PUBLIC LAW 103-160—NOV. 30, 1993 107 STAT. 1691 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 Colimibia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, and each Territory and possession of the United States.". (b) APPLICATION OF AMENDMENT.— Section 1103 of title 10, lo use ii03 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. SEC. 716. SPECIALIZED TREATMENT FACILITY PROGRAM AUTHORITY AND ISSUANCE OF NONAVAILABILITY OF HEALTH CARE STATEMENTS. (a) AUTHORITY.— (1) Section 1105 of title 10, United States Code, is amended to read as follows:
- § 1105. Specialized treatment facility program
"(a) PROGRAM AUTHORIZED.— The Secretary of Defense may conduct a specialized treatment facility program pursuant to regulations prescribed by the Secretary of Defense. The Secretary shall Regulations. consult with the other administering Secretaries in prescribing regulations for the program and in conducting the program. "(b) FACILITIES AUTHORIZED TO BE USED. — Under the specialized treatment facility program, the Secretary may designate health care facilities of the imiiormed services and civilian health care facilities as specialized treatment facilities. "(c) WAIVER OF NONEMERGENCY HEALTH CARE RESTRICTION. — Under the specialized treatment facility program, the Secretary may waive, with regard to the provision of a particular service, the 40-mile radius restriction set forth in section 1079(a)(7) of this title if the Secretary determines that the use of a different geographical area restriction will result in a more cost-effective provision of the service, "(d) CIVILIAN FACILITY SERVICE AREA. — For purposes of the specialized treatment facility program, the service area of a civilian health care facility designated pursuant to subsection (b) shall be comparable in size to the service areas of facilities of the uniformed services. "(e) ISSUANCE OF NONAVAILABILITY OF HEALTH CARE STATE- MENTS. — ^A covered beneficiary who resides within the service area
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