II

105TH CONGRESS

2D SESSION S. 2077

To maximize the national security of the United States and minimize the

cost by providing for increased use of the capabilities of the National

Guard and the other reserve components of the United States; to improve

the readiness of the reserve components; to ensure that adequate resources are provided for the reserve components; and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 13, 1998

Mr. FORD (for himself, Mr. BOND, Mr. DORGAN, and Mr. LEAHY) introduced

the following bill; which was read twice and referred to the Committee

on Armed Services

A BILL

To maximize the national security of the United States and

minimize the cost by providing for increased use of the

capabilities of the National Guard and the other reserve

components of the United States; to improve the readiness of the reserve components; to ensure that adequate

resources are provided for the reserve components; and

for other purposes.

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

2 This Act may be cited as the ‘‘National Guard and

3 Reserve Components Equity Act of 1998’’.

4 TITLE I—STRATEGIC PLANNING

5 SEC. 101. FORCE STRUCTURE.

6 (a) REQUIREMENT.—At the same time as the Presi7 dent submits the budget to Congress for fiscal year 2000

8 under section 1105(a) of title 31, United States Code, the

9 Secretary of Defense shall submit to Congress a report

10 on the Army reserve component force structure.

11 (b) CONTENT OF REPORT.—The report shall include

12 the following:

13 (1) The force structure that the Secretary con14 siders appropriate for the Army National Guard and

15 the Army Reserve for meeting threats to the na16 tional security that are considered probable for the

17 six fiscal years beginning with fiscal year 2000.

18 (2) Specific wartime missions for the units in

19 that force structure, including missions relating to

20 responses to emergencies involving weapons of mass

21 destruction.

22 (b) FREEZE ON END STRENGTHS.—Notwithstanding

23 any other provision of law, the Armed Forces shall main24 tain the same strengths for Selected Reserve personnel of

25 the Army National Guard of the United States and the

26 Army Reserve through September 30, 2000, as are au-
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1 thorized under paragraphs (1) and (2), respectively, of

2 section 411(a) of the National Defense Authorization Act

3 for Fiscal Year 1998 (Public Law 105–85; 111 Stat.

4 1719).

5 SEC. 102. MODERNIZATION PLAN.

6 (a) PLAN REQUIRED.—The Secretary of Defense

7 shall develop a master plan that provides for the complete

8 modernization of the National Guard and the other re9 serve components of the Armed Forces, including the mod10 ernization necessary to ensure the compatibility of the

11 equipment used by the reserve components.

12 (b) SUBMISSION TO CONGRESS.—The Secretary shall

13 submit the plan to Congress not later than six months

14 after the date of the enactment of this Act.

15 SEC. 103. MILITARY CONSTRUCTION.

16 (a) PLAN REQUIRED.—The Secretary of Defense

17 shall develop a master plan that provides for meeting the

18 unmet requirements of the National Guard and the other

19 reserve components for military construction.

20 (b) SUBMISSION TO CONGRESS.—The Secretary shall

21 submit the plan to Congress not later than six months

22 after the date of the enactment of this Act.
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1 TITLE II—RESERVE COMPONENT

2 LEADERSHIP

3 SEC. 201. CHIEF OF THE NATIONAL GUARD BUREAU.

4 (a) RELATIONSHIP TO THE JOINT CHIEFS OF

5 STAFF.—Section 151 of title 10, United States Code, is

6 amended by adding at the end the following new sub7 section:

8 ‘‘(h) PARTICIPATION BY THE CHIEF OF THE NA9 TIONAL GUARD BUREAU.—(1) The Chief of the National

10 Guard Bureau shall identify for the Chairman any matter

11 scheduled for consideration by the Joint Chiefs of Staff

12 that directly concerns the National Guard, domestic secu13 rity, or public safety.

14 ‘‘(2) Unless, upon request of the Chairman for a de15 termination, the Secretary of Defense determines that a

16 matter identified pursuant to paragraph (1) does not con17 cern the National Guard, domestic security, or public safe18 ty, the Chief of the National Guard Bureau shall meet

19 with the Joint Chiefs of Staff when that matter is under

20 consideration. The Chief of the National Guard Bureau

21 has equal status with the members of the Joint Chiefs of

22 Staff for the consideration of the matter by the Joint

23 Chiefs of Staff.

24 ‘‘(3) The Chairman shall provide the Chief of the Na25 tional Guard Bureau with all agenda for the meetings of
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1 the Joint Chiefs of Staff and any other information that

2 the Chairman considers appropriate to assist the Chief of

3 the National Guard Bureau to carry out his responsibil4 ities under this subsection.’’.

5 (b) MEMBERSHIP ON THE JOINT REQUIREMENTS

6 OVERSIGHT COUNCIL.—Section 181(c) of such title is

7 amended—

8 (1) in paragraph (1)—

9 (A) in subsection (D), by striking out

10 ‘‘and’’;

11 (B) in subsection (E), by striking out the

12 period at the end and inserting in lieu thereof

13 ‘‘; and’’; and

14 (C) by adding at the end the following:

15 ‘‘(F) the Chief of the National Guard Bureau.’’;

16 and

17 (2) in paragraph (2), by inserting ‘‘and the

18 Chief of the National Guard Bureau’’ after ‘‘other

19 than the Chairman of the Joint Chiefs of Staff’’.

20 (c) ADDITIONAL ADVISORY FUNCTIONS.—Section

21 10502(c) of title 10, United States Code, is amended to

22 read as follows:

23 ‘‘(c) ADVISER ON NATIONAL GUARD MATTERS.—The

24 Chief of the National Guard Bureau is the principal ad25 viser to the President, the Secretary of Defense, any other
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1 person designated to exercise national command authority,

2 the Secretary of the Army, the Chief of Staff of the Army,

3 the Secretary of the Air Force, and the Chief of Staff of

4 the Air Force on matters relating to—

5 ‘‘(1) the National Guard;

6 ‘‘(2) the Army National Guard of the United

7 States;

8 ‘‘(3) the Air National Guard of the United

9 States;

10 ‘‘(4) domestic security; and

11 ‘‘(5) public safety.’’.

12 (d) RELATIONSHIP TO THE ARMY STAFF AND THE

13 AIR STAFF.—Section 10502 of title 10, United States

14 Code, is amended by adding at the end the following new

15 paragraph:

16 ‘‘(e) RELATIONSHIP TO ARMY AND AIR STAFF.—To

17 the extent that it does not impair the independence of the

18 Chief of the National Guard Bureau in the performance

19 of his duties, the Chief of the National Guard Bureau

20 shall serve at the level of the Vice Chief of Staff of the

21 Army in all forums within the Department of the Army,

22 and at the level of the Vice Chief of Staff of the Air Force

23 in all forums within the Department of the Air Force.’’.

24 SEC. 202. GRADES OF RESERVE COMPONENT LEADERS.

25 (a) NATIONAL GUARD BUREAU LEADERSHIP.—
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1 (1) CHIEF.—Section 10502(d) of title 10,

2 United States Code, is amended by striking out

3 ‘‘lieutenant general’’ and inserting in lieu thereof

4 ‘‘general’’.

5 (2) VICE CHIEF.—Section 10505(c) of such

6 title is amended by striking out ‘‘major general’’ and

7 inserting in lieu thereof ‘‘lieutenant general’’.

8 (3) OTHER GENERAL OFFICERS.—Section

9 10506(a)(1) of such title is amended by striking out

10 ‘‘major general’’ each place it appears and inserting

11 in lieu thereof ‘‘lieutenant general’’.

12 (b) CHIEF OF ARMY RESERVE.—Section 3038(c) of

13 such title is amended by striking out ‘‘major general’’ in

14 the third sentence and inserting in lieu thereof ‘‘lieutenant

15 general’’.

16 (c) CHIEF OF NAVAL RESERVE.—Section 5143 of

17 such title is amended—

18 (1) in subsection (b), by striking out ‘‘from offi19 cers who—’’ and inserting in lieu thereof ‘‘from

20 among officers of the Naval Reserve who—’’; and

21 (2) in subsection (c)(2), by striking out ‘‘a

22 grade above rear admiral (lower half)’’ in the third

23 sentence and inserting in lieu thereof ‘‘the grade of

24 vice admiral’’.
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1 (d) COMMANDER, MARINE FORCES RESERVE.—Sec2 tion 5144 of such title is amended—

3 (1) in subsection (b), by striking out ‘‘from

4 officers who—’’ and inserting in lieu thereof ‘‘from

5 among officers of the Marine Corps Reserve

6 who—’’; and

7 (2) in subsection (c)(2), by striking out ‘‘a

8 grade above brigadier general’’ in the third sentence

9 and inserting in lieu thereof ‘‘the grade of lieutenant

10 general’’.

11 (e) CHIEF OF AIR FORCE RESERVE.—Section

12 8038(c) of such title is amended by striking out ‘‘major

13 general’’ in the third sentence and inserting in lieu thereof

14 ‘‘lieutenant general’’.

15 (f) EXCLUSION FROM DISTRIBUTION LIMITS FOR

16 GENERAL OFFICERS ON ACTIVE DUTY.—Section 525(b)

17 of title 10, United States Code, is amended by adding at

18 the end the following:

19 ‘‘(6)(A) An officer serving in a position referred to

20 in subparagraph (B) in the grade specified for the position

21 in that subparagraph is in addition to the number that

22 would otherwise be permitted for that officer’s armed force

23 for that grade under paragraph (1).

24 ‘‘(B) Subparagraph (A) applies to an officer while

25 serving in any of the following positions:
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1 ‘‘(i) The Chief of the National Guard Bureau,

2 if serving in the grade of general.

3 ‘‘(ii) The Vice Chief of the National Guard Bu4 reau, if serving in the grade of lieutenant general.

5 ‘‘(iii) The Director of the Army National

6 Guard, if serving in the grade of lieutenant general.

7 ‘‘(iv) The Director of the Air National Guard,

8 if serving in the grade of lieutenant general.

9 ‘‘(7)(A) An officer while serving in a position referred

10 to in subparagraph (B), if serving in the grade of lieuten11 ant general or vice admiral, is in addition to the number

12 that would otherwise be permitted for that officer’s armed

13 force for that grade under paragraph (1) or (2), as appli14 cable.

15 ‘‘(B) Subparagraph (A) applies to an officer serving

16 in any of the following positions:

17 ‘‘(i) The Chief of Army Reserve.

18 ‘‘(ii) The Chief of Naval Reserve.

19 ‘‘(iii) The Commander, Marine Forces Reserve.

20 ‘‘(iv) The Chief of Air Force Reserve.’’.

21 (g) EFFECTIVE DATE.—This section and the amend22 ments made by this section shall take effect on January

23 1, 1999.
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1 SEC. 203. ADJUTANTS GENERAL OF THE NATIONAL GUARD.

2 (a) FEDERAL RECOGNITION.—The Secretary of De3 fense shall prescribe in regulations a requirement that,

4 whenever a person is appointed to the position of State

5 adjutant general of the National Guard, the board that

6 is to consider the appointee for being extended Federal

7 recognition be convened within 60 days after the date of

8 the appointment.

9 (b) INVESTIGATIONS OF ADJUTANTS GENERAL.—

10 The Secretary of Defense shall prescribe in regulations a

11 requirement that the Inspector General of the Department

12 of Defense be responsible for conducting investigations re13 garding appointments of State adjutants general of the

14 National Guard for the Department of Defense.

15 (c) STATE INCLUDES POSSESSIONS, ET CETERA.—

16 For the purposes of this section, the term ‘‘State’’ includes

17 the District of Columbia, Puerto Rico, Guam, and the Vir18 gin Islands.

19 SEC. 204. REVIEW OF PROMOTIONS AND FEDERAL REC20 OGNITION FOR NATIONAL GUARD OFFICERS.

21 (a) GAO REVIEW.—The Comptroller General shall

22 review the promotions of, and extensions of Federal rec23 ognition to, officers of the National Guard to determine

24 the timeliness and fairness of the processing of such ac25 tions.
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1 (b) SCOPE OF REVIEW.—The Comptroller General

2 shall determine the period and number of actions that are

3 necessary to be reviewed in order to provide a meaningful

4 basis for making determinations under subsection (a).

5 (c) REPORT.—Not later than one year after the date

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

7 submit to Congress a report on the review. The report

8 shall include the Comptroller General’s determinations to9 gether with any recommendations that the Comptroller

10 General considers appropriate.

11 TITLE III—USE OF THE RESERVE

12 COMPONENTS FOR EMER13 GENCIES INVOLVING WEAP14 ONS OF MASS DESTRUCTION

15 SEC. 301. DISASTER RELIEF.

16 (a) AUTHORITY.—

17 (1) DEFINITIONS.—

18 (A) MAJOR DISASTER.—Paragraph (2) of

19 section 102 of the Robert T. Stafford Disaster

20 Relief and Emergency Assistance Act (42

21 U.S.C. 5122) is amended by striking out ‘‘or

22 explosion’’ and inserting in lieu thereof ‘‘explo23 sion, or emergency involving a weapon of mass

24 destruction.’’.
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1 (B) WEAPON OF MASS DESTRUCTION.—

2 Such section is further amended by adding at

3 the end the following:

4 ‘‘(9) WEAPON OF MASS DESTRUCTION.—‘Weap5 on of mass destruction’ has the meaning given that

6 term in section 1402 of the Defense Against Weap7 ons of Mass Destruction Act of 1996 (50 U.S.C.

8 2302(1)).

9 ‘‘(10) NATIONAL GUARD.—‘National Guard’

10 has the meaning given that term in section 101(3)

11 of title 32, United States Code.

12 ‘‘(11) RESERVE COMPONENTS.—‘Reserve com13 ponents of the Armed Forces’ means the reserve

14 components named in section 10101 of title 10,

15 United States Code.’’.

16 (2) USE OF RESERVE COMPONENTS.—Section

17 201(a) of such Act (42 U.S.C. 5131) is amended—

18 (A) by striking out the period at the end

19 of paragraph (7) and inserting in lieu thereof ‘‘;

20 and’’; and

21 (B) by adding at the end the following:

22 ‘‘(8) the use of the National Guard or the other

23 reserve components of the Armed Forces to take ac24 tions that may be necessary to provide an immediate
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1 response to an incident involving a use or threat of

2 use of a weapon of mass destruction.’’.

3 (3) REQUESTS BY DIRECTOR OF FEMA.—Sec4 tion 611 of such Act (42 U.S.C. 5196) is amended

5 by adding at the end the following:

6 ‘‘(l) USE OF THE RESERVE COMPONENTS.—The Di7 rector may request the Secretary of Defense to authorize

8 the National Guard or to direct other reserve components

9 of the Armed Forces to conduct training exercises, prepo10 sition equipment and other items, and take such other ac11 tions that may be necessary to provide an immediate re12 sponse to an emergency involving a weapon of mass de13 struction. The Secretary of Defense may authorize the Na14 tional Guard or direct other reserve components to take

15 actions requested by the Director under the preceding sen16 tence.’’.

17 (b) REIMBURSEMENT OF STATES.—

18 (1) AUTHORITY.—Chapter 1 of title 32, United

19 States Code, is amended by adding at the end the

20 following new section:

21 ‘‘§ 115. Reimbursement for State costs of prepared22 ness programs for emergencies involving

23 weapons of mass destruction

24 ‘‘(a) REIMBURSEMENT AUTHORIZED.—The Sec25 retary of Defense may reimburse a State for expenses in-
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1 curred by the State for the National Guard of that State

2 to participate in emergency preparedness programs to re3 spond to an emergency involving the use of a weapon of

4 mass destruction. Expenses reimbursable under this sec5 tion may include the costs of the following:

6 ‘‘(1) Pay, allowances, clothing, subsistence,

7 travel, and related expenses of personnel of the Na8 tional Guard.

9 ‘‘(2) Operation and maintenance of equipment

10 and facilities of the National Guard.

11 ‘‘(3) Procurement of services and equipment for

12 the National Guard.

13 ‘‘(b) STATE INCLUDES POSSESSIONS, ET CETERA.—

14 For the purposes of this section, the term ‘State’ includes

15 the District of Columbia, Puerto Rico, Guam, and the Vir16 gin Islands.

17 ‘‘(c) WEAPON OF MASS DESTRUCTION DEFINED.—

18 In this section, the term ‘weapon of mass destruction’ has

19 the meaning given that term in section 1402 of the De20 fense Against Weapons of Mass Destruction Act of 1996

21 (50 U.S.C. 2302(1)).’’.

22 (2) CLERICAL AMENDMENT.—The table of sec23 tions at the beginning of such chapter is amended

24 by adding at the end the following:

‘‘115. Reimbursement for State costs of preparedness programs for emergencies

involving weapons of mass destruction.’’.
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1 SEC. 302. RESERVES ON ACTIVE DUTY.

2 (a) AUTHORITY.—

3 (1) ORDER TO ACTIVE DUTY.—Section

4 12301(b) of title 10, United States Code, is amend5 ed—

6 (A) by inserting ‘‘(1)’’ after ‘‘(b)’’;

7 (B) by striking out ‘‘for not more than 15

8 days a year’’ in the first sentence; and

9 (C) by adding at the end the following;

10 ‘‘(2) The authority under paragraph (1) includes au11 thority to order a unit or member to active duty to provide

12 assistance in responding to an emergency involving a

13 weapon of mass destruction (as defined section 1402 of

14 the Defense Against Weapons of Mass Destruction Act of

15 1996 (50 U.S.C. 2302(1))).

16 ‘‘(3) A unit or member may not be ordered to active

17 duty under this subsection for more than 15 days a year.

18 Days of service on active duty to provide assistance de19 scribed in paragraph (2), up to 15 days a year, shall not

20 be counted toward the limitation on the total number of

21 days set forth in the preceding sentence.’’.

22 (2) USE OF ACTIVE GUARD AND RESERVE PER23 SONNEL.—Section 12310 of title 10, United States

24 Code, is amended by adding at the end the follow25 ing:
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1 ‘‘(c)(1) A Reserve on active duty as described in sub2 section (a), or a Reserve who is a member of the National

3 Guard serving on full-time National Guard duty under

4 section 502(f) of title 32 in connection with functions re5 ferred to in subsection (a), may perform any duties in sup6 port of emergency preparedness programs to prepare for

7 or to respond to any emergency involving the use of a

8 weapon of mass destruction (as defined in section 1402

9 of the Defense Against Weapons of Mass Destruction Act

10 of 1996 (50 U.S.C. 2302(1))).

11 ‘‘(2) The costs of the pay, allowances, clothing, sub12 sistence, gratuities, travel, and related expenses for a Re13 serve performing duties under the authority of paragraph

14 (1) shall be paid from the appropriation that is available

15 to pay such costs for other members of the reserve compo16 nent of that Reserve who are performing duties as de17 scribed in subsection (a).’’.

18 (b) EXCLUSION FROM STRENGTH LIMITATIONS.—

19 (1) GENERAL LIMITATION.—Section 115(d) of

20 such title is amended by adding at the end the fol21 lowing:

22 ‘‘(8) Members of the reserve components on ac23 tive duty and members of the National Guard on

24 full-time National Guard duty to participate in

25 emergency preparedness programs for responding to
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1 emergencies involving a weapon of mass destruction

2 (as defined section 1402 of the Defense Against

3 Weapons of Mass Destruction Act of 1996 (50

4 U.S.C. 2302(1))).’’.

5 (2) OFFICER PERSONNEL LIMITATION.—Section

6 12011 of such title is amended by adding at the end

7 the following:

8 ‘‘(c) Members of the reserve components on active

9 duty and members of the National Guard on full-time Na10 tional Guard duty to participate in emergency prepared11 ness programs for responding to emergencies involving a

12 weapon of mass destruction (as defined section 1402 of

13 the Defense Against Weapons of Mass Destruction Act of

14 1996 (50 U.S.C. 2302(1))) shall not be counted for pur15 poses of a limitation in subsection (a).’’.

16 (3) ENLISTED PERSONNEL LIMITATION.—Sec17 tion 12011 of such title is amended by adding at the

18 end the following:

19 ‘‘(c) Members of the reserve components on active

20 duty and members of the National Guard on full-time Na21 tional Guard duty to participate in emergency prepared22 ness programs for responding to emergencies involving a

23 weapon of mass destruction (as defined section 1402 of

24 the Defense Against Weapons of Mass Destruction Act of
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1 1996 (50 U.S.C. 2302(1))) shall not be counted for pur2 poses of a limitation in subsection (a).’’.

3 TITLE IV—STRENGTHENED RE4 FORMS FOR ARMY NATIONAL

5 GUARD COMBAT READINESS

6 SEC. 401. ADEQUATE FUNDING FOR MEETING NCO EDU7 CATION REQUIREMENTS.

8 Section 1114(b) of the Army National Guard Combat

9 Readiness Reform Act of 1992 (title XI of Public Law

10 102–484; 10 U.S.C. 10105 note) is amended to read as

11 follows:

12 ‘‘(b) AVAILABILITY OF TRAINING.—The Secretary of

13 the Army shall ensure that sufficient training positions

14 and funds are available to enable compliance with sub15 section (a) without it being necessary for noncommis16 sioned officers to be absent from unit annual training for

17 the units of assignment in order to attend training to meet

18 military education requirements.’’.

19 SEC. 402. COMBAT UNIT TRAINING.

20 Section 1119 of the Army National Guard Combat

21 Readiness Reform Act of 1992 is amended—

22 (1) by inserting ‘‘(a) PROGRAM TO MINIMIZE

23 POST-MOBILIZATION TRAINING NEEDS.—’’ before

24 ‘‘The Secretary’’;
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1 (2) by inserting ‘‘all’’ before ‘‘combat units’’ in

2 the first sentence;

3 (3) in paragraph (1)—

4 (A) in subparagraph (A), by inserting

5 ‘‘and professional development’’ after ‘‘quali6 fication’’;

7 (B) in subparagraph (B), by striking out

8 ‘‘and squad level’’ and inserting in lieu thereof

9 ‘‘squad, and platoon level’’; and

10 (C) by striking out subparagraph (C) and

11 inserting in lieu thereof the following:

12 ‘‘(C) maneuver training at the platoon level

13 to at least the minimum extent required of all

14 Army units; and’’; and

15 (4) by adding at the end the following:

16 ‘‘(b) ADEQUACY OF FUNDING.—The Secretary shall

17 ensure that sufficient funds are made available for con18 ducting the training required under the program.’’.

19 SEC. 403. USE OF COMBAT SIMULATORS.

20 The text of section 1120 of such Act is amended to

21 read as follows:

22 ‘‘The Secretary of the Army shall—

23 ‘‘(1) expand the use of simulations, simulators,

24 and advanced training devices and technologies to
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1 fully support the complete integration of Army Na2 tional Guard units with active Army units; and

3 ‘‘(2) use and distribute combat simulators so as

4 to serve the training of Army National Guard units

5 as well as active Army units.’’.

6 TITLE V—PAY, ALLOWANCES, RE7 TIREMENT, AND OTHER MON8 ETARY BENEFITS

9 SEC. 501. BASIC ALLOWANCE FOR HOUSING.

10 (a) RESERVES ON ACTIVE DUTY MORE THAN 100

11 MILES FROM HOME.—Section 403(g)(3) of title 37,

12 United States Code, is amended by adding at the end the

13 following: ‘‘A member of a reserve component on active

14 duty may not be denied a basic allowance for housing at

15 that rate on the basis of being provided quarters of the

16 United States if the member is performing duty more than

17 100 miles from the member’s primary residence.’’.

18 (b) EFFECTIVE DATE AND APPLICABILITY.—The

19 amendment made by subsection (a) shall take effect on

20 the date of the enactment of this Act and shall apply with

21 respect to active duty performed on or after that date.

22 SEC. 502. ELIGIBILITY FOR HAZARDOUS OR IMMINENT

23 DANGER PAY.

24 (a) FULL MONTHLY RATE FOR ACTIVE DUTY FOR

25 PARTIAL MONTH.—Section 310(a) of title 37, United
21

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1 States Code, is amended in the matter preceding para2 graph (1) by striking out ‘‘for any month in which he was

3 entitled to basis pay’’ and inserting in lieu thereof ‘‘for

4 any month in which he was entitled to any basic pay (with5 out regard to the number of days of duty performed for

6 the month)’’.

7 (b) EFFECTIVE DATE.—The amendments made by

8 subsection (a) shall take effect on the first day of the first

9 month that begins on or after the date of the enactment

10 of this Act.

11 SEC. 503. ALLOTMENTS OF PAY.

12 Section 701(d) of title 37, United States Code, is

13 amended—

14 (1) by inserting ‘‘(including a member of a re15 serve component of that armed force)’’ in the first

16 sentence after ‘‘a member of the Army, Navy, Air

17 Force, or Marine Corps’’; and

18 (2) by inserting ‘‘(three allotments, in the case

19 of a member of a reserve component)’’ in the second

20 sentence after ‘‘six allotments’’.

21 SEC. 504. EARLY RETIREMENT FOR PHYSICAL DISABILITY.

22 (a) PERMANENT AUTHORITY.—Chapter 1223 of title

23 10, United States Code, is amended by inserting after sec24 tion 12731a the following:
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1 § 12731b. Early retirement for physical disability

2 ‘‘(a) RETIREMENT WITH AT LEAST 15 YEARS OF

3 SERVICE.—For the purposes of section 12731 of this title,

4 the Secretary concerned may—

5 ‘‘(1) determine to treat a member of the Se6 lected Reserve of a reserve component of the armed

7 force under the jurisdiction of that Secretary as hav8 ing met the service requirements of subsection (a)(2)

9 of that section and provide the member with the no10 tification required by subsection (d) of that section

11 if the member—

12 ‘‘(A) has completed at least 15, and less

13 than 20, years of service computed under sec14 tion 12732 of this title; and

15 ‘‘(B) no longer meets the qualifications for

16 membership in the Selected Reserve solely be17 cause the member is unfit because of physical

18 disability; and

19 ‘‘(2) upon the request of the member submitted

20 to the Secretary, transfer the member to the Retired

21 Reserve.

22 ‘‘(b) EXCLUSION.—This section does not apply to

23 persons referred to in section 12731(c) of this title.’’.

24 (b) REPEAL OF SUPERSEDED AUTHORITY.—Section

25 12731(a)(c) of such title is amended by striking out para26 graph (3).
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1 (c) CLERICAL AMENDMENT.—The table of sections

2 at the beginning of such chapter is amended by inserting

3 after the item relating to section 12731a the following:

‘‘12731b. Early retirement for physical disability.’’.

4 TITLE VI—OTHER BENEFITS

5 SEC. 601. REPEAL OF 10-YEAR LIMITATION ON USE OF

6 MONTGOMERY GI BILL BENEFITS.

7 (a) REPEAL.—Subsection (a) of section 16133 of title

8 10, United States Code, is amended by striking out ‘‘(1)’’

9 and all that follows and inserting in lieu thereof ‘‘on the

10 date the person is separated from the Selected Reserve.’’.

11 (b) CONFORMING AMENDMENTS.—Subsection (b) of

12 such section is amended—

13 (1) in paragraph (1)—

14 (A) by striking out ‘‘In’’ in the matter pre15 ceding subparagraph (A) and inserting in lieu

16 thereof ‘‘Subsection (a) does not apply in’’; and

17 (B) by striking out the comma at the end

18 of subparagraph (B) and all that follows and

19 inserting in lieu thereof a period;

20 (2) by striking out paragraph (3); and

21 (3) by redesignating paragraph (4) as para22 graph (3) and, in such paragraph, by striking out

23 ‘‘of this title—’’ and all that follows through ‘‘for

24 the purposes of clause (2)’’ and inserting in lieu

25 thereof ‘‘of this title, the member may not be consid-
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1 ered to have been separated from the Selected Re2 serve for the purposes’’.

3 SEC. 602. DEMONSTRATION PROGRAM ON UNLIMITED USE

4 OF COMMISSARY STORES.

5 (a) PROGRAM REQUIRED.—The Secretary of Defense

6 shall carry out a demonstration program to test the effi7 cacy of permitting unlimited use of commissary stores by

8 members and former members of the reserve components

9 who are eligible for limited use of commissary stores under

10 section 1063 and 1064 of title 10, United States Code.

11 (b) PERIOD FOR PROGRAM.—The program shall be

12 carried out for one year beginning on January 1, 1999.

13 (c) REPORT.—Not later than March 31, 2000, the

14 Secretary of Defense shall submit to Congress a report

15 on the results of the demonstration program, together

16 with any comments and recommendations that the Sec17 retary considers appropriate.

18 SEC. 603. SPACE AVAILABLE TRAVEL FOR MEMBERS OF SE19 LECTED RESERVE.

20 (a) IN GENERAL.—Chapter 157 of title 10, United

21 States Code, is amended by adding at the end the follow22 ing new section:
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1 ‘‘§ 2646. Space available travel: members of Selected

2 Reserve

3 ‘‘(a) AVAILABILITY.—The Secretary of Defense shall

4 prescribe regulations to allow members of the Selected Re5 serve in good standing (as determined by the Secretary

6 concerned), and dependents of such members, to receive

7 transportation on aircraft of the Department of Defense

8 on a space available basis under the same terms and con9 ditions as apply to members of the armed forces on active

10 duty and dependents of such members.

11 ‘‘(b) CONDITION ON DEPENDENT TRANSPOR12 TATION.—A dependent of a member of the Selected Re13 serve may be provided transportation under this section

14 only when the dependent is actually accompanying the

15 member on the travel.’’.

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

17 at the beginning of such chapter is amended by adding

18 at the end the following new item:

‘‘2646. Space available travel: members of Selected Reserve.’’.

19 SEC. 604. REPEAL OF EXPIRATION OF ELIGIBILITY FOR

20 VETERANS HOUSING BENEFITS BASED ON

21 SERVICE IN THE SELECTED RESERVE.

22 Section 3702(a)(2)(E) of title 38, United States

23 Code, is amended by striking out ‘‘For the period begin24 ning on October 28, 1992, and ending on October 27,

25 1999, each’’ and inserting in lieu thereof ‘‘Each’’.
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1 TITLE VII—OTHER MATTERS

2 SEC. 701. READY RESERVE-NATIONAL GUARD EMPLOYEE

3 CREDIT ADDED TO GENERAL BUSINESS

4 CREDIT.

5 (a) READY RESERVE-NATIONAL GUARD CREDIT.—

6 Subpart D of part IV of subchapter A of chapter 1 of

7 the Internal Revenue Code of 1986 (relating to business8 related credits) is amended by adding at the end the fol9 lowing new section:

10 ‘‘SEC. 45D. READY RESERVE-NATIONAL GUARD EMPLOYEE

11 CREDIT.

12 ‘‘(a) GENERAL RULE.—For purposes of section 38,

13 the Ready Reserve-National Guard employee credit deter14 mined under this section for the taxable year is an amount

15 equal to 50 percent of the actual compensation amount

16 for the taxable year.

17 ‘‘(b) DEFINITION OF ACTUAL COMPENSATION

18 AMOUNT.—For purposes of this section, the term ‘actual

19 compensation amount’ means the amount of compensation

20 paid or incurred by an employer with respect to a Ready

21 Reserve-National Guard employee on any day during a

22 taxable year when the employee was absent from employ23 ment for the purpose of performing qualified active duty.

24 ‘‘(c) LIMITATIONS.—
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1 ‘‘(1) MAXIMUM CREDIT.—The maximum credit

2 allowable under subsection (a) shall not exceed

3 $2,000 in any taxable year with respect to any one

4 Ready Reserve-National Guard employee.

5 ‘‘(2) DAYS OTHER THAN WORK DAYS.—No

6 credit shall be allowed with respect to a Ready Re7 serve-National Guard employee who performs quali8 fied active duty on any day on which the employee

9 was not scheduled to work (for a reason other than

10 to participate in qualified active duty) and ordinarily

11 would not have worked.

12 ‘‘(d) DEFINITIONS.—For purposes of this section—

13 ‘‘(1) QUALIFIED ACTIVE DUTY.—The term

14 ‘qualified active duty’ means—

15 ‘‘(A) active duty, as defined in section

16 101(d)(1) of title 10, United States Code;

17 ‘‘(B) full-time National Guard duty, as de18 fined in section 1010(d)(5) of such title; and

19 ‘‘(C) hospitalization incident to duty re20 ferred to in subparagraph (A) or (B).

21 ‘‘(2) COMPENSATION.—The term ‘compensa22 tion’ means any remuneration for employment,

23 whether in cash or in kind, which is paid or incurred

24 by a taxpayer and which is deductible from the tax25 payer’s gross income under section 162(a)(1).
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1 ‘‘(3) READY RESERVE-NATIONAL GUARD EM2 PLOYEE.—The term ‘Ready Reserve-National Guard

3 employee’ means an employee who is a member of

4 the Ready Reserve or of the National Guard.

5 ‘‘(4) NATIONAL GUARD.—The term ‘National

6 Guard’ has the meaning given such term by section

7 101(c)(1) of title 10, United States Code.

8 ‘‘(5) READY RESERVE.—The term ‘Ready Re9 serve’ has the meaning given such term by section

10 10142 of title 10, United States Code.’’

11 (b) CREDIT TO BE PART OF GENERAL BUSINESS

12 CREDIT.—Subsection (b) of section 38 of such Code (re13 lating to general business credit) is amended by striking

14 ‘‘plus’’ at the end of paragraph (11), by striking the period

15 at the end of paragraph (12) and inserting ‘‘, plus’’, and

16 by adding at the end the following new paragraph:

17 ‘‘(13) the Ready Reserve-National Guard em18 ployee credit determined under section 45D(a).’’

19 (c) CONFORMING AMENDMENT.—The table of sec20 tions for subpart D of part IV of subchapter A of chapter

21 1 of the Internal Revenue Code of 1986 is amended by

22 inserting after the item relating to section 45C the follow23 ing new item:

‘‘Sec. 45D. Ready Reserve-National Guard employee credit.’’
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1 (d) EFFECTIVE DATE.—The amendments made by

2 this Act shall apply to taxable years beginning after De3 cember 31, 1997.

Æ