I 

109TH CONGRESS 

1ST SESSION H. R. 1604

To amend title 10, United States Code, to provide for the inclusion of 

hazardous duty pay and diving pay in the computation of military retired 

pay for members of the Armed Forces with extensive hazardous duty 

experience, to require a Comptroller General study on the need for 

a tax credit for businesses that employ members of the National Guard 

and Reserve, and to require a report by the Secretary of Defense on 

the expansion of the Junior ROTC and similar military programs for 

young people. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 13, 2005

Ms. GRANGER introduced the following bill; which was referred to the 

Committee on Armed Services 

A BILL

To amend title 10, United States Code, to provide for the 

inclusion of hazardous duty pay and diving pay in the 

computation of military retired pay for members of the 

Armed Forces with extensive hazardous duty experience, 

to require a Comptroller General study on the need for 

a tax credit for businesses that employ members of the 

National Guard and Reserve, and to require a report 

by the Secretary of Defense on the expansion of the 

Junior ROTC and similar military programs for young 

people.
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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. INCLUSION OF HAZARDOUS DUTY PAY AND 

4 DIVING PAY IN COMPUTATION OF MILITARY 

5 RETIRED PAY FOR MEMBERS OF THE ARMED 

6 FORCES WITH EXTENSIVE HAZARDOUS DUTY 

7 EXPERIENCE. 

8 (a) IN GENERAL.—Chapter 71 of title 10, United 

9 States Code, is amended by adding at the end the fol10 lowing new section: 

11 ‘‘§ 1415. Members with extensive hazardous duty ex12 perience: increase in retired pay 

13 ‘‘(a) INCREASE IN RETIRED PAY FOR QUALIFYING

14 MEMBERS.—The retired pay of a member who performs 

15 qualifying hazardous duty and who retires on or after the 

16 date of the enactment of this section shall be increased 

17 by the amount determined under subsection (b). 

18 ‘‘(b) COMPUTATION OF INCREASE.—The amount of 

19 an increase in retired pay under this section shall be the 

20 sum of the following: 

21 ‘‘(1) HAZARDOUS DUTY SPECIAL PAY.—If the 

22 member received special pay under section 301 of 

23 title 37, the amount equal to the product of—

24 ‘‘(A) the monthly amount of special pay 

25 under that section as in effect for the final 
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1 month for which the member received that spe2 cial pay; and 

3 ‘‘(B) the fraction in which the numerator 

4 is the number of months for which the member 

5 received such special pay and the denominator 

6 is the total number of months for which the 

7 member received basic pay. 

8 ‘‘(2) DIVING DUTY SPECIAL PAY.—If the mem9 ber received special pay under section 304 of title 

10 37, the amount equal to the product of—

11 ‘‘(A) the monthly amount of special pay 

12 under that section as in effect for the final 

13 months for which the member received that spe14 cial pay; and 

15 ‘‘(B) the fraction in which the numerator 

16 is the number of months for which the member 

17 received such special pay and the denominator 

18 is the total number of months for which the 

19 member received basic pay. 

20 ‘‘(c) QUALIFYING MEMBERS.—A member shall be 

21 considered to have performed qualifying hazardous duty 

22 for purposes of this section if the member received special 

23 pay under section 301 of title 37 (relating to special pay 

24 for hazardous duty) or section 304 of title 37 (relating 
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1 to special pay for diving duty), or both, for not less than 

2 60 months (whether or not consecutive). 

3 ‘‘(d) TREATMENT UNDER OTHER PROVISIONS RE4 LATING TO RETIRED PAY.—An amount by which retired 

5 pay is increased under this section shall not be considered 

6 to be retired pay for purposes of section 1408 of this title 

7 or for purposes of the Survivor Benefit Plan under sub8 chapter II of chapter 73 of this title. 

9 ‘‘(e) RETAINER PAY.—In this section, the term ‘re10 tired pay’ includes retainer pay payable under section 

11 6330 of this title.’’. 

12 (b) CLERICAL AMENDMENT.—The table of sections 

13 at the beginning of such chapter is amended by adding 

14 at the end the following new item:

‘‘1415. Members with extensive hazardous duty experience: increase in retired 

pay.’’.

15 SEC. 2. COMPTROLLER GENERAL STUDY OF TAX CREDITS 

16 AND SMALL BUSINESS LOAN CHANGES TO AS17 SIST BUSINESSES THAT EMPLOY GUARD AND 

18 RESERVE MEMBERS. 

19 (a) STUDY REQUIRED.—The Comptroller General 

20 shall conduct a study to determine—

21 (1) whether members of the National Guard 

22 and Reserve comprise a disproportionately large por23 tion of the employees of any size or type of business, 

24 including small business concerns; 
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1 (2) the amount of Federal tax benefit that 

2 would be appropriate to compensate such a business 

3 for costs associated with employing members of Na4 tional Guard and Reserve units and having such 

5 members called to active duty; and 

6 (3) whether changes can be made to the small 

7 business loan program, such as a targeted level of 

8 loans, reduced interest rates, and reduced paperwork 

9 burdens for loan applications, to assist small busi10 ness concerns to deal with the costs associated with 

11 employing members of National Guard and Reserve 

12 units and having such members called to active duty. 

13 (b) REPORT.—Not later than 180 days after the date 

14 of the enactment of this Act, the Comptroller General shall 

15 submit to Congress a report containing the results of the 

16 study. The report shall include legislative proposals—

17 (1) to provide the recommended tax benefit 

18 identified in the study; and 

19 (2) to modify the small business loan program 

20 to assist small business concerns that employ mem21 bers of National Guard and Reserve units. 

22 SEC. 3. SECRETARY OF DEFENSE REPORT ON EXPANSION 

23 OF JUNIOR ROTC AND SIMILAR MILITARY 

24 PROGRAMS FOR YOUNG PEOPLE. 

25 (a) FINDINGS.—Congress finds that—
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1 (1) the Junior Reserve Officers’ Training 

2 Corps, the Civil Air Patrol, the Naval Sea Cadet 

3 Corps, and the Young Marines of the Marine Corps 

4 League provide significant benefits for the Armed 

5 Forces, including significant public relations bene6 fits; and 

7 (2) there is substantial interest in expanding 

8 the scope of those programs. 

9 (b) REPORT.—Not later than 180 days after the date 

10 of the enactment of this Act, the Secretary of Defense 

11 shall submit to Congress a report providing the Sec12 retary’s assessment of the feasibility and desirability of ex13 panding the Junior Reserve Officers’ Training Corps pro14 gram of each of the military departments, the Civil Air 

15 Patrol, the Naval Sea Cadet Corps, and the Young Ma16 rines of the Marine Corps League. The report shall include 

17 such recommendations as the Secretary considers appro18 priate for expansion of those programs through an in19 crease in the number of units or participants in those pro20 grams, increased funding for those programs, or such 

21 other means as the Secretary determines.

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