S. 2077 (105th): National Guard and Reserve Components Equity Act of 1998

105th Congress, 1997–1998. Text as of May 13, 1998 (Introduced).

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S 2077 IS

105th CONGRESS

2d Session

S. 2077

To maximize the national security of the United States and minimize the cost by providing for increased use of the capabilities of the National Guard and the other reserve components of the United States; to improve the readiness of the reserve components; to ensure that adequate resources are provided for the reserve components; and for other purposes.

IN THE SENATE OF THE UNITED STATES

May 13, 1998

Mr. FORD (for himself, Mr. BOND, Mr. DORGAN, and Mr. LEAHY) introduced the following bill; which was read twice and referred to the Committee on Armed Services


A BILL

To maximize the national security of the United States and minimize the cost by providing for increased use of the capabilities of the National Guard and the other reserve components of the United States; to improve the readiness of the reserve components; to ensure that adequate resources are provided for the reserve components; 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 Reserve Components Equity Act of 1998’.

TITLE I--STRATEGIC PLANNING

SEC. 101. FORCE STRUCTURE.

    (a) REQUIREMENT- At the same time as the President submits the budget to Congress for fiscal year 2000 under section 1105(a) of title 31, United States Code, the Secretary of Defense shall submit to Congress a report on the Army reserve component force structure.

    (b) CONTENT OF REPORT- The report shall include the following:

      (1) The force structure that the Secretary considers appropriate for the Army National Guard and the Army Reserve for meeting threats to the national security that are considered probable for the six fiscal years beginning with fiscal year 2000.

      (2) Specific wartime missions for the units in that force structure, including missions relating to responses to emergencies involving weapons of mass destruction.

    (b) FREEZE ON END STRENGTHS- Notwithstanding any other provision of law, the Armed Forces shall maintain the same strengths for Selected Reserve personnel of the Army National Guard of the United States and the Army Reserve through September 30, 2000, as are authorized under paragraphs (1) and (2), respectively, of section 411(a) of the National Defense Authorization Act for Fiscal Year 1998 (Public Law 105-85; 111 Stat. 1719).

SEC. 102. MODERNIZATION PLAN.

    (a) PLAN REQUIRED- The Secretary of Defense shall develop a master plan that provides for the complete modernization of the National Guard and the other reserve components of the Armed Forces, including the modernization necessary to ensure the compatibility of the equipment used by the reserve components.

    (b) SUBMISSION TO CONGRESS- The Secretary shall submit the plan to Congress not later than six months after the date of the enactment of this Act.

SEC. 103. MILITARY CONSTRUCTION.

    (a) PLAN REQUIRED- The Secretary of Defense shall develop a master plan that provides for meeting the unmet requirements of the National Guard and the other reserve components for military construction.

    (b) SUBMISSION TO CONGRESS- The Secretary shall submit the plan to Congress not later than six months after the date of the enactment of this Act.

TITLE II--RESERVE COMPONENT LEADERSHIP

SEC. 201. CHIEF OF THE NATIONAL GUARD BUREAU.

    (a) RELATIONSHIP TO THE JOINT CHIEFS OF STAFF- Section 151 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ‘(h) PARTICIPATION BY THE CHIEF OF THE NATIONAL GUARD BUREAU- (1) The Chief of the National Guard Bureau shall identify for the Chairman any matter scheduled for consideration by the Joint Chiefs of Staff that directly concerns the National Guard, domestic security, or public safety.

    ‘(2) Unless, upon request of the Chairman for a determination, the Secretary of Defense determines that a matter identified pursuant to paragraph (1) does not concern the National Guard, domestic security, or public safety, the Chief of the National Guard Bureau shall meet with the Joint Chiefs of Staff when that matter is under consideration. The Chief of the National Guard Bureau has equal status with the members of the Joint Chiefs of Staff for the consideration of the matter by the Joint Chiefs of Staff.

    ‘(3) The Chairman shall provide the Chief of the National Guard Bureau with all agenda for the meetings of the Joint Chiefs of Staff and any other information that the Chairman considers appropriate to assist the Chief of the National Guard Bureau to carry out his responsibilities under this subsection.’.

    (b) MEMBERSHIP ON THE JOINT REQUIREMENTS OVERSIGHT COUNCIL- Section 181(c) of such title is amended--

      (1) in paragraph (1)--

        (A) in subsection (D), by striking out ‘and’;

        (B) in subsection (E), by striking out the period at the end and inserting in lieu thereof ‘; and’; and

        (C) by adding at the end the following:

      ‘(F) the Chief of the National Guard Bureau.’; and

      (2) in paragraph (2), by inserting ‘and the Chief of the National Guard Bureau’ after ‘other than the Chairman of the Joint Chiefs of Staff’.

    (c) ADDITIONAL ADVISORY FUNCTIONS- Section 10502(c) of title 10, United States Code, is amended to read as follows:

    ‘(c) ADVISER ON NATIONAL GUARD MATTERS- The Chief of the National Guard Bureau is the principal adviser to the President, the Secretary of Defense, any other person designated to exercise national command authority, the Secretary of the Army, the Chief of Staff of the Army, the Secretary of the Air Force, and the Chief of Staff of the Air Force on matters relating to--

      ‘(1) the National Guard;

      ‘(2) the Army National Guard of the United States;

      ‘(3) the Air National Guard of the United States;

      ‘(4) domestic security; and

      ‘(5) public safety.’.

    (d) RELATIONSHIP TO THE ARMY STAFF AND THE AIR STAFF- Section 10502 of title 10, United States Code, is amended by adding at the end the following new paragraph:

    ‘(e) RELATIONSHIP TO ARMY AND AIR STAFF- To the extent that it does not impair the independence of the Chief of the National Guard Bureau in the performance of his duties, the Chief of the National Guard Bureau shall serve at the level of the Vice Chief of Staff of the Army in all forums within the Department of the Army, and at the level of the Vice Chief of Staff of the Air Force in all forums within the Department of the Air Force.’.

SEC. 202. GRADES OF RESERVE COMPONENT LEADERS.

    (a) NATIONAL GUARD BUREAU LEADERSHIP-

      (1) CHIEF- Section 10502(d) of title 10, United States Code, is amended by striking out ‘lieutenant general’ and inserting in lieu thereof ‘general’.

      (2) VICE CHIEF- Section 10505(c) of such title is amended by striking out ‘major general’ and inserting in lieu thereof ‘lieutenant general’.

      (3) OTHER GENERAL OFFICERS- Section 10506(a)(1) of such title is amended by striking out ‘major general’ each place it appears and inserting in lieu thereof ‘lieutenant general’.

    (b) CHIEF OF ARMY RESERVE- Section 3038(c) of such title is amended by striking out ‘major general’ in the third sentence and inserting in lieu thereof ‘lieutenant general’.

    (c) CHIEF OF NAVAL RESERVE- Section 5143 of such title is amended--

      (1) in subsection (b), by striking out ‘from officers who--’ and inserting in lieu thereof ‘from among officers of the Naval Reserve who--’; and

      (2) in subsection (c)(2), by striking out ‘a grade above rear admiral (lower half)’ in the third sentence and inserting in lieu thereof ‘the grade of vice admiral’.

    (d) COMMANDER, MARINE FORCES RESERVE- Section 5144 of such title is amended--

      (1) in subsection (b), by striking out ‘from officers who--’ and inserting in lieu thereof ‘from among officers of the Marine Corps Reserve who--’; and

      (2) in subsection (c)(2), by striking out ‘a grade above brigadier general’ in the third sentence and inserting in lieu thereof ‘the grade of lieutenant general’.

    (e) CHIEF OF AIR FORCE RESERVE- Section 8038(c) of such title is amended by striking out ‘major general’ in the third sentence and inserting in lieu thereof ‘lieutenant general’.

    (f) EXCLUSION FROM DISTRIBUTION LIMITS FOR GENERAL OFFICERS ON ACTIVE DUTY- Section 525(b) of title 10, United States Code, is amended by adding at the end the following:

    ‘(6)(A) An officer serving in a position referred to in subparagraph (B) in the grade specified for the position in that subparagraph is in addition to the number that would otherwise be permitted for that officer’s armed force for that grade under paragraph (1).

    ‘(B) Subparagraph (A) applies to an officer while serving in any of the following positions:

      ‘(i) The Chief of the National Guard Bureau, if serving in the grade of general.

      ‘(ii) The Vice Chief of the National Guard Bureau, if serving in the grade of lieutenant general.

      ‘(iii) The Director of the Army National Guard, if serving in the grade of lieutenant general.

      ‘(iv) The Director of the Air National Guard, if serving in the grade of lieutenant general.

    ‘(7)(A) An officer while serving in a position referred to in subparagraph (B), if serving in the grade of lieutenant general or vice admiral, is in addition to the number that would otherwise be permitted for that officer’s armed force for that grade under paragraph (1) or (2), as applicable.

    ‘(B) Subparagraph (A) applies to an officer serving in any of the following positions:

      ‘(i) The Chief of Army Reserve.

      ‘(ii) The Chief of Naval Reserve.

      ‘(iii) The Commander, Marine Forces Reserve.

      ‘(iv) The Chief of Air Force Reserve.’.

    (g) EFFECTIVE DATE- This section and the amendments made by this section shall take effect on January 1, 1999.

SEC. 203. ADJUTANTS GENERAL OF THE NATIONAL GUARD.

    (a) FEDERAL RECOGNITION- The Secretary of Defense shall prescribe in regulations a requirement that, whenever a person is appointed to the position of State adjutant general of the National Guard, the board that is to consider the appointee for being extended Federal recognition be convened within 60 days after the date of the appointment.

    (b) INVESTIGATIONS OF ADJUTANTS GENERAL- The Secretary of Defense shall prescribe in regulations a requirement that the Inspector General of the Department of Defense be responsible for conducting investigations regarding appointments of State adjutants general of the National Guard for the Department of Defense.

    (c) STATE INCLUDES POSSESSIONS, ET CETERA- For the purposes of this section, the term ‘State’ includes the District of Columbia, Puerto Rico, Guam, and the Virgin Islands.

SEC. 204. REVIEW OF PROMOTIONS AND FEDERAL RECOGNITION FOR NATIONAL GUARD OFFICERS.

    (a) GAO REVIEW- The Comptroller General shall review the promotions of, and extensions of Federal recognition to, officers of the National Guard to determine the timeliness and fairness of the processing of such actions.

    (b) SCOPE OF REVIEW- The Comptroller General shall determine the period and number of actions that are necessary to be reviewed in order to provide a meaningful basis for making determinations under subsection (a).

    (c) REPORT- Not later than one year after the date of the enactment of this Act, the Comptroller General shall submit to Congress a report on the review. The report shall include the Comptroller General’s determinations together with any recommendations that the Comptroller General considers appropriate.

TITLE III--USE OF THE RESERVE COMPONENTS FOR EMERGENCIES INVOLVING WEAPONS OF MASS DESTRUCTION

SEC. 301. DISASTER RELIEF.

    (a) AUTHORITY-

      (1) DEFINITIONS-

        (A) MAJOR DISASTER- Paragraph (2) of section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122) is amended by striking out ‘or explosion’ and inserting in lieu thereof ‘explosion, or emergency involving a weapon of mass destruction.’.

        (B) WEAPON OF MASS DESTRUCTION- Such section is further amended by adding at the end the following:

      ‘(9) WEAPON OF MASS DESTRUCTION- ‘Weapon of mass destruction’ has the meaning given that term in section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).

      ‘(10) NATIONAL GUARD- ‘National Guard’ has the meaning given that term in section 101(3) of title 32, United States Code.

      ‘(11) RESERVE COMPONENTS- ‘Reserve components of the Armed Forces’ means the reserve components named in section 10101 of title 10, United States Code.’.

      (2) USE OF RESERVE COMPONENTS- Section 201(a) of such Act (42 U.S.C. 5131) is amended--

        (A) by striking out the period at the end of paragraph (7) and inserting in lieu thereof ‘; and’; and

        (B) by adding at the end the following:

      ‘(8) the use of the National Guard or the other reserve components of the Armed Forces to take actions that may be necessary to provide an immediate response to an incident involving a use or threat of use of a weapon of mass destruction.’.

      (3) REQUESTS BY DIRECTOR OF FEMA- Section 611 of such Act (42 U.S.C. 5196) is amended by adding at the end the following:

    ‘(l) USE OF THE RESERVE COMPONENTS- The Director may request the Secretary of Defense to authorize the National Guard or to direct other reserve components of the Armed Forces to conduct training exercises, preposition equipment and other items, and take such other actions that may be necessary to provide an immediate response to an emergency involving a weapon of mass destruction. The Secretary of Defense may authorize the National Guard or direct other reserve components to take actions requested by the Director under the preceding sentence.’.

    (b) REIMBURSEMENT OF STATES-

      (1) AUTHORITY- Chapter 1 of title 32, United States Code, is amended by adding at the end the following new section:

‘Sec. 115. Reimbursement for State costs of preparedness programs for emergencies involving weapons of mass destruction

    ‘(a) REIMBURSEMENT AUTHORIZED- The Secretary of Defense may reimburse a State for expenses incurred by the State for the National Guard of that State to participate in emergency preparedness programs to respond to an emergency involving the use of a weapon of mass destruction. Expenses reimbursable under this section may include the costs of the following:

      ‘(1) Pay, allowances, clothing, subsistence, travel, and related expenses of personnel of the National Guard.

      ‘(2) Operation and maintenance of equipment and facilities of the National Guard.

      ‘(3) Procurement of services and equipment for the National Guard.

    ‘(b) STATE INCLUDES POSSESSIONS, ET CETERA- For the purposes of this section, the term ‘State’ includes the District of Columbia, Puerto Rico, Guam, and the Virgin Islands.

    ‘(c) WEAPON OF MASS DESTRUCTION DEFINED- In this section, the term ‘weapon of mass destruction’ has the meaning given that term in section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1)).’.

      (2) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following:

      ‘115. Reimbursement for State costs of preparedness programs for emergencies involving weapons of mass destruction.’.

SEC. 302. RESERVES ON ACTIVE DUTY.

    (a) AUTHORITY-

      (1) ORDER TO ACTIVE DUTY- Section 12301(b) of title 10, United States Code, is amended--

        (A) by inserting ‘(1)’ after ‘(b)’;

        (B) by striking out ‘for not more than 15 days a year’ in the first sentence; and

        (C) by adding at the end the following;

    ‘(2) The authority under paragraph (1) includes authority to order a unit or member to active duty to provide assistance in responding to an emergency involving a weapon of mass destruction (as defined section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).

    ‘(3) A unit or member may not be ordered to active duty under this subsection for more than 15 days a year. Days of service on active duty to provide assistance described in paragraph (2), up to 15 days a year, shall not be counted toward the limitation on the total number of days set forth in the preceding sentence.’.

      (2) USE OF ACTIVE GUARD AND RESERVE PERSONNEL- Section 12310 of title 10, United States Code, is amended by adding at the end the following:

    ‘(c)(1) A Reserve on active duty as described in subsection (a), or a Reserve who is a member of the National Guard serving on full-time National Guard duty under section 502(f) of title 32 in connection with functions referred to in subsection (a), may perform any duties in support of emergency preparedness programs to prepare for or to respond to any emergency involving the use of a weapon of mass destruction (as defined in section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).

    ‘(2) The costs of the pay, allowances, clothing, subsistence, gratuities, travel, and related expenses for a Reserve performing duties under the authority of paragraph (1) shall be paid from the appropriation that is available to pay such costs for other members of the reserve component of that Reserve who are performing duties as described in subsection (a).’.

    (b) EXCLUSION FROM STRENGTH LIMITATIONS-

      (1) GENERAL LIMITATION- Section 115(d) of such title is amended by adding at the end the following:

      ‘(8) Members of the reserve components on active duty and members of the National Guard on full-time National Guard duty to participate in emergency preparedness programs for responding to emergencies involving a weapon of mass destruction (as defined section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))).’.

      (2) OFFICER PERSONNEL LIMITATION- Section 12011 of such title is amended by adding at the end the following:

    ‘(c) Members of the reserve components on active duty and members of the National Guard on full-time National Guard duty to participate in emergency preparedness programs for responding to emergencies involving a weapon of mass destruction (as defined section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))) shall not be counted for purposes of a limitation in subsection (a).’.

      (3) ENLISTED PERSONNEL LIMITATION- Section 12011 of such title is amended by adding at the end the following:

    ‘(c) Members of the reserve components on active duty and members of the National Guard on full-time National Guard duty to participate in emergency preparedness programs for responding to emergencies involving a weapon of mass destruction (as defined section 1402 of the Defense Against Weapons of Mass Destruction Act of 1996 (50 U.S.C. 2302(1))) shall not be counted for purposes of a limitation in subsection (a).’.

TITLE IV--STRENGTHENED REFORMS FOR ARMY NATIONAL GUARD COMBAT READINESS

SEC. 401. ADEQUATE FUNDING FOR MEETING NCO EDUCATION REQUIREMENTS.

    Section 1114(b) of the Army National Guard Combat Readiness Reform Act of 1992 (title XI of Public Law 102-484; 10 U.S.C. 10105 note) is amended to read as follows:

    ‘(b) AVAILABILITY OF TRAINING- The Secretary of the Army shall ensure that sufficient training positions and funds are available to enable compliance with subsection (a) without it being necessary for noncommissioned officers to be absent from unit annual training for the units of assignment in order to attend training to meet military education requirements.’.

SEC. 402. COMBAT UNIT TRAINING.

    Section 1119 of the Army National Guard Combat Readiness Reform Act of 1992 is amended--

      (1) by inserting ‘(a) PROGRAM TO MINIMIZE POST-MOBILIZATION TRAINING NEEDS- ’ before ‘The Secretary’;

      (2) by inserting ‘all’ before ‘combat units’ in the first sentence;

      (3) in paragraph (1)--

        (A) in subparagraph (A), by inserting ‘and professional development’ after ‘qualification’;

        (B) in subparagraph (B), by striking out ‘and squad level’ and inserting in lieu thereof ‘squad, and platoon level’; and

        (C) by striking out subparagraph (C) and inserting in lieu thereof the following:

        ‘(C) maneuver training at the platoon level to at least the minimum extent required of all Army units; and’; and

      (4) by adding at the end the following:

    ‘(b) ADEQUACY OF FUNDING- The Secretary shall ensure that sufficient funds are made available for conducting the training required under the program.’.

SEC. 403. USE OF COMBAT SIMULATORS.

    The text of section 1120 of such Act is amended to read as follows:

    ‘The Secretary of the Army shall--

      ‘(1) expand the use of simulations, simulators, and advanced training devices and technologies to fully support the complete integration of Army National Guard units with active Army units; and

      ‘(2) use and distribute combat simulators so as to serve the training of Army National Guard units as well as active Army units.’.

TITLE V--PAY, ALLOWANCES, RETIREMENT, AND OTHER MONETARY BENEFITS

SEC. 501. BASIC ALLOWANCE FOR HOUSING.

    (a) RESERVES ON ACTIVE DUTY MORE THAN 100 MILES FROM HOME- Section 403(g)(3) of title 37, United States Code, is amended by adding at the end the following: ‘A member of a reserve component on active duty may not be denied a basic allowance for housing at that rate on the basis of being provided quarters of the United States if the member is performing duty more than 100 miles from the member’s primary residence.’.

    (b) EFFECTIVE DATE AND APPLICABILITY- The amendment made by subsection (a) shall take effect on the date of the enactment of this Act and shall apply with respect to active duty performed on or after that date.

SEC. 502. ELIGIBILITY FOR HAZARDOUS OR IMMINENT DANGER PAY.

    (a) FULL MONTHLY RATE FOR ACTIVE DUTY FOR PARTIAL MONTH- Section 310(a) of title 37, United States Code, is amended in the matter preceding paragraph (1) by striking out ‘for any month in which he was entitled to basis pay’ and inserting in lieu thereof ‘for any month in which he was entitled to any basic pay (without regard to the number of days of duty performed for the month)’.

    (b) EFFECTIVE DATE- The amendments made by subsection (a) shall take effect on the first day of the first month that begins on or after the date of the enactment of this Act.

SEC. 503. ALLOTMENTS OF PAY.

    Section 701(d) of title 37, United States Code, is amended--

      (1) by inserting ‘(including a member of a reserve component of that armed force)’ in the first sentence after ‘a member of the Army, Navy, Air Force, or Marine Corps’; and

      (2) by inserting ‘(three allotments, in the case of a member of a reserve component)’ in the second sentence after ‘six allotments’.

SEC. 504. EARLY RETIREMENT FOR PHYSICAL DISABILITY.

    (a) PERMANENT AUTHORITY- Chapter 1223 of title 10, United States Code, is amended by inserting after section 12731a the following:

Sec. 12731b. Early retirement for physical disability

    ‘(a) RETIREMENT WITH AT LEAST 15 YEARS OF SERVICE- For the purposes of section 12731 of this title, the Secretary concerned may--

      ‘(1) determine to treat a member of the Selected Reserve of a reserve component of the armed force under the jurisdiction of that Secretary as having met the service requirements of subsection (a)(2) of that section and provide the member with the notification required by subsection (d) of that section if the member--

        ‘(A) has completed at least 15, and less than 20, years of service computed under section 12732 of this title; and

        ‘(B) no longer meets the qualifications for membership in the Selected Reserve solely because the member is unfit because of physical disability; and

      ‘(2) upon the request of the member submitted to the Secretary, transfer the member to the Retired Reserve.

    ‘(b) EXCLUSION- This section does not apply to persons referred to in section 12731(c) of this title.’.

    (b) REPEAL OF SUPERSEDED AUTHORITY- Section 12731(a)(c) of such title is amended by striking out paragraph (3).

    (c) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 12731a the following:

      ‘12731b. Early retirement for physical disability.’.

TITLE VI--OTHER BENEFITS

SEC. 601. REPEAL OF 10-YEAR LIMITATION ON USE OF MONTGOMERY GI BILL BENEFITS.

    (a) REPEAL- Subsection (a) of section 16133 of title 10, United States Code, is amended by striking out ‘(1)’ and all that follows and inserting in lieu thereof ‘on the date the person is separated from the Selected Reserve.’.

    (b) CONFORMING AMENDMENTS- Subsection (b) of such section is amended--

      (1) in paragraph (1)--

        (A) by striking out ‘In’ in the matter preceding subparagraph (A) and inserting in lieu thereof ‘Subsection (a) does not apply in’; and

        (B) by striking out the comma at the end of subparagraph (B) and all that follows and inserting in lieu thereof a period;

      (2) by striking out paragraph (3); and

      (3) by redesignating paragraph (4) as paragraph (3) and, in such paragraph, by striking out ‘of this title--’ and all that follows through ‘for the purposes of clause (2)’ and inserting in lieu thereof ‘of this title, the member may not be considered to have been separated from the Selected Reserve for the purposes’.

SEC. 602. DEMONSTRATION PROGRAM ON UNLIMITED USE OF COMMISSARY STORES.

    (a) PROGRAM REQUIRED- The Secretary of Defense shall carry out a demonstration program to test the efficacy of permitting unlimited use of commissary stores by members and former members of the reserve components who are eligible for limited use of commissary stores under section 1063 and 1064 of title 10, United States Code.

    (b) PERIOD FOR PROGRAM- The program shall be carried out for one year beginning on January 1, 1999.

    (c) REPORT- Not later than March 31, 2000, the Secretary of Defense shall submit to Congress a report on the results of the demonstration program, together with any comments and recommendations that the Secretary considers appropriate.

SEC. 603. SPACE AVAILABLE TRAVEL FOR MEMBERS OF SELECTED RESERVE.

    (a) IN GENERAL- Chapter 157 of title 10, United States Code, is amended by adding at the end the following new section:

‘Sec. 2646. Space available travel: members of Selected Reserve

    ‘(a) AVAILABILITY- The Secretary of Defense shall prescribe regulations to allow members of the Selected Reserve in good standing (as determined by the Secretary concerned), and dependents of such members, to receive transportation on aircraft of the Department of Defense on a space available basis under the same terms and conditions as apply to members of the armed forces on active duty and dependents of such members.

    ‘(b) CONDITION ON DEPENDENT TRANSPORTATION- A dependent of a member of the Selected Reserve may be provided transportation under this section only when the dependent is actually accompanying the member on the travel.’.

    (b) CLERICAL AMENDMENT- The table of sections at the beginning of such chapter is amended by adding at the end the following new item:

      ‘2646. Space available travel: members of Selected Reserve.’.

SEC. 604. REPEAL OF EXPIRATION OF ELIGIBILITY FOR VETERANS HOUSING BENEFITS BASED ON SERVICE IN THE SELECTED RESERVE.

    Section 3702(a)(2)(E) of title 38, United States Code, is amended by striking out ‘For the period beginning on October 28, 1992, and ending on October 27, 1999, each’ and inserting in lieu thereof ‘Each’.

TITLE VII--OTHER MATTERS

SEC. 701. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT ADDED TO GENERAL BUSINESS CREDIT.

    (a) READY RESERVE-NATIONAL GUARD CREDIT- Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits) is amended by adding at the end the following new section:

‘SEC. 45D. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

    ‘(a) GENERAL RULE- For purposes of section 38, the Ready Reserve-National Guard employee credit determined under this section for the taxable year is an amount equal to 50 percent of the actual compensation amount for the taxable year.

    ‘(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 employer with respect to a Ready Reserve-National Guard employee on any day during a taxable year when the employee was absent from employment for the purpose of performing qualified active duty.

    ‘(c) LIMITATIONS-

      ‘(1) MAXIMUM CREDIT- The maximum credit allowable under subsection (a) shall not exceed $2,000 in any taxable year with respect to any one Ready Reserve-National Guard employee.

      ‘(2) DAYS OTHER THAN WORK DAYS- No credit shall be allowed with respect to a Ready Reserve-National Guard employee who performs qualified active duty on any day on which the employee was not scheduled to work (for a reason other than to participate in qualified active duty) and ordinarily would not have worked.

    ‘(d) DEFINITIONS- For purposes of this section--

      ‘(1) QUALIFIED ACTIVE DUTY- The term ‘qualified active duty’ means--

        ‘(A) active duty, as defined in section 101(d)(1) of title 10, United States Code;

        ‘(B) full-time National Guard duty, as defined in section 1010(d)(5) of such title; and

        ‘(C) hospitalization incident to duty referred to in subparagraph (A) or (B).

      ‘(2) 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).

      ‘(3) READY RESERVE-NATIONAL GUARD EMPLOYEE- The term ‘Ready Reserve-National Guard employee’ means an employee who is a member of the Ready Reserve or of the National Guard.

      ‘(4) NATIONAL GUARD- The term ‘National Guard’ has the meaning given such term by section 101(c)(1) of title 10, United States Code.

      ‘(5) READY RESERVE- The term ‘Ready Reserve’ has the meaning given such term by section 10142 of title 10, United States Code.’

    (b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of section 38 of such Code (relating to general business credit) is amended by striking ‘plus’ at the end of paragraph (11), by striking the period at the end of paragraph (12) and inserting ‘, plus’, and by adding at the end the following new paragraph:

      ‘(13) the Ready Reserve-National Guard employee credit determined under section 45D(a).’

    (c) CONFORMING AMENDMENT- The table of sections for subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 45C the following new item:

‘Sec. 45D. Ready Reserve-National Guard employee credit.’

    (d) EFFECTIVE DATE- The amendments made by this Act shall apply to taxable years beginning after December 31, 1997.