S.Amdt. 1998

1. Adds TITLE X--FINANCIAL PROTECTIONS FOR SERVICEMEMBERS at the end of the bill

   Adds a title

   In H.R. 2863 · Reported to Senate

   Sec. 9013. Amounts appropriated or otherwise made available in this title are designated as making appropriations for contingency operations related to the global war on terrorism pursuant to section 402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on the budget for fiscal year 2006. This Act may be cited as the "Department of Defense Appropriations Act, 2006".

   Inserted: TITLE X--FINANCIAL PROTECTIONS FOR SERVICEMEMBERS

   Inserted: SEC. 1001. SHORT TITLE.

   Inserted: This title may be cited as the "Patriot Penalty Elimination Act of 2005".

   Inserted: SEC. 1002. INCOME PRESERVATION PAY FOR RESERVES SERVING ON ACTIVE DUTY IN SUPPORT OF A CONTINGENCY OPERATION.

   Inserted: (a) Authority.--Chapter 1209 of title 10, United States Code, is amended by inserting after section 12316 the following new section:

   Inserted: "Sec. 12316a. Reserves: income preservation pay

   Inserted: "(a) Requirement To Pay.--The Secretary of the military department concerned shall pay income preservation pay under this section to an eligible member of a reserve component of the armed forces in connection with the member's active-duty service as described in subsection (b).

   Inserted: "(b) Eligible Member.--A member is eligible for income preservation pay if--

   Inserted: "(1) in the case of a member who is an employee of the Federal Government--

   Inserted: "(A) the member is called or ordered to active duty (other than voluntarily) under a provision of law referred to in section 101(a)(13)(B) of this title;

   Inserted: "(B)(i) pursuant to such call or order, the member serves on active duty outside the United States during at least 6 out of 12 consecutive months; or

   Inserted: "(ii) in the case of any member who has served on active duty outside the United States at any time pursuant to such a call or order and also serves on active duty pursuant to such a call or order in an area affected by Hurricane Katrina or Hurricane Rita, the member serves on active duty pursuant to such calls or orders to active duty during at least 6 out of 12 consecutive months; and

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   Inserted: "(C) with respect to such active-duty service, the amount of the member's preservice earned income determined under subparagraph (A) of subsection (c)(1) exceeds the amount of the member's military service income determined under subparagraph (B) of such subsection; or

   Inserted: "(2) in the case of any other member, the member--

   Inserted: "(A) meets the requirements of paragraph (1); and

   Inserted: "(B) is not receiving employment income preservation payments from the qualifying employer of the member as described in section 12316b of this title.

   Inserted: "(c) Amount.--(1) Subject to paragraph (2), the amount payable under this section to a member in connection with active-duty service is the amount equal to the excess (if any) of--

   Inserted: "(A) the amount computed by multiplying--

   Inserted: "(i) the preservice average monthly earned income of the member, by

   Inserted: "(ii) the total number of the member's service months for such active-duty service, over

   Inserted: "(B) the amount computed by multiplying--

   Inserted: "(i) the military service average monthly income of the member, by

   Inserted: "(ii) the total number of months determined under subparagraph (A)(ii).

   Inserted: "(2) The total amount of income preservation pay that is paid to a member under this section may not exceed $10,000.

   Inserted: "(d) Preservice Average Monthly Earned Income.--For the purposes of this section, the preservice average monthly earned income of a member who serves on active duty as described in subsection (b) shall be computed by dividing 12 into the total amount of the member's earned income for the 12 months immediately preceding the member's first service month of the period for which income preservation pay is to be paid to the member under this section.

   Inserted: "(e) Military Service Average Monthly Income.--For the purposes of this section, the military service average monthly income of a member who serves on active duty as described in subsection (b) is the amount determined by dividing--

   Inserted: "(1) the sum of the total amount of the member's earned income (other than basic pay, special and incentive pays, and allowances) and the total amount of the member's basic pay (under section 204 of title 37), any special and incentive pays paid to the member (under chapter 5 of title 37), and any allowances paid to the member (under chapter 7 of title 37) for the member's service months for such active-duty service, by

   Inserted: "(2) the total number of such months.

   Inserted: "(f) Time and Manner of Payment.--(1) Subject to paragraph (2), the total amount of income preservation pay that is payable under this section to a member in connection with service on active duty is due and payable, in one lump sum, not later than 30 days after the date on which the member is released from the active duty.

   Inserted: "(2) The Secretary concerned may make advance payment of income preservation pay in whole or in part under this section to a member, under such terms and conditions as the Secretary determines appropriate, if it is clear from the circumstances that it is likely that the member's active-duty service will satisfy the requirements of subsection (b). In any case in which advance payment is made to a member whose period of such active-duty service does not satisfy such requirements, the Secretary concerned may waive recoupment of the advance payment if the Secretary determines that recoupment would be against equity and good conscience or would be contrary to the best interests of the United States.

   Inserted: "(g) Definitions.--In this section:

   Inserted: "(1) The term 'area affected by Hurricane Katrina or Hurricane Rita' means an area that is under a designation by the President of a major disaster (as that term is defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)) in connection with Hurricane Katrina or Hurricane Rita.

   Inserted: "(2) The term 'earned income' has the meaning given such term in section 32(c)(2) of the Internal Revenue Code of 1986.

   Inserted: "(3) The term 'service month', with respect to service of a member of a reserve component of the armed forces on active duty, means a month during any part of which the member serves on active duty.

   Inserted: "(h) Termination of Authority.--This section shall cease to be effective on the first day of the first month that begins on or after the date that is five years after the date of the enactment of the Patriot Penalty Elimination Act of 2005.".

   Inserted: (b) Recharacterization of Existing Section on Payment of Certain Reserves on Active Duty.--The heading of section 12316 of title 10, United States Code, is amended to read as follows:

   Inserted: "Sec. 12316. Reserves: payment of other entitlement instead of pay and allowances".

   Inserted: (c) Clerical Amendment.--The table of sections at the beginning of chapter 1209 of title 10, United States Code, is amended by striking the item relating to section 12316 and inserting the following new items:

   Inserted: "12316. Reserves: payment of other entitlement instead of pay and allowances.

   Inserted: "12316a. Reserves: income preservation pay.".

   Inserted: (d) Effective Date.--Section 12316a of title 10, United States Code (as added by subsection (a)), shall take effect as of January 1, 2003, and shall apply with respect to active-duty service that begins on or after such date.

   Inserted: SEC. 1003. EMPLOYMENT INCOME PRESERVATION ASSISTANCE GRANTS FOR EMPLOYERS OF RESERVES.

   Inserted: (a) Authority.--Chapter 1209 of title 10, United States Code, as amended by section 1002(a) of this Act, is further amended by inserting after section 12316a the following new section:

   Inserted: "Sec. 12316b. Reserves: employment income preservation assistance grants for employers of reserves

   Inserted: "(a) Requirement To Make Grants.--The Secretary of the military department concerned shall make a grant to each qualifying employer to assist such employer in making employment income preservation payments to a covered member of a reserve component of the armed forces who is an employee of such employer to assist the member in preserving the preservice average monthly wage or salary of the member in connection with the member's active-duty service as described in subsection (c).

   Inserted: "(b) Qualifying Employer.--(1) Except as provided in paragraph (2), for the purposes of this section, a qualifying employer is any employer who makes employment income preservation payments to a covered member to assist the member in preserving the preservice average monthly wage or salary of the member in connection with the member's active-duty service as described in subsection (c).

   Inserted: "(2) A State or local government is not a qualifying employer for the purpose of this section.

   Inserted: "(c) Covered Member.--For the purposes of this section, a member is a covered member if--

   Inserted: "(1) the member is called or ordered to active duty (other than voluntarily) under a provision of law referred to in section 101(a)(13)(B) of this title;

   Inserted: "(2)(A) pursuant to such call or order, the member serves on active duty outside the United States during at least 6 out of 12 consecutive months; or

   Inserted: "(B) in the case of any member who has served on active duty outside the United States at any time pursuant to such a call or order and also serves on active duty pursuant to such a call or order in an area affected by Hurricane Katrina or Hurricane Rita, the member serves on active duty pursuant to such calls or orders to active duty during at least 6 out of 12 consecutive months; and

   Inserted: "(3) with respect to such active-duty service, the amount of the member's preservice average monthly wage or salary (as determined under subsection (e)) exceeds the amount of the member's military service average monthly income (as determined under subsection (f)).

   Inserted: "(d) Employment Income Preservation Payments.--(1) For the purposes of this section, employment income preservation payments are any payments made by a qualifying employer to a covered member in connection with the active-duty service of the member described in subsection (c) in order to make up any excess of the member's preservice average monthly wage or salary over the member's military service average monthly income.

   Inserted: "(2) The total amount of employment income preservation payments with respect to a covered member for which a grant may be made under subsection (a) may not exceed $10,000.

   Inserted: "(e) Preservice Average Monthly Wage or Salary.--For the purposes of this section, the preservice average monthly wage or salary of a covered member who serves on active duty as described in subsection (c) shall be computed by dividing--

   Inserted: "(1) the number of months of employment of the member with the qualifying employer during the 12-month period preceding the member's commencement on active duty as described in subsection (c); into

   Inserted: "(2) the total amount of the member's wage or salary paid by the qualifying employer during such months.

   Inserted: "(f) Military Service Average Monthly Income.--For the purposes of this section, the military service average monthly income of a member who serves on active duty as described in subsection (c) is the amount determined by dividing--

   Inserted: "(1) the sum of the total amount of the member's earned income (other than basic pay, special and incentive pays, and allowances) and the total amount of the member's basic pay (under section 204 of title 37), any special and incentive pays paid to the member (under chapter 5 of title 37), and any allowances paid to the member (under chapter 7 of title 37) for the member's service months for such active-duty service, by

   Inserted: "(2) the total number of such months.

   Inserted: "(g) Definitions.--In this section:

   Inserted: "(1) The term 'area affected by Hurricane Katrina or Hurricane Rita' means an area that is under a designation by the President of a major disaster (as that term is defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122)) in connection with Hurricane Katrina or Hurricane Rita.

   Inserted: "(2) The term 'earned income' has the meaning given such term in section 32(c)(2) of the Internal Revenue Code of 1986.

   Inserted: "(3) The term 'service month', with respect to service of a member of a reserve component of the armed forces on active duty, means a month during any part of which the member serves on active duty.

   Inserted: "(h) Termination of Authority.--This section shall cease to be effective on the first day of the first month that begins on or after the date that is five years after the date of the enactment of the Patriot Penalty Elimination Act of 2005.".

   Inserted: (b) Clerical Amendment.--The table of sections at the beginning of chapter 1209 of title 10, United States Code, as amended by section 1002(c) of this Act, is further by inserting after the item relating to section 12316a the following new item:

   Inserted: "12316b. Reserves: income preservation assistance grants for employers of reserves.".

   Inserted: (c) Effective Date.--Section 12316b of title 10, United States Code (as added by subsection (a)), shall take effect as of January 1, 2003, and shall apply with respect to active-duty service that begins on or after such date.

   Inserted: (d) Offset.--The Secretary of Defense shall transfer from the Iraq Freedom Fund to accounts for the payment of income preservation pay under section 12316a of title 10, United States Code (as added by subsection (a)), and for the making of income preservation assistance grants under section 12316b of title 10, United States Code (as added by subsection (b)), such amount of unobligated balances in the Iraq Freedom Fund as of the date of the enactment of this Act as the Secretary determines appropriate for the payment of such pay and the making of such grants during fiscal year 2006.

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