I 
108TH CONGRESS 
1ST SESSION H. R. 3317
To expand the travel and transportation allowances available to members 
of the Armed Forces granted leave under the Rest and Recuperation 
Leave program, to amend title 10, United States Code, to provide 
TRICARE program eligibility for members of the Ready Reserve and 
financial support for continuation of health insurance for mobilized mem-
bers of reserve components, and to increase the amount of basic edu-
cational assistance for members of the Selected Reserve, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 16, 2003
Mr. POMEROY introduced the following bill; which was referred to the Com-
mittee on Armed Services, and in addition to the Committee on Ways and 
Means, for a period to be subsequently determined by the Speaker, in 
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned 
A BILL 
To expand the travel and transportation allowances available 
to members of the Armed Forces granted leave under 
the Rest and Recuperation Leave program, to amend 
title 10, United States Code, to provide TRICARE pro-
gram eligibility for members of the Ready Reserve and 
financial support for continuation of health insurance 
for mobilized members of reserve components, and to 
increase the amount of basic educational assistance for 
members of the Selected Reserve, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Guard and Reserve 
Fairness Act’’. 
SEC. 2. LIMITATION ON PERIOD OF DEPLOYMENT FOR 
MEMBERS OF RESERVE COMPONENTS. 
(a) LIMITATION.—During a period when there is in 
effect a policy of assigning units or members of one or 
more of the active components of the Armed Forces to 
duty in the area of responsibility of the United States Cen-
tral Command for a specified period of time of not less 
than one year, the Secretary of Defense shall provide that 
the length of such an assignment in the case of members 
of the reserve components may not exceed the length of 
such period for the corresponding active component re-
duced by the period of time between the date of entry of 
the reserve component members onto active duty and the 
date of the deployment of such members for such assign-
ment. 
(b) TRANSITION.—Subsection (a) applies to members 
of reserve components assigned to duty in the area of re-
sponsibility of the United States Central Command on or 
after the date of the enactment of this Act and to such 
members assigned to such duty before such date who as
of the date of the enactment of this Act have more than 
90 days remaining in such assignment. 
SEC. 3. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT 
ADDED 
TO 
GENERAL 
BUSINESS 
CREDIT. 
(a) ADDITION OF CREDIT.—Subpart D of part IV of 
subchapter A of chapter 1 of the Internal Revenue Code 
of 1986 (relating to business-related credits) is amended 
by adding at the end the following new section: 
‘‘SEC. 45G. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE 
CREDIT. 
‘‘(a) GENERAL RULE.—For purposes of section 38, 
the active-duty reserve component employment credit de-
termined under this section is an amount equal to the sum 
of—
‘‘(1) the employment credit with respect to all 
employees of the taxpayer who are members of a re-
serve component during the taxable year, plus 
‘‘(2) the self-employment credit of a qualified 
self-employed taxpayer. 
‘‘(b) EMPLOYMENT CREDIT.—The employment credit 
is, with respect to each employee who is also a member 
of a reserve component during the taxable year, an 
amount equal to 50 percent of the compensation paid by 
the employer to such employee for the period during which
such employee was absent from employment for a reason 
described in subsection (d), but not to exceed 50 percent 
of the excess (if any) of—
‘‘(1) the amount of compensation that would 
otherwise have been payable to the employee during 
such absence if the employee’s employment with the 
employer had not been interrupted by the employee’s 
absence, over 
‘‘(2) the amount of military pay that is payable 
to the employee during the absence. 
‘‘(c) SELF-EMPLOYMENT CREDIT.—
‘‘(1) IN GENERAL.—The self-employment credit 
of a qualified self-employed taxpayer for any taxable 
year is equal to 50 percent of the excess, if any, of—
‘‘(A) the product of—
‘‘(i) the self-employed taxpayer’s aver-
age daily self-employment income for the 
taxable year, multiplied by 
‘‘(ii) the number of qualified days 
during the taxable year, over 
‘‘(B) the product of—
‘‘(i) the average daily military pay re-
ceived by the taxpayer (taking into account 
only qualified days during the taxable 
year), multiplied by
‘‘(3) during the 14-day period beginning at the 
end of such active duty or the end of the period re-
ferred to in paragraph (2). 
‘‘(e) LIMITATION.—No credit shall be allowed under 
this section with respect to an employee or qualified self-
employed individual for any day on which the employee 
or taxpayer was not scheduled to work (for a reason other 
than such service on active duty) and ordinarily would not 
have worked. 
‘‘(f) DEFINITIONS.—For purposes of this section—
‘‘(1) The term ‘qualified self-employed tax-
payer’ means a taxpayer who—
‘‘(A) has net earnings from self-employ-
ment (as defined in section 1402) for the tax-
able year, and 
‘‘(B) is a member of a reserve component. 
‘‘(2) The terms ‘active duty for a period of 
more than 30 days’, ‘member’, and ‘reserve compo-
nent’ have the meanings given such terms in section 
101 of title 37, United States Code. 
‘‘(3) The term ‘compensation’ means any remu-
neration for employment, whether in cash or in kind, 
which is paid or incurred by a taxpayer and which 
is deductible from the taxpayer’s gross income under 
section 162(a)(1).’’.
(b) CREDIT TO BE PART OF GENERAL BUSINESS 
CREDIT.—Subsection (b) of section 38 of such Code (re-
lating to general business credit) is amended by striking 
‘‘plus’’ at the end of paragraph (14), by striking the period 
at the end of paragraph (15) and inserting ‘‘, plus’’, and 
by adding at the end the following new paragraph: 
‘‘(16) the active-duty reserve component em-
ployee credit determined under section 45G(a).’’. 
(c) CONFORMING AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of chapter 
1 of the Internal Revenue Code of 1986 is amended by 
inserting after the item relating to section 45F the fol-
lowing new item:
‘‘45G. Active-duty reserve component employee credit.’’.
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2002. 
SEC. 4. EXPANSION OF REST AND RECUPERATION LEAVE 
PROGRAM ALLOWANCES TO INCLUDE TRAV-
EL AND TRANSPORTATION TO PERMANENT 
STATION OR HOME. 
(a) EXPANDED ALLOWANCES.—The Secretary of De-
fense shall expand the Central Command Rest and Recu-
peration Leave program for Operation Iraqi Freedom and 
Operation Enduring Freedom to provide travel and trans-
portation allowances to each member of the Armed Forces
granted leave under the program to permit the member 
to travel at the expense of the United States between the 
deployment location of the member and the permanent 
station or home of record of the member. 
(b) METHOD
OF PROVIDING ALLOWANCES.—The 
travel and transportation allowances authorized under 
subsection (a) shall be provided in the manner otherwise 
provided in section 411c of title 37, United States Code. 
(c) RELATION TO OTHER ALLOWANCES.—Travel and 
transportation allowances provided for travel under sub-
section (a) are in addition to any other travel and trans-
portation or other allowances that may be provided for 
such travel by law. 
(d) TREATMENT OF RESERVE COMPONENT MEM-
BERS.—It is the sense of Congress that, to the extent 
practicable, members of the reserve components should 
continue to be provided the same benefits under the Rest 
and Recuperation program of the United States Central 
Command as are provided to members of the active com-
ponents. 
(e) RETROACTIVE APPLICATION.—In the case of a 
member of the Armed Forces granted leave as described 
in subsection (a) before the date of the enactment of this 
Act and who received travel and transportation allowances 
under section 411c of title 37, United States Code, during
the period beginning on September 20, 2003, and ending 
on the date of the enactment of this Act in connection 
with such leave, the Secretary of Defense shall reimburse 
the member for any transportation costs incurred by the 
member before that date to procure transportation be-
tween the designated port of entry in the United States 
or the designated overseas location under such section and 
the permanent duty station or home of record of the mem-
ber. 
(f) REPORT ON PERMANENT EXPANSION OF ALLOW-
ANCES.—Not later than one year after the date of the en-
actment of this Act, the Secretary of Defense shall submit 
to Congress a report evaluating the feasibility and cost 
of amending section 411c of title 37, United States Code, 
to permanently expand the travel and transportation al-
lowances available to members of the Armed Forces grant-
ed leave under future rest and recuperation leave pro-
grams to cover travel and transportation to the members’ 
permanent station or home of record. 
SEC. 5. INCREASE IN AMOUNT OF BASIC EDUCATIONAL AS-
SISTANCE 
UNDER 
THE 
MONTGOMERY 
GI 
BILL. 
(a) IN GENERAL.—(1) Paragraph (1) of Section 
16131(b) of title 10, United States Code, is amended—
(A) in subparagraph (A), by striking ‘‘$251’’ 
and inserting ‘‘$600’’; 
(B) in subparagraph (B), by striking ‘‘$188’’ 
and inserting ‘‘$450’’; and 
(C) in subparagraph (C), by striking ‘‘$125’’ 
and inserting ‘‘$300’’. 
(2) The amendments made by paragraph (1) shall 
take effect on October 1, 2004, and shall apply with re-
spect to educational assistance allowances under section 
16131(b)(1) of such title paid for months after September 
2004. 
(3) In the case of an educational assistance allowance 
under such section paid for months occurring during fiscal 
year 2004—
(A) subparagraph (A) of such section shall be 
applied by substituting ‘‘$475’’ for ‘‘$251’’; 
(B) subparagraph (B) of such section shall be 
applied by substituting ‘‘$325’’ for ‘‘$188’’; and 
(C) subparagraph (C) of such section shall be 
applied by substituting ‘‘$215’’ for ‘‘$125’’. 
(b) NO ADJUSTMENT FOR FISCAL YEARS 2004 AND 
2005.—Section 16131(b)(2) of such title shall not apply 
to rates of basic educational assistance paid under such 
section during fiscal years 2004 and 2005.
(c) APPLICATION OF INDEX BASED ON COSTS OF 
HIGHER LEARNING.—
(1) IN GENERAL.—Section 16131(f)(2) of title 
10, United States Code, is amended to read as fol-
lows: 
‘‘(2)(A) With respect to any fiscal year beginning on 
or after October 1, 2004, the Secretary shall provide a 
percentage increase (rounded to the nearest dollar) in the 
rates payable under paragraph (1) equal to the percentage 
(as determined by the Secretary) by which—
‘‘(i) the average monthly costs of tuition and 
expenses for commuter students at public institu-
tions of higher learning that award baccalaureate 
degrees for purposes of paragraph (1) for the fiscal 
year involved, exceeds 
‘‘(ii) such average monthly costs for the pre-
ceding fiscal year. 
‘‘(B) The Secretary shall make the determination 
under subparagraph (A) after consultation with the Sec-
retary of Education. 
‘‘(C) A determination made under subparagraph (A) 
in a year shall take effect on October 1 of that year and 
apply with respect to basic educational assistance allow-
ances payable under this section for the fiscal year begin-
ning in that year.
‘‘(D) Not later than September 30 each year, the Sec-
retary shall publish in the Federal Register the average 
monthly costs of tuition and expenses as determined under 
subparagraph (A) in that year.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
3015(h) of title 38, United States Code, is amended 
by striking ‘‘by which—’’ and all that follows and in-
serting ‘‘determined by the Secretary under section 
16131(b)(2) of title 10 for the fiscal year involved.’’. 
(3) APPLICATION.—The amendment made by 
paragraph (1) shall apply to fiscal years beginning 
on or after October 1, 2004. 
SEC. 6. ALLOWANCE FOR CONTINUATION OF NON-TRICARE 
HEALTH BENEFITS COVERAGE FOR CERTAIN 
MOBILIZED RESERVES. 
(a) PAYMENT OF PREMIUMS.—(1) Chapter 55 of title 
10, United States Code, is amended by inserting after sec-
tion 1078a the following new section: 
‘‘§ 1078b. Continuation of non-TRICARE health bene-
fits plan coverage for certain reserves 
called or ordered to active duty and their 
dependents 
‘‘(a) PAYMENT OF PREMIUMS.—The Secretary con-
cerned shall pay the applicable premium to continue in 
force any qualified health benefits plan coverage for an
eligible reserve component member for the benefits cov-
erage continuation period if timely elected by the member 
in accordance with regulations prescribed under sub-
section (j). 
‘‘(b) ELIGIBLE MEMBER.—A member of a reserve 
component is eligible for payment of the applicable pre-
mium for continuation of qualified health benefits plan 
coverage under subsection (a) while serving on active duty 
pursuant to a call or order issued under a provision of 
law referred to in section 101(a)(13)(B) of this title dur-
ing a war or national emergency declared by the President 
or Congress. 
‘‘(c) QUALIFIED HEALTH BENEFITS PLAN COV-
ERAGE.—For the purposes of this section, health benefits 
plan coverage for a member called or ordered to active 
duty is qualified health benefits plan coverage if—
‘‘(1) the coverage was in force on the date on 
which the Secretary notified the member that 
issuance of the call or order was pending or, if no 
such notification was provided, the date of the call 
or order; 
‘‘(2) on such date, the coverage applied to the 
member and dependents of the member described in 
subparagraph (A), (D), or (I) of section 1072(2) of 
this title; and
‘‘(3) the coverage has not lapsed. 
‘‘(d) APPLICABLE PREMIUM.—The applicable pre-
mium payable under this section for continuation of health 
benefits plan coverage in the case of a member is the 
amount of the premium payable by the member for the 
coverage of the member and dependents. 
‘‘(e) MAXIMUM AMOUNT.—The total amount that 
may be paid for the applicable premium of a health bene-
fits plan for a member under this section in a fiscal year 
may not exceed the amount determined by multiplying—
‘‘(1) the sum of one plus the number of the 
member’s dependents covered by the health benefits 
plan, by 
‘‘(2) the per capita cost of providing TRICARE 
coverage and benefits for dependents under this 
chapter for such fiscal year, as determined by the 
Secretary of Defense. 
‘‘(f) BENEFITS
COVERAGE
CONTINUATION
PE-
RIOD.—The benefits coverage continuation period under 
this section for qualified health benefits plan coverage in 
the case of a member called or ordered to active duty is 
the period that—
‘‘(1) begins on the date of the call or order; and 
‘‘(2) ends on the earlier of the date on which—
‘‘(A) the member’s eligibility for transi-
tional health care under section 1145(a) of this 
title terminates under paragraph (3) of such 
section; or 
‘‘(B) the member elects to terminate the 
continued qualified health benefits plan cov-
erage of the dependents of the member. 
‘‘(g) EXTENSION
OF PERIOD
OF COBRA COV-
ERAGE.—Notwithstanding any other provision of law—
‘‘(1) any period of coverage under a COBRA 
continuation 
provision 
(as 
defined 
in 
section 
9832(d)(1) of the Internal Revenue Code of 1986) 
for a member under this section shall be deemed to 
be equal to the benefits coverage continuation period 
for such member under this section; and 
‘‘(2) with respect to the election of any period 
of coverage under a COBRA continuation provision 
(as so defined), rules similar to the rules under sec-
tion 4980B(f)(5)(C) of such Code shall apply. 
‘‘(h) NONDUPLICATION OF BENEFITS.—A dependent 
of a member who is eligible for benefits under qualified 
health benefits plan coverage paid on behalf of a member 
by the Secretary concerned under this section is not eligi-
ble for benefits under the TRICARE program during a 
period of the coverage for which so paid.
‘‘(i) REVOCABILITY OF ELECTION.—A member who 
makes an election under subsection (a) may revoke the 
election. Upon such a revocation, the member’s depend-
ents shall become eligible for benefits under the 
TRICARE program as provided for under this chapter. 
‘‘(j) REGULATIONS.—The Secretary of Defense shall 
prescribe regulations for carrying out this section. The 
regulations shall include such requirements for making an 
election of payment of applicable premiums as the Sec-
retary considers appropriate.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 1078a the following new item:
‘‘1078b. Continuation of non-TRICARE health benefits plan coverage for cer-
tain Reserves called or ordered to active duty and their depend-
ents.’’.
(b) APPLICABILITY.—Section 1078b of title 10, 
United States Code (as added by subsection (a)), shall 
apply with respect to calls or orders of members of reserve 
components of the Armed Forces to active duty as de-
scribed in subsection (b) of such section, that are issued 
by the Secretary of a military department on or after the 
date of the enactment of this Act.
payable to the member under section 204 of title 37 or 
from compensation payable to the member under section 
206 of such title. The Secretary shall prescribe the re-
quirements and procedures applicable to the payment of 
premiums by members not entitled to such basic pay or 
compensation. 
‘‘(4) Amounts collected as premiums under this sub-
section shall be credited to the appropriation available for 
the Defense Health Program Account under section 1100 
of this title, shall be merged with sums in such Account 
that are available for the fiscal year in which collected, 
and shall be available under subsection (b) of such section 
for such fiscal year. 
‘‘(f) OTHER
CHARGES.—A person who receives 
health care pursuant to an enrollment in a TRICARE pro-
gram option under this section, including a member who 
receives such health care, shall be subject to the same 
deductibles, copayments, and other nonpremium charges 
for health care as apply under this chapter for health care 
provided under the same TRICARE program option to de-
pendents described in subparagraph (A), (D), or (I) of sec-
tion 1072(2) of this title. 
‘‘(g) TERMINATION OF ENROLLMENT.—(1) A mem-
ber enrolled in the TRICARE program under this section 
may terminate the enrollment only during an open enroll-
ment period provided under subsection (c), except as pro-
vided in subsection (h)(2). 
‘‘(2) An enrollment of a member for self alone or for 
self and family under this section shall terminate on the 
first day of the first month beginning after the date on 
which the member ceases to be eligible under subsection 
(a). 
‘‘(3) The enrollment of a member under this section 
may be terminated on the basis of failure to pay the pre-
mium charged the member under this section. 
‘‘(h) RELATIONSHIP TO TRANSITION TRICARE COV-
ERAGE UPON SEPARATION FROM ACTIVE DUTY.—(1) A 
member may not enroll in the TRICARE program under 
this section while entitled to transitional health care under 
subsection (a) of section 1145 of this title or while author-
ized to receive health care under subsection (c) of such 
section. 
‘‘(2) A member who enrolls in the TRICARE pro-
gram under this section within 90 days after the date of 
the termination of the member’s entitlement or eligibility 
to receive health care under subsection (a) or (c) of section 
1145 of this title may terminate the enrollment at any 
time within one year after the date of the enrollment. 
‘‘(i) REGULATIONS.—The Secretary of Defense, in 
consultation with the other administering Secretaries,
shall prescribe regulations for the administration of this 
section.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 1076a the following new item:
‘‘1076b. TRICARE program: coverage for members of the Ready Reserve.’’.
(b) DEFINITIONS.—(1) Section 1072 of title 10, 
United States Code, is amended by adding at the end the 
following new paragraphs: 
‘‘(10) The term ‘TRICARE Prime’ means the 
managed care option of the TRICARE program. 
‘‘(11) The term ‘TRICARE Standard’ means 
the option of the TRICARE program that is also 
known as the Civilian Health and Medical Program 
of the Uniformed Services’’. 
(2) Section 1097a(f) of such title is amended by 
striking ‘‘Definitions.—In this section:’’ and all that fol-
lows through ‘‘(2) The term’’ and inserting ‘‘Catchment 
Area Defined.—In this section, the term’’. 
(c) PERIOD FOR IMPLEMENTATION.—Section 1076b 
of title 10, United States Code (as added by subsection 
(a)), shall apply with respect to months that begin on or 
after the date that is 180 days after the date of the enact-
ment of this Act.
SEC. 8. REPORT ON TARGETED COMPENSATION PROGRAM 
TO ADDRESS INCOME LOSS FACED BY MEM-
BERS OF RESERVE COMPONENTS DEPLOYED 
OVERSEAS. 
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit 
to Congress a report evaluating the adverse financial ef-
fects of deployments of greater than six months on mem-
bers of the reserve components and the feasibility and cost 
of developing a targeted compensation program for the re-
serve components to offset some or all of those adverse 
effects.
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