That chapter 59 of 
title 10, United States Code, is amended by adding at the end thereof 
the following new section:

``SEC. XX. VOLUNTARY SEPARATION FOR REASON OF OBJECTION TO MILITARY 
              POLICY ON HOMOSEXUALS.

    ``(a) Generally.--A member of the armed forces may request 
separation from the armed forces under this section and, if found 
eligible for separation under this section by the Secretary of the 
military department concerned, such member shall be separated from 
military service as provided for in this section.
    ``(b) Eligibility.--A member is eligible for separation under this 
section if such member--
            ``(1) became a member of the armed forces on or before the 
        date on which the policy of the Department of Defense that was 
        in effect on May 11, 1993, that homosexuality is incompatible 
        with military service, was changed to a policy under which 
        homosexuality is not incompatible with military service;
            ``(2) has not incurred or accepted any new or additional 
        military service obligation on or after the date of such change 
        in such policy;
            ``(3) is not eligible to retire from the armed forces;
            ``(4) has not previously been approved for separation from 
        the armed forces under any other section of law; and
            ``(5) has religious, moral, or personal morale objections 
        to such change in such policy, and has filed within one year 
        after the date of such change in such policy a written request 
        to the Secretary concerned with voluntary separation under this 
        section because of such religious, moral, or personal morale 
        objections to such change in such policy.
    ``(c) Administration.--The Secretary concerned shall determine, 
under such regulations as are deemed appropriate by such Secretary, if 
a member who requests separation under this section is eligible for 
separation under this section. In determining if such a member has met 
the requirements of subsection (b)(5), a written request for voluntary 
separation by such member that asserts the request is made because the 
member has religious, moral, or personal morale objections to such 
change in such policy will generally be sufficient to establish that 
such member has met the requirements of that subsection. However, the 
Secretary may consider such other information as he deems appropriate 
in determining if such member's request for separation is because of 
such objections, including any information that such member previously 
has sought separation or relief from any military service obligation 
for any other reason, information concerning whether such member has 
previously expressed any opinion about such member's religious, moral, 
or personal morale objections to such change in such policy, or any 
information that such member has expressed a desire or intent to be 
separated or relieved from any military service obligation for any 
other reason.
    ``(d)(1) Active Duty Benefits.--A member who is separated under 
this section and who--
            ``(A) has served on active duty for more than six years on 
        the date of the policy change described in subsection (b)(1);
            ``(B) has served on active duty for not more than twenty 
        years on the date of such separation;
            ``(C) has served at least five years of continuous active 
        duty immediately preceding the date of such separation; and
            ``(D) if a Reserve, is on an active duty list,
shall be entitled to the benefits payable to either a member 
voluntarily separated under section 1174a(b) or a member voluntarily 
separated under section 1175, at the discretion of the member being 
separated under this section.
    ``(2) Reserve Benefits.--A member of the Selected Reserve, as 
defined in section 4412 of the National Defense Authorization Act for 
Fiscal Year 1993 (Public Law 102-484), who is separated from the armed 
forces under this section and who has completed at least six years of 
service computed under section 1332 on the date of the policy change 
described in subsection (b)(1) shall be entitled to either--
            ``(A) the benefits provided to member involuntarily 
        discharged or transferred under section 4418 of the National 
        Defense Authorization Act for Fiscal Year 1993 (Public Law 102-
        484); or
            ``(B) if such member also has completed at least fifteen 
        years of service computed under section 1332, to the rights and 
        benefits provided to members found eligible for such rights and 
        benefits under section 1331a of title 10, United States Code,
at the discretion of the member being separated under this section.
    ``(3) Election of Benefits.--A member separated under this section 
may not receive benefits under both paragraphs (1) and (2) of this 
subsection. If such a member is eligible for benefits under both 
paragraphs (1) and (2) of this subsection, such member will elect which 
benefits he shall receive.
    ``(e)(1) Date of Separation Generally.--The Secretary concerned may 
determine the date upon which a member entitled to be separated under 
this section is to be separated. However, except as provided in 
paragraphs (2) and (3), such date of separation shall not be later than 
one hundred and eighty days after receipt by the Secretary concerned of 
such member's request to be separated under this section.
    ``(2) Requirement for Reimbursement.--Notwithstanding the one 
hundred and eighty-day period established by paragraph (1), the date of 
separation for a member entitled to be separated under this section who 
has any military service obligation for which, because of contract, 
agreement, or law, such member is liable for reimbursement to the 
United States if such military service obligation is not fully served, 
may not be prior to the earlier of--
            ``(A) the date on which the member fully reimburses the 
        United States for any such military service obligation as 
        required by such contract, agreement, or law; or
            ``(B) the date on which the member completes such military 
        service obligation.
    ``(3) Readiness Extension.--Notwithstanding the one hundred and 
eighty-day period established by paragraph (1), the Secretary concerned 
may delay the date of separation of an individual member entitled to be 
separated under this section if the Secretary determines that the 
separation of such member within that one hundred and eighty-day period 
would create a direct and serious negative impact on the readiness of 
the military department concerned. However, a delay under this 
paragraph may not extend a date of separation more than two years 
beyond that which would otherwise be required by paragraph (1).''.
    Sec. 2. Effective Date.--This section shall take effect only if 
that policy of the Department of Defense that was in effect on May 11, 
1993, that homosexuality is incompatible with military service is 
changed to a policy under which homosexuality is not incompatible with 
military service, but shall be effective on the date of any such change 
in such policy.
Output: Allows a member of the armed forces to request and receive separation from the armed forces if such member:  (1) became a member of the armed forces before the Department of Defense policy that homosexuality is incompatible with military service is changed to a policy that homosexuality is not incompatible; (2) has not incurred or accepted any new or additional military service obligation after such policy change; (3) is not eligible for retirement from the armed forces; (4) has not previously been approved for separation under any other law; and (5) has religious, moral, or personal morale objections to such change in policy and, within one year, requests voluntary separation.  Entitles to voluntary separation benefits active-duty and reserve members who have served for at least six but less than 20 years in the armed forces and who separate from the armed forces under provisions of this Act.  Requires separation within 180 days after the appropriate Secretary receives the request, with a delay allowed due to an adverse impact on the readiness of the military department concerned.