO
INCLUDE COAST GUARD RESERVE.
Section 308e of title 37, United States Code, is
amended—
(1) in subsection (a), by striking out ‘‘Under
regulations prescribed by the Secretary of Defense,
the Secretary of a military department’’ and insert-
ing in lieu thereof ‘‘The Secretary concerned’’;
(2) in subsection (b)(3), by striking out ‘‘des-
ignated by the Secretary of Defense for the purposes
of this section’’ and inserting in lieu thereof ‘‘des-
ignated for purposes of this section in the regula-
tions prescribed under subsection (f)’’;
(3) in subsection (c)(3), by striking out ‘‘regu-
lations prescribed by the Secretary of Defense’’ and
inserting in lieu thereof ‘‘the regulations prescribed
under subsection (f)’’; and
(4) by adding at the end the following new sub-
sections:
‘‘(f) This section shall be administered under regula-
tions prescribed by the Secretary of Defense for the armed
forces under the jurisdiction of the Secretary of Defense
and by the Secretary of Transportation for the Coast
Guard when the Coast Guard is not operating as a service
in the Navy.
‘‘(g) The authority in subsection (a) does not apply
to the Secretary of Commerce and the Secretary of Health
and Human Services.’’.
SEC. 124. INCREASE IN SPECIAL PAY AND BONUSES FOR
NUCLEAR-QUALIFIED OFFICERS.
(a) SPECIAL PAY FOR OFFICERS EXTENDING PE-
RIOD OF ACTIVE SERVICE.—Section 312(a) of title 37,
United States Code, is amended by striking out ‘‘$12,000’’
and inserting in lieu thereof ‘‘$15,000’’.
(b) NUCLEAR CAREER ACCESSION BONUS.—Section
312b(a)(1) of title 37, United States Code, is amended
by striking out ‘‘$8,000’’ and inserting in lieu thereof
‘‘$10,000’’.
(c) NUCLEAR CAREER ANNUAL INCENTIVE BO-
NUSES.—Section 312c of title 37, United States Code, is
amended—
(1) in subsection (a)(1), by striking out
‘‘$10,000’’ and inserting in lieu thereof ‘‘$12,000’’;
and
(2) in subsection (b)(1), by striking out
‘‘$4,500’’ and inserting in lieu thereof ‘‘$5,500’’.
(d) EFFECTIVE DATE.—(1) The amendments made
by this section shall take effect as of October 1, 1997.
(2) The amendments made by subsections (a) and (b)
shall apply with respect to agreements accepted under sec-
tions 312(a) and 312b(a), respectively, of title 37, United
States Code, on or after October 1, 1997.
SEC. 125. PROVISION OF BONUSES IN LIEU OF SPECIAL PAY
FOR ENLISTED MEMBERS EXTENDING TOURS
OF DUTY AT DESIGNATED LOCATIONS OVER-
SEAS.
(a) INCLUSION OF BONUS INCENTIVE.—(1) Section
314 of title 37, United States Code, is amended to read
as follows:
‘‘§ 314. Special pay or bonus: qualified enlisted mem-
bers extending duty at designated loca-
tions overseas
‘‘(a) COVERED MEMBERS.—This section applies with
respect to an enlisted member of an armed force who—
‘‘(1) is entitled to basic pay;
‘‘(2) has a specialty that is designated by the
Secretary concerned for the purposes of this section;
‘‘(3) has completed a tour of duty (as defined
in accordance with regulations prescribed by the
Secretary concerned) at a location outside the 48
contiguous States and the District of Columbia that
is designated by the Secretary concerned for the
purposes of this section; and
‘‘(4) at the end of that tour of duty executes an
agreement to extend that tour for a period of not
less than one year.
‘‘(b) SPECIAL PAY OR BONUS AUTHORIZED.—Upon
the acceptance by the Secretary concerned of the agree-
ment providing for an extension of the tour of duty of an
enlisted member described in subsection (a), the member
is entitled, at the election of the Secretary concerned, to
either—
‘‘(1) special pay in monthly installments in an
amount prescribed by the Secretary, but not to ex-
ceed $80 per month; or
‘‘(2) an annual bonus in an amount prescribed
by the Secretary, but not to exceed $2,000 per year.
‘‘(c) SELECTION AND PAYMENT OF SPECIAL PAY OR
BONUS.—Not later than the date on which the Secretary
concerned accepts an agreement described in subsection
(a)(4) providing for the extension of a member’s tour of
duty, the Secretary concerned shall notify the member re-
garding whether the member will receive special pay or
a bonus under this section. The payment rate for the spe-
cial pay or bonus shall be fixed at the time of the agree-
ment and may not be changed during the period of the
extended tour of duty. The Secretary concerned may pay
a bonus under this section either in a lump sum or install-
ments.
‘‘(d) REPAYMENT OF BONUS.—(1) A member who,
having entered into a written agreement to extend a tour
of duty for a period under subsection (a), receives a bonus
payment under subsection (b)(2) for a 12-month period
covered by the agreement and ceases during that 12-
month period to perform the agreed tour of duty shall re-
fund to the United States the unearned portion of the
bonus. The unearned portion of the bonus is the amount
by which the amount of the bonus paid to the member
exceeds the amount determined by multiplying the amount
of the bonus paid by the percent determined by dividing
12 into the number of full months during which the mem-
ber performed the duty in the 12-month period.
‘‘(2) The Secretary concerned may waive the obliga-
tion of a member to reimburse the United States under
paragraph (1) if the Secretary determines that conditions
and circumstances warrant the waiver.
‘‘(3) An obligation to repay the United States im-
posed under paragraph (1) is for all purposes a debt owed
to the United States.
‘‘(4) A discharge in bankruptcy under title 11 that
is entered less than five years after the termination of the
agreement does not discharge the member signing the
agreement from a debt arising under the agreement or
under paragraph (1). This paragraph applies to any case
commenced under title 11 on or after the date of the en-
actment of the National Defense Authorization Act for
Fiscal Year 1998.
‘‘(e) EFFECT
OF REST
AND RECUPERATIVE AB-
SENCE.—A member who elects to receive one of the bene-
fits specified in section 705(b) of title 10 as part of the
extension of a tour of duty is not entitled to the special
pay authorized by subsection (b)(1) for the period of the
extension of duty for which the benefit under such section
is provided.’’.
(2) The item relating to section 314 in the table of
sections at the beginning of chapter 5 of such title is
amended to read as follows:
‘‘314. Special pay or bonus: qualified enlisted members extending duty at des-
ignated locations overseas.’’.
(b) APPLICATION OF AMENDMENT.—Section 314 of
title 37, United States Code, as amended by subsection
(a), shall apply with respect to an agreement to extend
a tour of duty as provided in such section executed on
or after October 1, 1997.
SEC. 126. INCREASE IN AMOUNT OF FAMILY SEPARATION
ALLOWANCE.
Section 427 of title 37, United States Code (as
amended by section 103), is further amended in subsection
(a)(1) by striking out ‘‘$75’’ and inserting in lieu thereof
‘‘$100’’.
SEC. 127. DEADLINE FOR PAYMENT OF READY RESERVE
MUSTER DUTY ALLOWANCE.
Section 433(c) of title 37, United States Code, is
amended—
(1) in the first sentence, by striking out ‘‘and
shall be’’ and all that follows through ‘‘is per-
formed’’; and
(2) by inserting after the first sentence the fol-
lowing new sentence: ‘‘The allowance may be paid to
the member before, on, or after the date on which
the muster duty is performed, but not later than 30
days after that date.’’.
Subtitle C—Travel and
Transportation Allowances
SEC. 131. TRAVEL AND TRANSPORTATION ALLOWANCES
FOR DEPENDENTS BEFORE APPROVAL OF
MEMBER’S COURT-MARTIAL SENTENCE.
Section 406(h)(2)(C) of title 37, United States Code,
is amended by striking out the comma at the end of clause
(iii) and all that follows through ‘‘title 10.’’ and inserting
in lieu thereof a period.
SEC. 132. DISLOCATION ALLOWANCE.
(a) IN GENERAL.—Section 407 of title 37, United
States Code, is amended to read as follows:
‘‘§ 407. Travel and transportation allowances: disloca-
tion allowance
‘‘(a) ELIGIBILITY FOR PRIMARY DISLOCATION AL-
LOWANCE.—(1) Under regulations prescribed by the Sec-
retary concerned, a member of a uniformed service de-
scribed in paragraph (2) is entitled to a primary disloca-
tion allowance at the rate determined under subsection (c)
for the member’s pay grade and dependency status.
‘‘(2) A member of the uniformed services referred to
in paragraph (1) is any of the following:
‘‘(A) A member who makes a change of perma-
nent station and the member’s dependents actually
make an authorized move in connection with the
change, including a move by the dependents—
‘‘(i) to join the member at the member’s
duty station after an unaccompanied tour of
duty when the member’s next tour of duty is an
accompanied tour at the same station; and
‘‘(ii) to a location designated by the mem-
ber after an accompanied tour of duty when the
member’s next tour of duty is an unaccom-
panied tour at the same duty station.
‘‘(B) A member whose dependents actually
move pursuant to section 405a(a), 406(e), 406(h),
or 554 of this title.
‘‘(C) A member whose dependents actually
move from their place of residence under cir-
cumstances described in section 406a of this title.
‘‘(D) A member who is without dependents
and—
‘‘(i) actually moves to a new permanent
station where the member is not assigned to
quarters of the United States; or
‘‘(ii) actually moves from a place of resi-
dence under circumstances described in section
406a of this title.
‘‘(E) A member who is ordered to move in con-
nection with the closure or realignment of a military
installation and, as a result, the member’s depend-
ents actually move or, in the case of a member with-
out dependents, the member actually moves.
‘‘(3) If a primary dislocation allowance is paid under
this subsection to a member described in subparagraph
(C) or (D)(ii) of paragraph (2), the member is not entitled
to another dislocation allowance as a member described
in subparagraph (A) or (E) of such paragraph in connec-
tion with the same move.
‘‘(b) SECONDARY ALLOWANCE AUTHORIZED UNDER
CERTAIN CIRCUMSTANCES.—(1) Under regulations pre-
scribed by the Secretary concerned, whenever a member
is entitled to a primary dislocation allowance under sub-
section (a) as a member described in paragraph (2)(C)
or (2)(D)(ii) of such subsection, the member is also enti-
tled to a secondary dislocation allowance at the rate deter-
mined under subsection (c) for the member’s pay grade
and dependency status if, subsequent to the member or
the member’s dependents actually moving from their place
of residence under circumstances described in section
406a of this title, the member or member’s dependents
complete that move to a new location and then actually
move from that new location to another location also
under circumstances described in section 406a of this title.
‘‘(2) If a secondary dislocation allowance is paid
under this subsection, the member is not entitled to a dis-
location allowance as a member described in paragraph
(2)(A) or (2)(E) of subsection (a) in connection with those
moves.
‘‘(c) DISLOCATION ALLOWANCE RATES.—(1) The
amount of the dislocation allowance to be paid under this
section to a member shall be based on the member’s pay
grade and dependency status at the time the member be-
comes entitled to the allowance.
‘‘(2) The initial rate for the dislocation allowance, for
each pay grade and dependency status, shall be equal to
the rate in effect for that pay grade and dependency status
on December 31, 1997, as adjusted by the average per-
centage increase in the rates of basic pay for calendar year
1998. Effective on the same date that the monthly rates
of basic pay for members are increased for a subsequent
calendar year, the Secretary of Defense shall adjust the
rates for the dislocation allowance for that calendar year
by the percentage equal to the average percentage increase
in the rates of basic pay for that calendar year.
‘‘(d) FISCAL YEAR LIMITATION; EXCEPTIONS.—(1)
A member is not entitled to more than one dislocation al-
lowance under this section during a fiscal year unless—
‘‘(A) the Secretary concerned finds that the ex-
igencies of the service require the member to make
more than one change of permanent station during
the fiscal year;
‘‘(B) the member is ordered to a service school
as a change of permanent station;
‘‘(C) the member’s dependents are covered by
section 405a(a), 406(e), 406(h), or 554 of this title;
or
‘‘(D) subparagraph (C) or (D)(ii) of subsection
(a)(2) or subsection (b) apply with respect to the
member or the member’s dependents.
‘‘(2) This subsection does not apply in time of na-
tional emergency or in time of war.
‘‘(e) FIRST OR LAST DUTY.—A member is not enti-
tled to payment of a dislocation allowance under this sec-
tion when the member is ordered from the member’s home
to the member’s first duty station or from the member’s
last duty station to the member’s home.
‘‘(f) RULE OF CONSTRUCTION.—For purposes of this
section, a member whose dependents may not make an au-
thorized move in connection with a change of permanent
station is considered a member without dependents.
‘‘(g) ADVANCE PAYMENT.—A dislocation allowance
payable under this section may be paid in advance.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect on January 1, 1998.
Subtitle D—Retired Pay, Survivor
Benefits, and Related Matters
SEC. 141. ONE-YEAR OPPORTUNITY TO DISCONTINUE PAR-
TICIPATION IN SURVIVOR BENEFIT PLAN.
(a) ELECTION TO DISCONTINUE WITHIN ONE YEAR
AFTER SECOND ANNIVERSARY OF COMMENCEMENT OF
PAYMENT OF RETIRED PAY.—(1) Subchapter II of chap-
ter 73 of title 10, United States Code, is amended by in-
serting after section 1448 the following new section:
‘‘§ 1448a. Election to discontinue participation: one-
year opportunity after second anniver-
sary of commencement of payment of re-
tired pay
‘‘(a) AUTHORITY.—A participant in the Plan may,
subject to the provisions of this section, elect to dis-
continue participation in the Plan at any time during the
one-year period beginning on the second anniversary of the
date on which payment of retired pay to the participant
commences.
‘‘(b) CONCURRENCE OF SPOUSE.—
‘‘(1) CONCURRENCE
REQUIRED.—A married
participant may not (except as provided in para-
graph (2)) make an election under subsection (a)
without the concurrence of the participant’s spouse.
‘‘(2) EXCEPTIONS.—A participant may make
such an election without the concurrence of the par-
ticipant’s spouse by establishing to the satisfaction
of the Secretary concerned that one of the conditions
specified in section 1448(a)(3)(C) of this title exists.
‘‘(3) FORM
OF
CONCURRENCE.—The concur-
rence of a spouse under paragraph (1) shall be made
in such written form and shall contain such informa-
tion as may be required under regulations prescribed
by the Secretary of Defense.
‘‘(c) LIMITATION
ON ELECTION WHEN FORMER
SPOUSE COVERAGE IN EFFECT.—The limitation set forth
in section 1450(f)(2) of this title applies to an election
to discontinue participation in the Plan under subsection
(a).
‘‘(d) 
WITHDRAWAL
OF
ELECTION
TO
DIS-
CONTINUE.—Section 1448(b)(1)(D) of this title applies to
an election under subsection (a).
vivor Benefit Plan under subchapter II of chapter 73 of
such title may make an election in accordance with that
section within one year after the effective date of that sec-
tion under subsection (c) if the second anniversary of the
commencement of payment of retired pay to the partici-
pant precedes that effective date.
(c) EFFECTIVE DATE.—Section 1448a of title 10,
United States Code, as added by subsection (a), shall take
effect 180 days after the date of the enactment of this
Act.
SEC. 142. TIME IN WHICH CHANGE IN SURVIVOR BENEFIT
COVERAGE 
FROM 
FORMER 
SPOUSE 
TO
SPOUSE MAY BE MADE.
(a) EXTENSION
OF TIME
FOR CHANGE.—Section
1450(f)(1)(C) of title 10, United States Code, is amended
by adding at the end the following new sentence: ‘‘Not-
withstanding the preceding sentence, a change of election
under this subsection to provide an annuity to a spouse
instead of a former spouse may (subject to paragraph (2))
be made at any time after the person providing the annu-
ity remarries without regard to the time limitation in sec-
tion 1448(a)(5)(B) of this title.’’.
(b) APPLICABILITY.—The amendment made by sub-
section (a) shall apply with respect to marriages occurring
before, on, or after the date of the enactment of this Act.
SEC. 143. REVIEW OF FEDERAL FORMER SPOUSE PROTEC-
TION LAWS.
(a) REVIEW REQUIRED.—The Secretary of Defense
shall carry out a comprehensive review (including a com-
parison) of—
(1) the protections, benefits, and treatment af-
forded under Federal law to members and former
members of the uniformed services and former
spouses of such persons; and
(2) the protections, benefits, and treatment af-
forded under Federal law to employees and former
employees of the Government and former spouses of
such persons.
(b) MILITARY PERSONNEL MATTERS TO BE RE-
VIEWED.—In the case of members and former members
of the uniformed services and former spouses of such per-
sons, the review under subsection (a) shall include the fol-
lowing:
(1) All provisions of law (principally those origi-
nally enacted in the Uniformed Services Former
Spouses’ Protection Act (title X of Public Law 97–
252)) that—
(A) establish, provide for the enforcement
of, or otherwise protect interests of members
and former members of the uniformed services
and former spouses of such persons in retired
or retainer pay of members and former mem-
bers; or
(B) provide other benefits for members
and former members of the uniformed services
and former spouses of such persons.
(2) The experience of the uniformed services in
administering those provisions of law, including the
adequacy and effectiveness of the legal assistance
provided by the Department of Defense in matters
related to the Uniformed Services Former Spouses’
Protection Act.
(3) The experience of members and former
members of the uniformed services and former
spouses of such persons in the administration of
those provisions of law.
(4) The experience of members and former
members of the uniformed services and former
spouses of such persons in the application of those
provisions of law by State courts.
(5) The history of State statutes and State
court interpretations of the Uniformed Services
Former Spouses’ Protection Act and other provi-
sions of Federal law described in paragraph (1)(A)
and the extent to which those interpretations follow
those laws.
(c) CIVILIAN PERSONNEL MATTERS TO BE RE-
VIEWED.—In the case of former spouses of employees and
former employees of the Government, the review under
subsection (a) shall include the following:
(1) All provisions of law that—
(A) establish, provide for the enforcement
of, or otherwise protect interests of employees
and former employees of the Government and
former spouses of such persons in annuities of
employees and former employees under Federal
employees’ retirement systems; or
(B) provide other benefits for employees
and former employees of the Government and
former spouses of such persons.
(2) The experience of the Office of Personnel
Management and other agencies of the Government
in administering those provisions of law.
(3) The experience of employees and former
employees of the Government and former spouses of
such persons in the administration of those provi-
sions of law.
(4) The experience of employees and former
employees of the Government and former spouses of
such persons in the application of those provisions of
law by State courts.
(d) SAMPLING AUTHORIZED.—The Secretary may
use sampling in carrying out the review under this section.
(e) REPORT.—Not later than September 30, 1999,
the Secretary shall submit to the Committee on Armed
Services of the Senate and the Committee on National Se-
curity of the House of Representatives a report on the re-
sults of the review under subsection (a). The report shall
include any recommendations for legislation that the Sec-
retary considers appropriate.
SEC. 144. ANNUITIES FOR CERTAIN MILITARY SURVIVING
SPOUSES.
(a) SURVIVOR ANNUITY.—(1) The Secretary con-
cerned shall pay an annuity to the qualified surviving
spouse of each member of the uniformed services who—
(A) died before March 21, 1974, and was enti-
tled to retired or retainer pay on the date of death;
or
(B) was a member of a reserve component of
the Armed Forces during the period beginning on
September 21, 1972, and ending on October 1,
1978, and at the time of his death would have been
entitled to retired pay under chapter 67 of title 10,
United States Code (as in effect before December
1, 1994), but for the fact that he was under 60
years of age.
(2) A qualified surviving spouse for purposes of this
section is a surviving spouse who has not remarried and
who is not eligible for an annuity under section 4 of Public
Law 92–425 (10 U.S.C. 1448 note).
(b) AMOUNT OF ANNUITY.—(1) An annuity under
this section shall be paid at the rate of $165 per month,
as adjusted from time to time under paragraph (3).
(2) An annuity paid to a surviving spouse under this
section shall be reduced by the amount of any dependency
and indemnity compensation (DIC) to which the surviving
spouse is entitled under section 1311(a) of title 38, United
States Code.
(3) Whenever after the date of the enactment of this
Act retired or retainer pay is increased under section
1401a(b)(2) of title 10, United States Code, each annuity
that is payable under this section shall be increased at
the same time and by the same total percent. The amount
of the increase shall be based on the amount of the month-
ly annuity payable before any reduction under this section.
(c) APPLICATION REQUIRED.—No benefit shall be
paid to any person under this section unless an application
for such benefit is filed with the Secretary concerned by
or on behalf of such person.
(d) DEFINITIONS.—For purposes of this section:
(1) The terms ‘‘uniformed services’’ and ‘‘Sec-
retary concerned’’ have the meanings given such
terms in section 101 of title 37, United States Code.
(2) The term ‘‘surviving spouse’’ has the mean-
ing given the terms ‘‘widow’’ and ‘‘widower’’ in para-
graphs (3) and (4) of section 1447 of title 10, Unit-
ed States Code.
(e) PROSPECTIVE
APPLICABILITY.—(1) Annuities
under this section shall be paid for months beginning after
the month in which this Act is enacted.
(2) No benefit shall accrue to any person by reason
of the enactment of this section for any period before the
first month that begins after the month in which this Act
is enacted.
(f) EXPIRATION OF AUTHORITY.—The authority to
pay annuities under this section shall expire on September
30, 2001.
SEC. 145. ADMINISTRATION OF BENEFITS FOR SO-CALLED
MINIMUM INCOME WIDOWS.
(a) PAYMENTS TO BE MADE BY SECRETARY OF VET-
ERANS AFFAIRS.—Section 653(d) of the National Defense
Authorization Act, Fiscal Year 1989 (10 U.S.C. 1448
note) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘An annuity’’ the
first place it appears; and
(2) by adding at the end the following new
paragraph:
‘‘(2) Payment of annuities under this section shall be
made by the Secretary of Veterans Affairs. In making
such payments, the Secretary shall combine the payment
under this section with the payment of any amount due
the same person under section 4 of Public Law 92–425
(10 U.S.C. 1448 note), as provided in subsection (e)(1)
of that section. The Secretary concerned shall transfer
amounts for payments under this section to the Secretary
of Veterans Affairs in the same manner as is provided
under subsection (e)(2) of section 4 of Public Law 92–
425 for payments under that section.’’.
(b) COMBINATION WITH OTHER BENEFITS.—Sec-
tion 4(e)(1) of Public Law 92–425 (10 U.S.C. 1448 note)
is amended—
(1) by inserting after the first sentence the fol-
lowing new sentence: ‘‘In making such payments, the
Secretary shall combine with the payment under this
section payment of any amount due the same person
under section 653(d) of the National Defense Au-
thorization Act, Fiscal Year 1989 (10 U.S.C. 1448
note).’’; and
(2) by inserting ‘‘(and, if applicable, under sec-
tion 653(d) of the National Defense Authorization
Act, Fiscal Year 1989)’’ after ‘‘under this section’’.
(c) EFFECTIVE DATE.—The amendments made by
this section take effect on the first day of the first month
beginning after the date of the enactment of this Act and
shall apply with respect to payments of benefits for
months beginning on or after that date, except that the
Secretary of Veterans Affairs may provide, if necessary
for administrative implementation, that such amendments
shall apply beginning with a later month, not later than
the first month beginning more than 180 days after the
date of the enactment of this Act.
Subtitle E—Other Matters
SEC. 151. LOAN REPAYMENT PROGRAM FOR COMMIS-
SIONED OFFICERS IN CERTAIN HEALTH PRO-
FESSIONS.
(a) Chapter 109 of title 10, United States Code, is
amended by adding at the end the following new section:
‘‘§ 2173. Education loan repayment program: commis-
sioned officers in specified health profes-
sions
‘‘(a) AUTHORITY TO REPAY EDUCATION LOANS.—
For the purpose of maintaining adequate numbers of com-
missioned officers of the armed forces on active duty who
are qualified in the various health professions, the Sec-
retary of a military department may repay, in the case
of a person described in subsection (b), a loan that—
‘‘(1) was used by the person to finance edu-
cation regarding a health profession; and
‘‘(2) was obtained from a governmental entity,
private financial institution, school, or other author-
ized entity.
‘‘(b) ELIGIBLE PERSONS.—To be eligible to obtain
a loan repayment under this section, a person must—
‘‘(1) satisfy one of the requirements specified in
subsection (c);
‘‘(2) be fully qualified for, or hold, an appoint-
ment as a commissioned officer in one of the health
professions; and
‘‘(3) sign a written agreement to serve on active
duty, or, if on active duty, to remain on active duty
for a period in addition to any other incurred active
duty obligation.
‘‘(c) ACADEMIC
AND
PROFESSIONAL
REQUIRE-
MENTS.—One of the following academic requirements
must be satisfied for purposes of determining the eligi-
bility of a person for a loan repayment under this section:
‘‘(1) The person is fully qualified in a health
care profession that the Secretary of the military de-
partment concerned has determined to be necessary
to meet identified skill shortages.
‘‘(2) The person is enrolled as a full-time stu-
dent in the final year of a course of study at an ac-
credited educational institution leading to a degree
in a health profession other than medicine or osteo-
pathic medicine.
‘‘(3) The person is enrolled in the final year of
an approved graduate program leading to specialty
qualification in medicine, dentistry, osteopathic med-
icine, or other health profession.
‘‘(d) CERTAIN PERSONS INELIGIBLE.—Participants
of the Armed Forces Health Professions Scholarship and
Financial Assistance program under subchapter I of chap-
ter 105 of this title and students of the Uniformed Serv-
ices University of the Health Sciences established under
section 2112 of this title are not eligible for the repayment
of an education loan under this section.
‘‘(e) LOAN REPAYMENTS.—(1) Subject to the limits
established by paragraph (2), a loan repayment under this
section may consist of payment of the principal, interest,
and related expenses of a loan obtained by a person de-
scribed in subsection (b) for—
‘‘(A) all educational expenses, comparable to all
educational 
expenses 
recognized 
under 
section
2127(a) of this title for participants in the Armed
Forces Health Professions Scholarship and Finan-
cial Assistance program; and
‘‘(B) reasonable living expenses, not to exceed
expenses comparable to the stipend paid under sec-
tion 2121(d) of this title for participants in the
Armed Forces Health Professions Scholarship and
Financial Assistance program.
‘‘(2) For each year of obligated service that a person
agrees to serve in an agreement described in subsection
(b)(3), the Secretary of the military department concerned
may pay not more than $22,000 on behalf of the person.
This maximum amount shall be increased annually by the
Secretary of Defense effective October 1 of each year by
the percentage equal to the percent increase in the average
annual cost of educational expenses and stipend costs of
a single scholarship under the Armed Forces Health Pro-
fessions Scholarship and Financial Assistance program.
The total amount that may be repaid on behalf of any
person may not exceed an amount determined on the basis
of a four-year active duty service obligation.
‘‘(f) ACTIVE DUTY SERVICE OBLIGATION.—(1) A
person entering into an agreement described in subsection
(b)(3) incurs an active duty service obligation. The length
of this obligation shall be determined under regulations
prescribed by the Secretary of Defense, but those regula-
tions may not provide for a period of obligation of less
than one year for each maximum annual amount, or por-
tion thereof, paid on behalf of the person for qualified
loans.
‘‘(2) For persons on active duty before entering into
the agreement, the active duty service obligation shall be
served consecutively to any other obligation incurred
under the agreement.
‘‘(g) EFFECT OF FAILURE TO COMPLETE OBLIGA-
TION.—A commissioned officer who is relieved of the offi-
cer’s active duty obligation under this section before the
completion of that obligation may be given, with or with-
out the consent of the officer, any alternative obligation
comparable to any of the alternative obligations authorized
by section 2123(e) of this title for participants in the
Armed Forces Health Professions Scholarship and Finan-
cial Assistance program.
‘‘(h) REGULATIONS.—The Secretary of Defense shall
prescribe regulations to carry out this section, including
standards for qualified loans and authorized payees and
other terms and conditions for the making of loan repay-
ments.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘2173. Education loan repayment program: commissioned officers in specified
health professions.’’.
SEC. 152. CONFORMANCE OF NOAA COMMISSIONED OFFI-
CERS SEPARATION PAY TO SEPARATION PAY
FOR MEMBERS OF OTHER UNIFORMED SERV-
ICES.
(a) ELIMINATION OF LIMITATIONS ON AMOUNT OF
SEPARATION PAY.—Section 9 of the Coast and Geodetic
Survey Commissioned Officers’ Act of 1948 (33 U.S.C.
853h) is amended—
(1) in subsection (b)(1), by striking out ‘‘, or
$30,000, whichever is less’’;
(2) in subsection (b)(2), by striking out ‘‘, but
in no event more than $15,000’’; and
(3) in subsection (d), by striking out ‘‘(1)’’, and
by striking out paragraph (2).
(b) WAIVER OF RECOUPMENT OF AMOUNTS WITH-
HELD FOR TAX PURPOSES FROM CERTAIN SEPARATION
PAY.—Section 9(e)(2) of the Coast and Geodetic Survey
Commissioned Officers’ Act of 1948 (33 U.S.C.
853h(e)(2)) is amended in the first sentence by inserting
before the period at the end the following: ‘‘, less the
amount of Federal income tax withheld from such pay
(such withholding being at the flat withholding rate for
Federal income tax withholding, as in effect pursuant to
regulations prescribed under chapter 24 of the Internal
Revenue Code of 1986)’’.
(c) EFFECTIVE
DATE
AND
APPLICATION.—The
amendments made by this section shall take effect as of
October 1, 1997, and shall apply to payments of separa-
tion pay that are made after September 30, 1997.
SEC. 153. ELIGIBILITY OF PUBLIC HEALTH SERVICE OFFI-
CERS AND NOAA COMMISSIONED CORPS OF-
FICERS FOR REIMBURSEMENT OF ADOPTION
EXPENSES.
(a) PUBLIC HEALTH SERVICE.—Section 221(a) of
the Public Health Service Act (42 U.S.C. 213a(a)) is
amended by adding at the end the following new para-
graph:
‘‘(16) Section 1052, Reimbursement for adop-
tion expenses.’’.
(b) NATIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION.—Section 3(a) of the Act of August 10, 1956
(33 U.S.C. 857a(a)), is amended by adding at the end the
following new paragraph:
‘‘(16) Section 1052, Reimbursement for adop-
tion expenses.’’.
(c) PROSPECTIVE APPLICABILITY.—The amendments
made by this section shall apply only to adoptions that
are completed on or after the date of the enactment of
this Act.
SEC. 154. PAYMENT OF BACK QUARTERS AND SUBSISTENCE
ALLOWANCES TO WORLD WAR II VETERANS
WHO SERVED AS GUERRILLA FIGHTERS IN
THE PHILIPPINES.
(a) IN GENERAL.—The Secretary of the military de-
partment concerned shall pay, upon request, to an individ-
ual described in subsection (b) the amount determined
with respect to that individual under subsection (c).
(b) COVERED INDIVIDUALS.—A payment under sub-
section (a) shall be made to any individual who as a mem-
ber of the Armed Forces during World War II—
(1) was captured within the territory of the
Philippines by Japanese forces;
(2) escaped from captivity; and
(3) served as a guerrilla fighter in the Phil-
ippines during the period from January 1942
through February 1945.
(c) AMOUNT TO BE PAID.—The amount of a pay-
ment under subsection (a) shall be the amount of quarters
and subsistence allowance which accrued to an individual
described in subsection (b) during the period specified in
paragraph (3) of subsection (b) and which was not paid
to that individual. For the purposes of this subsection, the
Secretary of War shall be deemed to have determined that
conditions in the Philippines during the specified period
justified payment under applicable regulations of quarters
and subsistence allowances at the maximum special rate
for duty where emergency conditions existed. The Sec-
retary shall apply interest compounded at the three-month
Treasury bill rate.
(d) PAYMENT TO SURVIVORS.—In the case of any in-
dividual described in subsection (b) who is deceased, pay-
ment under this section with respect to that individual
shall be made to that individual’s nearest surviving rel-
ative, as determined by the Secretary concerned.
SEC. 155. SUBSISTENCE OF MEMBERS OF THE ARMED
FORCES ABOVE THE POVERTY LEVEL.
(a) STUDY AND REPORT.—(1) The Secretary of De-
fense shall conduct a study of members of the Armed
Forces and their families who subsist at, near, or below
the poverty level. The study shall include the following:
(A) An analysis of potential solutions for ensur-
ing that members of the Armed Forces and their
families do not have to subsist at, near, or below the
poverty level, including potential solutions involving
changes in the system of allowances for members.
(B) Identification of the military populations
most likely to need income support under Federal
Government programs, including—
(i) the populations living in areas of the
United States where housing costs are notably
high;
(ii) the populations living outside the Unit-
ed States; and
(iii) the number of persons in each identi-
fied population.
(C) The desirability of increasing rates of basic
pay and allowances for members over a defined pe-
riod of years by a range of percentages that provides
for higher percentage increases for lower ranking
members than for higher ranking members.
(2) Not later than 180 days after the date of the en-
actment of this Act, the Secretary of Defense shall submit
to Congress a report containing the results of the study
and such recommendations as the Secretary considers to
be appropriate.
(b) IMPLEMENTATION
OF DEPARTMENT
OF DE-
FENSE SPECIAL SUPPLEMENTAL FOOD PROGRAM FOR
PERSONNEL OUTSIDE THE UNITED STATES.—(1) Sub-
section (b) of section 1060a of title 10, United States
Code, is amended to read as follows:
‘‘(b) FEDERAL PAYMENTS AND COMMODITIES.—For
the purpose of obtaining Federal payments and commod-
ities in order to carry out the program referred to in sub-
section (a), the Secretary of Agriculture shall make avail-
able to the Secretary of Defense the same payments and
commodities as are made for the special supplemental food
program in the United States under section 17 of the
Child Nutrition Act of 1966 (42 U.S.C. 1786). The Sec-
retary of Defense may use funds available for the Depart-
ment of Defense to carry out the program under sub-
section (a).’’.
(2) Not later than 90 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit
to Congress a report regarding the intentions of the Sec-
retary regarding implementation of the program author-
ized under section 1060a of title 10, United States Code,
including any plans to implement the program.
TITLE II—HEALTH CARE
PROVISIONS
Subtitle A—Health Care Services
SEC. 201. EXPANSION OF RETIREE DENTAL INSURANCE
PLAN TO INCLUDE SURVIVING SPOUSE AND
CHILD DEPENDENTS OF CERTAIN DECEASED
MEMBERS.
Section 1076c(b)(4) of title 10, United States Code,
is amended—
(1) in subparagraph (A)—
(A) by striking out ‘‘dies’’ and inserting in
lieu thereof ‘‘died’’; and
(B) by striking out ‘‘or’’ at the end of the
subparagraph;
(2) by striking out the period at the end of sub-
paragraph (B) and inserting in lieu thereof ‘‘; or’’;
and
(3) by adding at the end the following new sub-
paragraph:
‘‘(C) who died while on active duty for a
period of more than 30 days and whose eligible
dependents are not eligible, or no longer eligi-
ble, for dental benefits under section 1076a of
this title pursuant to subsection (i)(2) of such
section.’’.
SEC. 202. PROVISION OF PROSTHETIC DEVICES TO COV-
ERED BENEFICIARIES.
(a) INCLUSION AMONG AUTHORIZED CARE.—Sub-
section (a) of section 1077 of title 10, United States Code,
is amended by adding at the end the following new para-
graph:
‘‘(15) Prosthetic devices, as determined by the
Secretary of Defense to be necessary because of sig-
nificant conditions resulting from trauma, congenital
anomalies, or disease.’’.
(b) CONFORMING AMENDMENT.—Subsection (b) of
such section is amended by striking out paragraph (2) and
inserting in lieu thereof the following new paragraph:
‘‘(2) Hearing aids, orthopedic footwear, and
spectacles, except that, outside of the United States
and at stations inside the United States where ade-
quate civilian facilities are unavailable, such items
may be sold to dependents at cost to the United
States.’’.
SEC. 203. STUDY CONCERNING THE PROVISION OF COM-
PARATIVE INFORMATION.
(a) STUDY.—The Secretary of Defense shall conduct
a study concerning the provision of the information de-
scribed in subsection (b) to beneficiaries under the
TRICARE program established under the authority of
chapter 55 of title 10, United States Code, and prepare
and submit to Congress a report concerning such study.
(b) PROVISION OF COMPARATIVE INFORMATION.—
Information described in this subsection, with respect to
a managed care entity that contracts with the Secretary
of Defense to provide medical assistance under the pro-
gram described in subsection (a), shall include the follow-
ing:
(1) The benefits covered by the entity involved,
including—
(A) covered items and services beyond
those provided under a traditional fee-for-serv-
ice program;
(B) any beneficiary cost sharing; and
(C) any maximum limitations on out-of-
pocket expenses.
(2) The net monthly premium, if any, under the
entity.
(3) The service area of the entity.
(4) To the extent available, quality and per-
formance indicators for the benefits under the entity
(and how they compare to such indicators under the
traditional fee-for-service programs in the area in-
volved), including—
(A) disenrollment rates for enrollees elect-
ing to receive benefits through the entity for the
previous two years (excluding disenrollment due
to death or moving outside the service area of
the entity);
(B) information on enrollee satisfaction;
(C) information on health process and out-
comes;
(D) grievance procedures;
(E) the extent to which an enrollee may se-
lect the health care provider of their choice, in-
cluding health care providers within the net-
work of the entity and out-of-network health
care providers (if the entity covers out-of-net-
work items and services); and
(F) an indication of enrollee exposure to
balance billing and the restrictions on coverage
of items and services provided to such enrollee
by an out-of-network health care provider.
(5) Whether the entity offers optional supple-
mental benefits and the terms and conditions (in-
cluding premiums) for such coverage.
(6) An overall summary description as to the
method of compensation of participating physicians.
Subtitle B—Tricare Program
SEC. 211. ADDITION OF DEFINITION OF TRICARE PROGRAM
TO TITLE 10.
Section 1072 of title 10, United States Code, is
amended by adding at the end the following new para-
graph:
‘‘(7) The term ‘TRICARE program’ means the
managed health care program that is established by
the Department of Defense under the authority of
this chapter, principally section 1097 of this title,
and includes the competitive selection of contractors
to financially underwrite the delivery of health care
services under the Civilian Health and Medical Pro-
gram of the Uniformed Services.’’.
SEC. 212. PLAN FOR EXPANSION OF MANAGED CARE OP-
TION OF TRICARE PROGRAM.
(a) PLAN FOR EXPANSION OF TRICARE PRIME.—
The Secretary of Defense shall prepare a plan for the ex-
pansion of the managed care option of the TRICARE Pro-
gram, known as TRICARE Prime, into areas of the Unit-
ed States located outside of the catchment areas of medi-
cal treatment facilities of the uniformed services, but in
which the managed care option is a cost-effective alter-
native because of—
(1) the significant number of members of the
uniformed services and covered beneficiaries under
chapter 55 of title 10, United States Code (including
retired members of the Armed Forces and their de-
pendents), who reside in the areas; and
(2) the presence in the areas of sufficient non-
military health care provider networks.
(b) ALTERNATIVES.—As an alternative to expansion
of TRICARE Prime to areas of the United States in which
there are few or no nonmilitary health care provider net-
works, the Secretary shall include in the plan required
under subsection an evaluation of the feasibility and cost-
effectiveness of providing a member of the Armed Forces
on active duty who is stationed in such an area, or whose
dependents reside in such an area, with one or both of
the following:
(1) A monetary stipend to assist the member in
obtaining health care services for the member or the
member’s dependents.
(2) A reduction in the cost-sharing require-
ments applicable to the TRICARE program options
otherwise available to the member to match the re-
duced cost-sharing responsibilities of the managed
care option of the TRICARE program.
(c) SUBMISSION OF PLAN.—Not later than March 1,
1998, the Secretary shall submit to Congress the plan re-
quired under subsection (a).
Subtitle C—Uniformed Services
Treatment Facilities
SEC. 221. IMPLEMENTATION OF DESIGNATED PROVIDER
AGREEMENTS FOR UNIFORMED SERVICES
TREATMENT FACILITIES.
(a) COMMENCEMENT OF HEALTH CARE SERVICES
UNDER AGREEMENT.—Subsection (c) of section 722 of
the National Defense Authorization Act for Fiscal Year
1997 (Public Law 104–201, 10 U.S.C. 1073 note) is
amended—
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B);
(2) by inserting ‘‘(1)’’ before ‘‘Unless’’; and
(3) by adding at the end the following new
paragraph:
‘‘(2) The Secretary may modify the effective date es-
tablished under paragraph (1) for an agreement to permit
a transition period of not more than six months between
the date on which the agreement is executed by the parties
and the date on which the designated provider commences
the delivery of health care services under the agreement.’’.
100
(b) TEMPORARY CONTINUATION OF EXISTING PAR-
TICIPATION AGREEMENTS.—Subsection (d) of such sec-
tion is amended by inserting before the period at the end
the following: ‘‘, including any transitional period provided
by the Secretary under paragraph (2) of such subsection’’.
SEC. 222. CONTINUED ACQUISITION OF REDUCED-COST
DRUGS.
Section 722 of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C.
1073 note) is amended by adding at the end the following
new subsection:
‘‘(g) CONTINUED ACQUISITION OF REDUCED-COST
DRUGS.—A designated provider shall be treated as part
of the Department of Defense for purposes of section 8126
of title 38, United States Code, in connection with the pro-
vision by the designated provider of health care services
to covered beneficiaries pursuant to the participation
agreement of the designated provider under section 718(c)
of the National Defense Authorization Act for Fiscal Year
1991 (Public Law 101–510; 42 U.S.C. 248c note) or pur-
suant to the agreement entered into under subsection
(b).’’.
SEC. 223. LIMITATION ON TOTAL PAYMENTS.
Section 726(b) of the National Defense Authorization
Act for Fiscal Year 1997 (Public Law 104–201; 10 U.S.C.
101
1073 note) is amended by adding at the end the following
new sentence: ‘‘In establishing the ceiling rate for enroll-
ees with the designated providers who are also eligible for
the Civilian Health and Medical Program of the Uni-
formed Services, the Secretary of Defense shall take into
account the health status of the enrollees.’’.
Subtitle D—Other Changes to Ex-
isting Laws Regarding Health
Care Management
SEC. 231. IMPROVEMENTS IN HEALTH CARE COVERAGE
AND ACCESS FOR MEMBERS ASSIGNED TO
CERTAIN 
DUTY 
LOCATIONS 
FAR 
FROM
SOURCES OF CARE.
(a) SUPPLEMENTAL CARE PROGRAM.—(1) Section
1074(c) of title 10, United States Code, is amended—
(A) by inserting ‘‘(1)’’ after ‘‘(c)’’; and
(B) by adding at the end the following new
paragraphs:
‘‘(2)(A) Subject to such exceptions as the Secretary
of Defense considers necessary, coverage for medical care
for members of the armed forces under this subsection,
and standards with respect to timely access to such care,
shall be comparable to coverage for medical care and
standards for timely access to such care under the man-
102
aged care option of the TRICARE program known as
TRICARE Prime.
‘‘(B) The Secretary of Defense shall enter into ar-
rangements with contractors under the TRICARE pro-
gram or with other appropriate contractors for the timely
and efficient processing of claims under this subsection.
‘‘(3)(A) The Secretary of Defense may not require
a member of the armed forces described in subparagraph
(B) to receive routine primary medical care at a military
medical treatment facility.
‘‘(B) A member referred to in subparagraph (A) is
a member of the armed forces on active duty who is enti-
tled to medical care under this subsection and who—
‘‘(i) receives a duty assignment described in
subparagraph (C); and
‘‘(ii) pursuant to the assignment of such duty,
resides at a location that is more than 50 miles, or
approximately one hour of driving time, from the
nearest military medical treatment facility adequate
to provide the needed care.
‘‘(C) A duty assignment referred to in subparagraph
(B) means any of the following:
‘‘(i) Permanent duty as a recruiter.
‘‘(ii) Permanent duty at an educational institu-
tion to instruct, administer a program of instruction,
103
or provide administrative services in support of a
program of instruction for the Reserve Officers’
Training Corps.
‘‘(iii) Permanent duty as a full-time adviser to
a unit of a reserve component.
‘‘(iv) Any other permanent duty designated by
the Secretary concerned for purposes of this para-
graph.’’.
(2) The amendments made by paragraph (1) shall
apply with respect to coverage of medical care for, and
the provision of such care to, a member of the Armed
Forces under section 1074(c) of title 10, United States
Code, on and after the later of the following:
(A) April 1, 1998.
(B) The date on which the TRICARE program
is in place in the service area of the member.
(b) TEMPORARY AUTHORITY FOR MANAGED CARE
EXPANSION TO MEMBERS ON ACTIVE DUTY AT CERTAIN
REMOTE LOCATIONS.—(1) A member of the Armed
Forces described in subsection (c) is entitled to receive
care under the Civilian Health and Medical Program of
the Uniformed Services. In connection with such care, the
Secretary of Defense shall waive the obligation of the
member to pay a deductible, copayment, or annual fee that
104
would otherwise be applicable under that program for care
provided to the members under the program.
(2) A member who is entitled under paragraph (1)
to receive health care services under CHAMPUS shall re-
ceive such care from a network provider under the
TRICARE program if such a provider is available in the
service area of the member.
(3) Paragraph (1) shall take effect on the date of the
enactment of this Act and shall expire with respect to a
member upon the later of the following:
(A) The date that is one year after the date of
the enactment of this Act.
(B) The date on which the amendments made
by subsection (a) apply with respect to the coverage
of medical care for, and provision of such care to,
the member.
(c) ELIGIBLE MEMBERS.—A member referred to in
subsection (b) is a member of the Armed Forces on active
duty who—
(1) receives a duty assignment described in sub-
section (d); and
(2) pursuant to the assignment of such duty,
resides at a location that is more than 50 miles, or
approximately one hour of driving time, from—
105
(A) the nearest health care facility of the
uniformed services adequate to provide the
needed care under chapter 55 of title 10, Unit-
ed States Code; and
(B) the nearest source of the needed care
that is available to the member under the
TRICARE Prime plan.
(d) DUTY ASSIGNMENTS COVERED.—A duty assign-
ment referred to in subsection (c)(1) means any of the
following:
(1) Permanent duty as a recruiter.
(2) Permanent duty at an educational institu-
tion to instruct, administer a program of instruction,
or provide administrative services in support of a
program of instruction for the Reserve Officers’
Training Corps.
(3) Permanent duty as a full-time adviser to a
unit of a reserve component of the Armed Forces.
(4) Any other permanent duty designated by
the Secretary concerned for purposes of this sub-
section.
(e) PAYMENT OF COSTS.—Deductibles, copayments,
and annual fees not payable by a member by reason of
a waiver granted under the regulations prescribed pursu-
ant to subsection (b) shall be paid out of funds available
106
to the Department of Defense for the Defense Health Pro-
gram.
(f) DEFINITIONS.—In this section:
(1) The term ‘‘TRICARE program’’ has the
meaning given that term in section 1072(7) of title
10, United States Code.
(2) The term ‘‘TRICARE Prime plan’’ means
a plan under the TRICARE program that provides
for the voluntary enrollment of persons for the re-
ceipt of health care services to be furnished in a
manner similar to the manner in which health care
services are furnished by health maintenance organi-
zations.
SEC. 232. WAIVER OR REDUCTION OF COPAYMENTS UNDER
OVERSEAS DENTAL PROGRAM.
Section 1076a(h) of title 10, United States Code, is
amended—
(1) in the first sentence, by striking out ‘‘Sec-
retary’’ and inserting in lieu thereof ‘‘Secretary of
Defense’’; and
(2) by adding at the end the following new sen-
tence: ‘‘In the case of such an overseas dental plan,
the Secretary may waive or reduce the copayments
otherwise required by subsection (e) to the extent
107
the Secretary determines appropriate for the effec-
tive and efficient operation of the plan.’’.
SEC. 233. PREMIUM COLLECTION REQUIREMENTS FOR
MEDICAL AND DENTAL INSURANCE PRO-
GRAMS; EXTENSION OF DEADLINE FOR IM-
PLEMENTATION 
OF 
DENTAL 
INSURANCE
PROGRAM FOR MILITARY RETIREES.
(a) PREMIUM COLLECTION FOR SELECTED RESERVE
DENTAL INSURANCE.—Paragraph (3) of section 1076b(b)
of title 10, United States Code, is amended to read as
follows:
‘‘(3) The Secretary of Defense shall establish proce-
dures for the collection of the member’s share of the pre-
mium for coverage by the dental insurance plan. To the
maximum extent practicable, a member’s share shall be
deducted and withheld from the basic pay payable to the
member for inactive duty training or basic pay payable
to the member for active duty (if pay is available to the
member). Such share shall be used to pay the premium
for coverage by the dental insurance plan.’’.
(b) PREMIUM COLLECTION FOR RETIREE DENTAL
INSURANCE PLAN.—Paragraph (2) of section 1076c(c) of
such title is amended to read as follows:
‘‘(2) The Secretary of Defense shall establish proce-
dures for the collection of the premiums charged for cov-
108
erage by the dental insurance plan. To the maximum ex-
tent practicable, the premiums payable by a member enti-
tled to retired pay shall be deducted and withheld from
the retired pay of the member (if pay is available to the
member).’’.
(c) REPORT TO CONGRESS.—Not later than March
1, 1998, the Secretary of Defense shall submit to Congress
a report on the premium collection procedures established
pursuant to paragraph (3) of section 1076b(b) of title 10,
United States Code, and paragraph (2) of section
1076c(c) of such title. The report shall describe the extent
to which premium collections are made under such para-
graphs through deductions and withholding from pay.
(d) LIMITATION ON IMPLEMENTATION OF ALTER-
NATIVE COLLECTION PROCEDURES.—The Secretary of
Defense may not implement procedures for collecting pre-
miums under section 1076b(b)(3) of title 10, United
States Code, or section 1076c(c)(2) of such title other
than by deductions and withholding from pay until 120
days after the date that the Secretary submits a report
to Congress describing the justifications for implementing
such alternative procedures.
(e) EXTENSION OF DEADLINE FOR IMPLEMENTA-
TION OF DENTAL INSURANCE PLAN FOR MILITARY RE-
TIREES.—Section 703(b) of the National Defense Author-
109
ization Act for Fiscal Year 1997 (Public Law 104–201;
110 Stat. 2590) is amended by striking ‘‘October 1, 1997’’
and inserting ‘‘April 1, 1998’’.
SEC. 234. DENTAL INSURANCE PLAN COVERAGE FOR RE-
TIREES OF THE PUBLIC HEALTH SERVICE
AND NOAA.
(a) ELIGIBILITY.—(1) Subsection (a) of section
1076c of title 10, United States Code, is amended by
striking out ‘‘military retirees’’ and inserting in lieu there-
of ‘‘retirees of the uniformed services’’.
(2) Subsection (b)(1) of such section is amended by
striking out ‘‘Armed Forces’’ and inserting in lieu thereof
‘‘uniformed services’’.
(b) OFFICIALS RESPONSIBLE.—(1) Subsection (a) of
such section (as amended by subsection (a)) is further
amended by inserting ‘‘, in consultation with the other ad-
ministering Secretaries,’’ after ‘‘Secretary of Defense’’.
(2) Subsection (h) of such section is amended by
striking out ‘‘Secretary of Transportation’’ and inserting
in lieu thereof ‘‘other administering Secretaries’’.
SEC. 235. CONSISTENCY BETWEEN CHAMPUS AND MEDI-
CARE IN PAYMENT RATES FOR SERVICES.
(a) 
CONFORMITY
BETWEEN
RATES.—Section
1079(h) of title 10, United States Code, is amended by
110
striking out paragraphs (1), (2), and (3) and inserting in
lieu thereof the following new paragraph:
‘‘(1) Except as provided in paragraphs (2) and (3),
payment for a charge for services by an individual health
care professional (or other noninstitutional health care
provider) for which a claim is submitted under a plan con-
tracted for under subsection (a) shall be equal to an
amount determined to be appropriate, to the extent prac-
ticable, in accordance with the same reimbursement rules
as apply to payments for similar services under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.). The
Secretary of Defense shall determine the appropriate pay-
ment amount under this paragraph in consultation with
the other administering Secretaries.’’.
(b) REDUCED RATES AUTHORIZED.—Paragraph (5)
of such section is amended by adding at the end the follow-
ing new sentence: ‘‘With the consent of the health care
provider, the Secretary is also authorized to reduce the
authorized payment for certain health care services below
the amount otherwise required by the payment limitations
under paragraph (1).’’.
(c) CONFORMING AMENDMENTS.—Such section is
further amended—
111
(1) in paragraph (5), by striking out ‘‘para-
graph (4), the Secretary’’ and inserting in lieu there-
of ‘‘paragraph (2), the Secretary of Defense’’; and
(2) by redesignating paragraphs (4), (5), and
(6) as paragraphs (2), (3), and (4), respectively.
SEC. 236. USE OF PERSONAL SERVICES CONTRACTS FOR
PROVISION OF HEALTH CARE SERVICES AND
LEGAL PROTECTION FOR PROVIDERS.
(a) USE OF CONTRACTS OUTSIDE MEDICAL TREAT-
MENT FACILITIES.—Section 1091(a) of title 10, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ before ‘‘The Secretary of
Defense’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) The Secretary of Defense, and the Secretary of
Transportation with respect to the Coast Guard when it
is not operating as a service in the Navy, may also enter
into personal services contracts to carry out other health
care responsibilities of the Secretary (such as the provision
of medical screening examinations at Military Entrance
Processing Stations) at locations outside medical treat-
ment facilities, as determined necessary pursuant to regu-
lations prescribed by the Secretary. The Secretary may
not enter into a contract under this paragraph after the
112
end of the one-year period beginning on the date of the
enactment of this paragraph.’’.
(b) DEFENSE OF SUITS.—Section 1089 of such title
is amended—
(1) in subsection (a), by adding at the end the
following new sentence: ‘‘This subsection shall also
apply if the physician, dentist, nurse, pharmacist, or
paramedical or other supporting personnel (or the
estate of such person) involved is serving under a
personal services contract entered into under section
1091 of this title.’’; and
(2) in subsection (f)—
(A) by inserting ‘‘(1)’’ after ‘‘(f)’’; and
(B) by adding at the end the following new
paragraph:
‘‘(2) With respect to the Secretary of Defense and
the Armed Forces Retirement Home Board, the authority
provided by paragraph (1) also includes the authority to
provide for reasonable attorney’s fees for persons de-
scribed in subsection (a), as determined necessary pursu-
ant to regulations prescribed by the head of the agency
concerned.’’.
(c) REPORT.—Not later than March 31, 1998, the
Secretary of Defense shall submit to Congress a report
on the feasible alternative means for performing the medi-
113
cal screening examinations that are routinely performed
at Military Entrance Processing Stations. The report shall
contain a discussion of the feasibility and cost of the use
of—
(1) the TRICARE system for the performance
of the examinations; and
(2) each other alternative identified in the re-
port.
SEC. 237. PORTABILITY OF STATE LICENSES FOR DEPART-
MENT OF DEFENSE HEALTH CARE PROFES-
SIONALS.
Section 1094 of title 10, United States Code, is
amended—
(1) by redesignating subsection (d) as sub-
section (e); and
(2) by inserting after subsection (c) the follow-
ing new subsection:
‘‘(d)(1) Notwithstanding any law regarding the licen-
sure of health care providers, a health-care professional
described in paragraph (2) may practice the health profes-
sion or professions of the health-care professional in any
State, the District of Columbia, or a Commonwealth, terri-
tory, or possession of the United States, regardless of
whether the practice occurs in a health care facility of the
Department of Defense, a civilian facility affiliated with
114
the Department of Defense, or any other location author-
ized by the Secretary of Defense.
‘‘(2) A health-care professional referred to in para-
graph (1) is a member of the armed forces who—
‘‘(A) has a current license to practice medicine,
osteopathic medicine, dentistry, or another health
profession; and
‘‘(B) is performing authorized duties for the
Department of Defense.’’.
SEC. 238. STANDARD FORM AND REQUIREMENTS REGARD-
ING CLAIMS FOR PAYMENT FOR SERVICES.
(a) CLARIFICATION OF EXISTING REQUIREMENTS.—
Section 1106 of title 10, United States Code, is amended
to read as follows:
‘‘§ 1106. Submittal of claims: standard form; time lim-
its
‘‘(a) STANDARD FORM.—The Secretary of Defense,
after consultation with the other administering Secretar-
ies, shall prescribe by regulation a standard form for the
submission of claims for the payment of health care serv-
ices provided under this chapter.
‘‘(b) TIME FOR SUBMISSION.—A claim for payment
for services provided under this chapter shall be submitted
as provided in such regulations not later than one year
after the services are provided.’’.
115
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of chapter 55 of title 10, United States
Code, is amended by striking out the item relating to sec-
tion 1106 and inserting in lieu thereof the following new
item:
‘‘1106. Submittal of claims: standard form; time limits.’’.
SEC. 239. CHIROPRACTIC HEALTH CARE DEMONSTRATION
PROGRAM.
(a) TWO-YEAR EXTENSION.—Subsection (b) of sec-
tion 731 of the National Defense Authorization Act for
Fiscal Year 1995 (Public Law 103–337; 10 U.S.C. 1092
note) is amended by striking out ‘‘1997’’ and inserting
in lieu thereof ‘‘1999’’.
(b) EXPANSION TO AT LEAST THREE ADDITIONAL
TREATMENT FACILITIES.—Subsection (a)(2)(A) of such
section is amended by striking out ‘‘not less than 10’’ and
inserting in lieu thereof ‘‘the National Naval Medical Cen-
ter, the Walter Reed Army Medical Center, and not less
than 11 other’’.
(c) REPORTS.—Subsection (c) of such section is
amended—
(1) by striking paragraph (3); and
(2) by adding at the end the following new
paragraphs:
‘‘(3) Not later than January 30, 1998, the Secretary
of Defense shall submit to the Committee on Armed Serv-
116
ices of the Senate and the Committee on National Security
of the House of Representatives a report that identifies
the additional treatment facilities designated to furnish
chiropractic care under the program that were not so des-
ignated before the report required by paragraph (1) was
prepared, together with the plan for the conduct of the
program at the additional treatment facilities.
‘‘(4) Not later than May 1, 1998, the Secretary of
Defense shall modify the plan for evaluating the program
submitted pursuant to paragraph (2) in order to provide
for the evaluation of the program at all of the designated
treatment facilities under the program, including the
treatment facilities referred to in paragraph (3).
‘‘(5) Not later than May 1, 2000, the Secretary shall
submit to the committees referred to in paragraph (3) a
final report in accordance with the plan submitted pursu-
ant to paragraph (2).’’.
Subtitle E—Other Matters
SEC. 241. CONTINUED ADMISSION OF CIVILIANS AS STU-
DENTS IN PHYSICIAN ASSISTANT TRAINING
PROGRAM OF ARMY MEDICAL DEPARTMENT.
(a) CIVILIAN ATTENDANCE.—(1) Chapter 407 of title
10, United States Code, is amended by adding at the end
the following new section:
117
‘‘§ 4416. Academy of Health Sciences: admission of ci-
vilians in physician assistant training
program
‘‘(a) IN GENERAL.—The Secretary of the Army may,
pursuant to an agreement entered into with an accredited
institution of higher education—
‘‘(1) permit students of the institution to attend
the didactic portion of the physician assistant train-
ing program conducted by the Army Medical De-
partment at the Academy of Health Sciences at Fort
Sam Houston, Texas; and
‘‘(2) accept from the institution academic serv-
ices to support the physician assistant training pro-
gram at the Academy.
‘‘(b) AGREEMENT FOR EXCHANGE OF SERVICES.—
An agreement entered into with an institution of higher
education under this section shall require the institution,
in exchange for services provided under paragraph (1) of
subsection (a), to provide academic services described in
paragraph (2) of such subsection that the Secretary and
authorized representatives of the institution consider ap-
propriate.
‘‘(c) SELECTION
OF STUDENTS.—In consultation
with the authorized representatives of the institution of
higher education concerned, the Secretary shall prescribe
the qualifications and methods of selection for students
118
of the institution to receive instruction at the Academy
under this section. The qualifications shall be comparable
to those generally required for admission to the physician
assistant training program at the Academy.
‘‘(d) RULES OF ATTENDANCE.—Except as the Sec-
retary determines necessary, a student who receives in-
struction at the Academy under this section shall be sub-
ject to the same regulations governing attendance, dis-
cipline, discharge, and dismissal as apply to other persons
attending the Academy.
‘‘(e) LIMITATIONS.—The Secretary shall ensure the
following:
‘‘(1) That the Army Medical Department, in
carrying out an agreement under this section, does
not incur costs in excess of the costs that the de-
partment would incur to obtain, by means other
than the agreement, academic services that are com-
parable to those provided by the institution pursuant
to the agreement.
‘‘(2) That attendance of civilian students at the
Academy under this section does not cause a de-
crease in the number of members of the armed
forces enrolled in the physician assistant training
program at the Academy.
119
‘‘(f) ANNUAL REPORT.—(1) Each year, the Secretary
shall submit to Congress a report on the exchange of serv-
ices under this section during the year. The report shall
contain the following:
‘‘(A) The number of civilian students who re-
ceive instruction at the Academy under this section.
‘‘(B) An assessment of the benefits derived by
the United States.
‘‘(2) Reports are required under paragraph (1) only
for years during which an agreement is in effect under
this section.’’.
(2) The table of sections at the beginning of such
chapter is amended by adding at the end the following
new item:
‘‘4416. Academy of Health Sciences: admission of civilians in physician assistant
training program.’’.
(b) EFFECT ON EXISTING DEMONSTRATION PRO-
GRAM.—An agreement entered into under the demonstra-
tion program for the admission of civilians as physician
assistant students at the Academy of Health Sciences,
Fort Sam Houston, Texas, established pursuant to section
732 of the National Defense Authorization Act for Fiscal
Year 1995 (Public Law 103–337; 108 Stat. 2810) shall
be treated as an agreement entered into under section
4416 of title 10, United States Code (as added by sub-
section (a)). The agreement may be extended in such man-
120
ner and for such period as the parties to the agreement
consider appropriate consistent with section 4416.
SEC. 242. PAYMENT FOR EMERGENCY HEALTH CARE OVER-
SEAS FOR MILITARY AND CIVILIAN PERSON-
NEL OF THE ON-SITE INSPECTION AGENCY.
(a) PAYMENT OF COSTS.—The Secretary of Defense
may pay the costs of any emergency health care that—
(1) is needed by a member of the Armed
Forces, civilian employee of the Department of De-
fense, or civilian employee of a contractor operating
under a contract with the Department of Defense
while the member or employee is performing tem-
porary or permanent duty with the On-Site Inspec-
tion Agency outside the United States; and
(2) is furnished to such person during fiscal
year 1998 by a source outside the United States.
(b) FUNDING.—Funds authorized to be appropriated
for the expenses of the On-Site Inspection Agency for fis-
cal year 1998 by this Act shall be available to cover pay-
ments for emergency health care provided under sub-
section (a).
121
SEC. 243. AUTHORITY FOR AGREEMENT FOR USE OF MEDI-
CAL 
RESOURCE 
FACILITY, 
ALAMOGORDO,
NEW MEXICO.
(a) AUTHORITY.—(1) The Secretary of the Air Force
may enter into an agreement with Gerald Champion Hos-
pital, Alamogordo, New Mexico, under which the Secretary
may furnish health care services to eligible individuals in
a medical resource facility in Alamogordo, New Mexico,
that is constructed and equipped, in part, using funds pro-
vided by the Secretary under the agreement.
(2) For purposes of this section:
(A) The term ‘‘eligible individual’’ means any
individual eligible for medical and dental care under
chapter 55 of title 10, United States Code, including
any member of the uniformed services entitled to
such care under section 1074(a) of that title.
(B) The terms ‘‘medical resource facility’’ and
‘‘facility’’ mean the medical resource facility to be
constructed and equipped pursuant to the agreement
authorized by paragraph (1).
(C) The term ‘‘Hospital’’ means Gerald Cham-
pion Hospital, Alamogordo, New Mexico.
(b) CONTENT OF AGREEMENT.—Any agreement en-
tered into under subsection (a) shall specify, at a mini-
mum, the following:
122
(1) The relationship between the Hospital and
the Secretary of the Air Force in the provision of
health care services to eligible individuals in the
medical resource facility, including—
(A) whether or not the Secretary and the
Hospital are to use and administer the facility
jointly or independently; and
(B) under what circumstances the Hospital
is to act as a provider of health care services
under 
the 
managed 
care 
option 
of 
the
TRICARE program known as TRICARE
Prime.
(2) Matters relating to the administration of
the agreement, including—
(A) the duration of the agreement;
(B) the rights and obligations of the Sec-
retary and the Hospital under the agreement,
including any contracting or grievance proce-
dures applicable under the agreement;
(C) the types of care to be provided to eli-
gible individuals under the agreement, including
the cost to the Department of the Air Force of
providing the care to eligible individuals during
the term of the agreement;
123
(D) the access of Air Force medical per-
sonnel to the facility under the agreement;
(E) the rights and responsibilities of the
Secretary and the Hospital upon termination of
the agreement; and
(F) any other matters jointly identified by
the Secretary and the Hospital.
(3) The nature of the arrangement between the
Secretary and the Hospital with respect to the own-
ership of the facility and any property under the
agreement, including—
(A) the nature of that arrangement while
the agreement is in force;
(B) the nature of that arrangement upon
termination of the agreement; and
(C) any requirement for reimbursement of
the Secretary by the Hospital as a result of the
arrangement upon termination of the agree-
ment.
(4) The amount of the funds made available
under subsection (c) that the Secretary will contrib-
ute for the construction and equipping of the facil-
ity.
(5) Any conditions or restrictions relating to
the construction, equipping, or use of the facility.
124
(c) AVAILABILITY OF FUNDS FOR CONSTRUCTION
AND EQUIPPING OF FACILITY.—(1) Of the amount au-
thorized to be appropriated pursuant to section 301(4) for
operation and maintenance for the Air Force, not more
than $7,000,000 may be used by the Secretary of the Air
Force to make a contribution toward the construction and
equipping of the medical resource facility in the event that
the Secretary enters into the agreement authorized by sub-
section (a). Notwithstanding any other provision of law,
the Secretary may not use other sources of funds to make
a contribution toward the construction or equipping of the
facility.
(2) Notwithstanding subsection (b)(3) regarding the
ownership and reimbursement issues to be addressed in
the agreement authorized by subsection (a), the Secretary
may not contribute funds made available under paragraph
(1) toward the construction and equipping of the facility
unless the agreement requires, in exchange for the con-
tribution, that the Hospital provide health care services
to eligible individuals without charge to the Secretary or
at a reduced rate. The value of the services provided by
the Hospital shall be at least equal to the amount of the
contribution made by the Secretary, and the Hospital shall
complete the provision of services equal in value to the
Secretary’s contribution within seven years after the facil-
125
ity becomes operational. The provision of additional dis-
counted services to be provided by the Hospital shall be
included in the agreement. The value and types of services
to be provided by the Hospital shall be negotiated in ac-
cordance with principles of resource-sharing agreements
under the TRICARE program.
(d) NOTICE AND WAIT.—The Secretary of the Air
Force may not enter into the agreement authorized by
subsection (a) until 90 days after the Secretary of Defense
submits to the congressional defense committees the re-
port required by subsection (e).
(e) REPORT ON PROPOSED AGREEMENT.—The Sec-
retary of Defense shall submit to Congress a report con-
taining an analysis of, and recommendations regarding,
the agreement proposed to be entered into under sub-
section (a), in particular, the implications of the agree-
ment on regional health care costs and its effect on imple-
mentation of the TRICARE program in the region. The
report shall also include a copy of the agreement, the re-
sults of a cost-benefit analysis conducted by the Secretary
of the Air Force with respect to the agreement, and such
other information with respect to the agreement as the
Secretary of Defense and the Secretary of the Air Force
considers appropriate. The cost-benefit analysis shall con-
sider the effects of the agreement on operation and main-
126
tenance and military construction requirements at
Holloman Air Force Base, New Mexico.
(f) SUBSEQUENT REPORTS.—If the Secretary of the
Air Force enters into the agreement authorized by sub-
section (a), the Secretary shall submit to Congress an an-
nual report containing a revised cost-benefit analysis of
the consequences of the agreement as in effect during the
year covered by the report, including a full accounting of
any cost savings realized by the Department of the Air
Force as a result of the agreement. A report shall be sub-
mitted for each year in which the agreement is in effect
or until the Hospital provides the full value of health care
services required under subsection (c)(2), whichever oc-
curs first.
SEC. 244. DISCLOSURES OF CAUTIONARY INFORMATION ON
PRESCRIPTION MEDICATIONS.
(a) REGULATIONS REQUIRED.—Not later than 180
days after the date of the enactment of this Act, the Sec-
retary of Defense, in consultation with the administering
Secretaries referred to in section 1073 of title 10, United
States Code, shall prescribe regulations to require each
source described in subsection (d) that dispenses a pre-
scription medication to a beneficiary under chapter 55 of
such title to include with the medication the written cau-
tionary information required by subsection (b).
127
(b) INFORMATION TO BE DISCLOSED.—Information
required to be disclosed about a medication under the reg-
ulations shall include appropriate cautions about usage of
the medication, including possible side effects and poten-
tially hazardous interactions with foods.
(c) FORM OF INFORMATION.—The regulations shall
require that information be furnished in a form that, to
the maximum extent practicable, is easily read and under-
stood.
(d) COVERED SOURCES.—The regulations shall apply
to the following:
(1) Pharmacies and any other dispensers of
prescription medications in medical facilities of the
uniformed services.
(2) Sources of prescription medications under
any mail order pharmaceuticals program provided by
any of the administering Secretaries under chapter
55 of title 10, United States Code.
(3) Pharmacies paid under the Civilian Health
and Medical Program of the Uniformed Services (in-
cluding the TRICARE program).
(4) Pharmacies, and any other pharmaceutical
dispensers, of designated providers referred to in
section 721(5) of the National Defense Authoriza-
128
tion Act for Fiscal Year 1997 (Public Law 104–201;
110 Stat. 2593; 10 U.S.C. 1073 note).
SEC. 245. COMPETITIVE PROCUREMENT OF CERTAIN OPH-
THALMIC SERVICES.
(a) COMPETITIVE PROCUREMENT REQUIRED.—Be-
ginning not later than October 1, 1998, the Secretary of
Defense shall competitively procure from private-sector
sources, or other sources outside of the Department of De-
fense, all ophthalmic services related to the provision of
single vision and multivision eyeware for members of the
Armed Forces, retired members, and certain covered bene-
ficiaries under chapter 55 of title 10, United States Code,
who would otherwise receive such ophthalmic services
through the Department of Defense.
(b) EXCEPTION.—Subsection (a) shall not apply to
the extent that the Secretary of Defense determines that
the use of sources within the Department of Defense to
provide such ophthalmic services—
(1) is necessary to meet the readiness require-
ments of the Armed Forces; or
(2) is more cost effective.
(c) COMPLETION OF EXISTING ORDERS.—Subsection
(a) shall not apply to orders for ophthalmic services re-
ceived on or before September 30, 1998.
129
SEC. 246. COMPTROLLER GENERAL STUDY OF ADEQUACY
AND 
EFFECT 
OF 
MAXIMUM 
ALLOWABLE
CHARGES 
FOR 
PHYSICIANS 
UNDER
CHAMPUS.
(a) STUDY REQUIRED.—The Comptroller General
shall conduct a study regarding the adequacy of the maxi-
mum allowable charges for physicians established under
the Civilian Health and Medical Program of the Uni-
formed Services (CHAMPUS) and the effect of such
charges on the participation of physicians in CHAMPUS.
The study shall include an evaluation of the following:
(1) The methodology used by the Secretary of
Defense to establish maximum allowable charges for
physicians under CHAMPUS, and whether such
methodology conforms to the requirements of section
1079(h) of title 10, United States Code.
(2) The differences between the established
charges under CHAMPUS and reimbursement rates
for similar services under title XVIII of the Social
Security Act and other health care programs.
(3) The basis for physician complaints that the
CHAMPUS established charges are too low.
(4) The difficulty of CHAMPUS in ensuring
physician compliance with the CHAMPUS estab-
lished charges in the absence of legal mechanisms to
130
enforce compliance, and the effect of noncompliance
on patient out-of-pocket expenses.
(5) The effect of the established charges under
CHAMPUS on the participation of physicians in
CHAMPUS, and the extent and success of Depart-
ment of Defense efforts to increase physician partici-
pation in areas with low participation rates.
(b) SUBMISSION OF REPORT.—Not later than March
1, 1998, the Comptroller General shall submit to Congress
a report containing the results of the study required by
subsection (a).
SEC. 247. COMPTROLLER GENERAL STUDY OF DEPART-
MENT OF DEFENSE PHARMACY PROGRAMS.
(a) STUDY.—Not later than March 31, 1998, the
Comptroller General shall submit to Congress a study
evaluating the pharmacy programs of the Department of
Defense. The study shall examine the impact of such phar-
macy programs on the aggregate cost, quality, and acces-
sibility of health care provided to covered beneficiaries
under chapter 55 of title 10, United States Code, and shall
include an examination of the following:
(1) The merits and feasibility of establishing a
uniform formulary for military treatment facility
pharmacies and civilian contractor pharmacy benefit
administrators.
131
(2) The reasons that military treatment facili-
ties deny covered beneficiaries access to pharmacy
care and shift such beneficiaries to other sources of
pharmacy care.
(3) The merits and feasibility of using private
sector cost control mechanisms implemented by au-
thorized civilian contractors in the Department of
Defense medical programs, and the existence of any
barriers to the use of such mechanisms, including
factors that may undermine the incentives of such
contractors to optimize treatment outcomes in man-
aging the care of covered beneficiaries without ex-
ceeding budgeted resources.
(4) The cost impacts, if any, of the use of com-
mercial managed care methods of furnishing phar-
maceuticals to covered beneficiaries by TRICARE
program contractors instead of procuring pharma-
ceuticals at discounted prices pursuant to section
8126 of title 38, United States Code.
(5) The existence of options for increasing the
discounts available to TRICARE program contrac-
tors without undermining controls for preventing di-
version of items procured by the Department of De-
fense to nonmilitary populations.
132
(b) RESPONSE TO STUDY.—Not later than 90 days
after the Comptroller General submits to Congress the
study required by subsection (a), the Secretary of Defense
shall submit to Congress a report on the feasibility and
advisability of implementing changes to the pharmacy pro-
grams of the Department of Defense based on the findings
and conclusions of the study.
SEC. 248. COMPTROLLER GENERAL STUDY OF NAVY GRAD-
UATE MEDICAL EDUCATION PROGRAM.
(a) STUDY REQUIRED.—The Comptroller General
shall conduct a study to evaluate the validity of the rec-
ommendations made by the Medical Education Policy
Council of the Bureau of Medicine and Surgery of the
Navy regarding restructuring the graduate medical edu-
cation program of the Department of the Navy. The study
shall specifically address the Council’s recommendations
relating to residency training conducted at Naval Medical
Center, Portsmouth, Virginia, and National Naval Medical
Center, Bethesda, Maryland.
(b) SUBMISSION OF REPORT.—Not later than March
1, 1998, the Comptroller General shall submit to Congress
and the Secretary of the Navy a report containing the re-
sults of the study required by subsection (a).
(c) MORATORIUM ON RESTRUCTURING.—Until the
report required by subsection (b) is submitted to Congress,
133
the Secretary of the Navy may not make any change in
the types of residency programs conducted under the Navy
graduate medical education program or the locations at
which such residency programs are conducted or otherwise
restructure the Navy graduate medical education pro-
gram.
SEC. 249. STUDY OF EXPANSION OF PHARMACEUTICALS BY
MAIL PROGRAM TO INCLUDE ADDITIONAL
MEDICARE-ELIGIBLE 
COVERED 
BENE-
FICIARIES.
Not later than six months after the date of the enact-
ment of this Act, the Secretary of Defense shall submit
to Congress a report regarding the feasibility and advis-
ability of expanding the category of persons eligible to par-
ticipate in the demonstration project for the purchase of
prescription pharmaceuticals by mail, as required by sec-
tion 702(a) of the National Defense Authorization Act for
Fiscal Year 1993 (Public Law 102–484; 10 U.S.C. 1079
note), to include persons referred to in subsection (c) of
section 1086 of title 10, United States Code, who are cov-
ered by subsection (d)(1) of such section and reside in the
United States outside of the catchment area of a medical
treatment facility of the uniformed services.
134
SEC. 250. COMPTROLLER GENERAL STUDY OF REQUIRE-
MENT FOR MILITARY MEDICAL FACILITIES IN
NATIONAL CAPITAL REGION.
(a) STUDY REQUIRED.—The Comptroller General
shall conduct a study to evaluate the requirements for
Army, Navy, and Air Force medical facilities in the Na-
tional Capital Region (as defined in section 2674(f)(2) of
title 10, United States Code). The study shall—
(1) specifically address requirements with re-
spect to geography, facilities, integrated residencies,
and medical environments; and
(2) provide specific recommendations with re-
spect to how medical and health care provided by
these facilities may be better coordinated to more ef-
ficiently serve, throughout the National Capital Re-
gion, members of the Armed Forces on active duty
and covered beneficiaries under chapter 55 of title
10, United States Code.
(b) SUBMISSION OF REPORT.—Not later than six
months after the date of the enactment of this Act, the
Comptroller General shall submit to Congress and the Sec-
retary of Defense a report containing the results of the
study required by subsection (a).
135
SEC. 251. REPORT ON POLICIES AND PROGRAMS TO PRO-
MOTE HEALTHY LIFESTYLES FOR MEMBERS
OF THE ARMED FORCES AND THEIR DEPEND-
ENTS.
(a) REPORT.—Not later than March 30, 1998, the
Secretary of Defense shall submit to the Committee on
Armed Services of the Senate and the Committee on Na-
tional Security of the House of Representatives a report
on the effectiveness of the policies and programs of the
Department of Defense intended to promote healthy life-
styles for members of the Armed Forces and their depend-
ents.
(b) POLICIES AND PROGRAMS TO BE ASSESSED.—
The report under subsection (a) shall include an assess-
ment of the effectiveness of the following:
(1) Programs intended to educate members of
the Armed Forces and their dependents about the
potential health consequences of the use of alcohol
and tobacco.
(2) Policies of the commissaries, post ex-
changes, and service clubs, and for entertainment
activities of the Department of Defense, relating to
the sale and use of alcohol and tobacco.
(3) Programs intended to provide support to
members of the Armed Forces and their dependents
136
who choose to reduce or eliminate their use of alco-
hol or tobacco.
(4) Any other policies or programs intended to
promote healthy lifestyles for members of the Armed
Forces and their dependents.
SEC. 252. SENSE OF CONGRESS REGARDING QUALITY
HEALTH CARE FOR RETIREES.
(a) FINDINGS.—Congress makes the following find-
ings:
(1) Many retired military personnel believe that
they were promised lifetime health care in exchange
for 20 or more years of service.
(2) Military retirees are the only Federal Gov-
ernment personnel who have been prevented from
using their employer-provided health care at or after
65 years of age.
(3) Military health care has become increasingly
difficult to obtain for military retirees as the De-
partment of Defense reduces its health care infra-
structure.
(4) Military retirees deserve to have a health
care program that is at least comparable with that
of retirees from civilian employment by the Federal
Government.
137
(5) The availability of quality, lifetime health
care is a critical recruiting incentive for the Armed
Forces.
(6) Quality health care is a critical aspect of
the quality of life of the men and women serving in
the Armed Forces.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
(1) the United States has incurred a moral obli-
gation to provide health care to members and former
members of the Armed Forces who are entitled to
retired or retainer pay (or its equivalent);
(2) it is, therefore, necessary to provide quality,
affordable health care to such retirees; and
(3) Congress and the President should take
steps to address the problems associated with the
availability of health care for such retirees within
two years after the date of the enactment of this
Act.
Subtitle F—Persian Gulf Illness
SEC. 261. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Gulf War illness’’ means any one
of the complex of illnesses and symptoms that might
have been contracted by members of the Armed
138
Forces as a result of service in the Southwest Asia
theater of operations during the Persian Gulf War.
(2) The term ‘‘Persian Gulf War’’ has the
meaning given that term in section 101 of title 38,
United States Code.
(3) The term ‘‘Persian Gulf veteran’’ means an
individual who served on active duty in the Armed
Forces in the Southwest Asia theater of operations
during the Persian Gulf War.
(4) The term ‘‘contingency operation’’ has the
meaning given that term in section 101(a) of title
10, United States Code, and includes a humani-
tarian operation, peacekeeping operation, or similar
operation.
SEC. 262. PLAN FOR HEALTH CARE SERVICES FOR PERSIAN
GULF VETERANS.
(a) PLAN REQUIRED.—The Secretary of Defense and
the Secretary of Veterans Affairs, acting jointly, shall pre-
pare a plan to provide appropriate health care to Persian
Gulf veterans (and dependents eligible by law) who suffer
from a Gulf War illness.
(b) CONTENTS OF PLAN.—In preparing the plan, the
Secretaries shall—
(1) use the presumptions of service connection
and illness specified in paragraphs (1) and (2) of
139
section 721(d) of the National Defense Authoriza-
tion Act for Fiscal Year 1995 (Public Law 103–337;
10 U.S.C. 1074 note) to determine the Persian Gulf
veterans (and dependents eligible by law) who should
be covered by the plan;
(2) consider the need and methods available to
provide health care services to Persian Gulf veterans
who are no longer on active duty in the Armed
Forces, such as Persian Gulf veterans who are mem-
bers of the reserve components and Persian Gulf
veterans who have been separated from the Armed
Forces; and
(3) estimate the costs to the Government of
providing full or partial health care services under
the plan to covered Persian Gulf veterans (and cov-
ered dependents eligible by law).
(c) FOLLOW-UP TREATMENT.—The plan required by
subsection (a) shall specifically address the measures to
be used to monitor the quality, appropriateness, and effec-
tiveness of, and patient satisfaction with, health care serv-
ices provided to Persian Gulf veterans after their initial
medical examination as part of registration in the Persian
Gulf War Veterans Health Registry or the Comprehensive
Clinical Evaluation Program.
140
(d) SUBMISSION OF PLAN.—Not later than March 1,
1998, the Secretaries shall submit to Congress the plan
required by subsection (a).
SEC. 263. COMPTROLLER GENERAL STUDY OF REVISED
DISABILITY CRITERIA FOR PHYSICAL EVAL-
UATION BOARDS.
Not later than March 1, 1998, the Comptroller Gen-
eral shall submit to Congress a study evaluating the revi-
sions made by the Secretary of Defense (as required by
section 721(e) of the National Defense Authorization Act
for Fiscal Year 1995 (Public Law 103–337; 10 U.S.C.
1074 note)) to the Physical Evaluation Board criteria
used to set disability ratings for members of the Armed
Forces who are no longer medically qualified for continu-
ation on active duty so as to ensure accurate disability
ratings related to a diagnosis of a Gulf War illness.
SEC. 264. MEDICAL CARE FOR CERTAIN RESERVES WHO
SERVED IN SOUTHWEST ASIA DURING THE
PERSIAN GULF WAR.
(a) IN GENERAL.—Chapter 55 of title 10, United
States Code, is amended by inserting after section 1074d
the following new section:
141
‘‘§ 1074e. Medical care: certain Reserves who served
in Southwest Asia during the Persian
Gulf Conflict
‘‘(a) ENTITLEMENT TO MEDICAL CARE.—A member
of the armed forces described in subsection (b) is entitled
to medical care for a qualifying Persian Gulf symptom or
illness to the same extent and under the same conditions
(other than the requirement that the member be on active
duty) as a member of a uniformed service who is entitled
to such care under section 1074(a) of this title.
‘‘(b) COVERED MEMBERS.—Subsection (a) applies to
a member of a reserve component who—
‘‘(1) is a Persian Gulf veteran;
‘‘(2) has a qualifying Persian Gulf symptom or
illness; and
‘‘(3) is not otherwise entitled to medical care
for such symptom or illness under this chapter and
is not otherwise eligible for hospital care and medi-
cal services for such symptom or illness under sec-
tion 1710 of title 38.
‘‘(c) DEFINITIONS.—In this section:
‘‘(1) The term ‘Persian Gulf veteran’ means a
member of the armed forces who served on active
duty in the Southwest Asia theater of operations
during the Persian Gulf Conflict.
142
‘‘(2) The term ‘qualifying Persian Gulf symp-
tom or illness’ means, with respect to a member de-
scribed in subsection (b), a symptom or illness—
‘‘(A) that the member registered before
September 1, 1997, in the Comprehensive Clini-
cal Evaluation Program of the Department of
Defense and that is presumed under section
721(d) of the National Defense Authorization
Act for Fiscal Year 1995 (10 U.S.C. 1074
note) to be a result of service in the Southwest
Asia theater of operations during the Persian
Gulf Conflict; or
‘‘(B) that the member registered before
September 1, 1997, in the Persian Gulf War
Veterans Health Registry maintained by the
Department of Veterans Affairs pursuant to
section 702 of the Persian Gulf War Veterans’
Health Status Act (38 U.S.C. 527 note).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 1074d the following new
item:
‘‘1074e. Medical care: certain Reserves who served in Southwest Asia during the
Persian Gulf Conflict.’’.
143
SEC. 265. IMPROVED MEDICAL TRACKING SYSTEM FOR
MEMBERS DEPLOYED OVERSEAS IN CONTIN-
GENCY OR COMBAT OPERATIONS.
(a) SYSTEM REQUIRED.—(1) Chapter 55 of title 10,
United States Code, is amended by inserting after section
1074e (as added by section 264) the following new section:
‘‘§ 1074f. Medical tracking system for members de-
ployed overseas
‘‘(a) SYSTEM REQUIRED.—The Secretary of Defense
shall establish a system to assess the medical condition
of members of the armed forces (including members of the
reserve components) who are deployed outside the United
States or its territories or possessions as part of a contin-
gency operation (including a humanitarian operation,
peacekeeping operation, or similar operation) or combat
operation.
‘‘(b) ELEMENTS OF SYSTEM.—The system described
in subsection (a) shall include the use of predeployment
medical examinations and postdeployment medical exami-
nations (including an assessment of mental health and the
drawing of blood samples) to accurately record the medical
condition of members before their deployment and any
changes in their medical condition during the course of
their deployment. The postdeployment examination shall
be conducted when the member is redeployed or otherwise
144
leaves an area in which the system is in operation (or as
soon as possible thereafter).
‘‘(c) RECORDKEEPING.—The results of all medical
examinations conducted under the system, records of all
health care services (including immunizations) received by
members described in subsection (a) in anticipation of
their deployment or during the course of their deployment,
and records of events occurring in the deployment area
that may affect the health of such members shall be re-
tained and maintained in a centralized location to improve
future access to the records.
‘‘(d) QUALITY ASSURANCE.—The Secretary of De-
fense shall establish a quality assurance program to evalu-
ate the success of the system in ensuring that members
described in subsection (a) receive predeployment medical
examinations and postdeployment medical examinations
and that the recordkeeping requirements with respect to
the system are met.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 1074e (as added by section 264) the following
new item:
‘‘1074f. Medical tracking system for members deployed overseas.’’.
(b) REPORT.—Not later than March 1, 1998, the
Secretary of Defense shall submit to Congress an analysis
of the administrative implications of establishing and ad-
145
ministering the medical tracking system required by sec-
tion 1074f of title 10, United States Code, as added by
subsection (a). The report shall include, for fiscal year
1999 and the 5 successive fiscal years, a separate analysis
and specification of the projected costs and operational
considerations for each of the following required aspects
of the system:
(1) Predeployment medical examinations.
(2) Postdeployment medical examinations.
(3) Recordkeeping.
SEC. 266. NOTICE OF USE OF INVESTIGATIONAL NEW
DRUGS OR DRUGS UNAPPROVED FOR THEIR
APPLIED USE.
(a) NOTICE REQUIREMENTS.—Chapter 55 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 1107. Notice of use of an investigational new drug
or a drug unapproved for its applied use
‘‘(a) NOTICE REQUIRED.—(1) Whenever the Sec-
retary of Defense requests or requires a member of the
armed forces to receive an investigational new drug or a
drug unapproved for its applied use, the Secretary shall
provide the member with notice containing the information
specified in subsection (d).
146
‘‘(2) The Secretary shall also ensure that health care
providers who administer an investigational new drug or
a drug unapproved for its applied use, or who are likely
to treat members who receive such a drug, receive the in-
formation required to be provided under paragraphs (3)
and (4) of subsection (d).
‘‘(b) TIME OF NOTICE.—The notice required to be
provided to a member under subsection (a)(1) shall be pro-
vided before the investigational new drug or drug unap-
proved for its applied use is first administered to the mem-
ber, if practicable, but in no case later than 30 days after
the drug is first administered to the member.
‘‘(c) FORM OF NOTICE.—The notice required under
subsection (a)(1) shall be provided in writing unless the
Secretary of Defense determines that the use of written
notice is impractical because of the number of members
receiving the investigational new drug or drug unapproved
for its applied use, time constraints, or similar reasons.
If the Secretary provides notice under subsection (a)(1)
in a form other than in writing, the Secretary shall submit
to Congress a report describing the notification method
used and the reasons for the use of the alternative method.
‘‘(d) CONTENT
OF NOTICE.—The notice required
under subsection (a)(1) shall include the following:
147
‘‘(1) Clear notice that the drug being adminis-
tered is an investigational new drug or a drug unap-
proved for its applied use.
‘‘(2) The reasons why the investigational new
drug or drug unapproved for its applied use is being
administered.
‘‘(3) Information regarding the possible side ef-
fects of the investigational new drug or drug unap-
proved for its applied use, including any known side
effects possible as a result of the interaction of such
drug with other drugs or treatments being adminis-
tered to the members receiving such drug.
‘‘(4) Such other information that, as a condi-
tion of authorizing the use of the investigational new
drug or drug unapproved for its applied use, the
Secretary of Health and Human Services may re-
quire to be disclosed.
‘‘(e) RECORDS OF USE.—The Secretary of Defense
shall ensure that the medical records of members accu-
rately document—
‘‘(1) the receipt by members of any investiga-
tional new drug or drug unapproved for its applied
use; and
‘‘(2) the notice required by subsection (a)(1).
‘‘(f) DEFINITIONS.—In this section:
148
‘‘(1) The term ‘investigational new drug’ means
a drug covered by section 505(i) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 355(i)).
‘‘(2) The term ‘drug unapproved for its applied
use’ means a drug administered for a use not de-
scribed in the approved labeling of the drug under
section 505 of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 355).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1107. Notice of use of an investigational new drug or a drug unapproved for
its applied use.’’.
SEC. 267. REPORT ON PLANS TO TRACK LOCATION OF MEM-
BERS IN A THEATER OF OPERATIONS.
Not later than March 1, 1998, the Secretary of De-
fense shall submit to Congress a report containing a plan
for collecting and maintaining information regarding the
daily location of units of the Armed Forces, and to the
extent practicable individual members of such units, serv-
ing in a theater of operations during a contingency oper-
ation or combat operation.
149
SEC. 268. SENSE OF CONGRESS REGARDING THE DEPLOY-
MENT OF SPECIALIZED UNITS FOR DETECT-
ING AND MONITORING CHEMICAL, BIOLOGI-
CAL, AND SIMILAR HAZARDS IN A THEATER
OF OPERATIONS.
It is the sense of Congress that the Secretary of De-
fense, in conjunction with the Chairman of the Joint
Chiefs of Staff, should take such actions as are necessary
to ensure that the units of the Armed Forces deployed
in the theater of operations for each contingency operation
or combat operation include specialized units with suffi-
cient capability (including personnel with the appropriate
training and expertise, and the appropriate equipment) to
detect and monitor the presence of chemical, biological,
and similar hazards to which members of the Armed
Forces could be exposed in that theater during the oper-
ation.
SEC. 269. REPORT ON EFFECTIVENESS OF RESEARCH EF-
FORTS REGARDING GULF WAR ILLNESSES.
Not later than March 1, 1998, the Secretary of De-
fense shall submit to Congress a report evaluating the ef-
fectiveness of medical research initiatives regarding Gulf
War illnesses. The report shall address the following:
(1) The type and effectiveness of previous re-
search efforts, including the activities undertaken
pursuant to section 743 of the National Defense Au-
150
thorization Act for Fiscal Year 1997 (Public Law
104–201; 10 U.S.C. 1074 note), section 722 of the
National Defense Authorization Act for Fiscal Year
1995 (Public Law 103–337; 10 U.S.C. 1074 note),
and sections 270 and 271 of the National Defense
Authorization Act for Fiscal Year 1994 (Public Law
103–160; 107 Stat. 1613).
(2) Recommendations regarding additional re-
search regarding Gulf War illnesses, including re-
search regarding the nature and causes of Gulf War
illnesses and appropriate treatments for such ill-
nesses.
(3) The adequacy of Federal funding and the
need for additional funding for medical research ini-
tiatives regarding Gulf War illnesses.
SEC. 270. PERSIAN GULF ILLNESS CLINICAL TRIALS PRO-
GRAM.
(a) FINDINGS.—Congress finds the following:
(1) There are many ongoing studies that inves-
tigate risk factors which may be associated with the
health problems experienced by Persian Gulf veter-
ans; however, there have been no studies that exam-
ine health outcomes and the effectiveness of the
treatment received by such veterans.
151
(2) The medical literature and testimony pre-
sented in hearings on Gulf War illnesses indicate
that there are therapies, such as cognitive behavioral
therapy, that have been effective in treating patients
with symptoms similar to those seen in many Per-
sian Gulf veterans.
(b) ESTABLISHMENT OF PROGRAM.—The Secretary
of Defense and the Secretary of Veterans Affairs, acting
jointly, shall establish a program of cooperative clinical
trials at multiple sites to assess the effectiveness of proto-
cols for treating Persian Gulf veterans who suffer from
ill-defined or undiagnosed conditions. Such protocols shall
include a multidisciplinary treatment model, of which cog-
nitive behavioral therapy is a component.
(c) FUNDING.—Of the funds authorized to be appro-
priated in section 201(1) for research, development, test,
and evaluation for the Army, the sum of $4,500,000 shall
be available for program element 62787A (medical tech-
nology) in the budget of the Department of Defense for
fiscal year 1998 to carry out the clinical trials program
established pursuant to subsection (b).
SEC. 271. SENSE OF CONGRESS CONCERNING GULF WAR
ILLNESS.
(a) FINDINGS.—Congress makes the following find-
ings:
152
(1) Americans served in the Persian Gulf Con-
flict of 1991 in defense of vital national security in-
terests of the United States.
(2) It was known to United States intelligence
and military commanders that biological and chemi-
cal agents were in theater throughout the conflict.
(3) An undetermined amount of these agents
were released into theater.
(4) A large number of United States military
veterans and allied veterans who served in the
Southwest Asia theater of operations have been
stricken with a variety of severe illnesses.
(5) Previous efforts to discern the causes of
those illnesses have been inadequate, and those ill-
nesses are affecting the health of both veterans and
their families.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that all promising technology and treatments relat-
ing to Gulf War illnesses should be fully explored and test-
ed to facilitate treatment for members of the Armed
Forces and veterans who served the United States in the
Persian Gulf conflict and are stricken with unexplainable
illness.
153
TITLE III—MILITARY
CONSTRUCTION, ARMY
SEC. 301. AUTHORIZED ARMY CONSTRUCTION AND LAND
ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 304(a)(1), the Secretary of the Army may
acquire real property and carry out military construction
projects for the installations and locations inside the Unit-
ed States, and in the amounts, set forth in the following
table:
Army: Inside the United States
State
Installation or Location
Amount
Alabama .................................
Redstone Arsenal ..............................
$27,000,000
Arizona ..................................
Fort Huachuca .................................
$20,000,000
California ...............................
Fort Irwin ........................................
$11,150,000
Naval Weapons Station, Concord .....
$23,000,000
Colorado ................................
Fort Carson ......................................
$47,300,000
Georgia ..................................
Fort Gordon .....................................
$22,000,000
Hunter Army Air Field, Fort Stew-
art .................................................
$54,000,000
Hawaii ...................................
Schofield Barracks ...........................
$44,000,000
Indiana ..................................
Crane Army Ammunition Activity ...
$7,700,000
Kansas ...................................
Fort Leavenworth .............................
$63,000,000
Fort Riley .........................................
$25,800,000
Kentucky ...............................
Fort Campbell ..................................
$53,600,000
Fort Knox .........................................
$7,200,000
Missouri .................................
Fort Leonard Wood .........................
$3,200,000
New Jersey ............................
Fort Monmouth ................................
$2,050,000
New Mexico ...........................
White Sands Missile Range ..............
$6,900,000
New York ..............................
Fort Drum ........................................
$24,400,000
North Carolina ......................
Fort Bragg .......................................
$17,700,000
Oklahoma ..............................
Fort Sill ............................................
$25,000,000
South Carolina ......................
Naval Weapons Station, Charleston
$7,700,000
Texas .....................................
Fort Bliss .........................................
$7,700,000
Fort Hood ........................................
$27,200,000
Fort Sam Houston ...........................
$16,000,000
Virginia ..................................
Fort A.P. Hill ...................................
$5,400,000
Fort Myer .........................................
$8,200,000
Fort Story ........................................
$2,050,000
Washington ............................
Fort Lewis ........................................
$33,000,000
CONUS Classified .................
Classified Location ...........................
$6,500,000
Total .....................................
$598,750,000
154
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 304(a)(2), the Secretary of the Army may
acquire real property and carry out military construction
projects for the locations outside the United States, and
in the amounts, set forth in the following table:
Army: Outside the United States
Country
Installation or Location
Amount
Germany ................................
Ansbach ............................................
$22,000,000
Heidelberg ........................................
$8,800,000
Mannheim .........................................
$6,200,000
Military 
Support 
Group,
Kaiserslautern ..............................
$6,000,000
Korea .....................................
Camp Casey ......................................
$5,100,000
Camp Castle .....................................
$8,400,000
Camp Humphreys ............................
$32,000,000
Camp Red Cloud ..............................
$23,600,000
Camp Stanley ...................................
$7,000,000
Overseas Classified ................
Overseas Classified ...........................
$37,000,000
Total .....................................
$156,100,000
SEC. 302. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to authorization of appro-
priations in section 304(a)(5)(A), the Secretary of the
Army may construct or acquire family housing units (in-
cluding land acquisition) at the installations, for the pur-
poses, and in the amounts set forth in the following table:
Army: Family Housing
State
Installation or Location
Purpose
Amount
Arizona .........................
Fort Huachuca ............
55 Units ..........
$8,000,000
Hawaii ..........................
Schofield Barracks ......
132 Units ........
$26,600,000
Maryland ......................
Fort Meade ..................
56 Units ..........
$7,900,000
New Jersey ...................
Picatinny Arsenal ........
35 Units ..........
$7,300,000
North Carolina .............
Fort Bragg ..................
174 Units ........
$20,150,000
Texas ............................
Fort Bliss ....................
91 Units ..........
$12,900,000
Fort Hood ....................
130 Units ........
$18,800,000
Total ....
$101,650,000
155
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in
section 304(a)(5)(A), the Secretary of the Army may carry
out architectural and engineering services and construc-
tion design activities with respect to the construction or
improvement of family housing units in an amount not
to exceed $9,550,000.
SEC. 303. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in sections 304(a)(5)(A),
the Secretary of the Army may improve existing military
family housing units in an amount not to exceed
$86,100,000.
SEC. 304. AUTHORIZATION OF APPROPRIATIONS, ARMY.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of the
Army in the total amount of $2,010,466,000 as follows:
(1) For military construction projects inside the
United 
States 
authorized 
by 
section 
301(a),
$435,350,000.
156
(2) For the military construction projects out-
side the United States authorized by section 301(b),
$156,100,000.
(3) For unspecified minor military construction
projects authorized by section 2805 of title 10, Unit-
ed States Code, $7,400,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $65,577,000.
(5) For military family housing functions:
(A) For construction and acquisition, plan-
ning and design, and improvement of military
family housing and facilities, $197,300,000.
(B) For support of military family housing
(including the functions described in section
2833 of title 10, United States Code),
$1,145,339,000.
(6) For the construction of the National Range
Control Center, White Sands Missile Range, New
Mexico, authorized by section 2101(a) of the Mili-
tary Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104–201; 110 Stat.
2763), $18,000,000.
(7) For the construction of the whole barracks
complex renewal, Fort Knox, Kentucky, authorized
157
by section 2101(a) of the Military Construction Au-
thorization Act for Fiscal Year 1997 (division B of
Public Law 104–201; 110 Stat. 2763), $22,000,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 301 of this Act
may not exceed—
(1) the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection
(a);
(2) $14,400,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of the Force XXI Soldier Development School at
Fort Hood, Texas);
(3) $24,000,000 (the balance of the amount au-
thorized under section 2101(a) for rail yard expan-
sion at Fort Carson, Colorado);
(4) $43,000,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
of a disciplinary barracks at Fort Leavenworth,
Kansas);
(5) $42,500,000 (the balance of the amount au-
thorized under section 2101(a) for the construction
160
acquire real property and carry out military construction
projects for the installations and locations inside the Unit-
ed States, and in the amounts, set forth in the following
table:
Navy: Inside the United States
State
Installation or Location
Amount
Arizona ..................................
Marine Corps Air Station, Yuma .....
$12,250,000
Navy Detachment, Camp Navajo .....
$11,426,000
California ...............................
Marine Corps Air Station, Camp
Pendleton ......................................
$14,020,000
Marine Corps Air Station, Miramar
$8,700,000
Marine Corps Air-Ground Combat
Center, Twentynine Palms ...........
$3,810,000
Marine Corps Base, Camp Pendle-
ton ................................................
$60,069,000
Naval Air Facility, El Centro ..........
$11,000,000
Naval Air Station, North Island ......
$19,600,000
Naval Amphibious Base, Coronado ..
$10,100,000
Naval Construction Battalion Cen-
ter, Port Hueneme .......................
$3,200,000
Connecticut ............................
Naval Submarine Base, New Lon-
don ................................................
$21,960,000
Florida ...................................
Naval Air Station, Jacksonville ........
$3,480,000
Naval Air Station, Whiting Field .....
$1,300,000
Naval Station, Mayport ....................
$17,940,000
Hawaii ...................................
Fort DeRussey .................................
$9,500,000
Marine Corps Air Station, Kaneohe
Bay ...............................................
$19,000,000
Naval Communications and Tele-
communications Area Master Sta-
tion Eastern Pacific, Honolulu .....
$3,900,000
Naval Station, Pearl Harbor ............
$25,000,000
Illinois ....................................
Naval Training Center, Great Lakes
$41,220,000
Indiana ..................................
Naval 
Surface 
Warfare 
Center,
Crane ............................................
$4,120,000
Maryland ...............................
Naval Electronics System Command,
St. Ingoes .....................................
$2,610,000
Mississippi .............................
Naval Air Station, Meridian .............
$7,050,000
North Carolina ......................
Marine Corps Air Station, Cherry
Point .............................................
$8,800,000
Marine Corps Air Station, New
River .............................................
$19,900,000
Rhode Island .........................
Naval Undersea Warfare Center Di-
vision, Newport .............................
$8,900,000
South Carolina ......................
Marine Corps Air Station, Beaufort
$17,730,000
Marine Corps Reserve Detachment
Parris Island .................................
$3,200,000
Texas .....................................
Naval Air Station, Corpus Christi ...
$800,000
Virginia ..................................
AEGIS Training Center, Dahlgren ..
$6,600,000
161
Navy: Inside the United States—Continued
State
Installation or Location
Amount
Fleet Combat Training Center, Dam
Neck ..............................................
$7,000,000
Naval Air Station, Norfolk ...............
$18,240,000
Naval Air Station, Oceana ...............
$28,000,000
Naval 
Amphibious 
Base, 
Little
Creek ............................................
$8,685,000
Naval Shipyard, Norfolk, Ports-
mouth ...........................................
$29,410,000
Naval Station, Norfolk .....................
$18,850,000
Naval 
Surface 
Warfare 
Center,
Dahlgren .......................................
$13,880,000
Naval Weapons Station, Yorktown ..
$14,547,000
Washington ............................
Naval Air Station, Whidbey Island ..
$1,100,000
Puget Sound Naval Shipyard, Brem-
erton .............................................
$4,400,000
Total .....................................
$521,297,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 404(a)(2), the Secretary of the Navy may
acquire real property and carry out military construction
projects for the installations and locations outside the
United States, and in the amounts, set forth in the follow-
ing table:
Navy: Outside the United States
Country
Installation or Location
Amount
Bahrain .................................
Administrative Support Unit, Bah-
rain ...............................................
$30,100,000
Guam .....................................
Naval Communications and Tele-
communications Area Master Sta-
tion Western Pacific, Guam .........
$4,050,000
Italy .......................................
Naval Air Station, Sigonella ............
$21,440,000
Naval Support Activity, Naples .......
$8,200,000
United Kingdom ....................
Joint 
Maritime 
Communications
Center, St. Mawgan ......................
$2,330,000
Total .....................................
$66,120,000
SEC. 402. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to the authorization of ap-
162
propriations in section 404(a)(5)(A), the Secretary of the
Navy may construct or acquire family housing units (in-
cluding land acquisition) at the installations, for the pur-
poses, and in the amounts set forth in the following table:
Navy: Family Housing
State
Installation or Location
Purpose
Amount
California ......................
Marine Corps Air Sta-
tion, Miramar ..........
166 Units ........
$28,881,000
Marine Corps Air-
Ground Combat Cen-
ter, Twentynine
Palms .......................
132 Units ........
$23,891,000
Marine Corps Base,
Camp Pendleton ......
171 Units ........
$22,518,000
Naval Air Station,
Lemoore ...................
128 Units ........
$23,226,000
Naval Complex, San
Diego ........................
94 Units ..........
$13,500,000
Hawaii ..........................
Naval Complex, Pearl
Harbor .....................
72 Units ..........
$13,000,000
Louisiana ......................
Naval Complex, New
Orleans .....................
100 Units ........
$11,930,000
Texas ............................
Naval Complex,
Kingsville and Cor-
pus Christi ...............
212 Units ........
$22,250,000
Washington ...................
Naval Air Station,
Whidbey Island ........
102 Units ........
$16,000,000
Total ....
$175,196,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriation in
section 404(a)(5)(A), the Secretary of the Navy may carry
out architectural and engineering services and construc-
tion design activities with respect to the construction or
improvement of military family housing units in an
amount not to exceed $15,100,000.
163
SEC. 403. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in section 404(a)(5)(A),
the Secretary of the Navy may improve existing military
family housing units in an amount not to exceed
$203,536,000.
SEC. 404. AUTHORIZATION OF APPROPRIATIONS, NAVY.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of the
Navy in the total amount of $2,027,339,000 as follows:
(1) For military construction projects inside the
United 
States 
authorized 
by 
section 
401(a),
$521,297,000.
(2) For military construction projects outside
the United States authorized by section 401(b),
$66,120,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $11,460,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $46,489,000.
164
(5) For military family housing functions:
(A) For construction and acquisition, plan-
ning and design, and improvement of military
family housing and facilities, $393,832,000.
(B) For support of military housing (in-
cluding functions described in section 2833 of
title 10, United States Code), $976,504,000.
(6) For construction of a bachelor enlisted
quarters at Naval Hospital, Great Lakes, Illinois,
authorized by section 2201(a) of the Military Con-
struction Authorization Act for Fiscal Year 1997
(division B of Public Law 104–201; 110 Stat.
2766), $5,200,000.
(7) For construction of a bachelor enlisted
quarters at Naval Station, Roosevelt Roads, Puerto
Rico, authorized by section 2201(a) of the Military
Construction Authorization Act for Fiscal Year 1997
(division B of Public Law 104–201; 110 Stat.
2767), $14,600,000.
(8) For construction of a large anecohic cham-
ber facility at Patuxent River Naval Air Warfare
Center, Maryland, authorized by section 2201(a) of
the Military Construction Authorization Act for Fis-
cal Year 1993 (division B of Public Law 102–484;
106 Stat. 2590), $9,000,000.
165
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 401 of this Act
may not exceed the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection (a).
(c) ADJUSTMENTS.—The total amount authorized to
be appropriated pursuant to paragraphs (1) through (8)
of subsection (a) is the sum of the amounts authorized
to be appropriated in such paragraphs, reduced by—
(1) $8,463,000, which represents the combina-
tion of project savings in military family housing
construction resulting from favorable bids, reduced
overhead costs, and cancellations due to force struc-
ture changes; and
(2) $8,700,000, which represents the combina-
tion of savings resulting from adjustments to foreign
currency exchange rates for military construction
projects and the support of military family housing
outside the United States.
166
SEC. 405. AUTHORIZATION OF MILITARY CONSTRUCTION
PROJECT AT NAVAL STATION, PASCAGOULA,
MISSISSIPPI, FOR WHICH FUNDS HAVE BEEN
APPROPRIATED.
(a) AUTHORIZATION.—The table in section 2201(a)
of the Military Construction Authorization Act for Fiscal
Year 1997 (division B of Public Law 104–201; 110 Stat.
2766) is amended—
(1) by striking out the amount identified as the
total and inserting in lieu thereof ‘‘$594,982,000’’;
and
(2) by inserting after the item relating to Sten-
nis Space Center, Mississippi, the following new
item:
‘‘Naval Station, Pascagoula ........................
$4,990,000’’.
(b) CONFORMING AMENDMENTS.—Section 2204(a)
of such Act (110 Stat. 2769) is amended—
(1) in the matter preceding the paragraphs, by
striking out ‘‘$2,213,731,000’’ and inserting in lieu
thereof ‘‘$2,218,721,000’’; and
(2) 
in 
paragraph 
(1), 
by 
striking 
out
‘‘$579,312,000’’ and inserting in lieu thereof
‘‘$584,302,000’’.
167
SEC. 406. INCREASE IN AUTHORIZATION FOR MILITARY
CONSTRUCTION PROJECTS AT NAVAL STA-
TION, ROOSEVELT ROADS, PUERTO RICO.
(a) INCREASE.—The table in section 2201(b) of the
Military Construction Authorization Act for Fiscal Year
1997 (division B of Public Law 104–201; 110 Stat. 2767)
is amended—
(1) by striking out the amount identified as the
total and inserting in lieu thereof ‘‘$66,150,000’’;
and
(2) in the amount column of the item relating
to Naval Station, Roosevelt Roads, Puerto Rico, by
striking out ‘‘$23,600,000’’ and inserting in lieu
thereof ‘‘$24,100,000’’.
(b) CONFORMING AMENDMENT.—Section 2204(b)(4)
of such Act (110 Stat. 2770) is amended by striking out
‘‘$14,100,000’’ 
and 
inserting 
in 
lieu 
thereof
‘‘$14,600,000’’.
TITLE V—MILITARY
CONSTRUCTION, AIR FORCE
SEC. 501. AUTHORIZED AIR FORCE CONSTRUCTION AND
LAND ACQUISITION PROJECTS.
(a) INSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 504(a)(1), the Secretary of the Air Force
may acquire real property and carry out military construc-
168
tion projects for the installations and locations inside the
United States, and in the amounts, set forth in the follow-
ing table:
Air Force: Inside the United States
State
Installation or Location
Amount
Alabama .................................
Maxwell Air Force Base ...................
$14,874,000
Alaska ....................................
Clear Air Station ..............................
$67,069,000
Eielson Air Force Base ....................
$13,764,000
Elmendorf Air Force Base ...............
$6,100,000
Indian Mountain ...............................
$1,991,000
Arizona ..................................
Luke Air Force Base ........................
$10,000,000
Arkansas ................................
Little Rock Air Force Base ..............
$3,400,000
California ...............................
Edwards Air Force Base ..................
$2,887,000
Vandenberg Air Force Base .............
$26,876,000
Colorado ................................
Buckley Air National Guard Base ...
$6,718,000
Falcon Air Force Station .................
$10,551,000
Peterson Air Force Base ..................
$4,081,000
United States Air Force Academy ...
$15,229,000
Florida ...................................
Eglin Auxiliary Field 9 ....................
$6,470,000
MacDill Air Force Base ...................
$9,643,000
Georgia ..................................
Moody Air Force Base .....................
$6,800,000
Robins Air Force Base .....................
$27,763,000
Idaho .....................................
Mountain Home Air Force Base ......
$30,669,000
Kansas ...................................
McConnell Air Force Base ...............
$14,519,000
Louisiana ...............................
Barksdale Air Force Base ................
$19,410,000
Mississippi .............................
Keesler Air Force Base ....................
$30,855,000
Missouri .................................
Whiteman Air Force Base ...............
$17,419,000
Montana ................................
Malmstrom Air Force Base ..............
$4,500,000
Nevada ...................................
Nellis Air Force Base .......................
$1,950,000
New Jersey ............................
McGuire Air Force Base ..................
$18,754,000
New Mexico ...........................
Kirtland Air Force Base ..................
$20,300,000
North Carolina ......................
Pope Air Force Base ........................
$10,956,000
North Dakota ........................
Grand Forks Air Force Base ...........
$8,560,000
Minot Air Force Base ......................
$5,200,000
Ohio .......................................
Wright-Patterson Air Force Base ....
$19,350,000
Oklahoma ..............................
Altus Air Force Base .......................
$11,000,000
Tinker Air Force Base .....................
$9,655,000
Vance Air Force Base ......................
$7,700,000
South Carolina ......................
Shaw Air Force Base .......................
$6,072,000
South Dakota ........................
Ellsworth Air Force Base ................
$6,600,000
Tennessee ..............................
Arnold Air Force Base .....................
$20,650,000
Texas .....................................
Dyess Air Force Base ......................
$10,000,000
Laughlin Air Force Base .................
$4,800,000
Randolph Air Force Base .................
$2,488,000
Utah ......................................
Hill Air Force Base ..........................
$6,470,000
Virginia ..................................
Langley Air Force Base ...................
$4,031,000
Washington ............................
Fairchild Air Force Base .................
$20,316,000
McChord Air Force Base .................
$6,470,000
CONUS Classified .................
Classified Location ...........................
$6,175,000
Total .....................................
$559,085,000
(b) OUTSIDE THE UNITED STATES.—Using amounts
appropriated pursuant to the authorization of appropria-
tions in section 504(a)(2), the Secretary of the Air Force
169
may acquire real property and carry out military construc-
tion projects for the installations and locations outside the
United States, and in the amounts, set forth in the follow-
ing table:
Air Force: Outside the United States
Country
Installation or Location
Amount
Germany ................................
Spangdahlem Air Base .....................
$18,500,000
Italy .......................................
Aviano Air Base ...............................
$15,220,000
Korea .....................................
Kunsan Air Base ..............................
$10,325,000
Portugal .................................
Lajes Field, Azores ..........................
$4,800,000
United Kingdom ....................
Royal Air Force, Lakenheath ...........
$11,400,000
Overseas Classified ................
Classified Location ...........................
$29,100,000
Total .....................................
$89,345,000
SEC. 502. FAMILY HOUSING.
(a) 
CONSTRUCTION
AND
ACQUISITION.—Using
amounts appropriated pursuant to the authorization of ap-
propriations in section 504(a)(5)(A), the Secretary of the
Air Force may construct or acquire family housing units
(including land acquisition) at the installations, for the
purposes, and in the amounts set forth in the following
table:
Air Force: Family Housing
State
Installation or Location
Purpose
Amount
California ......................
Edwards Air Force
Base .........................
51 Units ..........
$8,500,000
Travis Air Force Base
70 Units ..........
$9,714,000
Vandenberg Air Force
Base .........................
108 Units ........
$17,100,000
Delaware .......................
Dover Air Force Base
Ancillary Facil-
ity ................
$831,000
District of Columbia .....
Bolling Air Force Base
46 Units ..........
$5,100,000
Florida ..........................
MacDill Air Force Base
58 Units ..........
$10,000,000
Tyndall Air Force Base
32 Units ..........
$4,200,000
Georgia .........................
Robins Air Force Base
60 Units ..........
$6,800,000
Idaho ............................
Mountain Home Air
Force Base ...............
60 Units ..........
$11,032,000
Kansas ..........................
McConnell Air Force
Base .........................
19 Units ..........
$2,951,000
170
Air Force: Family Housing—Continued
State
Installation or Location
Purpose
Amount
McConnell Air Force
Base .........................
Ancillary Facil-
ity ................
$581,000
Mississippi ....................
Columbus Air Force
Base .........................
50 Units ..........
$6,200,000
Keesler Air Force Base
40 Units ..........
$5,000,000
Montana .......................
Malmstrom Air Force
Base .........................
100 Units ........
$17,842,000
New Mexico ..................
Kirtland Air Force
Base .........................
180 Units ........
$20,900,000
North Dakota ...............
Grand Forks Air Force
Base .........................
42 Units ..........
$7,936,000
Texas ............................
Dyess Air Force Base ..
70 Units ..........
$10,503,000
Goodfellow Air Force
Base .........................
3 Units ............
$500,000
Lackland Air Force
Base .........................
50 Units ..........
$7,400,000
Wyoming ......................
F. E. Warren Air
Force Base ...............
52 Units ..........
$6,853,000
Total ....
$159,943,000
(b) PLANNING AND DESIGN.—Using amounts appro-
priated pursuant to the authorization of appropriations in
section 504(a)(5)(A), the Secretary of the Air Force may
carry out architectural and engineering services and con-
struction design activities with respect to the construction
or improvement of military family housing units in an
amount not to exceed $11,971,000.
SEC. 503. IMPROVEMENTS TO MILITARY FAMILY HOUSING
UNITS.
Subject to section 2825 of title 10, United States
Code, and using amounts appropriated pursuant to the
authorization of appropriations in section 504(a)(5)(A),
the Secretary of the Air Force may improve existing mili-
tary family housing units in an amount not to exceed
$123,795,000.
171
SEC. 
504. 
AUTHORIZATION 
OF 
APPROPRIATIONS, 
AIR
FORCE.
(a) IN GENERAL.—Funds are hereby authorized to
be appropriated for fiscal years beginning after September
30, 1997, for military construction, land acquisition, and
military family housing functions of the Department of the
Air Force in the total amount of $1,791,640,000 as fol-
lows:
(1) For military construction projects inside the
United 
States 
authorized 
by 
section 
501(a),
$559,085,000.
(2) For military construction projects outside
the United States authorized by section 501(b),
$89,345,000.
(3) For unspecified minor construction projects
authorized by section 2805 of title 10, United States
Code, $8,545,000.
(4) For architectural and engineering services
and construction design under section 2807 of title
10, United States Code, $44,880,000.
(5) For military housing functions:
(A) For construction and acquisition, plan-
ning and design, and improvement of military
family housing and facilities, $295,709,000.
(B) For support of military family housing
(including the functions described in section
172
2833 of title 10, United States Code),
$830,234,000.
(b) LIMITATION ON TOTAL COST OF CONSTRUCTION
PROJECTS.—Notwithstanding the cost variations author-
ized by section 2853 of title 10, United States Code, and
any other cost variation authorized by law, the total cost
of all projects carried out under section 501 of this Act
may not exceed the total amount authorized to be appro-
priated under paragraphs (1) and (2) of subsection (a).
(c) ADJUSTMENTS.—The total amount authorized to
be appropriated pursuant to paragraphs (1) through (5)
of subsection (a) is the sum of the amounts authorized
to be appropriated in such paragraphs, reduced by—
(1) $23,858,000, which represents the combina-
tion of project savings in military construction re-
sulting from favorable bids, reduced overhead costs,
and cancellations due to force structure changes;
and
(2) $12,300,000, which represents the combina-
tion of savings resulting from adjustments to foreign
currency exchange rates for military construction
projects and the support of military family housing
outside the United States.
173
SEC. 505. AUTHORIZATION OF MILITARY CONSTRUCTION
PROJECT AT MCCONNELL AIR FORCE BASE,
KANSAS, FOR WHICH FUNDS HAVE BEEN AP-
PROPRIATED.
(a) AUTHORIZATION.—The table in section 2301(a)
of the Military Construction Authorization Act for Fiscal
Year 1997 (division B of Public Law 104–201; 110 Stat.
2771) is amended—
(1) by striking out the amount identified as the
total and inserting in lieu thereof ‘‘$610,534,000’’;
and
(2) in the amount column of the item relating
to McConnell Air Force Base, Kansas, by striking
out ‘‘$19,130,000’’ and inserting in lieu thereof
‘‘$25,830,000’’.
(b) CONFORMING AMENDMENTS.—Section 2304(a)
of such Act (110 Stat. 2774) is amended—
(1) in the matter preceding paragraph (1), by
striking out ‘‘$1,894,594,000’’ and inserting in lieu
thereof ‘‘$1,901,294,000’’ and
(2) 
in 
paragraph 
(1), 
by 
striking 
out
‘‘$603,834,000’’ and inserting in lieu thereof
‘‘$610,534,000’’.