[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3317 Introduced in House (IH)]






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 members of 
  reserve components, and to increase the amount of basic educational 
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 
 Committee 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 
                jurisdiction 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 
  program 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 Representatives 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 Central 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 reduced 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 assignment.
    (b) Transition.--Subsection (a) applies to members of reserve 
components assigned to duty in the area of responsibility 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 determined 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 reserve 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 average 
                        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 
                        received by the taxpayer (taking into account 
                        only qualified days during the taxable year), 
                        multiplied by
                            ``(ii) the number of qualified days during 
                        the taxable year.
            ``(2) Average daily self-employment.--For purposes of this 
        subsection, the term `average daily self-employment income' 
        means the self-employment income (as defined in section 1402) 
        of the taxpayer for the taxable year divided by the excess of 
        365 over the number of qualified days during the taxable year.
            ``(3) Qualified day.--For purposes of this subsection, the 
        term `qualified day' means, with respect to any individual, any 
        day such individual was absent from self-employment duties for 
        a reason described in subsection (d).
    ``(d) Covered Pay Periods.--This section shall apply with respect 
to an employee or qualified self-employed taxpayer who is also a member 
of a reserve component--
            ``(1) while the employee serves on active duty for a period 
        of more than 30 days;
            ``(2) while the employee is hospitalized for, or 
        convalescing from, an illness or injury incurred in, or 
        aggravated during, the performance of such active duty; and
            ``(3) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred 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 taxpayer' means a 
        taxpayer who--
                    ``(A) has net earnings from self-employment (as 
                defined in section 1402) for the taxable 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 component' have the meanings 
        given such terms in section 101 of title 37, United States 
        Code.
            ``(3) 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).''.
    (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 (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 employee credit 
        determined under section 45G(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 45F the 
following 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 TRAVEL AND TRANSPORTATION TO PERMANENT STATION OR 
              HOME.

    (a) Expanded Allowances.--The Secretary of Defense shall expand the 
Central Command Rest and Recuperation Leave program for Operation Iraqi 
Freedom and Operation Enduring Freedom to provide travel and 
transportation 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 subsection (a) are in addition to 
any other travel and transportation or other allowances that may be 
provided for such travel by law.
    (d) Treatment of Reserve Component Members.--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 components.
    (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 
between 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 member.
    (f) Report on Permanent Expansion of Allowances.--Not later than 
one year after the date of the enactment 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 allowances available 
to members of the Armed Forces granted leave under future rest and 
recuperation leave programs to cover travel and transportation to the 
members' permanent station or home of record.

SEC. 5. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE 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 respect 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 follows:
    ``(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 institutions 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 preceding fiscal 
        year.
    ``(B) The Secretary shall make the determination under subparagraph 
(A) after consultation with the Secretary 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 allowances payable under this section for the 
fiscal year beginning in that year.
    ``(D) Not later than September 30 each year, the Secretary 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 inserting ``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 section 1078a the following new 
section:
``Sec. 1078b. Continuation of non-TRICARE health benefits plan coverage 
              for certain reserves called or ordered to active duty and 
              their dependents
    ``(a) Payment of Premiums.--The Secretary concerned shall pay the 
applicable premium to continue in force any qualified health benefits 
plan coverage for an eligible reserve component member for the benefits 
coverage continuation period if timely elected by the member in 
accordance with regulations prescribed under subsection (j).
    ``(b) Eligible Member.--A member of a reserve component is eligible 
for payment of the applicable premium 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 during a war or 
national emergency declared by the President or Congress.
    ``(c) Qualified Health Benefits Plan Coverage.--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 premium 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 benefits 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 Period.--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 transitional 
                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 coverage of the 
                dependents of the member.
    ``(g) Extension of Period of COBRA Coverage.--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 section 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 eligible 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 dependents 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 Secretary 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 
                            certain Reserves called or ordered to 
                            active duty and their dependents.''.
    (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 described 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.

SEC. 7. TRICARE COVERAGE FOR MEMBERS OF THE READY RESERVE.

    (a) Eligibility.--(1) Chapter 55 of title 10, United States Code, 
is amended by inserting after section 1076a the following new section:
``Sec. 1076b. TRICARE program: coverage for members of the Ready 
              Reserve
    ``(a) Eligibility.--Members of the Selected Reserve of the Ready 
Reserve and members of the Individual Ready Reserve described in 
subsection 10144(b) of this title are eligible, subject to subsection 
(h)(1), to enroll in the following TRICARE program options:
            ``(1) TRICARE Prime.
            ``(2) TRICARE Standard.
    ``(b) Types of Coverage.--(1) A member eligible under subsection 
(a) may enroll for either of the following types of coverage:
            ``(A) Self alone coverage.
            ``(B) Self and family coverage.
    ``(2) An enrollment by a member for self and family covers the 
member and the dependents of the member who are described in 
subparagraph (A), (D), or (I) of section 1072(2) of this title.
    ``(c) Open Enrollment Periods.--The Secretary of Defense shall 
provide for at least one open enrollment period each year. During an 
open enrollment period, a member eligible under subsection (a) may 
enroll in the TRICARE program or change or terminate an enrollment in 
the TRICARE program.
    ``(d) Scope of Care.--(1) A member and the dependents of a member 
enrolled in the TRICARE program under this section shall be entitled to 
the same benefits under this chapter as a member of the uniformed 
services on active duty or a dependent of such a member, respectively.
    ``(2) Section 1074(c) of this title shall apply with respect to a 
member enrolled in the TRICARE program under this section.
    ``(e) Premiums.--(1) The Secretary of Defense shall charge premiums 
for coverage pursuant to enrollments under this section. The Secretary 
shall prescribe for each of the TRICARE program options referred to in 
subsection (a) a premium for self alone coverage and a premium for self 
and family coverage.
    ``(2) The monthly amount of the premium in effect for a month for a 
type of coverage under this section shall be the amount equal to 28 
percent of the total amount determined by the Secretary on an 
appropriate actuarial basis as being reasonable for the coverage.
    ``(3) The premiums payable by a member under this subsection may be 
deducted and withheld from basic pay 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 
requirements 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 subsection 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 program 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 dependents described in subparagraph (A), 
(D), or (I) of section 1072(2) of this title.
    ``(g) Termination of Enrollment.--(1) A member enrolled in the 
TRICARE program under this section may terminate the enrollment only 
during an open enrollment period provided under subsection (c), except 
as provided 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 premium charged the 
member under this section.
    ``(h) Relationship to Transition TRICARE Coverage 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 authorized to 
receive health care under subsection (c) of such section.
    ``(2) A member who enrolls in the TRICARE program 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 follows 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 enactment of this Act.

SEC. 8. REPORT ON TARGETED COMPENSATION PROGRAM TO ADDRESS INCOME LOSS 
              FACED BY MEMBERS OF RESERVE COMPONENTS DEPLOYED OVERSEAS.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Defense shall submit to Congress a report 
evaluating the adverse financial effects of deployments of greater than 
six months on members of the reserve components and the feasibility and 
cost of developing a targeted compensation program for the reserve 
components to offset some or all of those adverse effects.
                                 <all>