Guard and Reserve Fairness Act

        [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.
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