[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 11 Introduced in Senate (IS)]
109th CONGRESS
1st Session
S. 11
To amend title 10, United States Code, to ensure that the strength of
the Armed Forces and the protections and benefits for members of the
Armed Forces and their families are adequate for keeping the commitment
of the people of the United States to support their servicemembers, and
for other purposes.
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IN THE SENATE OF THE UNITED STATES
January 24, 2005
Mr. Levin (for himself, Mr. Reid, Ms. Mikulski, Ms. Stabenow, Mr.
Inouye, Mr. Dorgan, Mr. Lautenberg, Mr. Leahy, Mr. Salazar, Mr.
Rockefeller, Mrs. Murray, Mr. Bingaman, Mrs. Feinstein, Mr.
Durbin, Mr. Kennedy, Mr. Corzine, Mr. Pryor, Mr. Nelson of
Nebraska, Mr. Reed, Mr. Schumer, and Mr. Dayton) introduced the
following bill; which was read twice and referred to the
Committee on FinanceYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
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A BILL
To amend title 10, United States Code, to ensure that the strength of
the Armed Forces and the protections and benefits for members of the
Armed Forces and their families are adequate for keeping the commitment
of the people of the United States to support their servicemembers, 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 ``Standing With Our Troops Act of
2005''.
DIVISION A--FULFILLMENT OF OBLIGATIONS TO THE MEMBERS OF THE ARMED
FORCES
TITLE I--STRENGTHS OF THE ARMY AND MARINE CORPS ACTIVE FORCES
SEC. 101. FINDINGS.
Congress makes the following findings:
(1) While the United States Armed Forces remain the premier
fighting force in the world, the Defense Science Board, in a
study carried out in the summer of 2004, found that ``When we
match the existing and projected force structure with the
current and projected need for stabilization forces we see an
enduring shortfall in both total numbers of people and their
ability to sustain the continuity of stabilization efforts.''.
(2) Between 1989 and 2004, the military personnel end
strength of the Army has been reduced by more than 34 percent,
and the Department of the Army's civilian workforce has been
reduced by more than 45 percent, while the mission rate of the
Army has increased by 300 percent.
(3) Because of the personnel reductions, the Army National
Guard and the Army Reserve are repeatedly being called to
active duty to meet Army mission requirements that the active-
duty force of the Army is no longer large enough to meet alone.
Army National Guard and Army Reserve units have provided up to
40 percent of the military personnel engaged in Operation Iraqi
Freedom while they have also been performing a dramatically
increased role in homeland defense and continuing to respond to
natural disasters, other domestic emergencies, and military
contingencies. As a result, the reserve components of the Army
have been pushed to the breaking point.
SEC. 102. ARMY.
(a) Strength for Fiscal Year 2006.--Effective on October 1, 2005,
section 691(b)(1) of title 10, United States Code, is amended by
striking ``502,400'' and inserting ``522,400''.
(b) Strength for Fiscal Years After Fiscal Year 2006.--Effective on
October 1, 2006, section 691(b)(1) of such title is amended by striking
``522,400'' and inserting ``532,400''.
SEC. 103. MARINE CORPS.
(a) Strength for Fiscal Year 2006.--Effective on October 1, 2005,
section 691(b)(3) of title 10, United States Code, is amended by
striking ``178,000'' and inserting ``183,000''.
(b) Strength for Fiscal Years After Fiscal Year 2006.--Effective on
October 1, 2006, section 691(b)(3) of title 10, United States Code, is
amended by striking ``183,000'' and inserting ``188,000''.
TITLE II--FULL RECOGNITION OF SACRIFICE AND VALOR OF UNITED STATES
SERVICEMEMBERS
Subtitle A--Findings
SEC 201. FINDINGS.
Congress makes the following findings:
(1) On November 21, 2004, the Columbia Broadcasting System
television program 60 Minutes reported that the staff of that
program had received from the Department of Defense a letter
containing the assertion that ``[m]ore than 15,000 troops with
so-called `non-battle' injuries and diseases have been
evacuated from Iraq.''.
(2) This report was a rare disclosure by the Department of
Defense, as it is the policy of the Department of Defense not
to disclose publicly the number of Armed Forces personnel that
sustain non-combat injuries.
Subtitle B--Accounting for Casualties Incurred in the Prosecution of
the Global War on Terrorism
SEC. 211. MONTHLY ACCOUNTING.
Not later than five days after the end of each month, the Secretary
of Defense shall publish, for such month for each operation described
in section 212, a full accounting of the casualties among the members
of the Armed Forces that were incurred in such operation during that
month.
SEC. 212. OPERATIONS COVERED.
The operations referred to in section 211 are as follows:
(1) Operation Iraqi Freedom.
(2) Operation Enduring Freedom.
(3) Each other operation undertaken by the Armed Forces in
the prosecution of the Global War on Terrorism.
SEC. 213. COMPREHENSIVE CONTENT OF ACCOUNTING.
For the purpose of providing a full and complete accounting of
casualties covered by a report under section 211, the Secretary of
Defense shall include in the report the number of casualties in each
casualty status in accordance with section 214.
SEC. 214. CASUALTY STATUS.
(a) Status Types.--In a report under this title, each casualty
among members of the Armed Forces shall be characterized by the most
specific casualty status applicable to the member as follows:
(1) Killed in action.
(2) Killed in non-hostile duty.
(3) Killed, self-inflicted.
(4) Wounded in action, not returned to duty.
(5) Wounded in action, returned to duty (to the extent that
data is available to support this characterization of casualty
status).
(6) Evacuated for medical reasons.
(b) Definitions.--In this section:
(1) Killed in action.--The term ``killed in action'', with
respect to a member of the Armed Forces, means that the member
incurred one or more mortal wounds while involved in an action
against a hostile force, whether or not the wounds are
inflicted by the hostile force.
(2) Killed in non-hostile duty.--The term ``killed in non-
hostile duty'', with respect to a member of the Armed Forces,
means that the member incurred one or more mortal wounds that
were not self-inflicted and not inflicted during an action
against a hostile force.
(3) Killed, self-inflicted.--The term ``killed, self-
inflicted'', with respect to a member of the Armed Forces,
means a suicide of the member or the death of the member as a
result of one or more self-inflicted injuries.
(4) Wounded in action, not returned to duty.--The term
``wounded in action, not returned to duty'', with respect to a
member of the Armed Forces, means that the member, while
involved in an action against a hostile force, incurred one or
more non-mortal injuries that required medical attention and
that prevented the member from returning to duty within 72
hours after incurring the injury or injuries.
(5) Wounded in action, returned to duty.--The term
``wounded in action, returned to duty'', with respect to a
member of the Armed Forces, means that the member, while
involved in an action against a hostile force, incurred one or
more non-mortal injuries that required medical attention but
did not prevent the member from returning to duty within 72
hours after incurring the injury or injuries.
(6) Evacuated for medical reasons.--The term ``evacuated
for medical reasons'', with respect to a member of the Armed
Forces, means that the member was evacuated from a theater of
operations for medical reasons.
SEC. 215. PUBLICATION AND RELEASE OF REPORT.
The Secretary of Defense shall--
(1) post the report under this title on the official
website of the Department of Defense; and
(2) transmit a copy of the report to the chairmen and
ranking members of the Committees on Armed Services of the
Senate and the House of Representatives.
SEC. 216. SENSE OF CONGRESS.
It is the sense of Congress that the Secretary of Defense has an
obligation to ensure full and accurate reporting of casualties among
the members of the Armed Forces to Congress and the people of the
United States.
Subtitle C--Advisory Panel on Military Awards and Decorations
SEC. 221. ESTABLISHMENT.
The Secretary of Defense shall establish within the Department of
Defense an Advisory Panel on Military Awards and Decorations.
SEC. 222. DUTIES.
(a) Comprehensive Review of Military Decorations System.--The
Advisory Panel shall conduct a comprehensive review of the standards
and processes used in the Armed Forces to award medals and decorations
to members of the Armed Forces. The review shall include the following
matters:
(1) An examination and evaluation of the standards of each
of the Armed Forces for awarding each medal and decoration.
(2) A comparison of the standards of each of the Armed
Forces with the standards of each of the other Armed Forces for
awarding comparable medals and decorations.
(3) An examination and evaluation of the speed with which--
(A) each of the Armed Forces identifies and
considers members for the awarding of medals and
decorations; and
(B) the medals and decorations are ultimately
awarded.
(4) A review of the medals and decorations awarded by the
Armed Forces during 2002, 2003, and 2004, together with a
review of the ranks of the recipients and the mission-related
and other circumstances that are associated with the awarding
of the medals and decorations to those recipients.
(b) Report.--
(1) Requirement for report.--Not later than 18 months after
the date of the enactment of this Act, the Advisory Panel shall
submit a report on the results of the review under this section
to the Secretary of Defense and to Congress.
(2) Content.--The report under this subsection shall
contain the findings and conclusions of the Advisory Panel
together with any recommendations for action that the panel
considers appropriate, and shall include the following matters:
(A) A discussion of the merits of maintaining for
each of the Armed Forces separate policies for the
awarding of comparable medals and decorations of the
Armed Forces, together with a discussion of the merits
of adopting uniform standards for awarding such medals
and decorations.
(B) Measures that can be taken by each of the Armed
Forces to expedite the process for timely identifying a
member who deserves a medal of decoration, determining
the appropriateness of awarding the medal or decoration
to the member, and, in each appropriate case, awarding
the medal or decoration to the member.
(C) Measures that can be taken to ensure that--
(i) members serving in combat are at least
equally as likely to be considered for the
awarding of medals and decorations as are
personnel not exposed to combat; and
(ii) enlisted personnel are at least as
likely to be considered for the awarding of
medals and decorations as are officers.
(D) A recommendation regarding whether the Valor
device awarded by each of the Armed Forces should be
replaced by a separate class of medals honoring special
bravery in combat.
(E) A determination of the desirability of adding a
new class of medals, similar to the Purple Heart, to be
awarded to military personnel who incur non-combat
injuries in connection with performance of an official
mission or duty during a combat operation in order to
honor their sacrifice in service to the people of the
United States.
(c) Scope Limited to Department of Defense.--The scope of the
review and report under this section does not include the Coast Guard.
SEC. 223. COMPOSITION AND ADMINISTRATION.
(a) Composition.--
(1) Number; appointment.--The Advisory Panel shall be
composed of not more than seven members appointed by the
Secretary of Defense.
(2) General and flag officers.--The Secretary shall ensure
that the membership of the task force includes a retired
general or flag officer from each of the Army, Navy, Air Force,
and Marine Corps who is familiar with the policies of the Armed
Forces regarding military awards and decorations.
(3) Veterans.--The Secretary shall appoint at least one
representative of a leading veterans' advocacy organization as
a member of the Advisory Panel.
(b) Time for Appointment.--All members of the Advisory Panel shall
be appointed within 60 days after the date of the enactment of this
Act.
(c) Chairperson.--The chairperson of the Advisory Panel shall be
selected from among the members of the Advisory Panel by a majority
vote of the members.
(d) Compensation and Expenses of Members.--Each member of the
Advisory Panel shall serve without compensation, but shall be allowed
travel expenses, including per diem in lieu of subsistence, at rates
authorized for employees of agencies under subchapter I of chapter 57
of title 5, United States Code, while away from the member's home or
regular places of business in the performance of services for the
Advisory Panel.
(e) Federal Advisory Committee Act.--The Federal Advisory Committee
Act (5 U.S.C. App) shall not apply to the Advisory Panel.
SEC. 224. COOPERATION OF FEDERAL AGENCIES.
(a) Information.--The Advisory Panel may obtain directly from the
Department of Defense, the Department of Veterans Affairs, or any other
department or agency of the United States any information of such
department or agency that the panel considers necessary for the panel
to carry out its duties.
(b) Other Cooperation.--The Secretary of Defense, the Secretary of
Veterans Affairs, and any other official of the United States shall
provide the Advisory Panel with full and timely cooperation requested
by the panel in carrying out its duties under this section.
SEC. 225. TERMINATION.
The Advisory Panel on Military Awards and Decorations shall
terminate 30 days after the submission of the report to Congress under
section 222(b).
TITLE III--MILITARY EQUIPMENT AND MATERIEL
SEC. 301. FINDINGS.
Congress makes the following findings:
(1) United States military personnel serving in Operations
Iraqi Freedom have experienced significant shortages of
critical equipment, such as body armor, aircraft survivability
equipment, and armored trucks, including up-armored High
Mobility Multipurpose Wheeled Vehicles. In many cases the
shortages have lasted several months. For example, the
individual body armor needed for protecting every member of the
Armed Forces and Department of Defense civilians in Iraq was
not produced and fielded until February 2004, 11 months after
Operation Iraqi Freedom was launched. Shortages of armor for
Army trucks still existed as of the beginning of 2005.
(2) Operation Iraqi Freedom and Operation Enduring Freedom
have taken a substantial toll on military equipment of the
Armed Forces. The commanding general of the Army Material
Command estimated in 2004 that the Army is wearing out its
equipment in Iraq and Afghanistan at a rate that could be up to
10 times faster than the rate at which it wears out its
equipment elsewhere during peacetime, and there are no
significant reserve stocks of that equipment remaining.
(3) It is a solemn obligation of the United States
Government to ensure that, whenever the Armed Forces are called
into battle, the military personnel fighting or supporting the
battle are provided with the safest, most effective technology
and equipment.
SEC. 302. MOBILIZATION PLANNING AND PREPAREDNESS.
(a) Director of Mobilization Planning and Preparedness.--Title I of
the National Security Act of 1947 (50 U.S.C. 402 et seq.) is amended by
striking section 107 and inserting the following new sections:
``director of mobilization planning and preparedness
``Sec. 107. (a) Definitions.--In this section:
``(1) The term `Director' means the Director of
Mobilization Planning and Preparedness referred to in
subsection (b)(1), except where the context clearly indicates
otherwise.
``(2) The term `national security emergency' means any
occurrence, including a natural disaster, a military or
terrorist attack against the territory of the United States, a
military operation carried out by the Armed Forces abroad, a
technological emergency, or any other emergency, that either
seriously degrades or threatens the security of the United
States or the Armed Forces.
``(3) The term `mobilization' means the act of assembling
and organizing national resources, including military personnel
and equipment, labor, transportation systems, industry, and
financial resources, to support national objectives of the
United States in time of a national security emergency.
``(4) The term `mobilization planning and preparedness'
means all aspects of planning and preparing for a mobilization
for a national security emergency, including the identification
of functions that would have to be performed during a national
security emergency, development of plans for performing such
functions, development of the capability to execute such plans,
and development of policies that maximize the speed and
efficiency with which such plans can be executed during a
national security emergency.
``(b) Position of Director.--
``(1) Establishment.--There is a Director of Mobilization
Planning and Preparedness on the staff of the National Security
Council.
``(2) Appointment.--The Director is appointed by the
Assistant to the President for National Security Affairs.
``(3) Relationship to national security advisor.--The
Director reports directly to the Assistant to the President for
National Security Affairs.
``(c) Duties.--
``(1) Principal duty.--The Director is the principal
adviser to the Assistant to the President for National Security
Affairs on matters of mobilization planning and preparedness.
``(2) Specific duties.--The duties of the Director include
the following:
``(A) Identify which governmental and private
sector functions must be performed on a sustained basis
during a national security emergency.
``(B) Develop plans for the sustained performance
of the identified functions.
``(C) Provide guidance on the development of the
capability to execute the plans.
``(D) Recommend policies for the maximization of
the speed and efficiency with which the plans can be
executed during a national security emergency.
``(E) Recommend planning and policy guidance
regarding involvement of the National Guard in 2 or
more national security emergency operations
concurrently.
``(F) Administer quarterly exercises simulating
mobilization for various types of national security
emergencies, including the following:
``(i) A major military operation carried
out in and around 1 or more foreign countries.
``(ii) An occupation and reconstruction
mission.
``(iii) A terrorist attack within the
United States.
``(iv) A natural disaster within the United
States.
``(v) A major humanitarian crisis in 1 or
more foreign countries.
``(vi) A minor military intervention in a
foreign country.
``(3) Related duties.--
``(A) Mobilization planning and preparedness policy
coordinating committee.--The Director serves on the
Mobilization Planning and Preparedness Policy
Coordinating Committee as provided in section 107A.
``(B) Department of defense primary allocation of
industrial resources task force.--The Director serves
as a member of the Primary Allocation of Industrial
Resources Task Force of the Department of Defense.
``(d) Office of Mobilization Planning and Preparedness.--
``(1) Establishment.--There is an Office of Mobilization
Planning and Preparedness within the National Security Council.
The Director is the head of the office.
``(2) Composition.--The Office of Mobilization Planning and
Preparedness is composed of the following personnel:
``(A) Thirty employees appointed by the Assistant
to the President for National Security Affairs.
``(B) An employee of the Department of Defense, who
shall be detailed to the Office by the Under Secretary
of Defense for Acquisition, Technology, and Logistics
to serve as liaison between the Department of Defense
and the Director to ensure that comprehensive and
accurate information on the needs of the Armed Forces
for equipment and materiel in a national security
emergency are timely communicated to the Director.
``(e) Coordination With National Counterterrorism Center.--
``(1) Liaison officer.--The Director shall detail an
employee of the Office to the National Counterterrorism Center
to serve as a liaison officer between the Director of
Mobilization Planning and Preparedness and the Director of the
National Counterterrorism Center for collaboration on
counterterrorism-related information and issues necessary for
effective mobilization planning and preparedness.
``(2) Responsibility of director of national
counterterrorism center.--The Director of the National
Counterterrorism Center shall ensure that the liaison officer
is accorded such privileges at the Center as are necessary to
ensure that the collaboration between the Director of the
National Counterterrorism Center and the Director of
Mobilization Planning and Preparedness on counterterrorism-
related information and issues is effective.
``(f) Annual Report.--
``(1) Requirement for report.--The President, acting
through the Director, shall submit to Congress each year a
report on mobilization planning and preparedness.
``(2) Content.--The annual report under this subsection
shall include the following information:
``(A) Funding needs for mobilization planning and
preparedness.
``(B) An assessment of the state of mobilization
planning and preparedness in the United States.
``(C) Any recommended policies on mobilization
planning and preparedness that the President, in
consultation with the Assistant to the President for
National Security Affairs and the Director, considers
appropriate.
``mobilization planning and preparedness policy coordinating committee
``Sec. 107A. (a) Mobilization Planning and Preparedness Defined.--
In this section, the term `mobilization planning and preparedness' has
the meaning given that term in section 107(a).
``(b) Establishment.--There is in the executive branch an
interagency committee known as the `Mobilization Planning and
Preparedness Policy Coordinating Committee'.
``(c) Composition.--The Committee shall be composed of the
following members:
``(1) The Director of Mobilization Planning and
Preparedness of the National Security Council, who shall chair
the committee.
``(2) The Under Secretary for Emergency Preparedness and
Response of the Department of Homeland Security.
``(3) The Under Secretary of State for Economic, Business,
and Agricultural Affairs.
``(4) The Under Secretary of Defense for Acquisition,
Technology, and Logistics.
``(5) The Associate Attorney General.
``(6) The Assistant Secretary of the Interior for Land and
Minerals Management.
``(7) The Under Secretary of Commerce for Industry and
Security.
``(8) The Deputy Secretary of Labor.
``(9) The Assistant Secretary of Health and Human Services
for Public Health Emergency Preparedness.
``(10) The Under Secretary of Transportation for Policy.
``(11) The Under Secretary of Energy for Energy, Science,
and Environment.
``(12) One member designated by the Assistant to the
President for National Security Affairs.
``(13) One member designated by the Director of National
Intelligence.
``(d) Duties.--The Committee has the following duties:
``(1) To review, at least once each year, the mobilization
planning and preparedness policies of the United States.
``(2) To make any recommendations for action to improve
mobilization planning and preparedness that the Committee
determines appropriate.
``(3) To participate in the exercises conducted by the
Director of Mobilization Planning and Preparedness of the
Department under section 510(b)(2)(F).''.
(b) Clerical Amendment.--The table of contents in the first section
of the National Security Act of 1947 is amended by striking the item
relating to section 107 and inserting the following new items:
``Sec. 107. Director of Mobilization Planning and Preparedness.
``Sec. 107A. Mobilization Planning and Preparedness Policy Coordinating
Committee.''.
SEC. 303. REPORT ON RECONSTITUTION NEEDS OF THE ARMED FORCES.
(a) Report Required.--
(1) Requirement for report.--Not later than March 1, 2005,
the Secretary of Defense shall submit to the congressional
defense committees a report on the needs of the Armed Forces
for reconstituting its stocks of military equipment and other
materiel in view of the attrition of military equipment and
other materiel experienced by the Armed Forces in Operation
Iraqi Freedom and Operation Enduring Freedom.
(2) Consultation.--The Secretary shall consult with the
Chief of Staff of the Army, the Chief of Staff of the Air
Force, the Chief of Naval Operations, the Commandant of the
Marine Corps, and the Inspector General of each of the Armed
Forces in preparing the report under this section.
(b) Content.--The report shall include an assessment of each of the
following matters:
(1) The extent of the damage and destruction of military
equipment and other military materiel in Operation Iraqi
Freedom and Operation Enduring Freedom.
(2) The amount of such equipment, if any, that has become
ineffective or obsolete by age or other causes.
(3) The needs of each of the Armed Forces, including the
reserve components as well as the regular components, for
repair and replacement of equipment.
(4) The total cost of reconstituting the stocks of military
equipment and other materiel of the Armed Forces to meet the
needs of the Armed Forces.
(5) The time needed to reconstitute such stocks to meet
those needs.
(c) Form of Report.--The report shall be submitted in unclassified
form, but may include a classified annex.
SEC. 304. AUTHORIZATIONS OF APPROPRIATIONS.
(a) Army.--Funds are hereby authorized to be appropriated for
fiscal year 2005 for the use of the Army for the repair, refurbishment,
and replacement of equipment used by the Army in Operation Iraqi
Freedom or Operation Enduring Freedom, as follows:
(1) Operation and maintenance.--For expenses, not otherwise
provided for, for operation and maintenance, $6,000,000,000.
(2) Procurement.--For procurement, $2,500,000,000.
(b) Marine Corps.--Funds are hereby authorized to be appropriated
for fiscal year 2005 for the use of the Marine Corps for the repair,
refurbishment, and replacement of equipment used by the Marine Corps in
Operation Iraqi Freedom or Operation Enduring Freedom, as follows:
(1) Operation and maintenance.--For expenses, not otherwise
provided for, for operation and maintenance, $640,000,000.
(2) Procurement.--For procurement, $1,500,000,000.
(c) Availability Through Fiscal Year 2006.--Amounts authorized to
be appropriated under this section shall remain available until
September 30, 2006.
(d) Limitation.--None of the funds appropriated pursuant to an
authorization of appropriations in this section may be obligated or
expended until the date that is 15 days after the date on which the
Secretary of Defense transmits to the congressional defense committees
a report on the specific use for which the funds are to be obligated or
expended, respectively.
SEC. 305. CONGRESSIONAL DEFENSE COMMITTEES DEFINED.
In this title, the term ``congressional defense committees'' has
the meaning given such term in section 101(a)(16) of title 10, United
States Code.
TITLE IV--PERIODS OF OVERSEAS DEPLOYMENTS OF RESERVES
SEC. 401. FINDINGS.
Congress makes the following findings:
(1) The Department of Defense failed to establish an
adequate troop deployment and rotation policy for Operation
Iraqi Freedom until several months after the operation had
begun. For several reserve component units involved in that
operation before 2005, the demobilization date was rescheduled
three or more times before the unit members were finally
allowed to return home.
(2) Without an adequate deployment and rotation plan, the
Department of Defense has relied on a series of stop-gap
measures to retain a sufficient number of troops to carry out
the United States missions in Operation Iraqi Freedom and
Operation Enduring Freedom, including--
(A) institution of a so-called ``stop-loss'' policy
that prevents personnel from leaving their units during
deployment;
(B) extensions of deployments beyond scheduled
demobilization dates; and
(C) activation of members of the Individual Ready
Reserve.
(3) In September 2004, the Government Accountability Office
reported that ``Many of DOD's policies that affect mobilized
reserve component personnel were implemented in a piecemeal
manner and were not linked within the context of a strategic
framework to meet the organizational goals. . . . Without a
strategic framework, OSD and the services made several changes
to their personnel policies to increase the availability of the
reserve components for the longer-term requirements of the
Global War on Terrorism, and predictability declined for
reserve component members.''.
(4) Fairness to the men and women of the Armed Forces
deployed overseas requires that the Department of Defense--
(A) have clear policies regarding lengths of
deployment periods; and
(B) communicate these policies and other
deployment-related information to them and their
families.
SEC. 402. SENSE OF CONGRESS ON TWO-YEAR LIMIT ON MOBILIZATION.
It is the sense of Congress that the Secretary of Defense should
continue the existing Department of Defense policy of limiting to a
total of 24 months the period for which members of the reserve
components serve on active duty to which called or ordered in support
of a contingency operation.
SEC. 403. COMMUNICATION OF LENGTHS OF DEPLOYMENT PERIODS TO RESERVES IN
OPERATION IRAQI FREEDOM.
(a) Report of Department of Defense Policies.--
(1) Requirement for report.--Not later than March 1, 2005,
the Secretary of Defense shall submit to the Committees on
Armed Services of the Senate and the House of Representatives a
report on--
(A) Department of Defense policies governing the
length of mobilization and deployment periods
applicable to members of reserve components of the
Armed Forces in connection with Operation Iraqi
Freedom, and on the communication between the
Department of Defense and reserve component personnel
and their families regarding the lengths of the
mobilization deployment periods; and
(B) Department of Defense stop-loss policies.
(2) Consultation requirement.--In preparing the report, the
Secretary shall consult with the Chairman and other members of
the Joint Chiefs of Staff and with such other officials as the
Secretary considers appropriate.
(b) Content of Report.--The report under this section shall contain
a discussion of the matters described in subsection (a)(1), including a
discussion of the following matters:
(1) The process by which the Department of Defense
determined its policy regarding the lengths of mobilization
deployment periods.
(2) The reason that an adequate troop deployment policy was
not in place before Operation Iraqi Freedom began.
(3) A comparison of the policies during Operation Iraqi
Freedom with Department of Defense policies that applied to
previous contingency operations.
(4) The timeliness of the process for notifying reserve
component units for activation.
(5) The process for communicating with activated reserve
component members and their families about demobilization
schedules.
(6) The justification for delaying demobilization after
members and their families have been notified of the
anticipated demobilization schedule.
(7) The justification for current stop-loss policies,
together with a statement of the period for which those
policies are to remain in effect and the conditions under which
management of personnel under those policies would terminate.
(8) The family support programs provided by the National
Guard and other reserve components for families of activated
Reserves.
(9) An assessment of lessons learned about how the
increased operation tempos of the National Guard and other
reserve components can be expected to affect readiness,
recruitment and retention, civilian employers of Reserves, and
equipment and supply resources of the National Guard and the
other reserve components.
(c) Matters for Particular Emphasis.--In the discussion of the
matters included in the report under this section, the Secretary of
Defense shall place particular emphasis on--
(1) lessons learned, including deficiencies identified; and
(2) near-term and long-term corrective actions to address
the identified deficiencies.
(d) Form of Report.--The report under this section shall be
submitted in unclassified form, but may include a classified annex.
TITLE V--TIMELY COMPENSATION
SEC. 501. FINDINGS.
Congress makes the following findings:
(1) In November 2003, the General Accounting Office
reported, in connection with a study conducted by that office,
that among Army National Guard soldiers ``450 of the 481
soldiers from our 6 case study units had at least 1 pay problem
associated with their mobilization. These pay problems severely
constrain the Army's and the Department of Defense's (DOD)
ability to provide a most basic service to these personnel,
many of whom were risking their lives in combat.''.
(2) In August 2004, a second study by that office (by then
renamed the Government Accountability Office) found that among
Army Reserve soldiers ``332 of 348 soldiers (95 percent) we
audited at 8 case study units that were mobilized, deployed,
and demobilized at some time during the 18-month period from
August 2002 through January 2004 had at least 1 pay problem.''.
(3) The August 2004 report concluded that ``These pay
problems often had a profound adverse impact on individual
soldiers and their families. For example, soldiers were
required to spend considerable time, sometimes while deployed
in remote, hostile environments overseas, seeking help on pay
inquiries or in correcting errors in their active duty pays,
allowances, and related tax benefits.''.
SEC. 502. CORRECTION OF MILITARY PAY PROBLEMS FOR ACTIVATED RESERVE
COMPONENT PERSONNEL.
The Secretary of the Army shall designate a senior level official
of the Department of the Army to implement--
(1) the recommendations for executive action that are set
forth in the report of the Comptroller General of the United
States entitled ``Military Pay, Army National Guard Personnel
Mobilized to Active Duty Experienced Significant Pay
Problems'', dated November 2003; and
(2) the recommendations for executive action that are set
forth in the report of the Comptroller General of the United
States entitled ``Military Pay, Army Reserve Soldiers Mobilized
to Active Duty Experienced Significant Pay Problems'', dated
August 2004.
SEC. 503. SUPERVISION BY COMPTROLLER OF DEPARTMENT OF DEFENSE.
The official designated under section 502 shall report directly to,
and be subject to the direction of, the Under Secretary of Defense
(Comptroller) regarding performance of the duties that the official is
designated to carry out under such section.
SEC. 504. TERMINATION OF REQUIREMENT.
The designation under section 502 shall terminate upon the
submission of a certification of the Under Secretary of Defense
(Comptroller) to Congress that all recommendations referred to in such
section have been implemented.
TITLE VI--IMPROVED REPRESENTATION OF RESERVE PERSONNEL INTERESTS IN
DEPARTMENT OF DEFENSE SECRETARIAT
SEC. 601. FINDINGS.
Congress makes the following findings:
(1) Since September 11, 2001, the National Guard and the
other reserve components of the Armed Forces have experienced
an expansion of their role in the total force structure of the
Armed Forces to an unprecedented level. In 2004, the reserve
components comprised 40 percent of the total force of the Armed
Forces. Reservists are experiencing a dramatic increase in
operation tempo and average length of deployment.
(2) While the extent of the role of the reserve component
has changed so dramatically, the Department of Defense approach
to management of the reserve components has remained much the
same. No new senior leadership positions have been established
to manage the reserve components more effectively in the
expanded role.
SEC. 602. DEPUTY UNDER SECRETARY OF DEFENSE FOR PERSONNEL AND READINESS
(RESERVE AFFAIRS).
(a) Establishment of Position.--
(1) Position and duties.--Chapter 4 of title 10, United
States Code, is amended by inserting after section 136a the
following new section:
``Sec. 136b. Deputy Under Secretary of Defense for Personnel and
Readiness (Reserve Affairs)
``(a) There is a Deputy Under Secretary of Defense for Personnel
and Readiness (Reserve Affairs), appointed from civilian life by the
President, by and with the advice and consent of the Senate.
``(b) The Deputy Under Secretary of Defense for Personnel and
Readiness (Reserve Affairs) shall have as his principal duty the
overall supervision of reserve component affairs of the Department of
Defense.''.
(2) Clerical amendment.--The table of sections at the
beginning of such chapter is amended by inserting after the
item relating to section 136a the following new item:
``136b. Deputy Under Secretary of Defense for Personnel and Readiness
(Reserve Affairs).''.
(b) Executive Level IV.--Section 5315 of title 5, United States
Code, is amended by inserting after ``Deputy Under Secretary of Defense
for Personnel and Readiness.'' the following:
``Deputy Under Secretary of Defense for Personnel and
Readiness (Reserve Affairs).''.
SEC. 603. ELIMINATION OF POSITION OF ASSISTANT SECRETARY OF DEFENSE FOR
RESERVE AFFAIRS.
(a) Repeal of Requirement for Position.--Subsection (b) of section
138 of title 10, United States Code, is amended--
(1) by striking paragraph (2); and
(2) by redesignating paragraphs (3), (4), and (5), as
paragraphs (2), (3), and (4), respectively.
(b) Reduction in Total Number of Assistant Secretaries of
Defense.--
(1) Authorized number.--Subsection (a) of such section is
amended by striking ``nine'' and inserting ``eight''.
(2) Conforming amendment.--Section 5315 of title 5, United
States Code, is amended by striking ``(9)'' after ``Assistant
Secretaries of Defense'' and inserting ``(8)''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall take effect on the date on which a person is first appointed as
Deputy Under Secretary of Defense for Personnel and Readiness (Reserve
Affairs).
DIVISION B--MILITARY FAMILY PROTECTIONS
TITLE XXI--GUARDSMEN AND RESERVISTS FINANCIAL RELIEF
SEC. 2101. FINDINGS.
Congress makes the following findings:
(1) According to a Government Accountability Office report
in November 2004, ``The September 11, 2001, terrorist attacks
and the global war on terrorism have triggered the largest
activation of National Guard forces since World War II. As of
June 2004, over one-half of the National Guard's 457,000
personnel had been activated for overseas warfighting or
domestic homeland security missions in Federal and State active
duty roles.''. In all, over 400,000 reservists have been
mobilized between September 11, 2001, and the beginning of
2005.
(2) In March 2003, the General Accounting Office reported
that among members of the National Guard and other reserve
components of the Armed Forces ``. . . data for past military
operations show that 41 percent of drilling unit members
reported income loss . . .''. The report further noted that
senior officers in the reserve component reported average
losses of $5,000 in income upon activation.
(3) Not only has operation tempo drastically increased for
members of the reserve components, meaning that reservists are
being called away from their civilian jobs more often, but also
the durations of deployments have increased dramatically as
well, meaning that reservists are being called away from their
civilian jobs for longer periods. The Government Accountability
Office reported in September 2004 that the average annual days
of duty performed by members of the reserve components has
risen from approximately 40 days in 1989 to approximately 120
days in 2003. A consequence of both increased operations tempo
and increased duration of deployment has been a far greater
loss of income for reservists answering their country's call to
duty.
SEC. 2102. PENALTY-FREE WITHDRAWALS FROM RETIREMENT PLANS FOR
INDIVIDUALS CALLED TO ACTIVE DUTY FOR AT LEAST 179 DAYS.
(a) In General.--Paragraph (2) of section 72(t) of the Internal
Revenue Code of 1986 (relating to 10-percent additional tax on early
distributions from qualified retirement plans) is amended by adding at
the end the following new subparagraph:
``(G) Distributions from retirement plans to
individuals called to active duty.--
``(i) In general.--Any qualified reservist
distribution.
``(ii) Qualified reservist distribution.--
For purposes of this subparagraph, the term
`qualified reservist distribution' means any
distribution to an individual if--
``(I) such distribution is from any
qualified retirement plan (as defined
in section 4974(c)),
``(II) such individual was (by
reason of being a member of a reserve
component (as defined in section 101 of
title 37, United States Code)), ordered
or called to active duty for a period
in excess of 179 days or for an
indefinite period, and
``(III) such distribution is made
during the period beginning on the date
of such order or call and ending at the close of the active duty
period.
``(iii) Application of subparagraph.--This
subparagraph applies to individuals ordered or
called to active duty after September 11, 2001,
and before September 12, 2005.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to distributions after September 11, 2001.
SEC. 2103. INCOME TAX WITHHOLDING ON DIFFERENTIAL WAGE PAYMENTS.
(a) In General.--Section 3401 of the Internal Revenue Code of 1986
(relating to definitions) is amended by adding at the end the following
new subsection:
``(i) Differential Wage Payments to Active Duty Members of the
Uniformed Services.--
``(1) In general.--For purposes of subsection (a), any
differential wage payment shall be treated as a payment of
wages by the employer to the employee.
``(2) Differential wage payment.--For purposes of paragraph
(1), the term `differential wage payment' means any payment
which--
``(A) is made by an employer to an individual with
respect to any period during which the individual is
performing service in the uniformed services while on
active duty for a period of more than 30 days, and
``(B) represents all or a portion of the wages the
individual would have received from the employer if the
individual were performing service for the employer.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to remuneration paid after December 31, 2004.
SEC. 2104. TREATMENT OF DIFFERENTIAL WAGE PAYMENTS FOR RETIREMENT PLAN
PURPOSES.
(a) Pension Plans.--
(1) In general.--Section 414(u) of the Internal Revenue
Code of 1986 (relating to special rules relating to veterans'
reemployment rights under USERRA) is amended by adding at the
end the following new paragraph:
``(11) Treatment of differential wage payments.--
``(A) In general.--Except as provided in this
paragraph, for purposes of applying this title to a
retirement plan to which this subsection applies--
``(i) an individual receiving a
differential wage payment shall be treated as
an employee of the employer making the payment,
``(ii) the differential wage payment shall
be treated as compensation, and
``(iii) the plan shall not be treated as
failing to meet the requirements of any
provision described in paragraph (1)(C) by
reason of any contribution which is based on
the differential wage payment.
``(B) Special rule for distributions.--
``(i) In general.--Notwithstanding
subparagraph (A)(i), for purposes of section
401(k)(2)(B)(i)(I), 403(b)(7)(A)(ii),
403(b)(11)(A), or 457(d)(1)(A)(ii), an
individual shall be treated as having been
severed from employment during any period the
individual is performing service in the
uniformed services described in section
3401(i)(2)(A).
``(ii) Limitation.--If an individual elects
to receive a distribution by reason of clause
(i), the plan shall provide that the individual
may not make an elective deferral or employee
contribution during the 6-month period
beginning on the date of the distribution.
``(C) Nondiscrimination requirement.--Subparagraph
(A)(iii) shall apply only if all employees of an
employer performing service in the uniformed services
described in section 3401(i)(2)(A) are entitled to
receive differential wage payments on reasonably
equivalent terms and, if eligible to participate in a
retirement plan maintained by the employer, to make
contributions based on the payments. For purposes of
applying this subparagraph, the provisions of
paragraphs (3), (4), and (5), of section 410(b) shall
apply.
``(D) Differential wage payment.--For purposes of
this paragraph, the term `differential wage payment'
has the meaning given such term by section
3401(i)(2).''.
(2) Conforming amendment.--The heading for section 414(u)
of such Code is amended by inserting ``and to Differential Wage
Payments to Members on Active Duty'' after ``USERRA''.
(b) Differential Wage Payments Treated as Compensation for
Individual Retirement Plans.--Section 219(f)(1) of the Internal Revenue
Code of 1986 (defining compensation) is amended by adding at the end
the following new sentence: ``The term `compensation' includes any
differential wage payment (as defined in section 3401(i)(2)).''.
(c) Effective Date.--The amendments made by this section shall
apply to plan years beginning after December 31, 2004.
(d) Provisions Relating to Plan Amendments.--
(1) In general.--If this subsection applies to any plan or
annuity contract amendment--
(A) such plan or contract shall be treated as being
operated in accordance with the terms of the plan or
contract during the period described in paragraph
(2)(B)(i), and
(B) except as provided by the Secretary of the
Treasury, such plan shall not fail to meet the
requirements of the Internal Revenue Code of 1986 or
the Employee Retirement Income Security Act of 1974 by
reason of such amendment.
(2) Amendments to which section applies.--
(A) In general.--This subsection shall apply to any
amendment to any plan or annuity contract which is
made--
(i) pursuant to any amendment made by this
section, and
(ii) on or before the last day of the first
plan year beginning on or after January 1,
2007.
(B) Conditions.--This subsection shall not apply to
any plan or annuity contract amendment unless--
(i) during the period beginning on the date
the amendment described in subparagraph (A)(i)
takes effect and ending on the date described
in subparagraph (A)(ii) (or, if earlier, the
date the plan or contract amendment is
adopted), the plan or contract is operated as
if such plan or contract amendment were in
effect; and
(ii) such plan or contract amendment
applies retroactively for such period.
SEC. 2105. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT AND READY
RESERVE-NATIONAL GUARD REPLACEMENT EMPLOYEE CREDIT.
(a) Ready Reserve-National Guard Credit.--
(1) 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 inserting after section
45I the following new section:
``SEC. 45J. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.
``(a) General Rule.--For purposes of section 38, in the case of an
eligible taxpayer, the Ready Reserve-National Guard employee credit
determined under this section for any taxable year with respect to each
Ready Reserve-National Guard employee of such taxpayer is an amount
equal to 50 percent of the lesser of--
``(1) the actual compensation amount with respect to such
employee for such taxable year, or
``(2) $30,000.
``(b) Definition of Actual Compensation Amount.--For purposes of
this section, the term `actual compensation amount' means the amount of
compensation paid or incurred by an eligible taxpayer with respect to a
Ready Reserve-National Guard employee on any day when the employee was
absent from employment for the purpose of performing qualified active
duty.
``(c) Limitations.--No credit shall be allowed with respect to any
day that a Ready Reserve-National Guard employee who performs qualified
active duty was not scheduled to work (for reason other than to
participate in qualified active duty).
``(d) Definitions and Special Rules.--For purposes of this
section--
``(1) Eligible taxpayer.--
``(A) In general.--The term `eligible taxpayer'
means a small business employer.
``(B) Small business employer.--
``(i) In general.--The term `small business
employer' means, with respect to any taxable
year, any employer who employed an average of
50 or fewer employees on business days during
such taxable year.
``(ii) Controlled groups.--For purposes of
clause (i), all persons treated as a single
employer under subsection (b), (c), (m), or (o)
of section 414 shall be treated as a single
employer.
``(2) Qualified active duty.--The term `qualified active
duty' means--
``(A) active duty under an order or call for a
period in excess of 179 days or for an indefinite
period, other than the training duty specified in
section 10147 of title 10, United States Code (relating
to training requirements for the Ready Reserve), or
section 502(a) of title 32, United States Code
(relating to required drills and field exercises for
the National Guard), in connection with which an
employee is entitled to reemployment rights and other
benefits or to a leave of absence from employment under
chapter 43 of title 38, United States Code, and
``(B) hospitalization incident to such duty.
``(3) Compensation.--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).
``(4) Ready reserve-national guard employee.--The term
`Ready Reserve-National Guard employee' means an employee who
is a member of the Ready Reserve of a reserve component of an
Armed Force of the United States as described in sections 10142
and 10101 of title 10, United States Code.
``(5) Certain rules to apply.--Rules similar to the rules
of section 52 shall apply.
``(e) Termination.--This section shall not apply to any
amount paid or incurred after December 31, 2005.''.
(2) Credit to be part of general business credit.--
Subsection (b) of section 38 of the Internal Revenue Code of
1986 (relating to general business credit) is amended by
striking ``plus'' at the end of paragraph (18), by striking the
period at the end of paragraph (19) and inserting ``, plus'',
and by adding at the end the following:
``(20) the Ready Reserve-National Guard employee credit
determined under section 45J(a).''.
(3) Denial of double benefit.--Section 280C(a) of the
Internal Revenue Code of 1986 (relating to rule for employment
credits) is amended by inserting ``45J(a),'' after ``45A(a),''.
(4) 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 45I the following:
``Sec. 45J. Ready Reserve-National Guard
employee credit.''.
(5) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred after September 30,
2004, in taxable years ending after such date.
(b) Ready Reserve-National Guard Replacement Employee Credit.--
(1) In general.--Paragraph (1) of section 51(d) of the
Internal Revenue Code of 1986 (relating to members of targeted
groups) is amended by striking ``or'' at the end of
subparagraph (G), by striking the period at the end of
subparagraph (H) and inserting ``, or'' and by adding at the
end the following new subparagraph:
``(I) a qualified replacement employee.''.
(2) Qualified replacement employee.--Section 51(d) of the
Internal Revenue Code of 1986 is amended by redesignating
paragraphs (10), (11), and (12) as paragraphs (11), (12), and
(13), respectively, and by inserting after paragraph (9) the
following new paragraph:
``(10) Qualified replacement employee.--
``(A) In general.--The term `qualified replacement
employee' means an individual who is certified by the
designated local agency as being hired by an eligible
taxpayer to replace a Ready Reserve-National Guard
employee of such taxpayer, but only with respect to the
period during which such Ready Reserve-National Guard
employee participates in qualified active duty,
including time spent in travel status.
``(B) General definitions and special rules.--For
purposes of this paragraph--
``(i) Eligible taxpayer.--The term
`eligible taxpayer' means a small business
employer.
``(ii) Small business employer.--
``(I) In general.--The term `small
business employer' means, with respect
to any taxable year, any employer who
employed an average of 50 or fewer
employees on business days during such
taxable year.
``(II) Controlled groups.--For
purposes of subclause (I), all persons
treated as a single employer under
subsection (b), (c), (m), or (o) of
section 414 shall be treated as a
single employer.
``(iii) Ready reserve-national guard
employee.--The term `Ready Reserve-National
Guard employee' has the meaning given such term
by section 45J(d)(3).
``(iv) Qualified active duty.--The term
`qualified active duty' has the meaning given
such term by section 45J(d)(1).
``(C) 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) by reason of paragraph (1)(I) to a taxpayer for--
``(i) any taxable year, beginning after the
date of the enactment of this section, 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
``(ii) the 2 succeeding taxable years.''.
(3) Effective date.--The amendments made by this subsection
shall apply to amounts paid or incurred to an individual who
begins work for the employer after September 30, 2004.
(c) Study by GAO.--
(1) In general.--The Comptroller General of the United
States shall study the following:
(A) What, if any, problems exist in recruiting
individuals for a reserve component of an Armed Force
of the United States.
(B) What, if any, problems exist as the result of
providing differential wage payments (as defined in
section 3401(i)(2) of the Internal Revenue Code of 1986
(as added by this Act)) to individuals described in
subparagraph (A) in the recruitment and retention of
individuals as regular members of the Armed Forces of
the United States.
(C) Whether the credit allowed under section 45J of
the Internal Revenue Code of 1986 (as added by this
section) is an effective incentive for the hiring and
retention of employees who are individuals described in
subparagraph (A) and whether there exists any
compliance problems in the administration of such
credit.
(2) Report.--The Comptroller General of the United States
shall report on the results of the study required under
paragraph (1) to the Committee of Finance of the Senate and the
Committee on Ways and Means of the House of Representatives
before July 1, 2005.
SEC. 2106. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS PERFORMING
ACTIVE SERVICE IN THE UNIFORMED SERVICES OR NATIONAL
GUARD.
(a) Preservation of Pay Level.--
(1) Requirements.--Subchapter IV of chapter 55 of title 5,
United States Code, is amended by adding at the end the
following:
``Sec. 5538. Nonreduction in pay while serving in the uniformed
services or National Guard
``(a) An employee who is absent from a position of employment with
the Federal Government in order to perform active duty in the uniformed
services pursuant to a call or order to active duty under a provision
of law referred to in section 101(a)(13)(B) of title 10 shall be
entitled, while serving on active duty, to receive, for each pay period
described in subsection (b), an amount equal to the amount by which--
``(1) the amount of basic pay which would otherwise have
been payable to such employee for such pay period if such
employee's civilian employment with the Government had not been
interrupted by that service, exceeds (if at all)
``(2) the amount of pay and allowances which (as determined
under subsection (d))--
``(A) is payable to such employee for that service;
and
``(B) is allocable to such pay period.
``(b)(1) Amounts under this section shall be payable with respect
to each pay period (which would otherwise apply if the employee's
civilian employment had not been interrupted)--
``(A) during which such employee is entitled to
reemployment rights under chapter 43 of title 38 with respect
to the position from which such employee is absent (as referred
to in subsection (a)); and
``(B) for which such employee does not otherwise receive
basic pay (including by taking any annual, military, or other
paid leave) to which such employee is entitled by virtue of
such employee's civilian employment with the Government.
``(2) For purposes of this section, the period during which an
employee is entitled to reemployment rights under chapter 43 of title
38--
``(A) shall be determined disregarding the provisions of
section 4312(d) of title 38; and
``(B) shall include any period of time specified in section
4312(e) of title 38 within which an employee may report or
apply for employment or reemployment following completion of
service on active duty to which called or ordered as described
in subsection (a).
``(c) Any amount payable under this section to an employee shall be
paid--
``(1) by such employee's employing agency;
``(2) from the appropriation or fund which would be used to
pay the employee if such employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would basic pay if such employee's civilian
employment had not been interrupted.
``(d) The Office of Personnel Management shall, in consultation
with Secretary of Defense, prescribe any regulations necessary to carry
out the preceding provisions of this section.
``(e)(1) The head of each agency referred to in section
2302(a)(2)(C)(ii) shall, in consultation with the Office, prescribe
procedures to ensure that the rights under this section apply to the
employees of such agency.
``(2) The Administrator of the Federal Aviation Administration
shall, in consultation with the Office, prescribe procedures to ensure
that the rights under this section apply to the employees of that
agency.
``(f) For purposes of this section--
``(1) the terms `employee', `Federal Government', and
`uniformed services' have the same respective meanings as given
them in section 4303 of title 38;
``(2) the term `employing agency', as used with respect to
an employee entitled to any payments under this section, means
the agency or other entity of the Government (including an
agency referred to in section 2302(a)(2)(C)(ii)) with respect
to which such employee has reemployment rights under chapter 43
of title 38; and
``(3) the term `basic pay' includes any amount payable
under section 5304.''.
(2) Clerical amendment.--The table of sections for chapter
55 of title 5, United States Code, is amended by inserting
after the item relating to section 5537 the following:
``5538. Nonreduction in pay while serving in the uniformed services or
National Guard.''.
(b) Effective Date.--
(1) In general.--Section 5538 of title 5, United States
Code (as added by subsection (a)), shall apply with respect to
pay periods (as described in subsection (b) of such section)
beginning on or after the date of the enactment of this Act.
(2) Conditional retroactive application.--
(A) Section 5538 of title 5, United States Code (as
added by subsection (a)), shall apply with respect to
pay periods (as described in subsection (b) of such
section) beginning on or after October 11, 2002 through
the date of the enactment of this Act, subject to the
availability of appropriations.
(B) There are authorized to be appropriated
$100,000,000 for purposes of subparagraph (A).
TITLE XXII--NATIONAL GUARD AND RESERVE COMPREHENSIVE HEALTH BENEFITS
SEC. 2201. SHORT TITLE.
This title may be cited as the ``National Guard and Reserve
Comprehensive Health Benefits Act of 2005''.
SEC. 2202. FINDINGS.
Congress makes the following findings:
(1) According to the results of a Department of Defense
survey conducted in 2000, 20 percent of members of the reserve
components of the Armed Forces, including 40 percent of junior
enlisted personnel, had no health care coverage while not on
active duty.
(2) In 2004, Congress passed legislation authorizing
reservists to obtain access to the military TRICARE health care
program for one year for each 90-day period of active duty
service. While the enactment of this law was an important step
forward, the law only provides eligibility for health care
after active duty has been completed and fails to provide the
complete health care coverage necessary to ensure that
reservists are medically ready to answer a future call to
active duty.
(3) In September 2004, the Government Accountability
Office, after reviewing pre-deployment health screenings of
over 240,000 reservists, reported finding that nearly 7 percent
of activated reservists were categorized as nondeployable for
health reasons, including nearly 10 percent of the Army
Reserve.
SEC. 2203. TRICARE COVERAGE FOR MEMBERS OF THE READY RESERVE.
(a) Eligibility.--Section 1076b of title 10, United States Code, is
amended to read as follows:
``Sec. 1076b. TRICARE program: coverage for members of the Ready
Reserve
``(a) Eligibility.--Members of the Selected Reserve of the Ready
Reserve of a reserve component of the armed forces 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.''.
(b) Definitions.--
(1) Tricare options.--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 Civilian
Health and Medical Program of the Uniformed Services option
under the TRICARE program.''.
(2) Conforming amendments.--
(A) Section 1076d(f) of such title is amended--
(i) by striking ``(f) Definitions.--'' and
all that follows through ``(1) The'' and
inserting ``(f) Immediate Family Defined.--In
this section, the''; and
(ii) by striking paragraph (2).
(B) 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.
(d) Coordination With Overlapping Authority.--
(1) Repeal.--Effective one year after the date of the
enactment of this Act--
(A) section 1076d of title 10, United States Code,
is repealed; and
(B) the table of sections at the beginning of
chapter 55 of such title is amended by striking the
item relating to section 1076d.
(2) Transition coverage.--The Secretary of Defense shall
provide for an orderly transition to TRICARE coverage under
section 1076b of title 10, United States Code (as amended by
subsection (a)), for persons enrolled for TRICARE coverage
under section 1076d of such title before the repeal of such
section takes effect under paragraph (1)(A).
SEC. 2204. ALLOWANCE FOR CONTINUATION OF NON-TRICARE HEALTH BENEFITS
COVERAGE FOR CERTAIN MOBILIZED RESERVES.
(a) Payment of Premiums.--
(1) Requirement to pay premiums.--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) Clerical amendment.--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.
TITLE XXIII--IMPROVED DEATH GRATUITY AND OTHER SURVIVOR BENEFITS
SEC. 2301. FINDINGS.
Congress makes the following findings:
(1) No amount of money can make up for the loss of a loved
one. But the United States can, and is obliged to, honor the
service of lost servicemembers by ensuring that their families
are financially supported at the time of great need occasioned
by those losses.
(2) The Federal Government owes families of servicemembers
dying on duty a death gratuity that is sufficient to help each
family pay for costs associated with the death of the
servicemember and to help the members of the family adjust to
the financial instability that results from termination of the
servicemember's income.
(3) Survivors of fallen military personnel who are eligible
for both a Survivor Benefit Plan annuity and Dependency and
Indemnity Compensation suffer a loss of income as a result of
the law that requires a reduction in the Survivor Benefit Plan
annuity by the amount of the Dependency and Indemnity
Compensation. This unjust prohibition against concurrent
receipt of two independent benefits prevents the United States
from fulfilling its obligation to the survivors during the time
of financial need that is occasioned by the deaths of the
fallen servicemembers.
SEC. 2302. INCREASED AMOUNT OF DEATH GRATUITY.
(a) Amount of Death Gratuity.--Section 1478(a) of title 10, United
States Code, is amended by striking ``$12,000'' in the first sentence
and inserting ``$100,000''.
(b) Effective Date.--The amendment made by subsection (a) shall
take effect as of September 11, 2001, and shall apply with respect to
deaths occurring on or after that date.
SEC. 2303. DEATH GRATUITY EXCLUDABLE FROM FEDERAL INCOME TAXATION.
(a) In General.--Paragraph (1) of section 134(b) of the Internal
Revenue Code of 1986 (relating to certain military benefits) is amended
by adding at the end the following new flush sentence:
``Such term shall include any death gratuity to which the
limitation in section 1478(a) of title 10, United States Code,
applies.''.
(b) Effective Date.--The amendment made by subsection (a) shall
apply to amounts paid with respect to deaths occurring on or after
September 11, 2001.
SEC. 2304. REPEAL OF REQUIREMENT OF REDUCTION OF SBP SURVIVOR ANNUITIES
BY DEPENDENCY AND INDEMNITY COMPENSATION.
(a) Repeal.--Subchapter II of chapter 73 of title 10, United States
Code is amended--
(1) in section 1450(c)(1), by inserting after ``to whom
section 1448 of this title applies'' the following: ``(except
in the case of a death as described in subsection (d) or (f) of
such section)''; and
(2) in section 1451(c)--
(A) by striking paragraph (2); and
(B) by redesignating paragraphs (3) and (4) as
paragraphs (2) and (3), respectively.
(b) Prohibition on Retroactive Benefits.--No benefits may be paid
to any person for any period before the effective date provided under
subsection (e) by reason of the amendments made by subsection (a).
(c) Prohibition on Recoupment of Certain Amounts Previously
Refunded to SBP Recipients.--A surviving spouse who is or has been in
receipt of an annuity under the Survivor Benefit Plan under subchapter
II of chapter 73 of title 10, United States Code, that is in effect
before the effective date provided under subsection (e) and that is
adjusted by reason of the amendments made by subsection (a) and who has
received a refund of retired pay under section 1450(e) of title 10,
United States Code, shall not be required to repay such refund to the
United States.
(d) Reconsideration of Optional Annuity.--Section 1448(d)(2) of
title 10, United States Code, is amended by adding at the end the
following new sentences: ``The surviving spouse, however, may elect to
terminate an annuity under this subparagraph in accordance with
regulations prescribed by the Secretary concerned. Upon such an
election, payment of an annuity to dependent children under this
subparagraph shall terminate effective on the first day of the first
month that begins after the date on which the Secretary concerned
receives notice of the election, and, beginning on that day, an annuity
shall be paid to the surviving spouse under paragraph (1) instead.''.
(e) Effective Date.--The amendments made by this section shall take
effect on the later of--
(1) the first day of the first month that begins after the
date of the enactment of this Act; or
(2) the first day of the fiscal year that begins in the
calendar year in which this Act is enacted.
SEC. 2305. EFFECTIVE DATE FOR PAID-UP COVERAGE UNDER SURVIVOR BENEFIT
PLAN.
Section 1452(j) of title 10, United States Code, is amended by
striking ``October 1, 2008'' and inserting ``October 1, 2005''.
DIVISION C--TAXPAYER PROTECTION
TITLE XXXI--FUNDING OF RECONSTRUCTION IN IRAQ
SEC. 3101. FINDINGS.
Congress makes the following findings:
(1) The international community's support for Iraq's
efforts to reconstruct the infrastructure of Iraq following the
overthrow of Saddam Hussein's regime is critical to the
achievement of regional and international stability and to the
protection of national security interests of the United States.
(2) United States taxpayers have borne a disproportionate
burden in supporting the reconstruction of Iraq. The United
States Government has committed to providing Iraq with grants
of financial assistance worth more than 500 percent more than
the grant assistance that has been committed by the governments
of all of the rest of the countries of the world combined.
(3) The disproportionate contribution of the United States
to the reconstruction of Iraq has resulted in a commitment of
United States resources to reconstruction that otherwise would
be available for supporting the efforts of United States
military personnel to rid Iraq and Afghanistan of hostile
insurgents.
(4) Iraq possesses the world's second largest reserve of
crude oil, with 112,000,000,000 barrels, and administration
officials have stated on several occasions that revenue from
Iraq's oil industry could fund a significant portion of the
costs of the reconstruction of Iraq.
SEC. 3102. REPORT ON ADDITIONAL NEEDS FOR FUNDING MILITARY AND
RECONSTRUCTION EFFORTS.
(a) Requirement for Report.--Whenever the President submits to
Congress a request for a supplemental appropriation of funds for use in
connection with United States military or reconstruction efforts in
Iraq, the President shall submit to the chairmen and ranking members of
the appropriate committees of Congress in accordance with this section
a report on the status of United States financial commitments to the
reconstruction of Iraq.
(b) Content.--The report under subsection (a) shall include the
following information:
(1) An estimate of the amount of the United States
Government funds spent for the reconstruction of Iraq between
March 19, 2003, and the date of the report that is attributable
to tax revenue collected from United States taxpayers.
(2) An assessment of the activities funded by that amount,
together with a discussion of the results that such activities
have achieved.
(3) An estimate of the amount of the funds that have been
contributed by all other foreign governments for the
reconstruction of Iraq and in relief of Iraq's national debt.
(4) The amount of the crude oil that has been extracted by
Iraq since March 19, 2003, and the total value of that oil in
United States dollars.
(c) Time for Report.--The President shall submit the report under
this section not later than 24 hours after any proposed legislation to
provide a supplemental appropriation of funds requested by the
President for use in connection with United States military or
reconstruction activities in Iraq is introduced in either the Senate or
the House of Representatives.
(d) Form.--The report under this section shall be submitted in
unclassified form.
SEC. 3103. LIMITATION ON USE OF FUNDS.
(a) Limitation.--Funds appropriated or otherwise available for
providing financial assistance for reconstruction activities in Iraq
may not be obligated or expended for providing financial assistance for
such activities other than in the form of a collateralized loan until
the President submits to the chairmen and ranking members of the
appropriate committees of Congress a report that contains the following
matters:
(1) The President's plan for seeking increased financial
support for reconstruction activities in Iraq from the
international community.
(2) The President's statement that he has determined that--
(A) Iraq is incapable of producing sufficient
revenues from its oil industry to pay for future
reconstruction activities; and
(B) it is not in the national security interests of
the United States for the United States to provide
financial assistance for reconstruction activities in
Iraq solely in the form of loans.
(b) Waiver Authority.--The President may waive the applicability of
the limitation in subsection (a) to an obligation or expenditure of
funds if the President determines that the applicability of the
limitation to such obligation or expenditure would adversely affect the
physical safety of United States Armed Forces personnel operating in
Iraq, except that any such waiver shall not take effect before the
President submits a written notification of the waiver and
determination to the chairmen and ranking members of the appropriate
committees of Congress.
SEC. 3104. APPROPRIATE COMMITTEES OF CONGRESS DEFINED.
In this title, the term ``appropriate committees of Congress'' mean
the following committees:
(1) The Committee on Foreign Relations Committee, the
Committee on Armed Services, and the Committee on
Appropriations of the Senate.
(2) The Committee on International Relations, the Committee
on Armed Services, and the Committee on Appropriations of the
House of Representatives.
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