S. 1000Senate108th Congress (2003-2005)In Committee

National Guard and Reserves Reform Act for the 21st Century

Introduced May 6, 2003

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S5777-5779)

May 6, 2003

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SenateIntro Referral

Introduced in Senate

May 6, 2003

SenateIntro Referral

Read twice and referred to the Committee on Finance. (text of measure as introduced: CR S5777-5779)

May 6, 2003

Floor Debate

20 members

What members said about S. 1000 on the floor

12 Republicans8 Democrats
John Warner
Sen. John WarnerR-VA · Jun 2, 2004

Mr. President, as to the points of the pending amendment that the Senator from South Carolina and the Senator from South Dakota have spoken very eloquently about with regard to their amendment, I…

Lindsey Graham
Sen. Lindsey GrahamR-SC · Jun 2, 2004

Yes. I just need 10 minutes to speak on the amendment. Just to conclude this debate, this debate has been going on for a very long time, more than a year, on how to best take care of the Guard and…

Carl Levin
Sen. Carl LevinD-MI · Jun 2, 2004

I just have a parliamentary inquiry. Mr. President, as I understand it, this is going to be a unanimous consent that is going to be entered formally, but it has not yet been entered; is that correct?…

Ted Stevens
Sen. Ted StevensR-AK · Jun 2, 2004

Mr. President, I have come to the Senate floor to support the amendment offered by my good friend, the chairman of the Armed Services Committee, Senator Warner from Virginia. This amendment will…

Joseph R. Biden Jr.
Sen. Joseph R. Biden Jr.D-DE · May 6, 2003

Mr. President, today I am introducing a bill, along with Senators McCain, Feinstein, Dodd, and Kerry, to make women and children a priority of our assistance of programs, women and children who are…

Show 8 more
Pete V. Domenici
Sen. Pete V. DomeniciR-NM · May 6, 2003

Mr. President, those of us privileged to represent our fellow citizens on this hallowed floor get far too few opportunities to help usher in visionary projects that can potentially transform…

Larry E. Craig
Sen. Larry E. CraigR-ID · May 6, 2003

Mr. President, I rise today to join my colleague Senator Johnson in introducing the Commodity Distribution Act of 2003. Children are our future. I strongly believe each child deserves at least one…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · May 6, 2003

Mr. President, I rise today to introduce the Healthy Children Learn Act with my colleague from Maine, Senator Collins. I am also pleased to have Senator Clinton as an original cosponsor of this…

Don Nickles
Sen. Don NicklesR-OK · Jun 2, 2004

Mr. President, I rise in opposition to the amendment offered by my friend Senator Graham of South Carolina, the so-called TRICARE amendment offered by himself and Senator Daschle. I have great…

James M. Inhofe
Sen. James M. InhofeR-OK · Jun 2, 2004

I appreciate the time. I think one thing the last three speakers, including myself, have in common is no one has been more highly supportive of the Guard and the Reserve than Senator Nickles, Senator…

John McCain
Sen. John McCainR-AZ · May 6, 2003

Mr. President, today, I am joined by my colleagues Senators Brownback, Edwards and Graham in introducing the Amateur Sports Integrity Act of 2003. This legislation would make it illegal to gamble on…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Jun 2, 2004

Mr. President, I ask the distinguished chairman if I might have 30 seconds. I will be very brief so the Senator from South Carolina can speak. Mr. President, I agree with the distinguished chairman…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · May 6, 2003

Mr. President, I am pleased to introduce today with my respected colleague from Indiana, Senator Lugar, a bill designed to improve the health of our Nation's schoolchildren. I am also pleased to have…

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Thomas A. Daschle
Sen. Thomas A. DaschleD-SD · Jun 2, 2004

Mr. President, my colleagues have just heard an eloquent and extraordinarily persuasive case for the amendment offered by our colleague from South Carolina. It illustrates yet again why it has been…

Jon S. Corzine
Sen. Jon S. CorzineD-NJ · May 6, 2003

Mr. President, today along with Senators Lautenberg, Specter, Schumer, Dodd, Clinton and Lieberman, I am introducing the Highlands Stewardship Act. I am proud to be joining Congressman Rodney…

Jeff Sessions
Sen. Jeff SessionsR-AL · Jun 2, 2004

Mr. President, I join with the chairman of the Armed Services Committee, Senator Warner, in his concern over this TRICARE amendment for our Guard and Reserve. I had 10 years in the Army Reserve. My…

Tim Johnson
Sen. Tim JohnsonD-SD · May 6, 2003

Mr. President, I rise today with my colleagues, Senators Craig, Stabenow, and Leahy, to introduce the ``Commodity Distribution Act of 2003.'' Senator Craig and I have introduced similar legislation…

Richard G. Lugar
Sen. Richard G. LugarR-IN · May 6, 2003

Mr. President, I am pleased to join my good friend and colleague, Senator Patrick Leahy in introducing the Better Nutrition for School Children Act of 2003. This bill takes a common sense, flexible…

Harry Reid
Sen. Harry ReidD-NV · Jun 2, 2004

Will the Senator from South Carolina yield? I have spoken to the two managers of the bill and the proponent of the underlying amendment, together with Senator Daschle. They would be willing to start…

Mike DeWine
Sen. Mike DeWineR-OH · Jun 2, 2004

Mr. President, I thank the committee for their hard work on this bill. I am always impressed by how Senator Warner and Senator Levin manage this bill and for the excellent work of their staff. Their…

Mitch McConnell
Sen. Mitch McConnellR-KY · Jun 2, 2004

I announce that the Senator from Colorado (Mr. Campbell) and the Senator from New Mexico (Mr. Domenici) are necessarily absent.

Lindsey Graham
Sen. Lindsey GrahamR-SC · May 6, 2003

Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.

Bill Text

Latest available legislative text

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Introduced in SenateIssued May 6, 2003
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1000 Introduced in Senate (IS)]

108th CONGRESS
1st Session
S. 1000

To amend title 10, United States Code, to revise the age and service
requirements for eligibility to receive retired pay for non-regular
service; to provide TRICARE eligibility for members of the Selected
Reserve of the Ready Reserve and their families; to amend the Internal
Revenue Code of 1986 to allow employers a credit against income tax
with respect to employees who participate in the military reserve
components and to allow a comparable credit for participating reserve
component self-employed individuals, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

May 6, 2003

Mr. Graham of South Carolina (for himself, Mr. Coleman, Mr. Allen, Mr.
Miller, Mrs. Clinton, and Ms. Landrieu) introduced the following bill;
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend title 10, United States Code, to revise the age and service
requirements for eligibility to receive retired pay for non-regular
service; to provide TRICARE eligibility for members of the Selected
Reserve of the Ready Reserve and their families; to amend the Internal
Revenue Code of 1986 to allow employers a credit against income tax
with respect to employees who participate in the military reserve
components and to allow a comparable credit for participating reserve
component self-employed individuals, 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 ``National Guard and Reserves Reform
Act for the 21st Century''.

SEC. 2. 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:

``Age, in years, is                        The minimum years of service
at least:                                   required for that age is:
53......................................................        34
54......................................................        32
55......................................................        30
56......................................................        28
57......................................................        26
58......................................................        24
59......................................................        22
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.--This section and the amendments made by this
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.

SEC. 3. EXPANDED ELIGIBILITY OF READY RESERVISTS FOR TRICARE.

(a) Eligibility.--Chapter 55 of title 10, United States Code, is
amended by inserting after section 1097b the following new section:
``Sec. 1097c. TRICARE program: Reserves not on active duty
``(a) Eligibility.--A member of the Selected Reserve of the Ready
Reserve of the armed forces not otherwise eligible for enrollment in
the TRICARE program under this chapter for the same benefits as a
member of the armed forces eligible under section 1074(a) of this title
may enroll for self or for self and family for the same benefits under
this section.
``(b) Premiums.--(1) An enlisted member of the armed forces
enrolled in the TRICARE program under this section shall pay an annual
premium of $330 for self only coverage and $560 for self and family
coverage for which enrolled under this section.
``(2) An officer of the armed forces enrolled in the TRICARE
program under this section shall pay an annual premium of $380 for self
only coverage and $610 for self and family coverage for which enrolled
under this section.''.
(b) Clerical Amendment.--The table of sections at the beginning of
such chapter is amended by inserting after the item relating to section
1097b the following new item:

``1097c. Section 101 head.''.

SEC. 4. CREDIT FOR EMPLOYMENT OF RESERVE COMPONENT PERSONNEL.

(a) In General.--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. RESERVE COMPONENT EMPLOYMENT CREDIT.

``(a) General Rule.--For purposes of section 38, the reserve
component employment credit determined under this section is an amount
equal to the sum of--
``(1) the employment credit with respect to all qualified
employees of the taxpayer, plus
``(2) the self-employment credit of a qualified self-
employed taxpayer.
``(b) Employment Credit.--For purposes of this section--
``(1) In general.--The employment credit with respect to a
qualified employee of the taxpayer for any taxable year is
equal to the excess, if any, of--
``(A) the qualified employee's average daily
qualified compensation for the taxable year, over
``(B) the average daily military pay and allowances
received by the qualified employee during the taxable
year,
while participating in qualified reserve component duty to the
exclusion of the qualified employee's normal employment duties
for the number of days the qualified employee participates in
qualified reserve component duty during the taxable year,
including time spent in a travel status. The employment credit,
with respect to all qualified employees, is equal to the sum of
the employment credits for each qualified employee under this
subsection.
``(2) Average daily qualified compensation and average
daily military pay and allowances.--As used with respect to a
qualified employee--
``(A) the term `average daily qualified
compensation' means the qualified compensation of the
qualified employee for the taxable year divided by the
difference between--
``(i) 365, and
``(ii) the number of days the qualified
employee participates in qualified reserve
component duty during the taxable year,
including time spent in a travel status, and
``(B) the term `average daily military pay and
allowances' means--
``(i) the amount paid to the qualified
employee during the taxable year as military
pay and allowances on account of the qualified
employee's participation in qualified reserve
component duty, divided by
``(ii) the total number of days the
qualified employee participates in qualified
reserve component duty, including time spent in
travel status.
``(3) Qualified compensation.--When used with respect to
the compensation paid or that would have been paid to a
qualified employee for any period during which the qualified
employee participates in qualified reserve component duty, the
term `qualified compensation' means--
``(A) compensation which is normally contingent on
the qualified employee's presence for work and which
would be deductible from the taxpayer's gross income
under section 162(a)(1) if the qualified employee were
present and receiving such compensation,
``(B) compensation which is not characterized by
the taxpayer as vacation or holiday pay, or as sick
leave or pay, or as any other form of pay for a
nonspecific leave of absence, and with respect to which
the number of days the qualified employee participates
in qualified reserve component duty does not result in
any reduction in the amount of vacation time, sick
leave, or other nonspecific leave previously credited
to or earned by the qualified employee, and
``(C) group health plan costs (if any) with respect
to the qualified employee.
``(4) Qualified employee.--The term `qualified employee'
means a person who--
``(A) has been an employee of the taxpayer for the
21-day period immediately preceding the period during
which the employee participates in qualified reserve
component duty, and
``(B) is a member of the Ready Reserve of a reserve
component of an Armed Force of the United States as
defined in sections 10142 and 10101 of title 10, United
States Code.
``(c) Self-Employment Credit.--
``(1) In general.--The self-employment credit of a
qualified self-employed taxpayer for any taxable year is equal
to the excess, if any, of--
``(A) the self-employed taxpayer's average daily
self-employment income for the taxable year over
``(B) the average daily military pay and allowances
received by the taxpayer during the taxable year, while
participating in qualified reserve component duty to
the exclusion of the taxpayer's normal self-employment
duties for the number of days the taxpayer participates
in qualified reserve component duty during the taxable
year, including time spent in a travel status.
``(2) Average daily self-employment income and average
daily military pay and allowances.--As used with respect to a
self-employed taxpayer--
``(A) the term `average daily self-employment
income' means the self-employment income (as defined in
section 1402) of the taxpayer for the taxable year plus
the amount paid for insurance which constitutes medical
care for the taxpayer for such year (within the meaning
of section 162(l)) divided by the difference between--
``(i) 365, and
``(ii) the number of days the taxpayer
participates in qualified reserve component
duty during the taxable year, including time
spent in a travel status, and
``(B) the term `average daily military pay and
allowances' means--
``(i) the amount paid to the taxpayer
during the taxable year as military pay and
allowances on account of the taxpayer's
participation in qualified reserve component
duty, divided by
``(ii) the total number of days the
taxpayer participates in qualified reserve
component duty, including time spent in travel
status.
``(3) Qualified self-employed taxpayer.--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 the Ready Reserve of a reserve
component of an Armed Force of the United States.
``(d) Credit in Addition to Deduction.--The employment credit
provided in this section is in addition to any deduction otherwise
allowable with respect to compensation actually paid to a qualified
employee during any period the qualified employee participates in
qualified reserve component duty to the exclusion of normal employment
duties.
``(e) Limitations.--
``(1) Maximum credit.--
``(A) In general.--The credit allowed by subsection
(a) for the taxable year shall not exceed $25,000 with
respect to each qualified employee.
``(B) Controlled groups.--For purposes of applying
the limitation in subparagraph (A)--
``(i) all members of a controlled group
shall be treated as one taxpayer, and
``(ii) such limitations shall be allocated
among the members of such group in such manner
as the Secretary may prescribe.
For purposes of this subparagraph, all persons treated
as a single employer under subsection (a) or (b) of
section 52 or subsection (m) or (o) of section 414
shall be treated as members of a controlled group.
``(2) Disallowance for failure to comply with employment or
reemployment rights of members of the reserve components of the
armed forces of the united states.--No credit shall be allowed
under subsection (a) to a taxpayer for--
``(A) any taxable year in which the taxpayer is
under a final order, judgment, or other process issued
or required by a district court of the United States
under section 4323 of title 38 of the United States
Code with respect to a violation of chapter 43 of such
title, and
``(B) the 2 succeeding taxable years.
``(3) Disallowance with respect to persons ordered to
active duty for training.--No credit shall be allowed under
subsection (a) to a taxpayer with respect to any period for
which the person on whose behalf the credit would otherwise be
allowable is called or ordered to active duty for any of the
following types of duty:
``(A) active duty for training under any provision
of title 10, United States Code,
``(B) training at encampments, maneuvers, outdoor
target practice, or other exercises under chapter 5 of
title 32, United States Code, or
``(C) full-time National Guard duty, as defined in
section 101(d)(5) of title 10, United States Code.
``(f) General Definitions and Special Rules.--
``(1) Military pay and allowances.--The term `military pay'
means pay as that term is defined in section 101(21) of title
37, United States Code, and the term `allowances' means the
allowances payable to a member of the Armed Forces of the
United States under chapter 7 of that title.
``(2) Qualified reserve component duty.--The term
`qualified reserve component duty' includes only active duty
performed, as designated in the reservist's military orders, in
support of a contingency operation as defined in section
101(a)(13) of title 10, United States Code.
``(3) Normal employment and self-employment duties.--A
person shall be deemed to be participating in qualified reserve
component duty to the exclusion of normal employment or self-
employment duties if the person does not engage in or undertake
any substantial activity related to the person's normal
employment or self-employment duties while participating in
qualified reserve component duty unless in an authorized leave
status or other authorized absence from military duties. If a
person engages in or undertakes any substantial activity
related to the person's normal employment or self-employment
duties at any time while participating in a period of qualified
reserve component duty, unless during a period of authorized
leave or other authorized absence from military duties, the
person shall be deemed to have engaged in or undertaken such
activity for the entire period of qualified reserve component
duty.
``(4) Certain rules to apply.--Rules similar to the rules
of subsections (c), (d), and (e) of section 52 shall apply for
purposes of this section.''.
(b) Conforming Amendment.--Section 38(b) (relating to general
business credit) is amended--
(1) by striking ``plus'' at the end of paragraph (14),
(2) by striking the period at the end of paragraph (15) and
inserting ``, plus'', and
(3) by adding at the end the following new paragraph:
``(16) the reserve component employment credit determined
under section 45G(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by inserting after the
item relating to section 45F the following new item:

``Sec. 45G. Reserve component employment
credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2002.
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