I
104TH CONGRESS
1ST SESSION
H. R. 1646
To revise and reform the statutes governing the organization and management
of the reserve components of the Armed Forces.
IN THE HOUSE OF REPRESENTATIVES
MAY 16, 1995
Mr. LAUGHLIN (for himself, Mr. JEFFERSON, Mr. COLEMAN, Mr. FIELDS of
Texas, Mr. HALL of Texas, Mr. PARKER, Mr. BREWSTER, Mr. HOBSON,
Mr. HASTERT, Mr. DREIER, Mr. HAYES, Mr. DELAY, Mr. CONDIT, Mr.
TALENT, Mr. KASICH, Mr. CRAMER, Mr. TANNER, Mr. PETERSON of
Minnesota, Mr. TAYLOR of Mississippi, Mr. TAUZIN, Mrs. THURMAN, Mr.
GEREN of Texas, Mr. CAMP, and Mr. GILLMOR) introduced the following
bill; which was referred to the Committee on National Security
A BILL
To revise and reform the statutes governing the organization
and management of the reserve components of the Armed
Forces.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Reserve Forces Revitalization Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
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Sec. 1. Short title; table of contents.
TITLE I—FINDINGS AND PURPOSES
Sec. 101. Findings.
Sec. 102. Purposes.
TITLE II—RESERVE COMPONENT STRUCTURE
Sec. 201. Reserve component commands.
Sec. 202. Reserve component chiefs.
Sec. 203. Grade of Vice Chief of the National Guard Bureau.
Sec. 204. Grade for reserve personnel center commanders.
Sec. 205. Exemption from active duty general and flag officer grade ceilings.
Sec. 206. Guard and reserve technicians.
Sec. 207. Conforming amendment.
TITLE III—RESERVE COMPONENT ACCESSIBILITY
Sec. 301. Authority to activate Ready Reserve into active service.
Sec. 302. Report to Congress concerning tax incentives for employers of mem-
bers of reserve components.
Sec. 303. Report to Congress concerning income insurance program for acti-
vated reservists.
TITLE IV—RESERVE COMPONENT RESOURCES
Sec. 401. Reports to Congress concerning shortfalls in reserve component re-
sources.
Sec. 402. Allocation of funds appropriated for reserve components.
TITLE V—RESERVE FORCES SUSTAINMENT
Sec. 501. Report concerning tax deductibility of nonreimbursable expenses.
Sec. 502. Authority to pay transient housing charges for members performing
active duty for training at locations over 50 miles from resi-
dence.
Sec. 503. Sense of Congress concerning quarters allowance during service on
active duty for training.
Sec. 504. Sense of Congress concerning military leave policy.
Sec. 505. Group dental insurance plan for members of Selected Reserve.
Sec. 506. Local community and military personnel mutual benefits program.
Sec. 507. Commendation of Reserve Forces Policy Board.
TITLE I—FINDINGS AND
PURPOSES
SEC. 101. FINDINGS.
Congress finds the following:
(1) The end of the Cold War and the ensuing
period of worldwide readjustment and reassessment
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has brought with it a host of new military challenges
and opportunities.
(2) Never before in time of peace have the
Armed Forces been engaged in tasks in so many
parts of the world.
(3) The Persian Gulf War demonstrated the va-
lidity of the Total Force Policy, which places heavy
reliance upon the reserve components for the execu-
tion of military missions.
(4) The basic laws governing the organization
and administration of the reserve components have
not been comprehensively reexamined since the en-
actment in 1967 of the Reserve Forces Bill of
Rights and Vitalization Act (Public Law 90–168).
(5) A number of systemic problems have arisen
under the existing reserve component statutory
scheme which was designed in light of the perceived
threats and challenges of the Cold War era.
SEC. 102. PURPOSES.
The purpose of this Act is to revise the basic statu-
tory authorities governing the organization and adminis-
tration of the reserve components of the Armed Forces
in order to recognize the realities of reserve component
partnership in the Total Force and to better prepare the
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American citizen-soldier, sailor, airman, and Marine in
time of peace for duties in war.
TITLE II—RESERVE COMPONENT
STRUCTURE
SEC. 201. RESERVE COMPONENT COMMANDS.
(a) ESTABLISHMENT.—(1) Part I of subtitle E of
title 10, United States Code, is amended by inserting after
chapter 1005 the following new chapter:
‘‘CHAPTER 1006—RESERVE COMPONENT
COMMANDS
‘‘Sec.
‘‘10171. Army Reserve Command.
‘‘10172. Naval Reserve Command.
‘‘10173. Marine Forces Reserve.
‘‘10174. Air Force Reserve Command.
‘‘§ 10171. Army Reserve Command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Army an Army Reserve Command, which shall be op-
erated as a separate command of the Army. The Secretary
of the Army shall maintain that command with the advice
and assistance of the Chief of Staff of the Army.
‘‘(b) COMMANDER.—The Chief of Army Reserve is
the commander of the Army Reserve Command. The com-
mander of the Army Reserve Command reports directly
to the Chief of Staff of the Army.
‘‘(c) DEPUTY COMMANDER; CHIEF OF STAFF.—(1)
There is a deputy commander of the Army Reserve Com-
mand. The deputy commander holds the grade of major
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general shall and be appointed from members of the Army
Reserve in general officer grades.
‘‘(2) There is a chief of staff of the Army Reserve
Command. The chief of staff holds the grade of brigadier
general and shall be appointed from members of the Army
Reserve in the grade of colonel or above.
‘‘(d) ASSIGNMENT OF FORCES.—The Secretary of
the Army shall assign to the Army Reserve Command all
forces of the Army Reserve.
‘‘§ 10172. Naval Reserve Command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Navy a Naval Reserve Command, which shall be oper-
ated as a separate command of the Navy. The Secretary
of the Navy shall maintain that command with the advice
and assistance of the Chief of Naval Operations.
‘‘(b) COMMANDER.—The Chief of Naval Reserve is
the commander of the Naval Reserve Command. The com-
mander of the Naval Reserve Command reports directly
to the Chief of Naval Operations.
‘‘(c) DEPUTY COMMANDER; CHIEF OF STAFF.—(1)
There is a deputy commander of the Naval Reserve Com-
mand. The deputy commander holds the grade of rear ad-
miral and shall be appointed from members of the Naval
Reserve in flag officer grades.
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‘‘(2) There is a chief of staff of the Naval Reserve
Command. The chief of staff holds the grade of rear admi-
ral (lower half) and shall be appointed from members of
the Naval Reserve in the grade of captain or above.
‘‘(d) ASSIGNMENT OF FORCES.—The Secretary of
the Navy shall assign to the Naval Reserve Command all
forces of the Naval Reserve.
‘‘§ 10173. Marine Forces Reserve
‘‘(a) ESTABLISHMENT.—There is in the Marine
Corps a command known as the Marine Forces Reserve.
The Secretary of the Navy shall maintain that command
with the advice and assistance of the Commandant of the
Marine Corps.
‘‘(b) COMMANDER.—The Commander, Marine Forces
Reserve, reports directly to the Commandant of the Ma-
rine Corps.
‘‘(c) DEPUTY COMMANDER.—There is a deputy com-
mander of the Marine Forces Reserve. The deputy com-
mander holds the grade of brigadier general and shall be
appointed from members of the Marine Corps Reserve in
the grade of colonel or above.
‘‘(d) ASSIGNMENT OF FORCES.—The Commandant
of the Marine Corps shall assign to the Marine Forces Re-
serve specified portions of the Marine Corps Reserve.
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‘‘§ 10174. Air Force Reserve Command
‘‘(a) ESTABLISHMENT OF COMMAND.—There is in
the Air Force an Air Force Reserve Command, which shall
be operated as a separate command of the Air Force. The
Secretary of the Air Force shall maintain that command
with the advice and assistance of the Chief of Staff of the
Air Force.
‘‘(b) COMMANDER.—The Chief of Air Force Reserve
is the commander of the Air Force Reserve Command.
The commander of the Air Force Reserve Command re-
ports directly to the Chief of Staff of the Air Force.
‘‘(c) DEPUTY COMMANDER; CHIEF OF STAFF.—(1)
There is a deputy commander of the Air Force Reserve
Command. The deputy commander holds the grade of
major general and shall be appointed from members of
the Air Force Reserve in general officer grades.
‘‘(2) There is a chief of staff of the Air Force Reserve
Command. The chief of staff holds the grade of brigadier
general and shall be appointed from members of the Air
Force Reserve in the grade of colonel or above.
‘‘(d) ASSIGNMENT OF FORCES.—The Secretary of
the Air Force shall assign to the Air Force Reserve Com-
mand all forces of the Air Force Reserve.’’.
(2) The tables of chapters at the beginning of part
I of such subtitle and at the beginning of such subtitle
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are each amended by inserting after the item relating to
chapter 1005 the following new item:
‘‘1006. Reserve Component Commands ................................................... 10171’’.
(b) CONFORMING REPEAL.—Section 903 of the Na-
tional Defense Authorization Act for Fiscal Year 1991 (10
U.S.C. 3074 note) is repealed.
(c) IMPLEMENTATION REPORT.—(1) Not later than
60 days after the date of the enactment of this Act, the
Secretary of Defense shall submit to the congressional de-
fense committees a report on the plans of the Secretary
for implementation of chapter 1006 of title 10, United
States Code, as added by subsection (a).
(2) For purposes of this subsection, the term ‘‘con-
gressional defense committees’’ means—
(A) the Committee on National Security and
the Committee on Appropriations of the House of
Representatives; and
(B) the Committee on Armed Services and the
Committee on Appropriations of the Senate.
(d) IMPLEMENTATION SCHEDULE.—Implementation
of chapter 1006 of title 10, United States Code, as added
by subsection (a), shall begin not later than 90 days after
the date of the enactment of this Act and shall be com-
pleted not later than one year after such date.
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SEC. 202. RESERVE COMPONENT CHIEFS.
(a) CHIEF OF ARMY RESERVE.—Section 3038 of title
10, United States Code, is amended to read as follows:
‘‘§ 3038. Office of Army Reserve: appointment of
Chief; Deputy Chiefs
‘‘(a) ESTABLISHMENT OF OFFICE; CHIEF OF ARMY
RESERVE.—There is in the executive part of the Depart-
ment of the Army an Office of the Army Reserve, which
is headed by a Chief of Army Reserve. The Chief of Army
Reserve—
‘‘(1) is the principal adviser on Army Reserve
matters to the Chief of Staff and the Assistant Sec-
retary of the Army with responsibility for reserve af-
fairs; and
‘‘(2) is the commander of the Army Reserve
Command.
‘‘(b) APPOINTMENT.—The President, by and with the
advice and consent of the Senate, shall appoint the Chief
of Army Reserve from officers of the Army Reserve who
are not on active duty, or who are on active duty under
section 10211 of this title, and who—
‘‘(1) have had at least 10 years of commis-
sioned service in the Army Reserve;
‘‘(2) are in a grade above colonel; and
‘‘(3) have been recommended by the Secretary
of the Army.
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‘‘(c) TERM OF OFFICE; GRADE.—(1) The Chief of
Army Reserve holds office for four years, but may be re-
moved for cause at any time. In time of war or during
a national emergency declared by Congress, the Chief may
be reappointed for a term of not more than four years.
‘‘(2) The Chief of Army Reserve, while so serving,
has the grade of lieutenant general in the Army Reserve
without vacating his permanent grade.
‘‘(d) DEPUTY CHIEFS OF ARMY RESERVE.—There
are two Deputy Chiefs of Army Reserve, one of whom shall
be in the grade of major general and shall be appointed
from officers in the Army Reserve in general officer grades
and one of whom shall be in the grade of brigadier general
and shall be appointed from members of the Army Reserve
in the grade of colonel or above.
‘‘(e) BUDGET.—The Chief of Army Reserve is the of-
ficial within the executive part of the Department of the
Army who, subject to the authority, direction, and control
of the Secretary of the Army and the Chief of Staff, is
responsible for preparation, justification, and execution of
budgets for the Army Reserve. As such, the Chief of Army
Reserve is the director and functional manager of appro-
priations made for the Army Reserve (including appro-
priations for personnel, for operations and maintenance,
for procurement, and for construction).
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‘‘(f) FULL TIME SUPPORT PROGRAM.—The Chief of
Army Reserve manages, with respect to the Army Reserve,
the personnel program of the Department of Defense
known as the Full Time Support Program.
‘‘(g) ANNUAL REPORT TO CONGRESS.—(1) The Chief
of Army Reserve shall submit to Congress an annual re-
port on the status of the Army Reserve. The report shall
include descriptions of—
‘‘(A) the roles and missions of the Army Re-
serve;
‘‘(B) the structure of the Army Reserve; and
‘‘(C) the readiness of the Army Reserve to
carry out assigned missions.
‘‘(2) The annual report under paragraph (1) shall be
submitted through the Secretary of the Army and shall
be submitted each year with the submission of budget jus-
tification information provided by the Department of De-
fense to Congress for the next fiscal year.’’.
(2) The item relating to that section in the table of
sections at the beginning of chapter 305 of such title is
amended to read as follows:
‘‘3038. Office of Army Reserve: appointment of Chief; Deputy Chiefs.’’.
(b) CHIEF OF NAVAL RESERVE.—(1) Chapter 513
of such title is amended by inserting after section 5142a
the following new section:
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‘‘§ 5143. Office of Naval Reserve: appointment of
Chief; Deputy Chiefs
‘‘(a) ESTABLISHMENT OF OFFICE; CHIEF OF NAVAL
RESERVE.—There is in the executive part of the Depart-
ment of the Navy an Office of the Naval Reserve, which
is headed by a Chief of Naval Reserve. The Chief of Naval
Reserve—
‘‘(1) is the principal adviser on Naval Reserve
matters to the Chief of Naval Operations and the
Assistant Secretary of the Navy with responsibility
for reserve affairs; and
‘‘(2) is the commander of the Naval Reserve
Command.
‘‘(b) APPOINTMENT.—The President, by and with the
advice and consent of the Senate, shall appoint the Chief
of Naval Reserve from officers of the Naval Reserve who
are not on active duty, or who are on active duty under
section 10211 of this title, and who—
‘‘(1) have had at least 10 years of commis-
sioned service in the Naval Reserve;
‘‘(2) are in a grade above captain; and
‘‘(3) have been recommended by the Secretary
of the Navy.
‘‘(c) TERM OF OFFICE; GRADE.—(1) The Chief of
Naval Reserve holds office for four years, but may be re-
moved for cause at any time. In time of war or during
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a national emergency declared by Congress, the Chief may
be reappointed for a term of not more than four years.
‘‘(2) The Chief of Naval Reserve, while so serving,
has the grade of vice admiral in the Naval Reserve without
vacating his permanent grade.
‘‘(d) DEPUTY CHIEFS OF NAVAL RESERVE.—There
are two Deputy Chiefs of Naval Reserve, one of whom
shall be in the grade of rear admiral and shall be ap-
pointed from officers in the Naval Reserve in flag officer
grades and one of whom shall be in the grade of rear admi-
ral (lower half) and shall be appointed from members of
the Naval Reserve in the grade of captain or above.
‘‘(e) BUDGET.—The Chief of Naval Reserve is the of-
ficial within the executive part of the Department of the
Navy who, subject to the authority, direction, and control
of the Secretary of the Navy and the Chief of Naval Oper-
ations, is responsible for preparation, justification, and
execution of budgets for the Naval Reserve. As such, the
Chief of Naval Reserve is the director and functional man-
ager of appropriations made for the Naval Reserve (in-
cluding appropriations for personnel, for operations and
maintenance, for procurement, and for construction).
‘‘(f) FULL TIME SUPPORT PROGRAM.—The Chief of
Naval Reserve manages, with respect to the Naval Re-
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serve, the personnel program of the Department of De-
fense known as the Full Time Support Program.
‘‘(g) ANNUAL REPORT TO CONGRESS.—(1) The Chief
of Naval Reserve shall submit to Congress an annual re-
port on the status of the Naval Reserve. The report shall
include descriptions of—
‘‘(A) the roles and missions of the Naval Re-
serve;
‘‘(B) the structure of the Naval Reserve; and
‘‘(C) the readiness of the Naval Reserve to
carry out assigned missions.
‘‘(2) The annual report under paragraph (1) shall be
submitted through the Secretary of the Navy and shall
be submitted each year with the submission of budget jus-
tification information provided by the Department of De-
fense to Congress for the next fiscal year.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 5142a the following new item:
‘‘5143. Office of Naval Reserve: appointment of Chief; Deputy Chiefs.’’.
(c) CHIEF OF MARINE CORPS RESERVE.—(1) Chap-
ter 513 of such title is amended by inserting after section
5143 (as added by subsection (b)) the following new sec-
tion:
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‘‘§ 5144. Office of Marine Forces Reserve: appoint-
ment of Commander
‘‘(a) ESTABLISHMENT OF OFFICE; COMMANDER, MA-
RINE FORCES RESERVE.—There is in the executive part
of the Department of the Navy an Office of the Marine
Forces Reserve, which is headed by the Commander, Ma-
rine Forces Reserve. The Commander, Marine Forces Re-
serve—
‘‘(1) is the principal adviser to the Com-
mandant on Marine Corps Reserve matters and
‘‘(2) is the commander of the Marine Forces
Reserve.
‘‘(b) TERM
OF OFFICE; GRADE.—(1) The Com-
mander, Marine Forces Reserve, holds office for a term
determined by the Commandant of the Marine Corps.
‘‘(2) The Commander, Marine Forces Reserve, while
so serving, has the grade of lieutenant general, except that
if the Commandant of the Marine Corps recommends to
the Secretary of the Navy that such position be held by
an offficer in the grade of major general, such position
may be held by an officer in that grade.
‘‘(d) ANNUAL REPORT
TO CONGRESS.—(1) The
Commandant of the Marine Corps shall submit to Con-
gress an annual report on the status of the Marine Corps
Reserve. The report shall include descriptions of—
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‘‘(A) the roles and missions of the Marine
Corps Reserve;
‘‘(B) the structure of the Marine Corps Re-
serve; and
‘‘(C) the readiness of the Marine Corps Reserve
to carry out assigned missions.
‘‘(2) The annual report under paragraph (1) shall be
submitted through the Secretary of the Navy and shall
be submitted each year with the submission of budget jus-
tification information provided by the Department of De-
fense to Congress for the next fiscal year.’’.
(2) The table of sections at the beginning of such
chapter is amended by inserting after the item relating
to section 5143 (as added by subsection (b)) the following
new item:
‘‘5144. Office of Marine Forces Reserve: appointment of Commander.’’.
(d) CHIEF OF AIR FORCE RESERVE.—Section 8038
of such title is amended to read as follows:
‘‘§ 8038. Office of Air Force Reserve: appointment of
Chief; Deputy Chiefs
‘‘(a) ESTABLISHMENT OF OFFICE; CHIEF OF AIR
FORCE RESERVE.—There is in the executive part of the
Department of the Air Force an Office of the Air Force
Reserve, which is headed by a Chief of Air Force Reserve.
The Chief of Air Force Reserve—
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‘‘(d) DEPUTY CHIEFS OF AIR FORCE RESERVE.—
There are two Deputy Chiefs of Air Force Reserve, one
of whom shall be in the grade of major general and shall
be appointed from officers in the Air Force Reserve in
general officer grades and one of whom shall be in the
grade of brigadier general and shall be appointed from
members of the Air Force Reserve in the grade of colonel
or above.
‘‘(e) BUDGET.—The Chief of Air Force Reserve is the
official within the executive part of the Department of the
Air Force who, subject to the authority, direction, and
control of the Secretary of the Air Force and the Chief
of Staff, is responsible for preparation, justification, and
execution of budgets for the Air Force Reserve. As such,
the Chief of Air Force Reserve is the director and func-
tional manager of appropriations made for the Air Force
Reserve (including appropriations for personnel, for oper-
ations and maintenance, for procurement, and for con-
struction).
‘‘(f) FULL TIME SUPPORT PROGRAM.—The Chief of
Air Force Reserve manages, with respect to the Air Force
Reserve, the personnel program of the Department of De-
fense known as the Full Time Support Program.
‘‘(g) ANNUAL REPORT TO CONGRESS.—(1) The Chief
of Air Force Reserve shall submit to Congress an annual
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report on the status of the Air Force Reserve. The report
shall include descriptions of—
‘‘(A) the roles and missions of the Air Force
Reserve;
‘‘(B) the structure of the Air Force Reserve;
and
‘‘(C) the readiness of the Air Force Reserve to
carry out assigned missions.
‘‘(2) The annual report under paragraph (1) shall be
submitted through the Secretary of the Air Force and
shall be submitted each year with the submission of budget
justification information provided by the Department of
Defense to Congress for the next fiscal year.’’.
(2) The item relating to that section in the table of
sections at the beginning of chapter 805 of such title is
amended to read as follows:
‘‘8038. Office of Army Reserve: appointment of Chief; Deputy Chiefs.’’.
(e) CONFORMING AMENDMENT.—Section 641(1)(B)
of such title is amended by inserting ‘‘5143, 5144,’’ after
‘‘3038,’’.
SEC. 203. GRADE OF VICE CHIEF OF THE NATIONAL GUARD
BUREAU.
Section 10505(c) of title 10, United States Code, is
amended by striking out ‘‘major general’’ and inserting
in lieu thereof ‘‘lieutenant general’’.
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SEC. 204. GRADE FOR RESERVE PERSONNEL CENTER COM-
MANDERS.
(a) IN GENERAL.—Chapter 1007 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 10216. Reserve personnel centers: grade of com-
mander
‘‘The commanders of the reserve personnel centers
for the Army Reserve, the Air Force Reserve, and the Ma-
rine Corps Reserve shall each be a Reserve officer in the
grade of brigadier general. The commander of the reserve
personnel center for the Naval Reserve shall be a Reserve
officer in the grade of rear admiral (lower half).’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘10216. Reserve personnel centers: grade of commander.’’.
SEC. 205. EXEMPTION FROM ACTIVE DUTY GENERAL AND
FLAG OFFICER GRADE CEILINGS.
Section 526 of title 10, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(e) A Reserve general or flag officer serving on ac-
tive duty under section 10203, 10211, or 12301(d) of this
title or who is on active duty but is excluded from the
active-duty list under section 641(1)(B) of this title may
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not be counted against any ceiling established by law or
by administrative action on—
‘‘(1) the total number of general or flag officers
who may be serving on active duty in the Army,
Navy, Air Force, or Marine Corps;
‘‘(2) the total number of general or flag officers
who may be serving on active duty in any of those
armed forces; or
‘‘(3) the number of officers who may be serving
on active duty in a particular general or flag officer
grade.’’.
SEC. 206. GUARD AND RESERVE TECHNICIANS.
(a) IN GENERAL.—Chapter 1007 of title 10, United
States Code, is amended by adding after section 10216,
as added by section 203, the following new section:
‘‘§ 10217. Military (civilian) technicians: number of
positions
‘‘(a) LIMITATION ON REDUCTIONS.—The total num-
ber of positions authorized for personnel classified military
(civilian) technicians of the Army National Guard, the Air
National Guard, the Army Reserve, and the Air Force Re-
serve may not be reduced below the number specified in
subsection (b) for the purpose of applying any administra-
tively imposed civilian personnel ceiling, freeze, or reduc-
tion on such technician positions, unless such reduction
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is a direct result of a reduction in reserve component force
structure.
‘‘(b) BASELINE NUMBER.—The number referred to
in subsection (a) is the total number of positions referred
to in that subsection that are authorized as of the date
of the enactment of this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
after the item relating to section 10217, as added by sec-
tion 203, the following new item:
‘‘10217. Military (civilian) technicians: number of positions.’’.
SEC. 207. CONFORMING AMENDMENT.
Section 641(1)(B) of title 10, United States Code,
as amended by section 202(e), is amended by striking out
‘‘10501’’ and inserting in lieu thereof ‘‘section 10502,
10505, 10506’’.
TITLE III—RESERVE
COMPONENT ACCESSIBILITY
SEC. 301. AUTHORITY TO ACTIVATE READY RESERVE INTO
ACTIVE SERVICE.
(a) REVISED AUTHORITY.—Section 12302 of title 10,
United States Code, is amended to read as follows:
‘‘§ 12302. Reserve activation authority: Ready Re-
serve units and members
‘‘(a) PRESIDENTIAL AUTHORITY.—(1) If the Presi-
dent determines that augmentation of the active forces is
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necessary for a purpose specified in paragraph (2), the
President may provide Reserve activation authority with
respect to any of the reserve components.
‘‘(2) The circumstances referred to in paragraph (1)
are the following:
‘‘(A) In time of national emergency declared by
the President.
‘‘(B) When necessary to provide Federal disas-
ter relief to a State, when requested by the Governor
of the State.
‘‘(C) When otherwise authorized by law.
‘‘(3) In this section, the term ‘Reserve activation au-
thority’ means authority provided by the President to the
Secretary of Defense, or to the Secretary of Transpor-
tation with respect to the Coast Guard when it is not oper-
ating as a service of the Navy, to order to active duty
(other than for training) without the consent of the mem-
bers concerned (A) any unit of the Ready Reserve, and
(B) any member of the Ready Reserve not assigned to a
unit organized to serve as a unit.
‘‘(b) PRIOR NOTICE TO CONGRESS.—Whenever the
President intends to provide Reserve activation authority
under the authority of this section, the President shall,
not less than 48 hours before providing such authority,
transmit to Congress a report, in writing, giving notice
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of the proposed exercise of authority and setting forth the
circumstances necessitating the provision of Reserve acti-
vation authority. In the report, the President shall—
‘‘(1) identify the units or members expected to
be ordered to active duty or active Federal service;
‘‘(2) describe the anticipated use of those units
or members on active duty or in active Federal serv-
ice and the anticipated length of time the units or
members will be required; and
‘‘(3) specify why the mission cannot be accom-
plished through the use of active component units.
‘‘(c) TIME LIMITATION FOR ACTIVATION.—(1) When
Reserve activation authority is provided under subsection
(a), the Secretary of Defense, and the Secretary of Trans-
portation with respect to the Coast Guard when it is not
serving as a service in the Navy, may, without the consent
of the persons concerned, order any unit, and any member
not assigned to a unit organized to serve as a unit, in
the Ready Reserve under the jurisdiction of that Sec-
retary, to active duty (other than for training), for a pe-
riod not to exceed 24 consecutive months.
‘‘(2) When a unit or member is ordered to active duty
or active Federal service under paragraph (1), the Sec-
retary concerned shall submit to Congress a report, in
writing, giving notice of such order and stating the period
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‘‘(C) A description where each such unit is de-
ployed (or being deployed, if in transit) at the time
of the report.
‘‘(D) An explanation of why the mission cannot
be accomplished by regular force units.
‘‘(E) A statement of the number of members so
ordered to active duty, shown for members so or-
dered as members of units and for members who are
not assigned to units organized to serve as units.
‘‘(F) Any other information that the President
considers appropriate regarding each such unit.
‘‘(e) NUMERIC LIMIT.—Not more than 1,000,000
members of the Ready Reserve may be on active duty
(other than for training) without their consent under this
section at any one time.
‘‘(f) POLICIES AND PROCEDURES.—The Secretary of
Defense shall prescribe such policies and procedures as the
Secretary considers necessary to carry out this section.
Such policies and procedures shall be prescribed in coordi-
nation with the Secretary of Transportation, insofar as
they relate to the Coast Guard when not serving as part
of the Navy.’’.
(b) RELEASE FROM ACTIVE DUTY.—Chapter 1209
of such title is amended by inserting after section 12304
the following new sections:
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‘‘§ 12304a. Release from active duty
‘‘(a) POLICIES AND PROCEDURES.—The Secretary of
Defense shall prescribe policies and procedures for the re-
lease from active duty of units and members ordered to
active duty under section 12302, 12303, or 12304 of this
title. Such policies and procedures shall be prescribed in
coordination with the Secretary of Transportation, insofar
as they relate to the Coast Guard when not serving as
part of the Navy.
‘‘(b) MATTERS TO BE INCLUDED.—Those policies
and procedures shall—
‘‘(1) contain specific guidelines that units and
members so ordered to active duty should be re-
tained on active duty only when no active component
unit or active component member is available to per-
form the mission that the reserve component unit or
member would otherwise perform; and
‘‘(2) take into account the effects of continu-
ation of such units and members on active duty on
civilian employment (including hardships to employ-
ers) and on family members.
‘‘(c) TERMINATION
OF ACTIVATION.—Whenever a
unit of the Ready Reserve or a member of the Ready Re-
serve not assigned to a unit organized to serve as a unit
is ordered to active duty under section 12304 of this title,
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the service of all units or members so ordered to active
duty may be terminated—
‘‘(1) by order of the President, or
‘‘(2) by law.
‘‘§ 12304b. Limitation on frequency of activation of
units and members
‘‘(a) LIMITATION ON FREQUENT ACTIVATIONS.—Ex-
cept as provided in subsection (b), a unit of the Ready
Reserve of a reserve component, or a member of the Ready
Reserve not assigned to a unit organized to serve as a
unit, may not be ordered to active duty under section
12302 or 12304 of this title more than once in any 24-
month period.
‘‘(b) WAIVER AUTHORITY.—(1) The President may
waive the limitation in subsection (a) with respect to any
unit or member upon a determination by the President
that unit or member has a capability that is urgently re-
quired and that is not otherwise available.
‘‘(2) Before any such waiver is effective, the Presi-
dent shall transmit to Congress a report, in writing, giving
notice of the waiver and stating the basis for the deter-
mination by the President under paragraph (1) that
formed the basis for the waiver.’’.
(c) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by striking
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out the items relating to sections 12302, 12303, and
12304 and inserting in lieu thereof the following:
‘‘12302.
Reserve activation authority: Ready Reserve units and members.
‘‘12303.
Ready Reserve: members not assigned to, or participating satisfac-
torily in, units.
‘‘12304.
Selected Reserve: order to active duty other than during war or na-
tional emergency.
‘‘12304a.
Release from active duty.
‘‘12304b.
Limitation on frequency of activation of units and members’’.
(c) CONFORMING AMENDMENT.—Section 641(1)(E)
of such title is amended by striking out ‘‘section 12304’’
and inserting in lieu thereof ‘‘section 12302, section
12303, section 12304,’’.
SEC. 302. REPORT TO CONGRESS CONCERNING TAX INCEN-
TIVES FOR EMPLOYERS OF MEMBERS OF RE-
SERVE COMPONENTS.
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 setting forth a draft of legislation
to provide tax incentives to employers of members of re-
serve components in order to compensate employers for
absences of those employees due to required or involuntary
training and for absences due to performance of required
or involuntary active duty.
SEC. 303. REPORT TO CONGRESS CONCERNING INCOME IN-
SURANCE PROGRAM FOR ACTIVATED RE-
SERVISTS.
Not later than 180 days after the date of the enact-
ment of this Act, the Secretary of Defense shall submit
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to Congress a report setting forth a draft of legislation
to establish an income insurance program to provide mem-
bers of reserve components who are ordered to active duty
or active Federal service (other than for training) income
replacement for loss of income during the period of such
activation and, in the case of such a member who owns
a business, income replacement for the business and for
employees of that member or business who have a loss of
income during the period of such activation attributable
to the activation of the member.
SEC. 304. REPORT TO CONGRESS CONCERNING SMALL
BUSINESS LOANS FOR MEMBERS RELEASED
FROM RESERVE SERVICE DURING CONTIN-
GENCY OPERATIONS.
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 setting forth a draft of legislation
to establish a small business loan program to provide
members of reserve components who are ordered to active
duty or active Federal service (other than for training)
during a contingency operation (as defined in section 101
of title 10, United States Code) low-cost loans to assist
those members in retaining or rebuilding businesses that
were affected by their service on active duty or in active
Federal service.
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TITLE IV—RESERVE
COMPONENT RESOURCES
SEC. 401. ANNUAL REPORT TO CONGRESS CONCERNING
SHORTFALLS IN RESERVE COMPONENT RE-
SOURCES.
(a) IN GENERAL.—(1) Chapter 1013 of title 10,
United States Code, is amended by adding at the end the
following new section:
‘‘§ 10543. Funding shortfalls in budget: annual report
‘‘The Secretary of Defense shall include in the annual
report to Congress under section 113(c) of this title a re-
port on any shortfall or anticipated shortfall in funding
for reserve component personnel, operations and mainte-
nance, equipment, or military construction in the budget
for the fiscal year beginning in the year in which the re-
port is submitted.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘10543. Funding shortfalls in budget: annual report.’’.
SEC. 402. ALLOCATION OF FUNDS APPROPRIATED FOR RE-
SERVE COMPONENTS.
(a) LIMITATION.—Any amount appropriated for the
Department of Defense for any reserve component shall
be allocated by the Secretary of Defense to the use of that
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reserve component for the purposes provided by Congress.
Any funds in a reserve component appropriation account
may be transferred to an appropriation account for one
of the active components only if the transfer of such
amount from such reserve component account to such ac-
tive component account is specifically authorized by law.
(b) IDENTIFICATION OF CERTAIN AMOUNTS IN RE-
SERVE ACCOUNTS.—The Secretary of Defense shall en-
sure that any amount in a reserve component appropria-
tion account that is intended for military or civilian per-
sonnel of the active components for service in support of
that reserve component shall be shown separately in budg-
et justification documents and otherwise in appropriate
documents in the budget process.
TITLE V—RESERVE FORCES
SUSTAINMENT
SEC. 501. REPORT CONCERNING TAX DEDUCTIBILITY OF
NONREIMBURSABLE EXPENSES.
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 setting forth a draft of legislation
to restore the tax deductibility of nonreimbursable ex-
penses incurred by members of reserve components in con-
nection with military service.
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SEC. 
502. 
AUTHORITY 
TO 
PAY 
TRANSIENT 
HOUSING
CHARGES FOR MEMBERS PERFORMING AC-
TIVE DUTY FOR TRAINING AT LOCATIONS
OVER 50 MILES FROM RESIDENCE.
Section 404(j)(1) of title 37, United States Code, is
amended by striking out ‘‘annual training duty’’ and in-
serting in lieu thereof ‘‘active duty for training, annual
training duty’’.
SEC. 503. SENSE OF CONGRESS CONCERNING QUARTERS
ALLOWANCE DURING SERVICE ON ACTIVE
DUTY FOR TRAINING.
It is the sense of Congress that the United States
should continue to pay members of reserve components ap-
propriate quarters allowances during periods of service on
active duty for training.
SEC. 504. SENSE OF CONGRESS CONCERNING MILITARY
LEAVE POLICY.
It is the sense of Congress that military leave policies
in effect as of the date of the enactment of this Act with
respect to members of the reserve components should not
be changed.
SEC. 505. GROUP DENTAL INSURANCE PLAN FOR MEMBERS
OF SELECTED RESERVE.
The Secretary of Defense shall seek to arrange for
the establishment by a private-sector insurance carrier of
a group dental insurance plan for members of the Selected
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Reserve and their dependents which would enable those
members and their dependents to obtain dental care at
a low cost.
SEC. 506. LOCAL COMMUNITY AND MILITARY PERSONNEL
MUTUAL BENEFITS PROGRAM.
(a) IN GENERAL.—Chapter 53 of title 10, United
States Code, is amended by adding at the end the follow-
ing new section:
‘‘§ 1060b. Local community and military personnel
mutual benefits program
‘‘The Secretary of Defense shall seek to enter into
an agreement with the appropriate national organization
representing retail merchants under which that organiza-
tion would sponsor a program for the provision of price
discounts by participating retail merchants to members of
the armed forces.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by adding
at the end the following new item:
‘‘1060b. Local community and military personnel mutual benefits program.’’.
SEC. 507. COMMENDATION OF RESERVE FORCES POLICY
BOARD.
(a) COMMENDATION.—The Congress commends the
Reserve Forces Policy Board, created by the Armed
Forces Reserve Act of 1952 (Public Law 82–476), for its
fine work in the past as an independent source of advice
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to the Secretary of Defense on all matters pertaining to
the reserve components.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that the Reserve Forces Policy Board and the re-
serve forces policy committees for the individual branches
of the Armed Forces should continue to perform the vital
role of providing the civilian leadership of the Department
of Defense with independent advice on matters pertaining
to the reserve components.
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