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(b) INCREASE IN BASIC PAY AND BAS.—Effective on
January 1, 1996, the rates of basic pay and basic allow-
ance for subsistence of members of the uniformed services
are increased by 2.4 percent.
(c) INCREASE IN BAQ.—Effective on January 1,
1996, the rates of basic allowance for quarters of members
of the uniformed services are increased by 5.2 percent.
(d) UNIFORMED SERVICES DEFINED.—For purposes
of this section, the term ‘‘uniformed services’’ does not in-
clude the National Oceanic and Atmospheric Administra-
tion.
SEC. 602. LIMITATION ON BASIC ALLOWANCE FOR SUBSIST-
ENCE FOR MEMBERS WITHOUT DEPENDENTS
RESIDING IN GOVERNMENT QUARTERS.
(a) PERCENTAGE LIMITATION.—Subsection (b) of
section 402 of title 37, United States Code, is amended
by adding after the last sentence the following new para-
graph:
‘‘(4) In the case of members of the Army, Navy, Air
Force, or Marine Corps who, when present at their perma-
nent duty station, reside without dependents in Govern-
ment quarters, the Secretary concerned may not provide
a basic allowance for subsistence to more than 12 percent
of such members under the jurisdiction of the Secretary
concerned. The Secretary concerned may exceed such per-
300
centage during a fiscal year if the Secretary determines
that compliance would increase costs to the Government,
would impose financial hardships on members otherwise
entitled to a basic allowance for subsistence, or would re-
duce the quality of life for such members. This paragraph
shall not apply to members described in the first sentence
when the members are not residing at their permanent
duty station. The percentage limitation specified in this
paragraph shall be achieved as soon as possible after the
date of the enactment of this paragraph, but in no case
later than September 30, 1996.’’.
(b) STYLISTIC AMENDMENTS.—Such subsection is
further amended—
(1) by redesignating paragraphs (1), (2), and
(3) as subparagraphs (A), (B), and (C);
(2) by inserting ‘‘(1)’’ after ‘‘(b)’’;
(3) by designating the second sentence as para-
graph (2); and
(4) by designating the fifth sentence as para-
graph (3).
(c) CONFORMING AMENDMENTS.—(1) Subsection (e)
of such section is amended—
(A) in paragraph (1), by striking out ‘‘the third
sentence of subsection (b)’’ and inserting in lieu
thereof ‘‘subsection (b)(2)’’; and
301
(B) in paragraph (2), by striking out ‘‘sub-
section (b)’’ and inserting in lieu thereof ‘‘subsection
(b)(2)’’.
(2) Section 1012 of title 37, United States Code, is
amended by striking out ‘‘the last sentence of section
402(b)’’ and inserting in lieu thereof ‘‘section 402(b)(3)’’.
(d) REPORT REQUIRED.—Not later than March 31,
1996, the Secretary of Defense shall submit to Congress
a report identifying, for the Army, Navy, Air Force, and
the Marine Corps—
(1) the number of members without dependents
who reside in Government quarters at their perma-
nent duty stations and receive a basic allowance for
subsistence under section 402 of title 37, United
States Code;
(2) such number as a percentage of the total
number of members without dependents who reside
in Government quarters;
(3) a recommended maximum percentage of
members without dependents who reside in Govern-
ment quarters at their permanent duty station and
should receive a basic allowance for subsistence; and
(4) the reasons such maximum percentage was
selected.
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SEC. 603. AUTHORIZATION OF PAYMENT OF BASIC ALLOW-
ANCE FOR QUARTERS TO ADDITIONAL MEM-
BERS ASSIGNED TO SEA DUTY.
(a) EXPANSION OF ELIGIBLE MEMBERS.—Section
403(c)(2) of title 37, United States Code, is amended—
(1) in the first sentence, by striking out ‘‘E–7’’
and inserting in lieu thereof ‘‘E–6’’; and
(2) in the second sentence, by striking out ‘‘E–
6’’ and inserting in lieu thereof ‘‘E–5’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) shall take effect on July 1, 1996.
SEC. 604. ESTABLISHMENT OF MINIMUM AMOUNTS OF
VARIABLE HOUSING ALLOWANCE FOR HIGH
HOUSING COST AREAS AND ADDITIONAL LIM-
ITATION ON REDUCTION OF ALLOWANCE FOR
CERTAIN MEMBERS.
(a) MINIMUM AMOUNTS OF VHA.—Subsection (c) of
section 403a of title 37, United States Code, is amended
by striking out paragraph (1) and inserting in lieu thereof
the following new paragraph:
‘‘(1) The monthly amount of a variable housing allow-
ance under this section for a member of a uniformed serv-
ice with respect to an area is equal to the greater of the
following:
‘‘(A) An amount equal to the difference be-
tween—
303
‘‘(i) the median monthly cost of housing in
that area for members of the uniformed services
serving in the same pay grade and with the
same dependency status as that member; and
‘‘(ii) 80 percent of the median monthly
cost of housing in the United States for mem-
bers of the uniformed services serving in the
same pay grade and with the same dependency
status as that member.
‘‘(B) An amount determined by the Secretary
of Defense as the minimum necessary to meet the
cost of adequate housing in that area, as determined
by the Secretary, for all residents in that area with
an appropriate income level selected by the Sec-
retary.’’.
(b) LIMITATION
ON REDUCTION
IN VHA.—Para-
graph (3) of such subsection is amended by adding at the
end the following new sentence: ‘‘However, on and after
January 1, 1996, the monthly amount of a variable hous-
ing allowance under this section for a member of a uni-
formed service with respect to an area may not be reduced
so long as the member retains uninterrupted eligibility to
receive a variable housing allowance within that area and
the member’s certified housing costs are not reduced, as
304
indicated by certifications provided by the member under
subsection (b)(4).’’.
(c) EFFECT ON TOTAL AMOUNT AVAILABLE FOR
VHA.—Subsection (d)(3) of such section is amended by
inserting after the first sentence the following new sen-
tence: ‘‘In addition, the total amount determined under
paragraph (1) shall be adjusted to ensure that sufficient
amounts are available to allow payment of any additional
variable housing allowance necessary as a result of para-
graph (1)(B) and the requirements of the second sentence
of paragraph (3).’’
(d) CONFORMING AMENDMENTS.—Subsection (c) of
such section is further amended—
(1) in paragraph (3), as amended by subsection
(b), by striking out ‘‘this subsection’’ and inserting
in lieu thereof ‘‘paragraph (1)(A) or minimum levels
of variable housing allowances under paragraph
(1)(B)’’; and
(2) in paragraph (5), by inserting ‘‘or minimum
levels of variable housing allowances’’ after ‘‘costs of
housing’’.
(e) 
DELAYED
IMPLEMENTATION
OF
MINIMUM
AMOUNTS OF VHA.—Subsection (c)(1)(B) of section 403a
of title 37, United States Code, as added by subsection
(a), shall be used to determine the monthly amount of a
305
variable housing allowance under such section for mem-
bers of the uniformed services only for months beginning
after June 30, 1996.
(f) REPORT ON IMPLEMENTATION.—Not later than
June 1, 1996, the Secretary of Defense shall submit to
Congress a report describing the procedures to be used
to implement the amendments made by this section and
the costs of such amendments.
SEC. 605. CLARIFICATION OF LIMITATION ON RECEIPT OF
FAMILY SEPARATION ALLOWANCE.
Section 427(b)(4) of title 37, United States Code, is
amended by inserting before the period at the end of the
first sentence the following: ‘‘unless such entitlement is
based on paragraph (1)(B)’’.
Subtitle B—Bonuses and Special
and Incentive Pays
SEC. 611. EXTENSION OF CERTAIN BONUSES FOR RESERVE
FORCES.
(a) SELECTED RESERVE REENLISTMENT BONUS.—
Section 308b(f) of title 37, United States Code, is amend-
ed by striking out ‘‘September 30, 1996’’ and inserting
in lieu thereof ‘‘September 30, 1998’’.
(b) SELECTED RESERVE ENLISTMENT BONUS.—Sec-
tion 308c(e) of such title is amended by striking out ‘‘Sep-
339
‘‘(2) The collection of information under regulations
issued under paragraph (1) shall be conducted in the same
manner as provided in section 1862(b)(5) of the Social
Security Act (42 U.S.C. 1395y(b)(5)). The Secretary may
provide for obtaining from the Commissioner of Social Se-
curity employment information comparable to the infor-
mation provided to the Administrator of the Health Care
Financing Administration pursuant to such section. Such
regulations may require the mandatory disclosure of social
security account numbers for all covered beneficiaries.
‘‘(3) The Secretary of Defense may disclosure rel-
evant employment information collected under this sub-
section to fiscal intermediaries or other designated con-
tractors.
‘‘(4) The Secretary of Defense may provide for con-
tacting employers of covered beneficiaries to obtain group
health plan information comparable to the information au-
thorized to be obtained under section 1862(b)(5)(C) of the
Social Security Act (42 U.S.C. 1395y(b)(5)(C)). Clause
(ii) of such section regarding the imposition of civil money
penalties shall apply to the collection of information under
this paragraph.
‘‘(5) Information obtained under this subsection may
not be disclosed for any purpose other than to carry out