[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4753 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4753

 To improve certain compensation, health care, and education benefits 
for individuals who serve on active duty in a reserve component of the 
              uniformed services, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 25, 2004

   Mr. Smith of Washington introduced the following bill; which was 
  referred to the Committee on Armed Services, and in addition to the 
Committees on Government Reform and 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 improve certain compensation, health care, and education benefits 
for individuals who serve on active duty in a reserve component of the 
              uniformed services, 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Enhancing 
America's Guard and Reserve Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
                     TITLE I--COMPENSATION MATTERS

Sec. 101. Nonreduction in pay while Federal employee is serving on 
                            active duty in a reserve component of the 
                            uniformed services.
Sec. 102. Assistance for State and local governments that continue to 
                            pay employees who serve on active duty in a 
                            reserve component of the uniformed 
                            services.
Sec. 103. Active-duty reserve component employee credit added to 
                            general business credit.
Sec. 104. Eligibility for retired pay for non-regular service.
              TITLE II--HEALTH CARE AND EDUCATION MATTERS

Sec. 201. Permanent authority for certain TRICARE benefits for 
                            Reserves.
Sec. 202. Increase in amount of basic educational assistance under the 
                            Montgomery GI Bill for members of reserve 
                            components; indexing payment amounts to 
                            higher education costs.
Sec. 203. Prohibition on denial of benefits under the Montgomery GI 
                            Bill for members of reserve components in 
                            conjunction with calls to active duty.
                      TITLE III--COMMUTING MATTERS

Sec. 301. Limited use of telecommuting to satisfy inactive-duty 
                            training prescribed or authorized for 
                            members of reserve components.
Sec. 302. Priority for space-available travel for members of reserve 
                            components.

                     TITLE I--COMPENSATION MATTERS

SEC. 101. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS SERVING ON 
              ACTIVE DUTY IN A RESERVE COMPONENT OF THE UNIFORMED 
              SERVICES.

    (a) In General.--Subchapter IV of chapter 55 of title 5, United 
States Code, is amended by adding at the end the following new section:
``Sec. 5538. Nonreduction in pay while serving on active duty in a 
              reserve component
    ``(a) An employee who is also a member of a reserve component and 
is absent from a position of employment with the Federal Government 
under a call or order to serve on active duty for a period of more than 
30 days shall be entitled to receive, for each pay period described in 
subsection (b), an amount equal to the difference (if any) between--
            ``(1) the amount of civilian basic pay that would otherwise 
        have been payable to the employee for such pay period if the 
        employee's civilian employment with the Government had not been 
        interrupted by the service on active duty; and
            ``(2) the amount of military compensation that is payable 
        to the employee for the service on active duty and is allocable 
        to such pay period.
    ``(b)(1) Amounts under this section shall be payable with respect 
to each pay period (which would otherwise apply if the employee's 
civilian employment had not been interrupted) that occurs--
            ``(A) while the employee serves on active duty for a period 
        of more than 30 days;
            ``(B) while the employee is hospitalized for, or 
        convalescing from, an illness or injury incurred in, or 
        aggravated during, the performance of such active duty; or
            ``(C) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(2) Paragraph (1) shall not apply with respect to a pay period 
for which the employee receives civilian basic pay (including by taking 
any annual, military, or other paid leave) to which the employee is 
entitled by virtue of the employee's civilian employment with the 
Government.
    ``(c) Any amount payable under this section to an employee shall be 
paid--
            ``(1) by employing agency of the employee;
            ``(2) from the appropriations or fund that would be used to 
        pay the employee if the employee were in a pay status; and
            ``(3) to the extent practicable, at the same time and in 
        the same manner as would civilian basic pay if the employee's 
        civilian employment had not been interrupted.
    ``(d) In consultation with Secretary of Defense, the Office of 
Personnel Management shall prescribe such regulations as may be 
necessary to carry out this section.
    ``(e)(1) In consultation with the Office, the head of each agency 
referred to in section 2302(a)(2)(C)(ii) of this title shall prescribe 
procedures to ensure that the rights under this section apply to the 
employees of such agency.
    ``(2) The Administrator of the Federal Aviation Administration 
shall, in consultation with the Office, prescribe procedures to ensure 
that the rights under this section apply to the employees of that 
agency.
    ``(f) In this section:
            ``(1) 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.
            ``(2) The term `civilian basic pay' includes any amount 
        payable under section 5304 of this title.
            ``(3) The term `employing agency', as used with respect to 
        an employee entitled to any payments under this section, means 
        the agency or other entity of the Government (including an 
        agency referred to in section 2302(a)(2)(C)(ii) of this title) 
        with respect to which the employee has reemployment rights 
        under chapter 43 of title 38.
            ``(4) The term `military compensation' has the meaning 
        given the term `pay' in section 101(21) of title 37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of title 5, United States Code, is amended by inserting 
after the item relating to section 5537 the following new item:

``5538. Nonreduction in pay while serving on active duty in a reserve 
                            component.''.
    (c) Application of Amendment.--Section 5538 of title 5, United 
States Code, as added by subsection (a), shall apply with respect to 
pay periods (as described in subsection (b) of such section) beginning 
on or after the date of the enactment of this Act.

SEC. 102. ASSISTANCE FOR STATE AND LOCAL GOVERNMENTS THAT CONTINUE TO 
              PAY EMPLOYEES WHO SERVE ON ACTIVE DUTY IN A RESERVE 
              COMPONENT OF THE UNIFORMED SERVICES.

    (a) In General.--Chapter 17 of title 37, United States Code, is 
amended by adding at the end the following new section:
``Sec. 910. Assistance for State and local governments that continue to 
              pay employees who serve on active duty
    ``(a) Continuation of Civilian Basic Pay.--It is the purpose of 
this section to encourage States and local governments to continue to 
pay a portion of the civilian compensation of those employees who are 
also members of a reserve component and are absent from a position of 
employment with the State or local government under a call or order to 
serve on active duty for a period of more than 30 days so that the 
employees receive compensation in an amount that, when taken together 
with their military pay, is at least equal to their civilian 
compensation.
    ``(b) Reimbursement Offered.--(1) At the request of a State or 
local government that continues to pay all or a portion of the civilian 
compensation of an employee described in subsection (a), the Secretary 
concerned shall reimburse the State or local government for 50 percent 
of the civilian compensation paid by the State or local government for 
each pay period described in subsection (c), but not to exceed 50 
percent of the difference (if any) between--
            ``(A) the amount of civilian compensation that would 
        otherwise have been payable to the employee for such pay period 
        if the employee's civilian employment with the State or local 
        government had not been interrupted by the service on active 
        duty; and
            ``(B) the amount of military pay that is payable to the 
        employee for the service on active duty and is allocable to 
        such pay period.
    ``(2) If the pay periods described in subsection (c) extend more 
than nine consecutive months after the first day of the first month 
during which the employee began to serve on active duty for a period of 
more than 30 days, the reimbursement rate shall become 100 percent for 
the subsequent payments. However, as is the case under paragraph (1), 
reimbursement shall be provided only for the difference (if any) 
between--
            ``(A) the amount of civilian compensation that would 
        otherwise have been payable to the employee for such pay period 
        if the employee's civilian employment with the State or local 
        government had not been interrupted by the service on active 
        duty; and
            ``(B) the amount of military pay that is payable to the 
        employee for the service on active duty and is allocable to 
        such pay period.
    ``(c) Pay Periods.--Reimbursement shall be provided under this 
section with respect to each pay period (which would otherwise apply if 
the employee's civilian employment had not been interrupted) that 
occurs--
            ``(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; or
            ``(3) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(d) Effect of Failure to Return to Employment.--(1) If an 
employee described in subsection (a), with respect to whom 
reimbursement is provided to a State or local government under this 
section, fails to report or apply for employment or reemployment with 
the State or local government by the end of the period referred to in 
subsection (c)(3), the employee shall refund to the Secretary concerned 
the total amount of the reimbursement provided with respect to the 
employee.
    ``(2) Subject to paragraph (3), an obligation to refund moneys to 
the United States imposed under paragraph (1) is for all purposes a 
debt owed to the United States.
    ``(3) The Secretary concerned may waive, in whole or in part, a 
refund required under paragraph (1) if the Secretary concerned 
determines that recovery would be against equity and good conscience or 
would be contrary to the best interests of the United States.
    ``(4) A discharge in bankruptcy under title 11 that is entered less 
than five years after the end of the period referred to in subsection 
(c)(3) does not discharge the employee from a debt arising under 
paragraph (1). This paragraph applies to any case commenced under title 
11 after the date of the enactment of this section.
    ``(e) Regulations.--The Secretaries concerned shall prescribe 
regulations to carry out this section.
    ``(f) Definitions.--In this section:
            ``(1) The term `civilian compensation' means the wages or 
        salary that an employee of a State or local government normally 
        receives from the employee's employment by the State or local 
        government.
            ``(2) The term `local government' means an agency or 
        political subdivision of a State.
            ``(3) The term `military pay' has the meaning given the 
        term `pay' in section 101(21) of this title.
            ``(4) The term `State' means each of the several States of 
        the United States, the District of Columbia, the Commonwealth 
        of Puerto Rico, Guam, the Virgin Islands, and other territories 
        or possessions of the United States.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 17 of title 37, United States Code, is amended by inserting 
after the item relating to section 909 the following new item:

``910. Assistance for State and local governments that continue to pay 
                            employees who serve on active duty.''.
    (c) Application of Amendment.--Section 910 of title 37, United 
States Code, as added by subsection (a), shall apply with respect to 
pay periods (as described in subsection (b) of such section) beginning 
on or after the date of the enactment of this Act.

SEC. 103. 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, in the case of an 
employer, the active-duty reserve component employee credit determined 
under this section for the taxable year is an amount equal to 50 
percent of the compensation paid by the employer to an employee who is 
also a member of a reserve component during the taxable year when the 
employee was absent from employment for a reason described in 
subsection (b), but not to exceed 50 percent of the difference (if any) 
between--
            ``(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; and
            ``(2) the amount of military pay that is payable to the 
        employee during the absence.
    ``(b) Covered Pay Periods.--Subsection (a) shall apply with respect 
to an employee 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; or
            ``(3) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(c) Limitation.--No credit shall be allowed under subsection (a) 
with respect to an employee on any day on which the employee was not 
scheduled to work (for a reason other than such service on active duty) 
and ordinarily would not have worked.
    ``(d) Definitions.--For purposes of this section--
            ``(1) 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.
            ``(2) 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, 2001.

SEC. 104. ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR SERVICE.

    (a) Age and Service Requirements.--Subsection (a) of section 12731 
of title 10, United States Code, is amended to read as follows:
    ``(a)(1) Except as provided in subsection (c), a person is 
entitled, upon application, to retired pay computed under section 12739 
of this title, if the person--
            ``(A) satisfies one of the combinations of requirements for 
        minimum age and minimum number of years of service (computed 
        under section 12732 of this title) that are specified in the 
        table in paragraph (2);
            ``(B) performed the last six years of qualifying service 
        while a member of any category named in section 12732(a)(1) of 
        this title, but not while a member of a regular component, the 
        Fleet Reserve, or the Fleet Marine Corps Reserve, except that 
        in the case of a person who completed 20 years of service 
        computed under section 12732 of this title before October 5, 
        1994, the number of years of qualifying service under this 
        subparagraph shall be eight; and
            ``(C) is not entitled, under any other provision of law, to 
        retired pay from an armed force or retainer pay as a member of 
        the Fleet Reserve or the Fleet Marine Corps Reserve.
    ``(2) The combinations of minimum age and minimum years of service 
required of a person under subparagraph (A) of paragraph (1) for 
entitlement to retired pay as provided in such paragraph are as 
follows:

``If the person's age, in years,                  The minimum years of 
  is at least:                                     service required is 
        49.....................................................     31 
        50.....................................................     30 
        51.....................................................     29 
        52.....................................................     28 
        53.....................................................     27 
        54.....................................................     26 
        55.....................................................     25 
        56.....................................................     24 
        57.....................................................     23 
        58.....................................................     22 
        59.....................................................     21 
        60.....................................................   20''.
    (b) 20-Year Letter.--Subsection (d) of such section is amended by 
striking ``the years of service required for eligibility for retired 
pay under this chapter'' in the first sentence and inserting ``20 years 
of service computed under section 12732 of this title''.
    (c) Effective Date.--The amendments made by subsection (a) shall 
take effect on the first day of the first month beginning on or after 
the date of the enactment of this Act and shall apply with respect to 
retired pay payable for that month and subsequent months.

              TITLE II--HEALTH CARE AND EDUCATION MATTERS

SEC. 201. PERMANENT AUTHORITY FOR CERTAIN TRICARE BENEFITS FOR 
              RESERVES.

    (a) Permanent Authority for Coverage of Ready Reserve Members Under 
TRICARE Program.--Section 1076b of title 10, United States Code, is 
amended by striking subsection (l).
    (b) Permanent Authority for Earlier Eligibility Date for TRICARE 
Benefits for Members of Reserve Components.--Section 1074(d) of title 
10, United States Code, is amended by striking paragraph (3).
    (c) Permanent Extension of Transitional Health Care Benefits.--
            (1) Paragraph (3) of section 1145(a) of title 10, United 
        States Code, is amended to read as follows:
    ``(3) Transitional health care for a member under subsection (a) 
shall be available for 180 days beginning on the date on which the 
member is separated from active duty.''.
            (2) Paragraph (3) of section 1145(a) of title 10, United 
        States Code, shall apply with respect to separations from 
        active duty that take effect on or after November 24, 2003.
            (3) Section 704 of the National Defense Authorization Act 
        for Fiscal Year 2004 (Public Law 108-136; 117 Stat. 1527) and 
        section 1117 of the Emergency Supplemental Appropriations Act 
        for Defense and for the Reconstruction of Iraq and Afghanistan, 
        2004 (Public Law 108-106; 117 Stat. 1218) are repealed.

SEC. 202. INCREASE IN AMOUNT OF BASIC EDUCATIONAL ASSISTANCE UNDER THE 
              MONTGOMERY GI BILL FOR MEMBERS OF RESERVE COMPONENTS; 
              INDEXING PAYMENT AMOUNTS TO HIGHER EDUCATION COSTS.

    (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, 2005, and shall apply with respect to educational assistance 
allowances under section 16131(b)(1) of such title paid for months 
after September 2005.
    (3) In the case of an educational assistance allowance under such 
section paid for months occurring during fiscal year 2005--
            (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 2005 and 2006.--Section 
16131(b)(2) of such title shall not apply to rates of basic educational 
assistance paid under such section during fiscal years 2005 and 2006.
    (c) Application of Index Based on Higher Education Costs.--(1) 
Section 16131(b)(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, 2006, 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)(A) 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.''.
    (B) The amendment made by subparagraph (A) shall apply to fiscal 
years beginning on or after October 1, 2006.

SEC. 203. PROHIBITION ON DENIAL OF BENEFITS UNDER THE MONTGOMERY GI 
              BILL FOR MEMBERS OF RESERVE COMPONENTS IN CONJUNCTION 
              WITH CALLS TO ACTIVE DUTY.

    (a) In General.--Section 16134 of title 10, United States Code, is 
amended--
            (1) by striking ``Educational'' and inserting ``(a) General 
        Rule.--Educational''; and
            (2) by adding at the end the following new subsection:
    ``(b) Prohibition on Termination of Assistance Due Solely to Call 
to Active Duty.--Service on active duty pursuant to an order to active 
duty issued under section 12301(a), 12301(d), 12301(g), 12302, or 12304 
of this title alone does not constitute failure to participate 
satisfactorily in required training as a member of the Selected Reserve 
under subsection (a)(2).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply before, on, or after the date of the enactment of this Act.

                      TITLE III--COMMUTING MATTERS

SEC. 301. LIMITED USE OF TELECOMMUTING TO SATISFY INACTIVE-DUTY 
              TRAINING PRESCRIBED OR AUTHORIZED FOR MEMBERS OF RESERVE 
              COMPONENTS.

    Section 206 of title 37, United States Code, is amended by adding 
at the end the following new subsection:
    ``(f) The Secretary concerned may authorize a member of the 
National Guard or of a reserve component of the uniformed services to 
use telecommuting to satisfy a regular period of instruction or period 
of appropriate duty prescribed or authorized for the member or to 
perform such other equivalent training, instruction, duty, or 
appropriate duties as the Secretary may prescribe or authorize. 
Telecommuting may not account for more than 16 hours of inactive-duty 
training by a member in any calendar-year quarter.''.

SEC. 302. PRIORITY FOR SPACE-AVAILABLE TRAVEL FOR MEMBERS OF RESERVE 
              COMPONENTS.

    (a) Priority on Same Basis as Active-Duty Members.--(1) Chapter 
1805 of title 10, United States Code, is amended by adding at the end 
the following new section:
``Sec. 18507. Reserve component members: priority for space-available 
              travel
    ``The Secretary of Defense shall provide that members of the 
Selected Reserve are accorded eligibility for travel on Department of 
Defense aircraft on a space-available basis in the same category (or 
with the same priority) as is accorded to members of the armed forces 
serving on active duty.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new item:

``18507. Reserve component members: priority for space-available 
                            travel.''.
    (b) Effective Date.--Section 18507 of title 10, United States Code, 
as added by subsection (a), shall take effect at the end of the 180-day 
period beginning on the date of the enactment of this Act.
                                 <all>