<?xml version="1.0"?>
<?xml-stylesheet type="text/xsl" href="billres.xsl"?>
<!DOCTYPE bill PUBLIC "-//US Congress//DTDs/bill.dtd//EN" "bill.dtd">
<bill bill-stage="Introduced-in-House" dms-id="H99DFD50E21084170BB34090069AFAE5" public-private="public" bill-type="olc">
<form>
<distribution-code display="yes">I</distribution-code>
<congress>108th CONGRESS</congress> <session>2d Session</session>
<legis-num>H. R. 4753</legis-num>
<current-chamber>IN THE HOUSE OF REPRESENTATIVES</current-chamber>
<action>
<action-date date="20040625">June 25, 2004</action-date>
<action-desc><sponsor name-id="S000510">Mr. Smith of Washington</sponsor> introduced the following bill; which was referred to the <committee-name committee-id="HAS00">Committee on Armed Services</committee-name>, and in addition to the Committees on <committee-name committee-id="HGO00">Government Reform</committee-name> and <committee-name committee-id="HWM00">Ways and Means</committee-name>, 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</action-desc>
</action>
<legis-type>A BILL</legis-type>
<official-title>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.</official-title>
</form>
<legis-body id="HC78BCB947A4348F0BDCF551293F9A4D0" style="OLC">
<section id="H25382DF631A84D02B54851FDFE15853F" section-type="section-one"><enum>1.</enum><header>Short title; table of contents</header>
<subsection id="H44E931690DC349C7AEB6AAA2E515B1AE"><enum>(a)</enum><header>Short title</header><text>This Act may be cited as the <quote>Enhancing America's Guard and Reserve<short-title> Act</short-title></quote>.</text></subsection>
<subsection id="H825E39176AD145E98D904D9FFCC45200"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for this Act is as follows:</text>
<toc container-level="legis-body-container" quoted-block="no-quoted-block" lowest-level="section" regeneration="yes-regeneration" lowest-bolded-level="division-lowest-bolded">
<toc-entry idref="H25382DF631A84D02B54851FDFE15853F" level="section">Sec. 1. Short title; table of contents</toc-entry>
<toc-entry idref="HC4DDF2F77B3C4BD5A170866CA3AD4504" level="title">Title I—Compensation Matters</toc-entry>
<toc-entry idref="H1A9C4640895B4C8180CE46CA5F3B097B" level="section">Sec. 101. Nonreduction in pay while Federal employee is serving on active duty in a reserve component of the uniformed services</toc-entry>
<toc-entry idref="H22568ABD168D4CAEABCC45EA30181936" level="section">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</toc-entry>
<toc-entry idref="H33EF19862CE04EF58C3610C239781D9C" level="section">Sec. 103. Active-duty reserve component employee credit added to general business credit</toc-entry>
<toc-entry idref="H3893A55B6B46419B9EA641BF9FE5C200" level="section">Sec. 104. Eligibility for retired pay for non-regular service</toc-entry>
<toc-entry idref="H90E258E3584A4E67A2838F31D7CF9F38" level="title">Title II—Health Care and Education Matters</toc-entry>
<toc-entry idref="HB1F7099164DE4D6FA29573B5CE38294" level="section">Sec. 201. Permanent authority for certain TRICARE benefits for Reserves</toc-entry>
<toc-entry idref="H4C1037736EEB4C379B8ECBA6D644C37F" level="section">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</toc-entry>
<toc-entry idref="H8D513D28B9F749F0A9300049B4652D53" level="section">Sec. 203. Prohibition on denial of benefits under the Montgomery GI Bill for members of reserve components in conjunction with calls to active duty</toc-entry>
<toc-entry idref="H8A6BB6DDF87248239C2DD942DFB8E82" level="title">Title III—Commuting Matters</toc-entry>
<toc-entry idref="H3A9C7B3D034948909E084F349ED28200" level="section">Sec. 301. Limited use of telecommuting to satisfy inactive-duty training prescribed or authorized for members of reserve components</toc-entry>
<toc-entry idref="H98A1FFBF34304ECD8972C12D073ED4E8" level="section">Sec. 302. Priority for space-available travel for members of reserve components</toc-entry> </toc></subsection></section>
<title id="HC4DDF2F77B3C4BD5A170866CA3AD4504"><enum>I</enum><header>Compensation Matters</header>
<section id="H1A9C4640895B4C8180CE46CA5F3B097B"><enum>101.</enum><header>Nonreduction in pay while Federal employee is serving on active duty in a reserve component of the uniformed services</header>
<subsection id="H61B9C571BE724B8ABD6F00785FB52399"><enum>(a)</enum><header>In general</header><text>Subchapter IV of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/55">chapter 55</external-xref> of title 5, United States Code, is amended by adding at the end the following new section:</text>
<quoted-block id="H0D7D62FA9F1B47708B5D2400C410659C" style="USC">
<section id="H9DE1E4FC16FD472A9F00498564591E07"><enum>5538.</enum><header>Nonreduction in pay while serving on active duty in a reserve component</header>
<subsection id="HF8E8829D1A9848CEBB4B4437D5E7BF00"><enum>(a)</enum><text>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—</text>
<paragraph id="H8AD19D288F914058A93B382BC63C9588"><enum>(1)</enum><text>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</text></paragraph>
<paragraph id="H65047977184D458698DED76BF09A4E8"><enum>(2)</enum><text>the amount of military compensation that is payable to the employee for the service on active duty and is allocable to such pay period.</text></paragraph></subsection>
<subsection id="H30BC99A80F5C4E0EA9DD415D009503F7"><enum>(b)</enum>
<paragraph id="HB412B6E33CC048C9001CADADF47B3D85" display-inline="yes-display-inline"><enum>(1)</enum><text>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—</text>
<subparagraph id="H942796F52D9F464387031659E5F26EDD" indent="up1"><enum>(A)</enum><text>while the employee serves on active duty for a period of more than 30 days;</text></subparagraph>
<subparagraph id="HDF8A957B240E421FB73C6C3B4343F307" indent="up1"><enum>(B)</enum><text>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</text></subparagraph>
<subparagraph id="H8752DF868AB74DDEAD2D5231A4BB8DA8" indent="up1"><enum>(C)</enum><text>during the 14-day period beginning at the end of such active duty or the end of the period referred to in subparagraph (B).</text></subparagraph></paragraph>
<paragraph id="H8F311743043B4924AF691B33BB7E9EE9" indent="up1"><enum>(2)</enum><text>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.</text></paragraph></subsection>
<subsection id="H18AAED219DE64B1D9486A2FDD23FFCF6"><enum>(c)</enum><text>Any amount payable under this section to an employee shall be paid—</text>
<paragraph id="H6AA6B484AC7B4C55B9191FFC977B598D"><enum>(1)</enum><text>by employing agency of the employee;</text></paragraph>
<paragraph id="H231332DF80C540CB875CA800CF752DB4"><enum>(2)</enum><text>from the appropriations or fund that would be used to pay the employee if the employee were in a pay status; and</text></paragraph>
<paragraph id="H1C3A7D908024494C000029E43ED3F15F"><enum>(3)</enum><text>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.</text></paragraph></subsection>
<subsection id="HB7A5B261406247AD8500BD5292B9F6F"><enum>(d)</enum><text>In consultation with Secretary of Defense, the Office of Personnel Management shall prescribe such regulations as may be necessary to carry out this section.</text></subsection>
<subsection id="H2CEF26A2ED8A497593A5E6C115982B"><enum>(e)</enum>
<paragraph id="H2F90833F00F84969B1AA155717676705" display-inline="yes-display-inline"><enum>(1)</enum><text>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.</text></paragraph>
<paragraph id="H31B2011A375348DFB07C88BB8F4AC7D" indent="up1"><enum>(2)</enum><text>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.</text></paragraph></subsection>
<subsection id="H24B70959AB0C45D380FA41C7664C41A5"><enum>(f)</enum><text>In this section:</text>
<paragraph id="HD8692C321FEB46C19BCC310089703B28"><enum>(1)</enum><text>The terms <term>active duty for a period of more than 30 days</term>, <term>member</term>, and <term>reserve component</term> have the meanings given such terms in <external-xref legal-doc="usc" parsable-cite="usc/37/101">section 101</external-xref> of title 37.</text></paragraph>
<paragraph id="HE9A0E37818724228BCE4755071184104"><enum>(2)</enum><text>The term <term>civilian basic pay</term> includes any amount payable under section 5304 of this title.</text></paragraph>
<paragraph id="H95D8F4DAFD7642F999A61BBC20BF7E38"><enum>(3)</enum><text>The term <term>employing agency</term>, 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 <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/38/43">chapter 43</external-xref> of title 38.</text></paragraph>
<paragraph id="H1DF15FD9BD204020AB650034D2707280"><enum>(4)</enum><text>The term <term>military compensation</term> has the meaning given the term <term>pay</term> in <external-xref legal-doc="usc" parsable-cite="usc/37/101">section 101(21)</external-xref> of title 37.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H72EA7D3651CC44B3A8BA95EB26F6EE4F"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections at the beginning of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/5/55">chapter 55</external-xref> of title 5, is amended by inserting after the item relating to <external-xref legal-doc="usc" parsable-cite="usc/5/5537">section 5537</external-xref> the following new item:</text>
<quoted-block id="H7B2BED77892C4C11A2BB7662727E589F" style="USC">
<toc regeneration="no-regeneration">
<toc-entry level="section">5538. Nonreduction in pay while serving on active duty in a reserve component</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HF9AAD5FC79EE48F5957CFA39A521C0E2"><enum>(c)</enum><header>Application of amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/5/5538">Section 5538</external-xref> 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.</text></subsection></section>
<section id="H22568ABD168D4CAEABCC45EA30181936" display-inline="no-display-inline" section-type="subsequent-section"><enum>102.</enum><header>Assistance for State and local governments that continue to pay employees who serve on active duty in a reserve component of the uniformed services</header>
<subsection id="HCACD40F6FFCE4D21BECBC58BC4ECF700"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/37/17">Chapter 17</external-xref> of title 37, United States Code, is amended by adding at the end the following new section:</text>
<quoted-block style="USC" id="HC0FB00775A904B918E065EE7CFEF11B1">
<section id="H6787B2E05F954EC994E9C196BAE81447"><enum>910.</enum><header>Assistance for State and local governments that continue to pay employees who serve on active duty</header>
<subsection id="HD1E08B1BF63B4A939FA917B224B39B65"><enum>(a)</enum><header>Continuation of civilian basic pay</header><text>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.</text></subsection>
<subsection id="HD8F97E29E88F4399AC09F88C7D39029E"><enum>(b)</enum><header>Reimbursement offered</header>
<paragraph display-inline="yes-display-inline" id="HD28E11C3DFE642218E74B4004D853EBE"><enum>(1)</enum><text>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—</text>
<subparagraph indent="up1" id="H8578B5395A4D4E68AB67028F57FA6E64"><enum>(A)</enum><text>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</text></subparagraph>
<subparagraph indent="up1" id="H49F650BB57ED4874A300F977578178AC"><enum>(B)</enum><text>the amount of military pay that is payable to the employee for the service on active duty and is allocable to such pay period.</text></subparagraph></paragraph>
<paragraph indent="up1" id="HBAB798DFD1304D219C58D584E7E61DB6"><enum>(2)</enum><text>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—</text>
<subparagraph id="H61A971D59F8F4E9C8027760020ACC20"><enum>(A)</enum><text>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</text></subparagraph>
<subparagraph id="HCF39CEA726254C8CB0C994EDBAF884C5"><enum>(B)</enum><text>the amount of military pay that is payable to the employee for the service on active duty and is allocable to such pay period.</text></subparagraph></paragraph></subsection>
<subsection id="H68F237BD27E6488D924B0526C3CF2A1"><enum>(c)</enum><header>Pay periods</header><text>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—</text>
<paragraph id="H104522DB18E64626B7DC00BB8B4BFCAC"><enum>(1)</enum><text>while the employee serves on active duty for a period of more than 30 days;</text></paragraph>
<paragraph id="H8BAB334A68DD447396DFDCB93CA0A58"><enum>(2)</enum><text>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</text></paragraph>
<paragraph id="H5D44D9E7957E41B092C16E42B12D7460"><enum>(3)</enum><text>during the 14-day period beginning at the end of such active duty or the end of the period referred to in subparagraph (B).</text></paragraph></subsection>
<subsection id="H1F58DD18AFDD4B2CAB24540300441277"><enum>(d)</enum><header>Effect of failure to return to employment</header>
<paragraph display-inline="yes-display-inline" id="H35E1F2E100E84166963B90BAA5E1C85"><enum>(1)</enum><text>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.</text></paragraph>
<paragraph indent="up1" id="HDD6DDFEAB3AC4AD6BDFCCF9D6CA855DC"><enum>(2)</enum><text>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.</text></paragraph>
<paragraph indent="up1" id="H3832F9134869468FA2C2328856B641B"><enum>(3)</enum><text>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.</text></paragraph>
<paragraph indent="up1" id="H2FF2103A403D4797BBBD35FA29CEEB97"><enum>(4)</enum><text>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.</text></paragraph></subsection>
<subsection id="H14E67C036E2D4795B105EF3904A8ECC0"><enum>(e)</enum><header>Regulations</header><text>The Secretaries concerned shall prescribe regulations to carry out this section.</text></subsection>
<subsection id="H0067FC1DD1F54C5A97312CC64D5C62C7"><enum>(f)</enum><header>Definitions</header><text>In this section:</text>
<paragraph id="H5A91A7C779E840538178C2B98120C1F6"><enum>(1)</enum><text>The term <term>civilian compensation</term> 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.</text></paragraph>
<paragraph id="H1C5A21A9050B4C4F84E07753C1C87D3C"><enum>(2)</enum><text>The term <term>local government</term> means an agency or political subdivision of a State.</text></paragraph>
<paragraph id="H9C686457E8924409B201AC653613B099"><enum>(3)</enum><text>The term <term>military pay</term> has the meaning given the term <term>pay</term> in section 101(21) of this title.</text></paragraph>
<paragraph id="H8597610BF5194DFF8B24220019AFC097"><enum>(4)</enum><text>The term <term>State</term> 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.</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H3555F7C89A2444F69CB79F571F20899F"><enum>(b)</enum><header>Clerical amendment</header><text>The table of sections at the beginning of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/37/17">chapter 17</external-xref> of title 37, is amended by inserting after the item relating to <external-xref legal-doc="usc" parsable-cite="usc/37/909">section 909</external-xref> the following new item:</text>
<quoted-block style="USC" id="H9A7DA1367BE14843A74EE6D502A0AFDB">
<toc regeneration="no-regeneration">
<toc-entry level="section">910. Assistance for State and local governments that continue to pay employees who serve on active duty</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="HB325F43495194FC0A900EA453FA8C0DD"><enum>(c)</enum><header>Application of amendment</header><text><external-xref legal-doc="usc" parsable-cite="usc/37/910">Section 910</external-xref> 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.</text></subsection></section>
<section id="H33EF19862CE04EF58C3610C239781D9C"><enum>103.</enum><header>Active-duty reserve component employee credit added to general business credit</header>
<subsection id="H743C6F5408C5442C9E97814230C2382C"><enum>(a)</enum><header>Addition of credit</header><text>Subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:</text>
<quoted-block id="H5115089CED194755AA1B82A3AE7616F3">
<section id="HEFBE8C62B5AF459E8B401B001C293F4F"><enum>45G.</enum><header>Active-duty reserve component employee credit</header>
<subsection id="HB9030CFD1F2848F6A756AB00E7C79E9D"><enum>(a)</enum><header>General rule</header><text>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—</text>
<paragraph id="H40CB57A657B8483584E36624BBBB2FA"><enum>(1)</enum><text>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</text></paragraph>
<paragraph id="H5CBE2013FC944F35B0BBF253A2578434"><enum>(2)</enum><text>the amount of military pay that is payable to the employee during the absence.</text></paragraph></subsection>
<subsection id="H4BE86BD6999F4EC0BB3473E0EE89FF94"><enum>(b)</enum><header>Covered pay periods</header><text>Subsection (a) shall apply with respect to an employee who is also a member of a reserve component—</text>
<paragraph id="H14A225451DCF462CBB766F7318A32BB6"><enum>(1)</enum><text>while the employee serves on active duty for a period of more than 30 days;</text></paragraph>
<paragraph id="HF2C701DC720D44DF96F60325F9F81CF3"><enum>(2)</enum><text>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</text></paragraph>
<paragraph id="H4DDDA929511D43EF8DA68EE6E702D0C3"><enum>(3)</enum><text>during the 14-day period beginning at the end of such active duty or the end of the period referred to in subparagraph (B).</text></paragraph></subsection>
<subsection id="HD323C97C7ADE407DAEB7B71B37034B89"><enum>(c)</enum><header>Limitation</header><text>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.</text></subsection>
<subsection id="H3188A020B2BB42FB85D6A619DC1D0018"><enum>(d)</enum><header>Definitions</header><text>For purposes of this section—</text>
<paragraph id="HA9C2445FA03B4511B15F2D5392A13B1"><enum>(1)</enum><text>The terms <term>active duty for a period of more than 30 days</term>, <term>member</term>, and <term>reserve component</term> have the meanings given such terms in <external-xref legal-doc="usc" parsable-cite="usc/37/101">section 101</external-xref> of title 37, United States Code.</text></paragraph>
<paragraph id="H883B10C996E449C6868F9CC4B0009C9C"><enum>(2)</enum><text>The term <term>compensation</term> 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).</text></paragraph></subsection></section><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H9D0D12CA462E456BADCF0250AAC408F2"><enum>(b)</enum><header>Credit to be part of general business credit</header><text>Subsection (b) of section 38 of such Code (relating to general business credit) is amended by striking <quote>plus</quote> at the end of paragraph (14), by striking the period at the end of paragraph (15) and inserting <quote>, plus</quote>, and by adding at the end the following new paragraph:</text>
<quoted-block id="H5A61F78F82994DEEB1472E314CCC196F">
<paragraph id="HC9CD2498E75C47BF90F8EC47833EC166"><enum>(16)</enum><text>the active-duty reserve component employee credit determined under section 45G(a).</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H5CA9F8744C974D3F8E61796F242505E7"><enum>(c)</enum><header>Conforming amendment</header><text>The table of sections for subpart D of part IV of subchapter A of <external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/26/1">chapter 1</external-xref> of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 45F the following new item:</text>
<quoted-block style="USC" id="H104E9C10E5D8486187A08F56662B27CC">
<toc regeneration="no-regeneration">
<toc-entry level="section">Sec. 45G. Active-duty reserve component employee credit</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H9BC91D72E4E74802BF46184810B650DC"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall apply to taxable years beginning after December 31, 2001.</text></subsection></section>
<section id="H3893A55B6B46419B9EA641BF9FE5C200"><enum>104.</enum><header>Eligibility for retired pay for non-regular service</header>
<subsection id="H20E3DBEB51A046798C481D11A9F3528"><enum>(a)</enum><header>Age and service requirements</header><text>Subsection (a) of <external-xref legal-doc="usc" parsable-cite="usc/10/12731">section 12731</external-xref> of title 10, United States Code, is amended to read as follows:</text>
<quoted-block id="HF1BDFA03C14E47CC8D8F36B9D2C78FBB" style="USC">
<subsection id="H3AA78B07DA3B461786C5CDCE237F93"><enum>(a)</enum>
<paragraph display-inline="yes-display-inline" id="HBD6307E79ED443E4B457C466316861A5"><enum>(1)</enum><text>Except as provided in subsection (c), a person is entitled, upon application, to retired pay computed under <external-xref legal-doc="usc" parsable-cite="usc/10/12739">section 12739</external-xref> of this title, if the person—</text>
<subparagraph indent="up1" id="H23D0F69B38394A3EB1004DFAF31706F1"><enum>(A)</enum><text>satisfies one of the combinations of requirements for minimum age and minimum number of years of service (computed under <external-xref legal-doc="usc" parsable-cite="usc/10/12732">section 12732</external-xref> of this title) that are specified in the table in paragraph (2);</text></subparagraph>
<subparagraph indent="up1" id="H766D54571C17499F97BDD034BC4B79B2"><enum>(B)</enum><text>performed the last six years of qualifying service while a member of any category named in <external-xref legal-doc="usc" parsable-cite="usc/10/12732">section 12732(a)(1)</external-xref> 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 <external-xref legal-doc="usc" parsable-cite="usc/10/12732">section 12732</external-xref> of this title before October 5, 1994, the number of years of qualifying service under this subparagraph shall be eight; and</text></subparagraph>
<subparagraph indent="up1" id="H61D5C012EEDF455885AEF2876F7C977"><enum>(C)</enum><text>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.</text></subparagraph></paragraph>
<paragraph id="HDB28EA96E6354B1DA2EB00CDC604B762" indent="up1"><enum>(2)</enum><text>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:</text>
<table table-type="subformat-2-Flush-Hang-Box-Right-Col-Fig" align-to-level="paragraph" frame="none" line-rules="no-gen" blank-lines-before="1">
<tgroup cols="2"><colspec colname="col1" coldef="txt" min-data-value="0" colwidth="177.75pt" colsep="0"/><colspec colname="col2" coldef="txt" min-data-value="0" colwidth="197.25pt" colsep="0"/><thead>
<row><entry colname="I49" align="left" rowsep="0"><bold>If the person’s age, in years, </bold></entry><entry colname="I50" align="right" rowsep="0"><bold>The minimum years of </bold></entry></row>
<row><entry colname="I49" align="left" rowsep="0"> <bold>is at least:</bold></entry><entry colname="I50" align="right" rowsep="0"><bold>service required is </bold></entry></row></thead>
<tbody>
<row><entry colname="I15" align="left" rowsep="0">49</entry><entry colname="I07" align="right" rowsep="0">31</entry></row>
<row><entry colname="I15" align="left" rowsep="0">50</entry><entry colname="I07" align="right" rowsep="0">30</entry></row>
<row><entry colname="I15" align="left" rowsep="0">51</entry><entry colname="I07" align="right" rowsep="0">29</entry></row>
<row><entry colname="I15" align="left" rowsep="0">52</entry><entry colname="I07" align="right" rowsep="0">28</entry></row>
<row><entry colname="I15" align="left" rowsep="0">53</entry><entry colname="I07" align="right" rowsep="0">27</entry></row>
<row><entry colname="I15" align="left" rowsep="0">54</entry><entry colname="I07" align="right" rowsep="0">26</entry></row>
<row><entry colname="I15" align="left" rowsep="0">55</entry><entry colname="I07" align="right" rowsep="0">25</entry></row>
<row><entry colname="I15" align="left" rowsep="0">56</entry><entry colname="I07" align="right" rowsep="0">24</entry></row>
<row><entry colname="I15" align="left" rowsep="0">57</entry><entry colname="I07" align="right" rowsep="0">23</entry></row>
<row><entry colname="I15" align="left" rowsep="0">58</entry><entry colname="I07" align="right" rowsep="0">22</entry></row>
<row><entry colname="I15" align="left" rowsep="0">59</entry><entry colname="I07" align="right" rowsep="0">21</entry></row>
<row><entry colname="I15" align="left" rowsep="0">60</entry><entry colname="I07" align="right" rowsep="0">20</entry></row></tbody></tgroup></table></paragraph> </subsection> <after-quoted-block>. </after-quoted-block></quoted-block></subsection>
<subsection id="H05CE64C41C9645FFA9D209D91F2B4893"><enum>(b)</enum><header>20-Year letter</header><text>Subsection (d) of such section is amended by striking <quote>the years of service required for eligibility for retired pay under this chapter</quote> in the first sentence and inserting <quote>20 years of service computed under section 12732 of this title</quote>.</text></subsection>
<subsection id="H328767985D024803865100D19C53C314"><enum>(c)</enum><header>Effective date</header><text>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.</text></subsection></section></title>
<title id="H90E258E3584A4E67A2838F31D7CF9F38"><enum>II</enum><header>Health Care and Education Matters</header>
<section id="HB1F7099164DE4D6FA29573B5CE38294"><enum>201.</enum><header>Permanent authority for certain TRICARE benefits for Reserves</header>
<subsection id="HA12F8796AA8C4D60B343C03775B32D27"><enum>(a)</enum><header>Permanent authority for coverage of Ready Reserve members under TRICARE program</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/1076b">Section 1076b</external-xref> of title 10, United States Code, is amended by striking subsection (l).</text></subsection>
<subsection id="H839AD0DFA095421882EE3C40C8D7FCD9"><enum>(b)</enum><header>Permanent authority for earlier eligibility date for TRICARE benefits for members of Reserve components</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/1074">Section 1074(d)</external-xref> of title 10, United States Code, is amended by striking paragraph (3).</text></subsection>
<subsection id="H0687DE0C1CC3482EBEABF07E2F029DF1"><enum>(c)</enum><header>Permanent extension of transitional health care benefits</header>
<paragraph id="H19DAEEE4C9C94B8DA1E7E5E344B726E"><enum>(1)</enum><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/10/1145">section 1145(a)</external-xref> of title 10, United States Code, is amended to read as follows:</text>
<quoted-block style="multiple-resolved-clause" id="H42FDE3D500E140FCA7A800A539F78101" display-inline="no-display-inline">
<paragraph id="H7867693770DA45CAA859DF21A7ABBAC9" indent="subsection"><enum>(3)</enum><text>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.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HD31BA4243C9240EDAA4B6F34434DD802"><enum>(2)</enum><text>Paragraph (3) of <external-xref legal-doc="usc" parsable-cite="usc/10/1145">section 1145(a)</external-xref> of title 10, United States Code, shall apply with respect to separations from active duty that take effect on or after November 24, 2003.</text></paragraph>
<paragraph id="H885671F5C8EB4A72B2CD4B6680599EEA"><enum>(3)</enum><text>Section 704 of the National Defense Authorization Act for Fiscal Year 2004 (<external-xref legal-doc="public-law" parsable-cite="pl/108/136">Public Law 108–136</external-xref>; 117 Stat. 1527) and section 1117 of the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan, 2004 (<external-xref legal-doc="public-law" parsable-cite="pl/108/106">Public Law 108–106</external-xref>; 117 Stat. 1218) are repealed.</text> </paragraph></subsection></section>
<section id="H4C1037736EEB4C379B8ECBA6D644C37F"><enum>202.</enum><header>Increase in amount of basic educational assistance under the Montgomery GI Bill for members of reserve components; indexing payment amounts to higher education costs</header>
<subsection id="H522F5288A9D644F7A9BF1DDE67C99735"><enum>(a)</enum><header>In general</header><text>(1) Paragraph (1) of <external-xref legal-doc="usc" parsable-cite="usc/10/16131">Section 16131(b)</external-xref> of title 10, United States Code, is amended—</text>
<paragraph id="H4AB6AE8ACB4D446DA3F8EF688FB8A53B"><enum>(A)</enum><text>in subparagraph (A), by striking <quote>$251</quote> and inserting <quote>$600</quote>;</text></paragraph>
<paragraph id="H7B5A0279F2CD4196876CE00800A2D679"><enum>(B)</enum><text>in subparagraph (B), by striking <quote>$188</quote> and inserting <quote>$450</quote>; and</text></paragraph>
<paragraph id="HDEFAD7C130244CABA64931DE63B72629"><enum>(C)</enum><text>in subparagraph (C), by striking <quote>$125</quote> and inserting <quote>$300</quote>.</text></paragraph></subsection>
<subsection id="HF67B25B57AF4471B8BDAEDDBDB0897B"><enum>(2)</enum><text>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.</text></subsection>
<subsection id="HCB8C3A569835422FB48EAB12668B93B1"><enum>(3)</enum><text>In the case of an educational assistance allowance under such section paid for months occurring during fiscal year 2005—</text>
<paragraph id="H53994B4729204F7E81361FEBDD3FFC9"><enum>(A)</enum><text>subparagraph (A) of such section shall be applied by substituting <quote>$475</quote> for <quote>$251</quote>;</text></paragraph>
<paragraph id="H105DAE7219F945B5B973A13B86B3A8D5"><enum>(B)</enum><text>subparagraph (B) of such section shall be applied by substituting <quote>$325</quote> for <quote>$188</quote>; and</text></paragraph>
<paragraph id="H33990B07CB3E4030801816B44B6CADE6"><enum>(C)</enum><text>subparagraph (C) of such section shall be applied by substituting <quote>$215</quote> for <quote>$125</quote>.</text></paragraph></subsection>
<subsection id="HAAFA67CE1FEA407F828657F4D2F6702"><enum>(b)</enum><header>No adjustment for fiscal years 2005 and 2006</header><text>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.</text></subsection>
<subsection id="HCC417B8738C54E3AA602F8623A164D"><enum>(c)</enum><header>Application of index based on higher education costs</header><text>(1) <external-xref legal-doc="usc" parsable-cite="usc/10/16131">Section 16131(b)(2)</external-xref> of title 10, United States Code, is amended to read as follows:</text>
<quoted-block style="USC" id="H25F85CD20D9440C6B2B4789C0065F0A3" display-inline="no-display-inline">
<subsection id="HBDEB5B10CC99475584C178F805E96521"><enum>(2)(A) </enum><text>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—</text>
<paragraph id="H649BDF79129845AAA09399DA6F36D219"><enum>(i)</enum><text>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</text></paragraph>
<paragraph id="H24945541CC56440DA26FE4FB6801F327"><enum>(ii)</enum><text>such average monthly costs for the preceding fiscal year.</text></paragraph></subsection>
<subsection id="H7BF19689F6464F7D8EA885F7251D089B"><enum>(B)</enum><text>The Secretary shall make the determination under subparagraph (A) after consultation with the Secretary of Education.</text></subsection>
<subsection id="H10911D1D6135496E811F606D9787E370"><enum>(C)</enum><text>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.</text></subsection>
<subsection id="HE0A18E31E7C64CD5B799A0A32DE20069"><enum>(D)</enum><text>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.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></subsection>
<subsection id="H7DA6B40FE46F4AEDA6BCC80026A96D80"><enum>(2)(A)</enum><text><external-xref legal-doc="usc" parsable-cite="usc/38/3015">Section 3015(h)</external-xref> of title 38, United States Code, is amended by striking <quote>by which—</quote> and all that follows and inserting <quote>determined by the Secretary under section
of title 10 for the fiscal year involved.</quote>.</text></subsection>
<subsection id="H86E2828BD3254C85B629BC55FDCF1E"><enum>(B)</enum><text>The amendment made by subparagraph (A) shall apply to fiscal years beginning on or after October 1, 2006.</text></subsection></section>
<section id="H8D513D28B9F749F0A9300049B4652D53"><enum>203.</enum><header>Prohibition on denial of benefits under the Montgomery GI Bill for members of reserve components in conjunction with calls to active duty</header>
<subsection id="HE63063FF4046478D8E770690E94BF777"><enum>(a)</enum><header>In general</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/16134">Section 16134</external-xref> of title 10, United States Code, is amended—</text>
<paragraph id="H5CFCA376C447417E9F180700492D90AC"><enum>(1)</enum><text>by striking <quote>Educational</quote> and inserting <quote>(a)<header-in-text level="subsection"> General Rule.—</header-in-text>Educational</quote>; and</text></paragraph>
<paragraph id="HC5F2D167CD164A36BB6680E5BF804FB2"><enum>(2)</enum><text>by adding at the end the following new subsection:</text>
<quoted-block style="OLC" id="H171B7DA7751745B0973042B52D708920" display-inline="no-display-inline">
<subsection id="H90A49C17A4384D569864AC02EE9E3DA7"><enum>(b)</enum><header>Prohibition on termination of assistance due solely to call to active duty</header><text>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).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HBC453D12CA9D4B5DA0ADC663F25605F5"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply before, on, or after the date of the enactment of this Act.</text></subsection></section> </title>
<title id="H8A6BB6DDF87248239C2DD942DFB8E82"><enum>III</enum><header>Commuting Matters</header>
<section id="H3A9C7B3D034948909E084F349ED28200" section-type="subsequent-section"><enum>301.</enum><header>Limited use of telecommuting to satisfy inactive-duty training prescribed or authorized for members of reserve components</header><text display-inline="no-display-inline"><external-xref legal-doc="usc" parsable-cite="usc/37/206">Section 206</external-xref> of title 37, United States Code, is amended by adding at the end the following new subsection:</text>
<quoted-block style="USC" id="HC24098F945674466A5451EB448002D5C" display-inline="no-display-inline">
<subsection id="HBC66B2AE510B4F838E7136ABBD1BDF6F"><enum>(f)</enum><text>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.</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section>
<section id="H98A1FFBF34304ECD8972C12D073ED4E8" section-type="subsequent-section"><enum>302.</enum><header>Priority for space-available travel for members of reserve components</header>
<subsection id="H2C6B7F5BF4A3484BAACFFCC959002800"><enum>(a)</enum><header>Priority on same basis as active-duty members</header>
<paragraph id="H6E74ABED4E5C44B8AFB8CC5C1C5B1BCB" display-inline="yes-display-inline"><enum>(1)</enum><text><external-xref legal-doc="usc-chapter" parsable-cite="usc-chapter/10/1805">Chapter 1805</external-xref> of title 10, United States Code, is amended by adding at the end the following new section:</text>
<quoted-block style="USC" display-inline="no-display-inline" id="H0B530F64C6A04E2EB61E4D6919874F01">
<section id="H61F7E120E09A4EB4A0FCFC08AF4E00A5"><enum>18507.</enum><header>Reserve component members: priority for space-available travel</header> <text display-inline="no-display-inline">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.</text></section><after-quoted-block>.</after-quoted-block></quoted-block></paragraph>
<paragraph id="HC8132B1655C2406E00006856648D234F" indent="up1"><enum>(2)</enum><text>The table of sections at the beginning of such chapter is amended by adding at the end the following new item:</text>
<quoted-block style="OLC" display-inline="no-display-inline" id="HC2F3C07CB0894BEC8B483774BF44F20">
<toc regeneration="no-regeneration">
<toc-entry level="section">18507. Reserve component members: priority for space-available travel</toc-entry></toc><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></subsection>
<subsection id="HCF1FA9AB42BD4A96B52B10E66664B511"><enum>(b)</enum><header>Effective date</header><text><external-xref legal-doc="usc" parsable-cite="usc/10/18507">Section 18507</external-xref> 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.</text> </subsection></section></title>
</legis-body>
</bill>


