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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1646 Introduced in House (IH)]

104th CONGRESS
  1st Session
                                H. R. 1646

   To revise and reform the statutes governing the organization and 
       management of the reserve components of the Armed Forces.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 16, 1995

 Mr. Laughlin (for himself, Mr. Jefferson, Mr. Coleman, Mr. Fields of 
  Texas, Mr. Hall of Texas, Mr. Parker, Mr. Brewster, Mr. Hobson, Mr. 
Hastert, Mr. Dreier, Mr. Hayes, Mr. DeLay, Mr. Condit, Mr. Talent, Mr. 
 Kasich, Mr. Cramer, Mr. Tanner, Mr. Peterson of Minnesota, Mr. Taylor 
of Mississippi, Mr. Tauzin, Mrs. Thurman, Mr. Geren of Texas, Mr. Camp, 
 and Mr. Gillmor) introduced the following bill; which was referred to 
                   the Committee on National Security

_______________________________________________________________________

                                 A BILL

 
   To revise and reform the statutes governing the organization and 
       management of the reserve components of the Armed Forces.
    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Reserve Forces 
Revitalization Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--FINDINGS AND PURPOSES

Sec. 101. Findings.
Sec. 102. Purposes.
                 TITLE II--RESERVE COMPONENT STRUCTURE

Sec. 201. Reserve component commands.
Sec. 202. Reserve component chiefs.
Sec. 203. Grade of Vice Chief of the National Guard Bureau.
Sec. 204. Grade for reserve personnel center commanders.
Sec. 205. Exemption from active duty general and flag officer grade 
                            ceilings.
Sec. 206. Guard and reserve technicians.
Sec. 207. Conforming amendment.
               TITLE III--RESERVE COMPONENT ACCESSIBILITY

Sec. 301. Authority to activate Ready Reserve into active service.
Sec. 302. Report to Congress concerning tax incentives for employers of 
                            members of reserve components.
Sec. 303. Report to Congress concerning income insurance program for 
                            activated reservists.
                 TITLE IV--RESERVE COMPONENT RESOURCES

Sec. 401. Reports to Congress concerning shortfalls in reserve 
                            component resources.
Sec. 402. Allocation of funds appropriated for reserve components.
                  TITLE V--RESERVE FORCES SUSTAINMENT

Sec. 501. Report concerning tax deductibility of nonreimbursable 
                            expenses.
Sec. 502. Authority to pay transient housing charges for members 
                            performing active duty for training at 
                            locations over 50 miles from residence.
Sec. 503. Sense of Congress concerning quarters allowance during 
                            service on active duty for training.
Sec. 504. Sense of Congress concerning military leave policy.
Sec. 505. Group dental insurance plan for members of Selected Reserve.
Sec. 506. Local community and military personnel mutual benefits 
                            program.
Sec. 507. Commendation of Reserve Forces Policy Board.
                     TITLE I--FINDINGS AND PURPOSES

SEC. 101. FINDINGS.

    Congress finds the following:
            (1) The end of the Cold War and the ensuing period of 
        worldwide readjustment and reassessment has brought with it a 
        host of new military challenges and opportunities.
            (2) Never before in time of peace have the Armed Forces 
        been engaged in tasks in so many parts of the world.
            (3) The Persian Gulf War demonstrated the validity of the 
        Total Force Policy, which places heavy reliance upon the 
        reserve components for the execution of military missions.
            (4) The basic laws governing the organization and 
        administration of the reserve components have not been 
        comprehensively reexamined since the enactment in 1967 of the 
        Reserve Forces Bill of Rights and Vitalization Act (Public Law 
        90-168).
            (5) A number of systemic problems have arisen under the 
        existing reserve component statutory scheme which was designed 
        in light of the perceived threats and challenges of the Cold 
        War era.

SEC. 102. PURPOSES.

    The purpose of this Act is to revise the basic statutory 
authorities governing the organization and administration of the 
reserve components of the Armed Forces in order to recognize the 
realities of reserve component partnership in the Total Force and to 
better prepare the American citizen-soldier, sailor, airman, and Marine 
in time of peace for duties in war.

                 TITLE II--RESERVE COMPONENT STRUCTURE

SEC. 201. RESERVE COMPONENT COMMANDS.

    (a) Establishment.--(1) Part I of subtitle E of title 10, United 
States Code, is amended by inserting after chapter 1005 the following 
new chapter:

               ``CHAPTER 1006--RESERVE COMPONENT COMMANDS
``Sec.
``10171. Army Reserve Command.
``10172. Naval Reserve Command.
``10173. Marine Forces Reserve.
``10174. Air Force Reserve Command.
``Sec. 10171. Army Reserve Command
    ``(a) Establishment of Command.--There is in the Army an Army 
Reserve Command, which shall be operated as a separate command of the 
Army. The Secretary of the Army shall maintain that command with the 
advice and assistance of the Chief of Staff of the Army.
    ``(b) Commander.--The Chief of Army Reserve is the commander of the 
Army Reserve Command. The commander of the Army Reserve Command reports 
directly to the Chief of Staff of the Army.
    ``(c) Deputy Commander; Chief of Staff.--(1) There is a deputy 
commander of the Army Reserve Command. The deputy commander holds the 
grade of major general shall and be appointed from members of the Army 
Reserve in general officer grades.
    ``(2) There is a chief of staff of the Army Reserve Command. The 
chief of staff holds the grade of brigadier general and shall be 
appointed from members of the Army Reserve in the grade of colonel or 
above.
    ``(d) Assignment of Forces.--The Secretary of the Army shall assign 
to the Army Reserve Command all forces of the Army Reserve.
``Sec. 10172. Naval Reserve Command
    ``(a) Establishment of Command.--There is in the Navy a Naval 
Reserve Command, which shall be operated as a separate command of the 
Navy. The Secretary of the Navy shall maintain that command with the 
advice and assistance of the Chief of Naval Operations.
    ``(b) Commander.--The Chief of Naval Reserve is the commander of 
the Naval Reserve Command. The commander of the Naval Reserve Command 
reports directly to the Chief of Naval Operations.
    ``(c) Deputy Commander; Chief of Staff.--(1) There is a deputy 
commander of the Naval Reserve Command. The deputy commander holds the 
grade of rear admiral and shall be appointed from members of the Naval 
Reserve in flag officer grades.
    ``(2) There is a chief of staff of the Naval Reserve Command. The 
chief of staff holds the grade of rear admiral (lower half) and shall 
be appointed from members of the Naval Reserve in the grade of captain 
or above.
    ``(d) Assignment of Forces.--The Secretary of the Navy shall assign 
to the Naval Reserve Command all forces of the Naval Reserve.
``Sec. 10173. Marine Forces Reserve
    ``(a) Establishment.--There is in the Marine Corps a command known 
as the Marine Forces Reserve. The Secretary of the Navy shall maintain 
that command with the advice and assistance of the Commandant of the 
Marine Corps.
    ``(b) Commander.--The Commander, Marine Forces Reserve, reports 
directly to the Commandant of the Marine Corps.
    ``(c) Deputy Commander.--There is a deputy commander of the Marine 
Forces Reserve. The deputy commander holds the grade of brigadier 
general and shall be appointed from members of the Marine Corps Reserve 
in the grade of colonel or above.
    ``(d) Assignment of Forces.--The Commandant of the Marine Corps 
shall assign to the Marine Forces Reserve specified portions of the 
Marine Corps Reserve.
``Sec. 10174. Air Force Reserve Command
    ``(a) Establishment of Command.--There is in the Air Force an Air 
Force Reserve Command, which shall be operated as a separate command of 
the Air Force. The Secretary of the Air Force shall maintain that 
command with the advice and assistance of the Chief of Staff of the Air 
Force.
    ``(b) Commander.--The Chief of Air Force Reserve is the commander 
of the Air Force Reserve Command. The commander of the Air Force 
Reserve Command reports directly to the Chief of Staff of the Air 
Force.
    ``(c) Deputy Commander; Chief of Staff.--(1) There is a deputy 
commander of the Air Force Reserve Command. The deputy commander holds 
the grade of major general and shall be appointed from members of the 
Air Force Reserve in general officer grades.
    ``(2) There is a chief of staff of the Air Force Reserve Command. 
The chief of staff holds the grade of brigadier general and shall be 
appointed from members of the Air Force Reserve in the grade of colonel 
or above.
    ``(d) Assignment of Forces.--The Secretary of the Air Force shall 
assign to the Air Force Reserve Command all forces of the Air Force 
Reserve.''.
    (2) The tables of chapters at the beginning of part I of such 
subtitle and at the beginning of such subtitle are each amended by 
inserting after the item relating to chapter 1005 the following new 
item:

``1006. Reserve Component Commands..........................   10171''.
    (b) Conforming Repeal.--Section 903 of the National Defense 
Authorization Act for Fiscal Year 1991 (10 U.S.C. 3074 note) is 
repealed.
    (c) Implementation Report.--(1) Not later than 60 days after the 
date of the enactment of this Act, the Secretary of Defense shall 
submit to the congressional defense committees a report on the plans of 
the Secretary for implementation of chapter 1006 of title 10, United 
States Code, as added by subsection (a).
    (2) For purposes of this subsection, the term ``congressional 
defense committees'' means--
            (A) the Committee on National Security and the Committee on 
        Appropriations of the House of Representatives; and
            (B) the Committee on Armed Services and the Committee on 
        Appropriations of the Senate.
    (d) Implementation Schedule.--Implementation of chapter 1006 of 
title 10, United States Code, as added by subsection (a), shall begin 
not later than 90 days after the date of the enactment of this Act and 
shall be completed not later than one year after such date.

SEC. 202. RESERVE COMPONENT CHIEFS.

    (a) Chief of Army Reserve.--Section 3038 of title 10, United States 
Code, is amended to read as follows:
``Sec. 3038. Office of Army Reserve: appointment of Chief; Deputy 
              Chiefs
    ``(a) Establishment of Office; Chief of Army Reserve.--There is in 
the executive part of the Department of the Army an Office of the Army 
Reserve, which is headed by a Chief of Army Reserve. The Chief of Army 
Reserve--
            ``(1) is the principal adviser on Army Reserve matters to 
        the Chief of Staff and the Assistant Secretary of the Army with 
        responsibility for reserve affairs; and
            ``(2) is the commander of the Army Reserve Command.
    ``(b) Appointment.--The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Army Reserve from 
officers of the Army Reserve who are not on active duty, or who are on 
active duty under section 10211 of this title, and who--
            ``(1) have had at least 10 years of commissioned service in 
        the Army Reserve;
            ``(2) are in a grade above colonel; and
            ``(3) have been recommended by the Secretary of the Army.
    ``(c) Term of Office; Grade.--(1) The Chief of Army Reserve holds 
office for four years, but may be removed for cause at any time. In 
time of war or during a national emergency declared by Congress, the 
Chief may be reappointed for a term of not more than four years.
    ``(2) The Chief of Army Reserve, while so serving, has the grade of 
lieutenant general in the Army Reserve without vacating his permanent 
grade.
    ``(d) Deputy Chiefs of Army Reserve.--There are two Deputy Chiefs 
of Army Reserve, one of whom shall be in the grade of major general and 
shall be appointed from officers in the Army Reserve in general officer 
grades and one of whom shall be in the grade of brigadier general and 
shall be appointed from members of the Army Reserve in the grade of 
colonel or above.
    ``(e) Budget.--The Chief of Army Reserve is the official within the 
executive part of the Department of the Army who, subject to the 
authority, direction, and control of the Secretary of the Army and the 
Chief of Staff, is responsible for preparation, justification, and 
execution of budgets for the Army Reserve. As such, the Chief of Army 
Reserve is the director and functional manager of appropriations made 
for the Army Reserve (including appropriations for personnel, for 
operations and maintenance, for procurement, and for construction).
    ``(f) Full Time Support Program.--The Chief of Army Reserve 
manages, with respect to the Army Reserve, the personnel program of the 
Department of Defense known as the Full Time Support Program.
    ``(g) Annual Report to Congress.--(1) The Chief of Army Reserve 
shall submit to Congress an annual report on the status of the Army 
Reserve. The report shall include descriptions of--
            ``(A) the roles and missions of the Army Reserve;
            ``(B) the structure of the Army Reserve; and
            ``(C) the readiness of the Army Reserve to carry out 
        assigned missions.
    ``(2) The annual report under paragraph (1) shall be submitted 
through the Secretary of the Army and shall be submitted each year with 
the submission of budget justification information provided by the 
Department of Defense to Congress for the next fiscal year.''.
    (2) The item relating to that section in the table of sections at 
the beginning of chapter 305 of such title is amended to read as 
follows:

``3038. Office of Army Reserve: appointment of Chief; Deputy Chiefs.''.
    (b) Chief of Naval Reserve.--(1) Chapter 513 of such title is 
amended by inserting after section 5142a the following new section:
``Sec. 5143. Office of Naval Reserve: appointment of Chief; Deputy 
              Chiefs
    ``(a) Establishment of Office; Chief of Naval Reserve.--There is in 
the executive part of the Department of the Navy an Office of the Naval 
Reserve, which is headed by a Chief of Naval Reserve. The Chief of 
Naval Reserve--
            ``(1) is the principal adviser on Naval Reserve matters to 
        the Chief of Naval Operations and the Assistant Secretary of 
        the Navy with responsibility for reserve affairs; and
            ``(2) is the commander of the Naval Reserve Command.
    ``(b) Appointment.--The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Naval Reserve from 
officers of the Naval Reserve who are not on active duty, or who are on 
active duty under section 10211 of this title, and who--
            ``(1) have had at least 10 years of commissioned service in 
        the Naval Reserve;
            ``(2) are in a grade above captain; and
            ``(3) have been recommended by the Secretary of the Navy.
    ``(c) Term of Office; Grade.--(1) The Chief of Naval Reserve holds 
office for four years, but may be removed for cause at any time. In 
time of war or during a national emergency declared by Congress, the 
Chief may be reappointed for a term of not more than four years.
    ``(2) The Chief of Naval Reserve, while so serving, has the grade 
of vice admiral in the Naval Reserve without vacating his permanent 
grade.
    ``(d) Deputy Chiefs of Naval Reserve.--There are two Deputy Chiefs 
of Naval Reserve, one of whom shall be in the grade of rear admiral and 
shall be appointed from officers in the Naval Reserve in flag officer 
grades and one of whom shall be in the grade of rear admiral (lower 
half) and shall be appointed from members of the Naval Reserve in the 
grade of captain or above.
    ``(e) Budget.--The Chief of Naval Reserve is the official within 
the executive part of the Department of the Navy who, subject to the 
authority, direction, and control of the Secretary of the Navy and the 
Chief of Naval Operations, is responsible for preparation, 
justification, and execution of budgets for the Naval Reserve. As such, 
the Chief of Naval Reserve is the director and functional manager of 
appropriations made for the Naval Reserve (including appropriations for 
personnel, for operations and maintenance, for procurement, and for 
construction).
    ``(f) Full Time Support Program.--The Chief of Naval Reserve 
manages, with respect to the Naval Reserve, the personnel program of 
the Department of Defense known as the Full Time Support Program.
    ``(g) Annual Report to Congress.--(1) The Chief of Naval Reserve 
shall submit to Congress an annual report on the status of the Naval 
Reserve. The report shall include descriptions of--
            ``(A) the roles and missions of the Naval Reserve;
            ``(B) the structure of the Naval Reserve; and
            ``(C) the readiness of the Naval Reserve to carry out 
        assigned missions.
    ``(2) The annual report under paragraph (1) shall be submitted 
through the Secretary of the Navy and shall be submitted each year with 
the submission of budget justification information provided by the 
Department of Defense to Congress for the next fiscal year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 5142a the 
following new item:

``5143. Office of Naval Reserve: appointment of Chief; Deputy 
                            Chiefs.''.
    (c) Chief of Marine Corps Reserve.--(1) Chapter 513 of such title 
is amended by inserting after section 5143 (as added by subsection (b)) 
the following new section:
``Sec. 5144. Office of Marine Forces Reserve: appointment of Commander
    ``(a) Establishment of Office; Commander, Marine Forces Reserve.--
There is in the executive part of the Department of the Navy an Office 
of the Marine Forces Reserve, which is headed by the Commander, Marine 
Forces Reserve. The Commander, Marine Forces Reserve--
            ``(1) is the principal adviser to the Commandant on Marine 
        Corps Reserve matters and
            ``(2) is the commander of the Marine Forces Reserve.
    ``(b) Term of Office; Grade.--(1) The Commander, Marine Forces 
Reserve, holds office for a term determined by the Commandant of the 
Marine Corps.
    ``(2) The Commander, Marine Forces Reserve, while so serving, has 
the grade of lieutenant general, except that if the Commandant of the 
Marine Corps recommends to the Secretary of the Navy that such position 
be held by an offficer in the grade of major general, such position may 
be held by an officer in that grade.
    ``(d) Annual Report to Congress.--(1) The Commandant of the Marine 
Corps shall submit to Congress an annual report on the status of the 
Marine Corps Reserve. The report shall include descriptions of--
            ``(A) the roles and missions of the Marine Corps Reserve;
            ``(B) the structure of the Marine Corps Reserve; and
            ``(C) the readiness of the Marine Corps Reserve to carry 
        out assigned missions.
    ``(2) The annual report under paragraph (1) shall be submitted 
through the Secretary of the Navy and shall be submitted each year with 
the submission of budget justification information provided by the 
Department of Defense to Congress for the next fiscal year.''.
    (2) The table of sections at the beginning of such chapter is 
amended by inserting after the item relating to section 5143 (as added 
by subsection (b)) the following new item:

``5144. Office of Marine Forces Reserve: appointment of Commander.''.
    (d) Chief of Air Force Reserve.--Section 8038 of such title is 
amended to read as follows:
``Sec. 8038. Office of Air Force Reserve: appointment of Chief; Deputy 
              Chiefs
    ``(a) Establishment of Office; Chief of Air Force Reserve.--There 
is in the executive part of the Department of the Air Force an Office 
of the Air Force Reserve, which is headed by a Chief of Air Force 
Reserve. The Chief of Air Force Reserve--
            ``(1) is the principal adviser on Air Force Reserve matters 
        to the Chief of Staff and the Assistant Secretary of the Air 
        Force with responsibility for reserve affairs; and
            ``(2) is the commander of the Air Force Reserve Command.
    ``(b) Appointment.--The President, by and with the advice and 
consent of the Senate, shall appoint the Chief of Air Force Reserve 
from officers of the Air Force Reserve who are not on active duty, or 
who are on active duty under section 10211 of this title, and who--
            ``(1) have had at least 10 years of commissioned service in 
        the Air Force Reserve;
            ``(2) are in a grade above colonel; and
            ``(3) have been recommended by the Secretary of the Air 
        Force.
    ``(c) Term of Office; Grade.--(1) The Chief of Air Force Reserve 
holds office for four years, but may be removed for cause at any time. 
In time of war or during a national emergency declared by Congress, the 
Chief may be reappointed for a term of not more than four years.
    ``(2) The Chief of Air Force Reserve, while so serving, has the 
grade of lieutenant general in the Air Force Reserve without vacating 
his permanent grade.
    ``(d) Deputy Chiefs of Air Force Reserve.--There are two Deputy 
Chiefs of Air Force Reserve, one of whom shall be in the grade of major 
general and shall be appointed from officers in the Air Force Reserve 
in general officer grades and one of whom shall be in the grade of 
brigadier general and shall be appointed from members of the Air Force 
Reserve in the grade of colonel or above.
    ``(e) Budget.--The Chief of Air Force Reserve is the official 
within the executive part of the Department of the Air Force who, 
subject to the authority, direction, and control of the Secretary of 
the Air Force and the Chief of Staff, is responsible for preparation, 
justification, and execution of budgets for the Air Force Reserve. As 
such, the Chief of Air Force Reserve is the director and functional 
manager of appropriations made for the Air Force Reserve (including 
appropriations for personnel, for operations and maintenance, for 
procurement, and for construction).
    ``(f) Full Time Support Program.--The Chief of Air Force Reserve 
manages, with respect to the Air Force Reserve, the personnel program 
of the Department of Defense known as the Full Time Support Program.
    ``(g) Annual Report to Congress.--(1) The Chief of Air Force 
Reserve shall submit to Congress an annual report on the status of the 
Air Force Reserve. The report shall include descriptions of--
            ``(A) the roles and missions of the Air Force Reserve;
            ``(B) the structure of the Air Force Reserve; and
            ``(C) the readiness of the Air Force Reserve to carry out 
        assigned missions.
    ``(2) The annual report under paragraph (1) shall be submitted 
through the Secretary of the Air Force and shall be submitted each year 
with the submission of budget justification information provided by the 
Department of Defense to Congress for the next fiscal year.''.
    (2) The item relating to that section in the table of sections at 
the beginning of chapter 805 of such title is amended to read as 
follows:

``8038. Office of Army Reserve: appointment of Chief; Deputy Chiefs.''.
    (e) Conforming Amendment.--Section 641(1)(B) of such title is 
amended by inserting ``5143, 5144,'' after ``3038,''.

SEC. 203. GRADE OF VICE CHIEF OF THE NATIONAL GUARD BUREAU.

    Section 10505(c) of title 10, United States Code, is amended by 
striking out ``major general'' and inserting in lieu thereof 
``lieutenant general''.

SEC. 204. GRADE FOR RESERVE PERSONNEL CENTER COMMANDERS.

    (a) In General.--Chapter 1007 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 10216. Reserve personnel centers: grade of commander
    ``The commanders of the reserve personnel centers for the Army 
Reserve, the Air Force Reserve, and the Marine Corps Reserve shall each 
be a Reserve officer in the grade of brigadier general. The commander 
of the reserve personnel center for the Naval Reserve shall be a 
Reserve officer in the grade of rear admiral (lower half).''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``10216. Reserve personnel centers: grade of commander.''.
SEC. 205. EXEMPTION FROM ACTIVE DUTY GENERAL AND FLAG OFFICER GRADE 
              CEILINGS.

    Section 526 of title 10, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e) A Reserve general or flag officer serving on active duty 
under section 10203, 10211, or 12301(d) of this title or who is on 
active duty but is excluded from the active-duty list under section 
641(1)(B) of this title may not be counted against any ceiling 
established by law or by administrative action on--
            ``(1) the total number of general or flag officers who may 
        be serving on active duty in the Army, Navy, Air Force, or 
        Marine Corps;
            ``(2) the total number of general or flag officers who may 
        be serving on active duty in any of those armed forces; or
            ``(3) the number of officers who may be serving on active 
        duty in a particular general or flag officer grade.''.

SEC. 206. GUARD AND RESERVE TECHNICIANS.

    (a) In General.--Chapter 1007 of title 10, United States Code, is 
amended by adding after section 10216, as added by section 203, the 
following new section:
``Sec. 10217. Military (civilian) technicians: number of positions
    ``(a) Limitation on Reductions.--The total number of positions 
authorized for personnel classified military (civilian) technicians of 
the Army National Guard, the Air National Guard, the Army Reserve, and 
the Air Force Reserve may not be reduced below the number specified in 
subsection (b) for the purpose of applying any administratively imposed 
civilian personnel ceiling, freeze, or reduction on such technician 
positions, unless such reduction is a direct result of a reduction in 
reserve component force structure.
    ``(b) Baseline Number.--The number referred to in subsection (a) is 
the total number of positions referred to in that subsection that are 
authorized as of the date of the enactment of this section.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding after the item relating to section 
10217, as added by section 203, the following new item:

``10217. Military (civilian) technicians: number of positions.''.
SEC. 207. CONFORMING AMENDMENT.

    Section 641(1)(B) of title 10, United States Code, as amended by 
section 202(e), is amended by striking out ``10501'' and inserting in 
lieu thereof ``section 10502, 10505, 10506''.

               TITLE III--RESERVE COMPONENT ACCESSIBILITY

SEC. 301. AUTHORITY TO ACTIVATE READY RESERVE INTO ACTIVE SERVICE.

    (a) Revised Authority.--Section 12302 of title 10, United States 
Code, is amended to read as follows:
``Sec. 12302. Reserve activation authority: Ready Reserve units and 
              members
    ``(a) Presidential Authority.--(1) If the President determines that 
augmentation of the active forces is necessary for a purpose specified 
in paragraph (2), the President may provide Reserve activation 
authority with respect to any of the reserve components.
    ``(2) The circumstances referred to in paragraph (1) are the 
following:
            ``(A) In time of national emergency declared by the 
        President.
            ``(B) When necessary to provide Federal disaster relief to 
        a State, when requested by the Governor of the State.
            ``(C) When otherwise authorized by law.
    ``(3) In this section, the term `Reserve activation authority' 
means authority provided by the President to the Secretary of Defense, 
or to the Secretary of Transportation with respect to the Coast Guard 
when it is not operating as a service of the Navy, to order to active 
duty (other than for training) without the consent of the members 
concerned (A) any unit of the Ready Reserve, and (B) any member of the 
Ready Reserve not assigned to a unit organized to serve as a unit.
    ``(b) Prior Notice to Congress.--Whenever the President intends to 
provide Reserve activation authority under the authority of this 
section, the President shall, not less than 48 hours before providing 
such authority, transmit to Congress a report, in writing, giving 
notice
 of the proposed exercise of authority and setting forth the 
circumstances necessitating the provision of Reserve activation 
authority. In the report, the President shall--
            ``(1) identify the units or members expected to be ordered 
        to active duty or active Federal service;
            ``(2) describe the anticipated use of those units or 
        members on active duty or in active Federal service and the 
        anticipated length of time the units or members will be 
        required; and
            ``(3) specify why the mission cannot be accomplished 
        through the use of active component units.
    ``(c) Time Limitation for Activation.--(1) When Reserve activation 
authority is provided under subsection (a), the Secretary of Defense, 
and the Secretary of Transportation with respect to the Coast Guard 
when it is not serving as a service in the Navy, may, without the 
consent of the persons concerned, order any unit, and any member not 
assigned to a unit organized to serve as a unit, in the Ready Reserve 
under the jurisdiction of that Secretary, to active duty (other than 
for training), for a period not to exceed 24 consecutive months.
    ``(2) When a unit or member is ordered to active duty or active 
Federal service under paragraph (1), the Secretary concerned shall 
submit to Congress a report, in writing, giving notice of such order 
and stating the period of time for which the unit or member is ordered 
to active duty or active Federal service.
    ``(3) If an extension beyond the period specified in a report under 
paragraph (2) is subsequently ordered for any such unit or member, the 
Secretary shall, not less than seven days before the extension becomes 
effective, submit to Congress a report, in writing, giving notice of 
the extension.
    ``(d) Quarterly Reports to Congress.--(1) Whenever Reserve 
activation authority under subsection (a) is in effect, the President 
shall, within two working days of the close of each fiscal year quarter 
during which units or members of the Ready Reserve are on active duty 
or in active Federal service pursuant to the exercise of that 
authority, transmit to Congress a report regarding the necessity for 
those units or members being retained on active duty or in active 
Federal service, as the case may be.
    ``(2) The President shall include in each such report the 
following:
            ``(A) A statement of the mission of each such unit so 
        ordered to active duty or active Federal service.
            ``(B) An evaluation of each such unit's performance of that 
        mission.
            ``(C) A description where each such unit is deployed (or 
        being deployed, if in transit) at the time of the report.
            ``(D) An explanation of why the mission cannot be 
        accomplished by regular force units.
            ``(E) A statement of the number of members so ordered to 
        active duty, shown for members so ordered as members of units 
        and for members who are not assigned to units organized to 
        serve as units.
            ``(F) Any other information that the President considers 
        appropriate regarding each such unit.
    ``(e) Numeric Limit.--Not more than 1,000,000 members of the Ready 
Reserve may be on active duty (other than for training) without their 
consent under this section at any one time.
    ``(f) Policies and Procedures.--The Secretary of Defense shall 
prescribe such policies and procedures as the Secretary considers 
necessary to carry out this section. Such policies and procedures shall 
be prescribed in coordination with the Secretary of Transportation, 
insofar as they relate to the Coast Guard when not serving as part of 
the Navy.''.
    (b) Release From Active Duty.--Chapter 1209 of such title is 
amended by inserting after section 12304 the following new sections:
``Sec. 12304a. Release from active duty
    ``(a) Policies and Procedures.--The Secretary of Defense shall 
prescribe policies and procedures for the release from active duty of 
units and members ordered to active duty under section 12302, 12303, or 
12304 of this title. Such policies and procedures shall be prescribed 
in coordination with the Secretary of Transportation, insofar as they 
relate to the Coast Guard when not serving as part of the Navy.
    ``(b) Matters To Be Included.--Those policies and procedures 
shall--
            ``(1) contain specific guidelines that units and members so 
        ordered to active duty should be retained on active duty only 
        when no active component unit or active component member is 
        available to perform the mission that the reserve component 
        unit or member would otherwise perform; and
            ``(2) take into account the effects of continuation of such 
        units and members on active duty on civilian employment 
        (including hardships to employers) and on family members.
    ``(c) Termination of Activation.--Whenever a unit of the Ready 
Reserve or a member of the Ready Reserve not assigned to a unit 
organized to serve as a unit is ordered to active duty under section 
12304 of this title, the service of all units or members so ordered to 
active duty may be terminated--
            ``(1) by order of the President, or
            ``(2) by law.
``Sec. 12304b. Limitation on frequency of activation of units and 
              members
    ``(a) Limitation on Frequent Activations.--Except as provided in 
subsection (b), a unit of the Ready Reserve of a reserve component, or 
a member of the Ready Reserve not assigned to a unit organized to serve 
as a unit, may not be ordered to active duty under section 12302 or 
12304 of this title more than once in any 24-month period.
    ``(b) Waiver Authority.--(1) The President may waive the limitation 
in subsection (a) with respect to any unit or member upon a 
determination by the President that unit or member has a capability 
that is urgently required and that is not otherwise available.
    ``(2) Before any such waiver is effective, the President shall 
transmit to Congress a report, in writing, giving notice of the waiver 
and stating the basis for the determination by the President under 
paragraph (1) that formed the basis for the waiver.''.
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by striking out the items relating to sections 
12302, 12303, and 12304 and inserting in lieu thereof the following:

``12302.    Reserve activation authority: Ready Reserve units and 
                            members.
``12303.    Ready Reserve: members not assigned to, or participating 
                            satisfactorily in, units.
``12304.    Selected Reserve: order to active duty other than during 
                            war or national emergency.
``12304a.    Release from active duty.
``12304b.    Limitation on frequency of activation of units and 
                            members''.
    (c) Conforming Amendment.--Section 641(1)(E) of such title is 
amended by striking out ``section 12304'' and inserting in lieu thereof 
``section 12302, section 12303, section 12304,''.

SEC. 302. REPORT TO CONGRESS CONCERNING TAX INCENTIVES FOR EMPLOYERS OF 
              MEMBERS OF RESERVE COMPONENTS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth a draft of legislation to provide tax incentives to employers of 
members of reserve components in order to compensate employers for 
absences of those employees due to required or involuntary training and 
for absences due to performance of required or involuntary active duty.

SEC. 303. REPORT TO CONGRESS CONCERNING INCOME INSURANCE PROGRAM FOR 
              ACTIVATED RESERVISTS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit
 to Congress a report setting forth a draft of legislation to establish 
an income insurance program to provide members of reserve components 
who are ordered to active duty or active Federal service (other than 
for training) income replacement for loss of income during the period 
of such activation and, in the case of such a member who owns a 
business, income replacement for the business and for employees of that 
member or business who have a loss of income during the period of such 
activation attributable to the activation of the member.

SEC. 304. REPORT TO CONGRESS CONCERNING SMALL BUSINESS LOANS FOR 
              MEMBERS RELEASED FROM RESERVE SERVICE DURING CONTINGENCY 
              OPERATIONS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth a draft of legislation to establish a small business loan program 
to provide members of reserve components who are ordered to active duty 
or active Federal service (other than for training) during a 
contingency operation (as defined in section 101 of title 10, United 
States Code) low-cost loans to assist those members in retaining or 
rebuilding businesses that were affected by their service on active 
duty or in active Federal service.

                 TITLE IV--RESERVE COMPONENT RESOURCES

SEC. 401. ANNUAL REPORT TO CONGRESS CONCERNING SHORTFALLS IN RESERVE 
              COMPONENT RESOURCES.

    (a) In General.--(1) Chapter 1013 of title 10, United States Code, 
is amended by adding at the end the following new section:
``Sec. 10543. Funding shortfalls in budget: annual report
    ``The Secretary of Defense shall include in the annual report to 
Congress under section 113(c) of this title a report on any shortfall 
or anticipated shortfall in funding for reserve component personnel, 
operations and maintenance, equipment, or military construction in the 
budget for the fiscal year beginning in the year in which the report is 
submitted.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``10543. Funding shortfalls in budget: annual report.''.
SEC. 402. ALLOCATION OF FUNDS APPROPRIATED FOR RESERVE COMPONENTS.

    (a) Limitation.--Any amount appropriated for the Department of 
Defense for any reserve component shall be allocated by the Secretary 
of Defense to the use of that reserve component for the purposes 
provided by Congress. Any funds in a reserve component appropriation 
account may be transferred to an appropriation account for one of the 
active components only if the transfer of such amount from such reserve 
component account to such active component account is specifically 
authorized by law.
    (b) Identification of Certain Amounts in Reserve Accounts.--The 
Secretary of Defense shall ensure that any amount in a reserve 
component appropriation account that is intended for military or 
civilian personnel of the active components for service in support of 
that reserve component shall be shown separately in budget 
justification documents and otherwise in appropriate documents in the 
budget process.

                  TITLE V--RESERVE FORCES SUSTAINMENT

SEC. 501. REPORT CONCERNING TAX DEDUCTIBILITY OF NONREIMBURSABLE 
              EXPENSES.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report setting 
forth a draft of legislation to restore the tax deductibility of 
nonreimbursable expenses incurred by members of reserve components in 
connection with military service.

SEC. 502. AUTHORITY TO PAY TRANSIENT HOUSING CHARGES FOR MEMBERS 
              PERFORMING ACTIVE DUTY FOR TRAINING AT LOCATIONS OVER 50 
              MILES FROM RESIDENCE.

    Section 404(j)(1) of title 37, United States Code, is amended by 
striking out ``annual training duty'' and inserting in lieu thereof 
``active duty for training, annual training duty''.

SEC. 503. SENSE OF CONGRESS CONCERNING QUARTERS ALLOWANCE DURING 
              SERVICE ON ACTIVE DUTY FOR TRAINING.

    It is the sense of Congress that the United States should continue 
to pay members of reserve components appropriate quarters allowances 
during periods of service on active duty for training.

SEC. 504. SENSE OF CONGRESS CONCERNING MILITARY LEAVE POLICY.

    It is the sense of Congress that military leave policies in effect 
as of the date of the enactment of this Act with respect to members of 
the reserve components should not be changed.

SEC. 505. GROUP DENTAL INSURANCE PLAN FOR MEMBERS OF SELECTED RESERVE.

    The Secretary of Defense shall seek to arrange for the 
establishment by a private-sector insurance carrier of a group dental 
insurance plan for members of the Selected Reserve and their dependents 
which would enable those members and their dependents to obtain dental 
care at a low cost.

SEC. 506. LOCAL COMMUNITY AND MILITARY PERSONNEL MUTUAL BENEFITS 
              PROGRAM.

    (a) In General.--Chapter 53 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 1060b. Local community and military personnel mutual benefits 
              program
    ``The Secretary of Defense shall seek to enter into an agreement 
with the appropriate national organization representing retail 
merchants under which that organization would sponsor a program for the 
provision of price discounts by participating retail merchants to 
members of the armed forces.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``1060b. Local community and military personnel mutual benefits 
                            program.''.
SEC. 507. COMMENDATION OF RESERVE FORCES POLICY BOARD.

    (a) Commendation.--The Congress commends the Reserve Forces Policy 
Board, created by the Armed Forces Reserve Act of 1952 (Public Law 82-
476), for its fine work in the past as an independent source of advice 
to the Secretary of Defense on all matters pertaining to the reserve 
components.
    (b) Sense of Congress.--It is the sense of Congress that the 
Reserve Forces Policy Board and the reserve forces policy committees 
for the individual branches of the Armed Forces should continue to 
perform the vital role of providing the civilian leadership of the 
Department of Defense with independent advice on matters pertaining to 
the reserve components.
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