[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2077 Introduced in Senate (IS)]







105th CONGRESS
  2d Session
                                S. 2077

To maximize the national security of the United States and minimize the 
cost by providing for increased use of the capabilities of the National 
Guard and the other reserve components of the United States; to improve 
   the readiness of the reserve components; to ensure that adequate 
   resources are provided for the reserve components; and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 13, 1998

Mr. Ford (for himself, Mr. Bond, Mr. Dorgan, and Mr. Leahy) introduced 
the following bill; which was read twice and referred to the Committee 
                           on Armed Services

_______________________________________________________________________

                                 A BILL


 
To maximize the national security of the United States and minimize the 
cost by providing for increased use of the capabilities of the National 
Guard and the other reserve components of the United States; to improve 
   the readiness of the reserve components; to ensure that adequate 
   resources are provided for the reserve components; and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``National Guard and Reserve 
Components Equity Act of 1998''.

                      TITLE I--STRATEGIC PLANNING

SEC. 101. FORCE STRUCTURE.

    (a) Requirement.--At the same time as the President submits the 
budget to Congress for fiscal year 2000 under section 1105(a) of title 
31, United States Code, the Secretary of Defense shall submit to 
Congress a report on the Army reserve component force structure.
    (b) Content of Report.--The report shall include the following:
            (1) The force structure that the Secretary considers 
        appropriate for the Army National Guard and the Army Reserve 
        for meeting threats to the national security that are 
        considered probable for the six fiscal years beginning with 
        fiscal year 2000.
            (2) Specific wartime missions for the units in that force 
        structure, including missions relating to responses to 
        emergencies involving weapons of mass destruction.
    (b) Freeze on End Strengths.--Notwithstanding any other provision 
of law, the Armed Forces shall maintain the same strengths for Selected 
Reserve personnel of the Army National Guard of the United States and 
the Army Reserve through September 30, 2000, as are authorized under 
paragraphs (1) and (2), respectively, of section 411(a) of the National 
Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 
Stat. 1719).

SEC. 102. MODERNIZATION PLAN.

    (a) Plan Required.--The Secretary of Defense shall develop a master 
plan that provides for the complete modernization of the National Guard 
and the other reserve components of the Armed Forces, including the 
modernization necessary to ensure the compatibility of the equipment 
used by the reserve components.
    (b) Submission to Congress.--The Secretary shall submit the plan to 
Congress not later than six months after the date of the enactment of 
this Act.

SEC. 103. MILITARY CONSTRUCTION.

    (a) Plan Required.--The Secretary of Defense shall develop a master 
plan that provides for meeting the unmet requirements of the National 
Guard and the other reserve components for military construction.
    (b) Submission to Congress.--The Secretary shall submit the plan to 
Congress not later than six months after the date of the enactment of 
this Act.

                 TITLE II--RESERVE COMPONENT LEADERSHIP

SEC. 201. CHIEF OF THE NATIONAL GUARD BUREAU.

    (a) Relationship to the Joint Chiefs of Staff.--Section 151 of 
title 10, United States Code, is amended by adding at the end the 
following new subsection:
    ``(h) Participation by the Chief of the National Guard Bureau.--(1) 
The Chief of the National Guard Bureau shall identify for the Chairman 
any matter scheduled for consideration by the Joint Chiefs of Staff 
that directly concerns the National Guard, domestic security, or public 
safety.
    ``(2) Unless, upon request of the Chairman for a determination, the 
Secretary of Defense determines that a matter identified pursuant to 
paragraph (1) does not concern the National Guard, domestic security, 
or public safety, the Chief of the National Guard Bureau shall meet 
with the Joint Chiefs of Staff when that matter is under consideration. 
The Chief of the National Guard Bureau has equal status with the 
members of the Joint Chiefs of Staff for the consideration of the 
matter by the Joint Chiefs of Staff.
    ``(3) The Chairman shall provide the Chief of the National Guard 
Bureau with all agenda for the meetings of the Joint Chiefs of Staff 
and any other information that the Chairman considers appropriate to 
assist the Chief of the National Guard Bureau to carry out his 
responsibilities under this subsection.''.
    (b) Membership on the Joint Requirements Oversight Council.--
Section 181(c) of such title is amended--
            (1) in paragraph (1)--
                    (A) in subsection (D), by striking out ``and'';
                    (B) in subsection (E), by striking out the period 
                at the end and inserting in lieu thereof ``; and''; and
                    (C) by adding at the end the following:
            ``(F) the Chief of the National Guard Bureau.''; and
            (2) in paragraph (2), by inserting ``and the Chief of the 
        National Guard Bureau'' after ``other than the Chairman of the 
        Joint Chiefs of Staff''.
    (c) Additional Advisory Functions.--Section 10502(c) of title 10, 
United States Code, is amended to read as follows:
    ``(c) Adviser on National Guard Matters.--The Chief of the National 
Guard Bureau is the principal adviser to the President, the Secretary 
of Defense, any other person designated to exercise national command 
authority, the Secretary of the Army, the Chief of Staff of the Army, 
the Secretary of the Air Force, and the Chief of Staff of the Air Force 
on matters relating to--
            ``(1) the National Guard;
            ``(2) the Army National Guard of the United States;
            ``(3) the Air National Guard of the United States;
            ``(4) domestic security; and
            ``(5) public safety.''.
    (d) Relationship to the Army Staff and the Air Staff.--Section 
10502 of title 10, United States Code, is amended by adding at the end 
the following new paragraph:
    ``(e) Relationship to Army and Air Staff.--To the extent that it 
does not impair the independence of the Chief of the National Guard 
Bureau in the performance of his duties, the Chief of the National 
Guard Bureau shall serve at the level of the Vice Chief of Staff of the 
Army in all forums within the Department of the Army, and at the level 
of the Vice Chief of Staff of the Air Force in all forums within the 
Department of the Air Force.''.

SEC. 202. GRADES OF RESERVE COMPONENT LEADERS.

    (a) National Guard Bureau Leadership.--
            (1) Chief.--Section 10502(d) of title 10, United States 
        Code, is amended by striking out ``lieutenant general'' and 
        inserting in lieu thereof ``general''.
            (2) Vice chief.--Section 10505(c) of such title is amended 
        by striking out ``major general'' and inserting in lieu thereof 
        ``lieutenant general''.
            (3) Other general officers.--Section 10506(a)(1) of such 
        title is amended by striking out ``major general'' each place 
        it appears and inserting in lieu thereof ``lieutenant 
        general''.
    (b) Chief of Army Reserve.--Section 3038(c) of such title is 
amended by striking out ``major general'' in the third sentence and 
inserting in lieu thereof ``lieutenant general''.
    (c) Chief of Naval Reserve.--Section 5143 of such title is 
amended--
            (1) in subsection (b), by striking out ``from officers 
        who--'' and inserting in lieu thereof ``from among officers of 
        the Naval Reserve who--''; and
            (2) in subsection (c)(2), by striking out ``a grade above 
        rear admiral (lower half)'' in the third sentence and inserting 
        in lieu thereof ``the grade of vice admiral''.
    (d) Commander, Marine Forces Reserve.--Section 5144 of such title 
is amended--
            (1) in subsection (b), by striking out ``from officers 
        who--'' and inserting in lieu thereof ``from among officers of 
        the Marine Corps Reserve who--''; and
            (2) in subsection (c)(2), by striking out ``a grade above 
        brigadier general'' in the third sentence and inserting in lieu 
        thereof ``the grade of lieutenant general''.
    (e) Chief of Air Force Reserve.--Section 8038(c) of such title is 
amended by striking out ``major general'' in the third sentence and 
inserting in lieu thereof ``lieutenant general''.
    (f) Exclusion From Distribution Limits for General Officers on 
Active Duty.--Section 525(b) of title 10, United States Code, is 
amended by adding at the end the following:
    ``(6)(A) An officer serving in a position referred to in 
subparagraph (B) in the grade specified for the position in that 
subparagraph is in addition to the number that would otherwise be 
permitted for that officer's armed force for that grade under paragraph 
(1).
    ``(B) Subparagraph (A) applies to an officer while serving in any 
of the following positions:
            ``(i) The Chief of the National Guard Bureau, if serving in 
        the grade of general.
            ``(ii) The Vice Chief of the National Guard Bureau, if 
        serving in the grade of lieutenant general.
            ``(iii) The Director of the Army National Guard, if serving 
        in the grade of lieutenant general.
            ``(iv) The Director of the Air National Guard, if serving 
        in the grade of lieutenant general.
    ``(7)(A) An officer while serving in a position referred to in 
subparagraph (B), if serving in the grade of lieutenant general or vice 
admiral, is in addition to the number that would otherwise be permitted 
for that officer's armed force for that grade under paragraph (1) or 
(2), as applicable.
    ``(B) Subparagraph (A) applies to an officer serving in any of the 
following positions:
            ``(i) The Chief of Army Reserve.
            ``(ii) The Chief of Naval Reserve.
            ``(iii) The Commander, Marine Forces Reserve.
            ``(iv) The Chief of Air Force Reserve.''.
    (g) Effective Date.--This section and the amendments made by this 
section shall take effect on January 1, 1999.

SEC. 203. ADJUTANTS GENERAL OF THE NATIONAL GUARD.

    (a) Federal Recognition.--The Secretary of Defense shall prescribe 
in regulations a requirement that, whenever a person is appointed to 
the position of State adjutant general of the National Guard, the board 
that is to consider the appointee for being extended Federal 
recognition be convened within 60 days after the date of the 
appointment.
    (b) Investigations of Adjutants General.--The Secretary of Defense 
shall prescribe in regulations a requirement that the Inspector General 
of the Department of Defense be responsible for conducting 
investigations regarding appointments of State adjutants general of the 
National Guard for the Department of Defense.
    (c) State Includes Possessions, Et Cetera.--For the purposes of 
this section, the term ``State'' includes the District of Columbia, 
Puerto Rico, Guam, and the Virgin Islands.

SEC. 204. REVIEW OF PROMOTIONS AND FEDERAL RECOGNITION FOR NATIONAL 
              GUARD OFFICERS.

    (a) GAO Review.--The Comptroller General shall review the 
promotions of, and extensions of Federal recognition to, officers of 
the National Guard to determine the timeliness and fairness of the 
processing of such actions.
    (b) Scope of Review.--The Comptroller General shall determine the 
period and number of actions that are necessary to be reviewed in order 
to provide a meaningful basis for making determinations under 
subsection (a).
    (c) Report.--Not later than one year after the date of the 
enactment of this Act, the Comptroller General shall submit to Congress 
a report on the review. The report shall include the Comptroller 
General's determinations together with any recommendations that the 
Comptroller General considers appropriate.

  TITLE III--USE OF THE RESERVE COMPONENTS FOR EMERGENCIES INVOLVING 
                      WEAPONS OF MASS DESTRUCTION

SEC. 301. DISASTER RELIEF.

    (a) Authority.--
            (1) Definitions.--
                    (A) Major disaster.--Paragraph (2) of section 102 
                of the Robert T. Stafford Disaster Relief and Emergency 
                Assistance Act (42 U.S.C. 5122) is amended by striking 
                out ``or explosion'' and inserting in lieu thereof 
                ``explosion, or emergency involving a weapon of mass 
                destruction.''.
                    (B) Weapon of mass destruction.--Such section is 
                further amended by adding at the end the following:
            ``(9) Weapon of mass destruction.--`Weapon of mass 
        destruction' has the meaning given that term in section 1402 of 
        the Defense Against Weapons of Mass Destruction Act of 1996 (50 
        U.S.C. 2302(1)).
            ``(10) National guard.--`National Guard' has the meaning 
        given that term in section 101(3) of title 32, United States 
        Code.
            ``(11) Reserve components.--`Reserve components of the 
        Armed Forces' means the reserve components named in section 
        10101 of title 10, United States Code.''.
            (2) Use of reserve components.--Section 201(a) of such Act 
        (42 U.S.C. 5131) is amended--
                    (A) by striking out the period at the end of 
                paragraph (7) and inserting in lieu thereof ``; and''; 
                and
                    (B) by adding at the end the following:
            ``(8) the use of the National Guard or the other reserve 
        components of the Armed Forces to take actions that may be 
        necessary to provide an immediate response to an incident 
        involving a use or threat of use of a weapon of mass 
        destruction.''.
            (3) Requests by director of fema.--Section 611 of such Act 
        (42 U.S.C. 5196) is amended by adding at the end the following:
    ``(l) Use of the Reserve Components.--The Director may request the 
Secretary of Defense to authorize the National Guard or to direct other 
reserve components of the Armed Forces to conduct training exercises, 
preposition equipment and other items, and take such other actions that 
may be necessary to provide an immediate response to an emergency 
involving a weapon of mass destruction. The Secretary of Defense may 
authorize the National Guard or direct other reserve components to take 
actions requested by the Director under the preceding sentence.''.
    (b) Reimbursement of States.--
            (1) Authority.--Chapter 1 of title 32, United States Code, 
        is amended by adding at the end the following new section:
``Sec. 115. Reimbursement for State costs of preparedness programs for 
              emergencies involving weapons of mass destruction
    ``(a) Reimbursement Authorized.--The Secretary of Defense may 
reimburse a State for expenses incurred by the State for the National 
Guard of that State to participate in emergency preparedness programs 
to respond to an emergency involving the use of a weapon of mass 
destruction. Expenses reimbursable under this section may include the 
costs of the following:
            ``(1) Pay, allowances, clothing, subsistence, travel, and 
        related expenses of personnel of the National Guard.
            ``(2) Operation and maintenance of equipment and facilities 
        of the National Guard.
            ``(3) Procurement of services and equipment for the 
        National Guard.
    ``(b) State Includes Possessions, Et Cetera.--For the purposes of 
this section, the term `State' includes the District of Columbia, 
Puerto Rico, Guam, and the Virgin Islands.
    ``(c) Weapon of Mass Destruction Defined.--In this section, the 
term `weapon of mass destruction' has the meaning given that term in 
section 1402 of the Defense Against Weapons of Mass Destruction Act of 
1996 (50 U.S.C. 2302(1)).''.
            (2) Clerical amendment.--The table of sections at the 
        beginning of such chapter is amended by adding at the end the 
        following:

``115. Reimbursement for State costs of preparedness programs for 
                            emergencies involving weapons of mass 
                            destruction.''.

SEC. 302. RESERVES ON ACTIVE DUTY.

    (a) Authority.--
            (1) Order to active duty.--Section 12301(b) of title 10, 
        United States Code, is amended--
                    (A) by inserting ``(1)'' after ``(b)'';
                    (B) by striking out ``for not more than 15 days a 
                year'' in the first sentence; and
                    (C) by adding at the end the following;
    ``(2) The authority under paragraph (1) includes authority to order 
a unit or member to active duty to provide assistance in responding to 
an emergency involving a weapon of mass destruction (as defined section 
1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 
U.S.C. 2302(1))).
    ``(3) A unit or member may not be ordered to active duty under this 
subsection for more than 15 days a year. Days of service on active duty 
to provide assistance described in paragraph (2), up to 15 days a year, 
shall not be counted toward the limitation on the total number of days 
set forth in the preceding sentence.''.
            (2) Use of active guard and reserve personnel.--Section 
        12310 of title 10, United States Code, is amended by adding at 
        the end the following:
    ``(c)(1) A Reserve on active duty as described in subsection (a), 
or a Reserve who is a member of the National Guard serving on full-time 
National Guard duty under section 502(f) of title 32 in connection with 
functions referred to in subsection (a), may perform any duties in 
support of emergency preparedness programs to prepare for or to respond 
to any emergency involving the use of a weapon of mass destruction (as 
defined in section 1402 of the Defense Against Weapons of Mass 
Destruction Act of 1996 (50 U.S.C. 2302(1))).
    ``(2) The costs of the pay, allowances, clothing, subsistence, 
gratuities, travel, and related expenses for a Reserve performing 
duties under the authority of paragraph (1) shall be paid from the 
appropriation that is available to pay such costs for other members of 
the reserve component of that Reserve who are performing duties as 
described in subsection (a).''.
    (b) Exclusion From Strength Limitations.--
            (1) General limitation.--Section 115(d) of such title is 
        amended by adding at the end the following:
            ``(8) Members of the reserve components on active duty and 
        members of the National Guard on full-time National Guard duty 
        to participate in emergency preparedness programs for 
        responding to emergencies involving a weapon of mass 
        destruction (as defined section 1402 of the Defense Against 
        Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
        2302(1))).''.
            (2) Officer personnel limitation.--Section 12011 of such 
        title is amended by adding at the end the following:
    ``(c) Members of the reserve components on active duty and members 
of the National Guard on full-time National Guard duty to participate 
in emergency preparedness programs for responding to emergencies 
involving a weapon of mass destruction (as defined section 1402 of the 
Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
2302(1))) shall not be counted for purposes of a limitation in 
subsection (a).''.
            (3) Enlisted personnel limitation.--Section 12011 of such 
        title is amended by adding at the end the following:
    ``(c) Members of the reserve components on active duty and members 
of the National Guard on full-time National Guard duty to participate 
in emergency preparedness programs for responding to emergencies 
involving a weapon of mass destruction (as defined section 1402 of the 
Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 
2302(1))) shall not be counted for purposes of a limitation in 
subsection (a).''.

TITLE IV--STRENGTHENED REFORMS FOR ARMY NATIONAL GUARD COMBAT READINESS

SEC. 401. ADEQUATE FUNDING FOR MEETING NCO EDUCATION REQUIREMENTS.

    Section 1114(b) of the Army National Guard Combat Readiness Reform 
Act of 1992 (title XI of Public Law 102-484; 10 U.S.C. 10105 note) is 
amended to read as follows:
    ``(b) Availability of Training.--The Secretary of the Army shall 
ensure that sufficient training positions and funds are available to 
enable compliance with subsection (a) without it being necessary for 
noncommissioned officers to be absent from unit annual training for the 
units of assignment in order to attend training to meet military 
education requirements.''.

SEC. 402. COMBAT UNIT TRAINING.

    Section 1119 of the Army National Guard Combat Readiness Reform Act 
of 1992 is amended--
            (1) by inserting ``(a) Program To Minimize Post-
        Mobilization Training Needs.--'' before ``The Secretary'';
            (2) by inserting ``all'' before ``combat units'' in the 
        first sentence;
            (3) in paragraph (1)--
                    (A) in subparagraph (A), by inserting ``and 
                professional development'' after ``qualification'';
                    (B) in subparagraph (B), by striking out ``and 
                squad level'' and inserting in lieu thereof ``squad, 
                and platoon level''; and
                    (C) by striking out subparagraph (C) and inserting 
                in lieu thereof the following:
                    ``(C) maneuver training at the platoon level to at 
                least the minimum extent required of all Army units; 
                and''; and
            (4) by adding at the end the following:
    ``(b) Adequacy of Funding.--The Secretary shall ensure that 
sufficient funds are made available for conducting the training 
required under the program.''.

SEC. 403. USE OF COMBAT SIMULATORS.

    The text of section 1120 of such Act is amended to read as follows:
    ``The Secretary of the Army shall--
            ``(1) expand the use of simulations, simulators, and 
        advanced training devices and technologies to fully support the 
        complete integration of Army National Guard units with active 
        Army units; and
            ``(2) use and distribute combat simulators so as to serve 
        the training of Army National Guard units as well as active 
        Army units.''.

   TITLE V--PAY, ALLOWANCES, RETIREMENT, AND OTHER MONETARY BENEFITS

SEC. 501. BASIC ALLOWANCE FOR HOUSING.

    (a) Reserves on Active Duty More Than 100 Miles From Home.--Section 
403(g)(3) of title 37, United States Code, is amended by adding at the 
end the following: ``A member of a reserve component on active duty may 
not be denied a basic allowance for housing at that rate on the basis 
of being provided quarters of the United States if the member is 
performing duty more than 100 miles from the member's primary 
residence.''.
    (b) Effective Date and Applicability.--The amendment made by 
subsection (a) shall take effect on the date of the enactment of this 
Act and shall apply with respect to active duty performed on or after 
that date.

SEC. 502. ELIGIBILITY FOR HAZARDOUS OR IMMINENT DANGER PAY.

    (a) Full Monthly Rate for Active Duty for Partial Month.--Section 
310(a) of title 37, United States Code, is amended in the matter 
preceding paragraph (1) by striking out ``for any month in which he was 
entitled to basis pay'' and inserting in lieu thereof ``for any month 
in which he was entitled to any basic pay (without regard to the number 
of days of duty performed for the month)''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect on the first day of the first month that begins on or after 
the date of the enactment of this Act.

SEC. 503. ALLOTMENTS OF PAY.

    Section 701(d) of title 37, United States Code, is amended--
            (1) by inserting ``(including a member of a reserve 
        component of that armed force)'' in the first sentence after 
        ``a member of the Army, Navy, Air Force, or Marine Corps''; and
            (2) by inserting ``(three allotments, in the case of a 
        member of a reserve component)'' in the second sentence after 
        ``six allotments''.

SEC. 504. EARLY RETIREMENT FOR PHYSICAL DISABILITY.

    (a) Permanent Authority.--Chapter 1223 of title 10, United States 
Code, is amended by inserting after section 12731a the following:
Sec. 12731b. Early retirement for physical disability
    ``(a) Retirement With At Least 15 Years of Service.--For the 
purposes of section 12731 of this title, the Secretary concerned may--
            ``(1) determine to treat a member of the Selected Reserve 
        of a reserve component of the armed force under the 
        jurisdiction of that Secretary as having met the service 
        requirements of subsection (a)(2) of that section and provide 
        the member with the notification required by subsection (d) of 
        that section if the member--
                    ``(A) has completed at least 15, and less than 20, 
                years of service computed under section 12732 of this 
                title; and
                    ``(B) no longer meets the qualifications for 
                membership in the Selected Reserve solely because the 
                member is unfit because of physical disability; and
            ``(2) upon the request of the member submitted to the 
        Secretary, transfer the member to the Retired Reserve.
    ``(b) Exclusion.--This section does not apply to persons referred 
to in section 12731(c) of this title.''.
    (b) Repeal of Superseded Authority.--Section 12731(a)(c) of such 
title is amended by striking out paragraph (3).
    (c) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by inserting after the item relating to section 
12731a the following:

``12731b. Early retirement for physical disability.''.

                        TITLE VI--OTHER BENEFITS

SEC. 601. REPEAL OF 10-YEAR LIMITATION ON USE OF MONTGOMERY GI BILL 
              BENEFITS.

    (a) Repeal.--Subsection (a) of section 16133 of title 10, United 
States Code, is amended by striking out ``(1)'' and all that follows 
and inserting in lieu thereof ``on the date the person is separated 
from the Selected Reserve.''.
    (b) Conforming Amendments.--Subsection (b) of such section is 
amended--
            (1) in paragraph (1)--
                    (A) by striking out ``In'' in the matter preceding 
                subparagraph (A) and inserting in lieu thereof 
                ``Subsection (a) does not apply in''; and
                    (B) by striking out the comma at the end of 
                subparagraph (B) and all that follows and inserting in 
                lieu thereof a period;
            (2) by striking out paragraph (3); and
            (3) by redesignating paragraph (4) as paragraph (3) and, in 
        such paragraph, by striking out ``of this title--'' and all 
        that follows through ``for the purposes of clause (2)'' and 
        inserting in lieu thereof ``of this title, the member may not 
        be considered to have been separated from the Selected Reserve 
        for the purposes''.

SEC. 602. DEMONSTRATION PROGRAM ON UNLIMITED USE OF COMMISSARY STORES.

    (a) Program Required.--The Secretary of Defense shall carry out a 
demonstration program to test the efficacy of permitting unlimited use 
of commissary stores by members and former members of the reserve 
components who are eligible for limited use of commissary stores under 
section 1063 and 1064 of title 10, United States Code.
    (b) Period for Program.--The program shall be carried out for one 
year beginning on January 1, 1999.
    (c) Report.--Not later than March 31, 2000, the Secretary of 
Defense shall submit to Congress a report on the results of the 
demonstration program, together with any comments and recommendations 
that the Secretary considers appropriate.

SEC. 603. SPACE AVAILABLE TRAVEL FOR MEMBERS OF SELECTED RESERVE.

    (a) In General.--Chapter 157 of title 10, United States Code, is 
amended by adding at the end the following new section:
``Sec. 2646. Space available travel: members of Selected Reserve
    ``(a) Availability.--The Secretary of Defense shall prescribe 
regulations to allow members of the Selected Reserve in good standing 
(as determined by the Secretary concerned), and dependents of such 
members, to receive transportation on aircraft of the Department of 
Defense on a space available basis under the same terms and conditions 
as apply to members of the armed forces on active duty and dependents 
of such members.
    ``(b) Condition on Dependent Transportation.--A dependent of a 
member of the Selected Reserve may be provided transportation under 
this section only when the dependent is actually accompanying the 
member on the travel.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
such chapter is amended by adding at the end the following new item:

``2646. Space available travel: members of Selected Reserve.''.

SEC. 604. REPEAL OF EXPIRATION OF ELIGIBILITY FOR VETERANS HOUSING 
              BENEFITS BASED ON SERVICE IN THE SELECTED RESERVE.

    Section 3702(a)(2)(E) of title 38, United States Code, is amended 
by striking out ``For the period beginning on October 28, 1992, and 
ending on October 27, 1999, each'' and inserting in lieu thereof 
``Each''.

                        TITLE VII--OTHER MATTERS

SEC. 701. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT ADDED TO GENERAL 
              BUSINESS CREDIT.

    (a) Ready Reserve-National Guard 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. 45D. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

    ``(a) General Rule.--For purposes of section 38, the Ready Reserve-
National Guard employee credit determined under this section for the 
taxable year is an amount equal to 50 percent of the actual 
compensation amount for the taxable year.
    ``(b) Definition of Actual Compensation Amount.--For purposes of 
this section, the term `actual compensation amount' means the amount of 
compensation paid or incurred by an employer with respect to a Ready 
Reserve-National Guard employee on any day during a taxable year when 
the employee was absent from employment for the purpose of performing 
qualified active duty.
    ``(c) Limitations.--
            ``(1) Maximum credit.--The maximum credit allowable under 
        subsection (a) shall not exceed $2,000 in any taxable year with 
        respect to any one Ready Reserve-National Guard employee.
            ``(2) Days other than work days.--No credit shall be 
        allowed with respect to a Ready Reserve-National Guard employee 
        who performs qualified active duty on any day on which the 
        employee was not scheduled to work (for a reason other than to 
        participate in qualified active duty) and ordinarily would not 
        have worked.
    ``(d) Definitions.--For purposes of this section--
            ``(1) Qualified active duty.--The term `qualified active 
        duty' means--
                    ``(A) active duty, as defined in section 101(d)(1) 
                of title 10, United States Code;
                    ``(B) full-time National Guard duty, as defined in 
                section 1010(d)(5) of such title; and
                    ``(C) hospitalization incident to duty referred to 
                in subparagraph (A) or (B).
            ``(2) Compensation.--The term `compensation' means any 
        remuneration 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).
            ``(3) Ready reserve-national guard employee.--The term 
        `Ready Reserve-National Guard employee' means an employee who 
        is a member of the Ready Reserve or of the National Guard.
            ``(4) National guard.--The term `National Guard' has the 
        meaning given such term by section 101(c)(1) of title 10, 
        United States Code.
            ``(5) Ready reserve.--The term `Ready Reserve' has the 
        meaning given such term by section 10142 of title 10, United 
        States Code.''
    (b) Credit To Be Part of General Business Credit.--Subsection (b) 
of section 38 of such Code (relating to general business credit) is 
amended by striking ``plus'' at the end of paragraph (11), by striking 
the period at the end of paragraph (12) and inserting ``, plus'', and 
by adding at the end the following new paragraph:
            ``(13) the Ready Reserve-National Guard employee credit 
        determined under section 45D(a).''
    (c) Conforming Amendment.--The table of sections 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 45C the 
following new item:

                              ``Sec. 45D. Ready Reserve-National Guard 
                                        employee credit.''
    (d) Effective Date.--The amendments made by this Act shall apply to 
taxable years beginning after December 31, 1997.
                                 <all>