
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 10USC1103]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                           PART II--PERSONNEL
 
                   CHAPTER 55--MEDICAL AND DENTAL CARE
 
Sec. 1103. Contracts for medical and dental care: State and 
        local preemption
        
    (a) Occurrence of Preemption.--A law or regulation of a State or 
local government relating to health insurance, prepaid health plans, or 
other health care delivery or financing methods shall not apply to any 
contract entered into pursuant to this chapter by the Secretary of 
Defense or the administering Secretaries to the extent that the 
Secretary of Defense or the administering Secretaries determine that--
        (1) the State or local law or regulation is inconsistent with a 
    specific provision of the contract or a regulation promulgated by 
    the Secretary of Defense or the administering Secretaries pursuant 
    to this chapter; or
        (2) the preemption of the State or local law or regulation is 
    necessary to implement or administer the provisions of the contract 
    or to achieve any other important Federal interest.

    (b) Effect of Preemption.--In the case of the preemption under 
subsection (a) of a State or local law or regulation regarding financial 
solvency, the Secretary of Defense or the administering Secretaries 
shall require an independent audit of the prime contractor of each 
contract that is entered into pursuant to this chapter and covered by 
the preemption. The audit shall be performed by the Defense Contract 
Audit Agency.
    (c) State Defined.--In this section, the term ``State'' includes the 
District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth 
of the Northern Mariana Islands, and each Territory and possession of 
the United States.

(Added Pub. L. 100-180, div. A, title VII, Sec. 725(a)(1), Dec. 4, 1987, 
101 Stat. 1116; amended Pub. L. 103-160, div. A, title VII, Sec. 715(a), 
Nov. 30, 1993, 107 Stat. 1690.)


                               Amendments

    1993--Pub. L. 103-160 amended section generally. Prior to amendment, 
section read as follows:
    ``(a) The provisions of any contract under this chapter which relate 
to the nature and extent of coverage of benefits (including payments 
with respect to benefits) shall preempt any law of a State or local 
government, or any regulation issued under such a law, which relates to 
health insurance or plans to the extent that such law or regulation is 
inconsistent with such contractual provisions.
    ``(b) In this section, the term `State' includes the District of 
Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the 
Northern Mariana Islands, and each territory and possession of the 
United States.''


                    Effective Date of 1993 Amendment

    Section 715(b) of Pub. L. 103-160 provided that: ``Section 1103 of 
title 10, United States Code, as amended by subsection (a), shall apply 
with respect to any contract entered into under chapter 55 of such title 
before, on, or after the date of the enactment of this Act [Nov. 30, 
1993].''


                             Effective Date

    Section 725(b) of Pub. L. 100-180 provided that: ``Section 1103 of 
such title, as added by subsection (a), shall apply with respect to any 
contract entered into after October 1, 1987.''


       Applicability of Preemption Provisions to Certain Contracts

    Pub. L. 102-396, title IX, Sec. 9032, Oct. 6, 1992, 106 Stat. 1908, 
as amended by Pub. L. 103-50, ch. III, Sec. 301, July 2, 1993, 107 Stat. 
250, provided in part ``That the preemption provisions of section 
1103(a) of title 10, United States Code, shall not be limited to 
contractual provisions relating to coverage of benefits, but shall apply 
to all contracts entered into pursuant to this general provision, the 
California and Hawaii recompetition contract, and Solicitation Number 
MDA 906-92-R-0004 and shall preempt any and all State and local laws and 
regulations which relate to health insurance or health care plans''.


Applicability to Contracts Entered Into Pursuant to Solicitation Number 
                            MDA-903-87-R-0047

    Pub. L. 100-463, title VIII, Sec. 8078(b), Oct. 1, 1988, 102 Stat. 
2270-30, provided that preemption provisions of 10 U.S.C. 1103 shall 
apply to contracts entered into pursuant to Solicitation Number MDA-903-
87-R-0047 and shall preempt State and local laws or regulations which 
relate to health insurance or prepaid health care plans. Similar 
provisions were contained in the following prior appropriation act:
    Pub. L. 100-202, Sec. 101(b) [title VIII, Sec. 8104(b)], Dec. 22, 
1987, 101 Stat. 1329-43, 1329-81.
