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.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. INCLUSION OF HAZARDOUS DUTY PAY AND 
DIVING PAY IN COMPUTATION OF MILITARY 
RETIRED PAY FOR MEMBERS OF THE ARMED 
FORCES WITH EXTENSIVE HAZARDOUS DUTY 
EXPERIENCE. 
(a) IN GENERAL.—Chapter 71 of title 10, United 
States Code, is amended by adding at the end the fol-
lowing new section: 
‘‘§ 1415. Members with extensive hazardous duty ex-
perience: increase in retired pay 
‘‘(a) INCREASE IN RETIRED PAY FOR QUALIFYING 
MEMBERS.—The retired pay of a member who performs 
qualifying hazardous duty and who retires on or after the 
date of the enactment of this section shall be increased 
by the amount determined under subsection (b). 
‘‘(b) COMPUTATION OF INCREASE.—The amount of 
an increase in retired pay under this section shall be the 
sum of the following: 
‘‘(1) HAZARDOUS DUTY SPECIAL PAY.—If the 
member received special pay under section 301 of 
title 37, the amount equal to the product of—
‘‘(A) the monthly amount of special pay 
under that section as in effect for the final
month for which the member received that spe-
cial pay; and 
‘‘(B) the fraction in which the numerator 
is the number of months for which the member 
received such special pay and the denominator 
is the total number of months for which the 
member received basic pay. 
‘‘(2) DIVING DUTY SPECIAL PAY.—If the mem-
ber received special pay under section 304 of title 
37, the amount equal to the product of—
‘‘(A) the monthly amount of special pay 
under that section as in effect for the final 
months for which the member received that spe-
cial pay; and 
‘‘(B) the fraction in which the numerator 
is the number of months for which the member 
received such special pay and the denominator 
is the total number of months for which the 
member received basic pay. 
‘‘(c) QUALIFYING MEMBERS.—A member shall be 
considered to have performed qualifying hazardous duty 
for purposes of this section if the member received special 
pay under section 301 of title 37 (relating to special pay 
for hazardous duty) or section 304 of title 37 (relating
to special pay for diving duty), or both, for not less than 
60 months (whether or not consecutive). 
‘‘(d) TREATMENT UNDER OTHER PROVISIONS RE-
LATING TO RETIRED PAY.—An amount by which retired 
pay is increased under this section shall not be considered 
to be retired pay for purposes of section 1408 of this title 
or for purposes of the Survivor Benefit Plan under sub-
chapter II of chapter 73 of this title. 
‘‘(e) RETAINER PAY.—In this section, the term ‘re-
tired pay’ includes retainer pay payable under section 
6330 of this title.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
at the end the following new item:
‘‘1415. Members with extensive hazardous duty experience: increase in retired 
pay.’’.
SEC. 2. COMPTROLLER GENERAL STUDY OF TAX CREDITS 
AND SMALL BUSINESS LOAN CHANGES TO AS-
SIST BUSINESSES THAT EMPLOY GUARD AND 
RESERVE MEMBERS. 
(a) STUDY REQUIRED.—The Comptroller General 
shall conduct a study to determine—
(1) whether members of the National Guard 
and Reserve comprise a disproportionately large por-
tion of the employees of any size or type of business, 
including small business concerns;
(2) the amount of Federal tax benefit that 
would be appropriate to compensate such a business 
for costs associated with employing members of Na-
tional Guard and Reserve units and having such 
members called to active duty; and 
(3) whether changes can be made to the small 
business loan program, such as a targeted level of 
loans, reduced interest rates, and reduced paperwork 
burdens for loan applications, to assist small busi-
ness concerns to deal with the costs associated with 
employing members of National Guard and Reserve 
units and having such members called to active duty. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Comptroller General shall 
submit to Congress a report containing the results of the 
study. The report shall include legislative proposals—
(1) to provide the recommended tax benefit 
identified in the study; and 
(2) to modify the small business loan program 
to assist small business concerns that employ mem-
bers of National Guard and Reserve units. 
SEC. 3. SECRETARY OF DEFENSE REPORT ON EXPANSION 
OF JUNIOR ROTC AND SIMILAR MILITARY 
PROGRAMS FOR YOUNG PEOPLE. 
(a) FINDINGS.—Congress finds that—
(1) the Junior Reserve Officers’ Training 
Corps, the Civil Air Patrol, the Naval Sea Cadet 
Corps, and the Young Marines of the Marine Corps 
League provide significant benefits for the Armed 
Forces, including significant public relations bene-
fits; and 
(2) there is substantial interest in expanding 
the scope of those programs. 
(b) REPORT.—Not later than 180 days after the date 
of the enactment of this Act, the Secretary of Defense 
shall submit to Congress a report providing the Sec-
retary’s assessment of the feasibility and desirability of ex-
panding the Junior Reserve Officers’ Training Corps pro-
gram of each of the military departments, the Civil Air 
Patrol, the Naval Sea Cadet Corps, and the Young Ma-
rines of the Marine Corps League. The report shall include 
such recommendations as the Secretary considers appro-
priate for expansion of those programs through an in-
crease in the number of units or participants in those pro-
grams, increased funding for those programs, or such 
other means as the Secretary determines.
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