Segment 1 Of 3     Next Hearing Segment(2)

SPEAKERS       CONTENTS       INSERTS    
 Page 1       TOP OF DOC    Segment 1 Of 3  
42–702
1997

[H.N.S.C. No. 105–6]

HEARINGS

ON

NATIONAL DEFENSE AUTHORIZATION ACT
FOR FISCAL YEAR 1998—H.R. 1119

AND

OVERSIGHT OF PREVIOUSLY AUTHORIZED PROGRAMS

BEFORE THE

COMMITTEE ON NATIONAL SECURITY
HOUSE OF REPRESENTATIVES

ONE HUNDRED FIFTH CONGRESS

FIRST SESSION
MILITARY PERSONNEL SUBCOMMITTEE HEARINGS
 Page 2       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

ON

TITLE IV—PERSONNEL AUTHORIZATIONS
TITLE V—MILITARY PERSONNEL POLICY
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS
TITLE VII—HEALTH CARE PROVISIONS

HEARINGS HELD
FEBRUARY 27, MARCH 13, APRIL 8, AND MAY 8, 1997

H.R. 1119 NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 1998
AND OVERSIGHT OF PREVIOUSLY AUTHORIZED PROGRAMS—PERSONNEL AUTHORIZATIONS

42–702
1997

[H.N.S.C. No. 105–6]

HEARINGS

ON

NATIONAL DEFENSE AUTHORIZATION ACT
FOR FISCAL YEAR 1998—H.R. 1119
 Page 3       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

AND

OVERSIGHT OF PREVIOUSLY AUTHORIZED PROGRAMS

BEFORE THE

COMMITTEE ON NATIONAL SECURITY
HOUSE OF REPRESENTATIVES

ONE HUNDRED FIFTH CONGRESS

FIRST SESSION
MILITARY PERSONNEL SUBCOMMITTEE HEARINGS

ON

TITLE IV—PERSONNEL AUTHORIZATIONS
TITLE V—MILITARY PERSONNEL POLICY
TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS
TITLE VII—HEALTH CARE PROVISIONS

HEARINGS HELD
FEBRUARY 27, MARCH 13, APRIL 8, AND MAY 8, 1997

 Page 4       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
MILITARY PERSONNEL SUBCOMMITTEE

STEVE BUYER, Indiana, Chairman
JAMES TALENT, Missouri
ROSCOE G. BARTLETT, Maryland
RON LEWIS, Kentucky
J.C. WATTS, Jr., Oklahoma
MAC THORNBERRY, Texas
LINDSEY GRAHAM, South Carolina
SONNY BONO, California
JIM RYUN, Kansas

GENE TAYLOR, Mississippi
IKE SKELTON, Missouri
OWEN PICKETT, Virginia
ROBERT A. UNDERWOOD, Guam
JANE HARMAN, California
PATRICK J. KENNEDY, Rhode Island
JAMES H. MALONEY, Connecticut

JOHN D. CHAPLA, Professional Staff Member
MICHAEL R. HIGGINS, Professional Staff Member
DONNA L. HOFFMEIER, Professional Staff Member
MIEKE EOYANG, Professional Staff Member

 Page 5       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
NANCY WARNER, Staff Assistant

(ii)

C O N T E N T S

CHRONOLOGICAL LIST OF HEARINGS

1997

HEARINGS:

    Thursday, February 27, 1997, DOD Health Care Alternatives for Military Medicare-Eligible Beneficiaries

    Thursday, March 13, 1997, Military Compensation Reform and Recruiting/Retention Issues

    Tuesday, April 8, 1997, Review of General and Flag Officer Authorizations

    Thursday, May 8, 1997, The Status of the Ready Reserve Mobilization Income Insurance Program

APPENDIXES:

 Page 6       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
    Thursday, February 27, 1997

    Thursday, March 13, 1997

    Tuesday, April 8, 1997

    Thursday, May 8, 1997

THURSDAY, FEBRUARY 27, 1997

DOD HEALTH CARE ALTERNATIVES FOR MILITARY MEDICARE-ELIGIBLE BENEFICIARIES

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS

    Buyer, Hon. Steve, a Representative from Indiana, Chairman, Military Personnel Subcommittee

    Taylor, Hon. Gene, a Representative from Mississippi, Ranking Member, Military Personnel Subcommittee

WITNESSES

    Backhus, Stephen P., Director, Veterans' Affairs and Military Health Care Issues, U.S. General Accounting Office, accompanied by Daniel Brier, Assistant Director; and Catherine O'Hara, Senior Evaluator
 Page 7       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    Joseph, Hon. Stephen C., M.D., M.P.H., Assistant Secretary of Defense for Health Affairs, accompanied by Gary Christopher, Senior Advisor, Health Affairs

    Lord, Michael W., Commissioned Officers Association of the U.S. Public Health Service, Co-Chair of the Military Coalition Health Care Committee

    Ouellette, Michael F., Director, Legislative Affairs, Non Commissioned Officers Association

    Partridge, Charles C., Legislative Counsel, National Association for Uniformed Services

    Torsch, Virginia, The Retired Officers Association, Co-Chair of the Military Coalition Health Care Committee

APPENDIX

PREPARED STATEMENTS:

Backhus, Stephen P.

Joseph, Hon. Stephen C. M.D., M.P.H.

Ouellette, Michael F. and Charles C. Partridge
 Page 8       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

Torsch, Virginia and Michael W. Lord

DOCUMENTS SUBMITTED FOR THE RECORD:

Air Force Sergeants Association

Department of the Air Force Office of the Surgeon General

Department of the Army Office of the Surgeon General

Department of the Navy Office of the Surgeon General

Moran, Hon. James P. a Representative from Virginia

Smith, Edith G., Citizen Advocate for Disabled Military Retirees

The American Legion

The National Military Family Association

Thornberry, Hon. Mac, a Representative from Texas

Questions and Answers

 Page 9       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
THURSDAY, MARCH 13, 1997

MILITARY COMPENSATION REFORM AND RECRUITING/RETENTION ISSUES

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS

    Buyer, Hon. Steve, a Representative from Indiana, Chairman, Military Personnel Subcommittee

    Taylor, Hon. Gene, a Representative from Mississippi, Ranking Member, Military Personnel Subcommittee

WITNESSES

    McGinty, Lt. Gen., Michael D., Deputy Chief of Staff, Personnel, United States Air Force

    Mutter, Lt. Gen. Carol A., Deputy Chief of Staff for Manpower and Reserve Affairs, United States Marine Corps

    Oliver, Vice Adm. D.T., Deputy Chief of Naval Operations, Manpower and Personnel, United States Navy

    Pang, Hon. Frederick, Assistant Secretary of Defense for Force Management Policy
 Page 10       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    Vollrath, Lt. Gen., Frederick E., Deputy Chief of Staff for Personnel, United States Army

APPENDIX

PREPARED STATEMENTS:

McGinty, Lt. Gen. Michael D.

Mutter, Lt. Gen. Carol A.

Oliver, Vice Adm. D.T.

Pang, Hon. Frederick

Vollrath, Lt. Gen. Frederick E.

DOCUMENTS SUBMITTED FOR THE RECORD:

Air Force Sergeants Association

Department of Defense Fact Sheet on the Quality of Life Issues/Accomplishments/Initiatives

General Accounting Office
 Page 11       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

The Military Coalition

Questions and Answers

TUESDAY, APRIL 8, 1997

REVIEW OF GENERAL AND FLAG OFFICER AUTHORIZATIONS

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS

    Buyer, Hon. Steve, a Representative from Indiana, Chairman, Military Personnel Subcommittee

    Taylor, Hon. Gene, a Representative from Mississippi, Ranking Member, Military Personnel Subcommittee

WITNESSES

    Gebicke, Mark E., Director, Military Operations and Capabilities Issues, National Security and International Affairs Division, U.S. General Accounting Office, accompanied by William E. Beusse, Assistant Director, and Brian J. Lepore, Senior Evaluator

    Pang, Frederick, Assistant Secretary of Defense for Force Management Policy, U.S. Department of Defense; Maj. Gen. Stephen T. Rippe, Vice Director, Joint Staff, Joint Chiefs of Staff, U.S. Department of Defense and Terrence O'Connell, Chairman, Reserve Forces Policy Board, U.S. Department of Defense, accompanied by Lt. Gen. Frederick E. Vollrath, Deputy Chief of Staff for Personnel, U.S. Army; Vice Adm. Daniel T. Oliver, Deputy Chief of Naval Operations, Manpower, and Personnel, U.S. Navy; Lt. Gen. Carol A. Mutter, Deputy Chief of Staff for Manpower and Reserve Affairs, U.S. Marine Corps; Lt. Gen. Michael D. McGinty, Deputy Chief of Staff for Personnel, U.S. Air Force
 Page 12       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

APPENDIX

PREPARED STATEMENTS:

Gebicke, Mark E.

McGinty, Lt. Gen. Michael D.

Mutter, Lt. Gen. Carol A.

O'Connell, Terrence

Oliver, Vice Adm. D.T.

Pang, Hon. Frederick

Vollrath Lt. Gen. Frederick E.

DOCUMENTS SUBMITTED FOR THE RECORD:

Department of Defense Report on General and Flag Officer Management and Authorizations

GAO Report on General and Flag Officers

 Page 13       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
THURSDAY, MAY 8, 1997

THE STATUS OF THE READY RESERVE MOBILIZATION INCOME INSURANCE PROGRAM

STATEMENTS PRESENTED BY MEMBERS OF CONGRESS

    Buyer, Hon. Steve, a Representative from Indiana, Chairman, Military Personnel Subcommittee

    Taylor, Hon. Gene, a Representative from Mississippi, Ranking Member, Military Personnel Subcommittee

WITNESSES

    Gebicke, Mark E., Director, Military Operations and Capabilities Issues, National Security and International Affairs Division, General Accounting Office

    Lee, Hon. Deborah R., Assistant Secretary of Defense for Reserve Affairs, U.S. Department of Defense

    Lieberman, Robert J., Jr., Assistant Inspector General for Auditing, Office of the Inspector General, U.S. Department of Defense

APPENDIX

 Page 14       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
PREPARED STATEMENTS:

Gebicke, Mark E.

Lee, Hon. Deborah R.

Lieberman, Robert J., Jr.

DOCUMENTS SUBMITTED FOR THE RECORD:

Department of Defense Board of Actuaries

Department of Defense Education Benefits Board of Actuaries

Enlisted Association of the National Guard of the United States

GAO Follow-up on the Ready Reserve Mobilization Income Insurance Program

Non Commissioned Officers Association of the United States of America

Reserve Officers Association of the United States

The Military Coalition

Questions and Answers
 Page 15       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

     

IN THE HOUSE OF REPRESENTATIVES

March 19, 1997

Mr. SPENCE (for himself and Mr. DELLUMS) (both by request) introduced the following bill; which was read twice and referred to the Committee on National Security

     

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

* * * * * * *


TITLE IV—PERSONNEL AUTHORIZATIONS

Subtitle A—Active Forces

SEC. 401. END STRENGTHS FOR ACTIVE FORCES.

    (a) FISCAL YEAR 1998.—The Armed Forces are authorized strengths for active duty personnel as of September 30, 1998, as follows:
 Page 16       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

(1) The Army, 495,000.

(2) The Navy, 390,802.

(3) The Marine Corps, 174,000.

(4) The Air Force, 371,577.

    (b) FISCAL YEAR 1999.—The Armed Forces are authorized strengths for active duty personnel as of September 30, 1999, as follows:

(1) The Army, 495,000.

(2) The Navy, 384,888.

(3) The Marine Corps, 174,000.

(4) The Air Force, 370,821.

Subtitle B—Reserve Forces

SEC. 411. END STRENGTHS FOR SELECTED RESERVE.

    (a) FISCAL YEAR 1998.—The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 1998, as follows:
 Page 17       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

(1) The Army National Guard of the United States, 366,516.

(2) The Army Reserve, 208,000.

(3) The Naval Reserve, 94,294.

(4) The Marine Corps Reserve, 42,000.

(5) The Air National Guard of the United States, 107,377.

(6) The Air Force Reserve, 73,431.

(7) The Coast Guard Reserve, 8,000.

    (b) FISCAL YEAR 1999.—The Armed Forces are authorized strengths for Selected Reserve personnel of the reserve components as of September 30, 1999, as follows:

(1) The Army National Guard of the United States, 366,516.

(2) The Army Reserve, 208,000.

(3) The Naval Reserve, 93,582.

 Page 18       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
(4) The Marine Corps Reserve, 42,000.

(5) The Air National Guard of the United States, 107,049.

(6) The Air Force Reserve, 73,703.

(7) The Coast Guard Reserve, 8,000.

    (c) WAIVER AUTHORITY.—The Secretary of Defense may vary the end strength authorized by subsection (a) or subsection (b) by not more than 2 percent.

    (d) ADJUSTMENTS.—The end strengths prescribed by subsection (a) or (b) for the Selected Reserve of any reserve component shall be proportionately reduced by—

(1) the total authorized strength of units organized to serve as units of the Selected Reserve of such component which are on active duty (other than for training) at the end of the fiscal year, and

(2) the total number of individual members not in units organized to serve as units of the Selected Reserve of such component who are on active duty (other than for training or for unsatisfactory participation in training) without their consent at the end of the fiscal year.

Whenever such units or such individual members are released from active duty during any fiscal year, the end strength prescribed for such fiscal year for the Selected Reserve of such reserve component shall be proportionately increased by the total authorized strengths of such units and by the total number of such individual members.
 Page 19       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

SEC. 412. END STRENGTHS FOR RESERVES ON ACTIVE DUTY IN SUPPORT OF THE RESERVES.

    (a) FISCAL YEAR 1998.—Within the end strengths prescribed in section 411(a), the reserve components of the Armed Forces are authorized, as of September 30, 1998, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:

(1) The Army National Guard of the United States, 22,310.

(2) The Army Reserve, 11,500.

(3) The Naval Reserve, 16,136.

(4) The Marine Corps Reserve, 2,559.

(5) The Air National Guard of the United States, 10,616.

(6) The Air Force Reserve, 963.

    (b) FISCAL YEAR 1999.—Within the end strengths prescribed in section 411(b), the reserve components of the Armed Forces are authorized, as of September 30, 1999, the following number of Reserves to be serving on full-time active duty or full-time duty, in the case of members of the National Guard, for the purpose of organizing, administering, recruiting, instructing, or training the reserve components:
 Page 20       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

(1) The Army National Guard of the United States, 21,380.

(2) The Army Reserve, 11,450.

(3) The Naval Reserve, 16,073.

(4) The Marine Corps Reserve, 2,559.

(5) The Air National Guard of the United States, 10,704.

(6) The Air Force Reserve, 984.

TITLE V—MILITARY PERSONNEL POLICY

Subtitle A—Officer Personnel Policy

SEC. 501. AUTHORIZATION FOR PERSONNEL TO SERVE IN THE MANAGEMENT OF NON-FEDERAL ENTITIES.

    (a) IN GENERAL.—Chapter 53 of title 10, United States Code, is amended by inserting after section 1032 the following:

''§1033. Participation in the management of non-Federal entities

    ''(a) A Secretary concerned may authorize members of the armed forces or officers and employees of the military department concerned or the Department of Transportation when the Coast Guard is not operating as a service in the Navy, as part of their official duties, to serve as directors, officers, trustees, or otherwise participate, without compensation, in the management of a military society and other designated entities.
 Page 21       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    ''(b) For purposes of this section—

''(1) 'military welfare society' means the:

''(A) Army Emergency Relief;

''(B) Air Force Aid Society;

''(C) Naval-Marine Corps Relief Society;

''(D) Coast Guard Mutual Assistance; and

''(2) 'other designated entities' means:

''(A) entities, including athletic conferences, regulating and supporting the athletic programs of the service academies;

''(B) entities regulating international athletic competitions;

''(C) entities, including regional agencies, which accredit service academies and other schools of the armed forces; and

''(D) entities, including health care associations and professional societies, regulating and supporting the performance, standards, and policies of military health care.''.
 Page 22       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter 53 of title 10 is amended by inserting after the item relating to section 1032 the following:

''§ 1033. Participation in management of non-federal entities.''.

SEC. 502. MODIFYING SELECTION BOARD ELIGIBILITY.

    Section 619(d) of title 10, United States Code, is amended in paragraph (1) by inserting ''or board report'' after ''promotion list''.

SEC. 503. LIMITATIONS ON PROMOTION CONSIDERATION ELIGIBILITY.

    Subsection 14301(c) of title 10, United States Code, is amended by striking paragraph (1) and inserting in lieu thereof the following new paragraph:

''(1) an officer whose name is on a promotion list or a board report for that grade as a result of recommendation for promotion to that grade by an earlier section board convened under that section or section 14502 of this title or under chapter 36 of this title;''.

SEC. 504. AUTHORITY TO PERMIT NON-UNIT ASSIGNED OFFICERS TO BE CONSIDERED BY VACANCY PROMOTION BOARD TO GENERAL OFFICER GRADES AND FOR OFFICERS TO BE CONSIDERED BY A VACANCY PROMOTION BOARD TO GENERAL OFFICER GRADES WHEN NOT SERVING IN THE HIGHER GRADED POSITION.

 Page 23       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
    (a) CONVENING OF SELECTION BOARDS.—Section 14101(a)(2) of title 10, United States Code, is amended by striking ''(except in the case of a board convened to consider officers as provided in section 14301(e) of this title''.)

    (b) ELIGIBILITY FOR CONSIDERATION.—Section 14301 of title 10, United States Code, is amended—

(1) by striking subsection (e); and

(2) by redesignating subsections (f) and (g) as subsections (e) and (f), respectively.

    (c) GENERAL OFFICER PROMOTIONS.—Section 14308 of title 10 is amended—

(1) in subsection (e)(2), by inserting ''a grade below colonel in'' after ''(2) an officer in''; and

(2) by striking the first sentence in subsection (g) and inserting in lieu thereof the following new sentence: ''A reserve officer of the Army who is on a promotion list for promotion to the grade of brigadier general or major general as a result of selection by a vacancy promotion board may be promoted to that grade to fill a vacancy in the Army Reserve in that grade.''.

    (d) VACANCY PROMOTIONS.—Section 14315(b)(1)(A) of title 10 is amended to read as follows:

 Page 24       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
''(A) is eligible for assignment to the duties of a general officer of the next higher reserve grade in the Army Reserve,''.

SEC. 505. EXCLUSION OF CERTAIN RETIRED MEMBERS FROM THE LIMITATION ON THE PERIOD OF RECALL TO ACTIVE DUTY.

    Section 688(e) of title 10, United States Code, is amended—

(1) by designating the current sentence as paragraph (1); and

(2) by adding at the end the following new paragraph:

''(2) In the administration of paragraph (1), the following officers shall not be counted:

''(A) A chaplain who is assigned to duty as a chaplain for the period of active duty to which ordered.

''(B) A health care professional (as characterized by the Secretary concerned) who is assigned to duty as a health care professional for the period of the active duty to which ordered.

''(C) Any officer assigned to the duty with the American Battle Monuments Commission for the period of active duty to which assigned.''.

Subtitle B—Enlisted Personnel Policy

 Page 25       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
SEC. 511. AUTHORIZATION FOR THE NAVAL POSTGRADUATE SCHOOL TO ADMIT ENLISTED MEMBERS OF THE U.S. NAVAL SERVICE, ARMY, AIR FORCE, AND COAST GUARD AS STUDENTS.

    (a) OTHER UNITED STATES MILITARY PERSONNEL AUTHORIZED TO ATTEND.—Section 7045 of such title 10 is amended to read as follows:

''§7045. Other United States military personnel: admission

    ''(a)(1) The Secretary of the Navy may permit officers of the Army, Air Force, and Coast Guard to receive instruction at the Naval Postgraduate School. The numbers and grades of such officers shall be agreed upon by the Secretary of the Navy with the Secretaries of the Army, Air Force, and Transportation, respectively.

    ''(2) The Superintendent may permit enlisted members of the U.S. Naval Service, Army, Air Force, or Coast Guard who are assigned to the Naval Postgraduate School, or to nearby commands, to receive instruction at the Naval Postgraduate School on a ''space-available'' basis.

    ''(b) The Department of the Army, the Department of the Air Force, and the Department of Transportation shall bear the cost of the instruction received by the students detailed for that instruction by the Secretaries of the Army, Air Force, and Transportation, respectively.

    ''(c) While receiving instruction at the Postgraduate School, officers and enlisted students of the Army, Air Force, and Coast Guard are subject to regulations, as determined appropriate by the Secretary of the Navy, as apply to students who are members of the naval service.''
 Page 26       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    (b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 605 of such title 10 is amended by striking the item relating to section 7045 and inserting in lieu thereof the following new item:

''§ 7045. Other United States military personnel: admission.''.

SEC. 512. SCOPE OF PARTICIPATION IN COMMUNITY COLLEGE OF THE AIR FORCE.

    (a) LIMITED EXPANSION.—Section 9315(a)(1) of title 10, United States Code, is amended to read as follows:

''(1) prescribe programs for higher education for enlisted members of the Air Force, for enlisted members of other armed forces attending Air Force tranining schools whose jobs are closely related to Air Force jobs, and enlisted members of other armed forces who are serving as instructors at Air Force training schools, designed to improve the technical, managerial, and related skills of such members and to prepare such members for military jobs which require the utilization of such skills; and ''.

    (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall apply with respect to enrollments in the Community College of the Air Force after March 31, 1996.

Subtitle C—Reserve Personnel Policy

 Page 27       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
SEC. 521. CORRECTION TO RETIRED GRADE, GENERAL RULE CONCERNING NONREGULAR SERVICE.

    (a) RETIRED GRADE OF ARMY OFFICER.—Subsection 3961(a) of title 10, United States Code, is amended by striking ''or for nonregular service under chapter 1223 of this title,''.

    (b) RETIRED GRADE OF AIR FORCE OFFICER.—Subsection 8961(a) of title 10, United States Code, is amended by striking ''or for nonregular service under chapter 1223 of this title,''.

SEC. 522. GRADE REQUIREMENT FOR INVOLUNTARY SEPARATION BOARD COMPOSITION.

    Section 14906(a)(2) of title 10, United States Code, is amended by striking ''above lieutenant colonel or commander'' and inserting in lieu thereof ''of lieutenant colonel or commander or higher,''.

Subtitle D—Education Policy

SEC. 531. PROTECTION OF EDUCATIONAL ASSISTANCE PROGRAM ENTITLEMENTS FOR SELECTED RESERVE MEMBERS SERVING ON ACTIVE DUTY IN SUPPORT OF A CONTINGENCY OPERATION.

    (a) EXTENSION OF EDUCATIONAL ASSISTANCE.—Section 16131(c) of title 10, United States Code, is amended in paragraph (3)(B)(i)—

(1) by striking '', in connection with the Persian Gulf War,''; and
 Page 28       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

(2) by inserting ''or in support of a contingency operation as defined in subsection 101(13) of this title'' after ''of this title''.

    (b) EXTENSION OF 10-YEAR PERIOD OF AVAILABILITY.—Section 16133(b) of title 10, United States Code, is amended in paragraph (4)(A)—

(1) by striking '', during the Persian Gulf War,'';

(2) by inserting ''or in support of a contingency operation as defined in subsection 101(13) of this title'' after ''of this title''; and

(3) by striking subparagraph (4)(B).

TITLE VI—COMPENSATION AND OTHER PERSONNEL BENEFITS

Subtitle A—Pay and Allowances

SEC. 601. MILITARY PAY RAISE FOR FISCAL YEAR 1998.

    (a) WAIVER OF SECTION 1009 ADJUSTMENT.—Any adjustment required by section 1009 of title 37, United States Code, in elements of compensation of members of the uniformed services to become effective during fiscal year 1998 shall not be made.

 Page 29       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
    (b) INCREASE IN BASIC PAY AND BAQ.—Effective on January 1, 1998, the rates of basic pay and basic allowance for quarters of members of the uniformed services are increased by 2.8 percent.

SEC. 602. CHANGE IN REQUIREMENTS FOR PAY OF READY RESERVE MUSTER DUTY ALLOWANCE.

    Section 433(c) of title 37, United States Code, is amended by striking the first sentence and inserting in lieu thereof the following new sentence: ''The allowance authorized by this section may not be disbursed in kind and may be paid to the member on or before the date on which the muster duty is performed, but shall be paid no later than 30 days after the date on which muster duty is performed.''.

Subtitle B—Bonuses and Special Pays

SEC. 611. NUCLEAR QUALIFIED OFFICERS: BONUSES AND SPECIAL PAY.

    (a) SPECIAL PAY FOR NUCLEAR QUALIFIED OFFICERS EXTENDING PERIOD OF ACTIVE SERVICE.—Section 312 of title 37, United States Code, is amended—

(1) in subsection (a), by striking ''$12,000'' and inserting in lieu thereof ''$15,000''; and

(2) in subsection (e), by striking ''September 30, 1998'' and inserting in lieu thereof ''September 30, 2002''.

    (b) SPECIAL PAY: NUCLEAR CAREER ACCESSION BONUS.—Section 312b of title 37, United States Code, is amended—
 Page 30       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

(1) in subsection (a)(1), by striking ''$8,000'' and inserting in lieu thereof ''$10,000''; and

(2) in subsection (c), by striking ''September 30, 1998'' and inserting in lieu thereof ''September 30, 2002''.

    (c) SPECIAL PAY: NUCLEAR CAREER ANNUAL INCENTIVE BONUS.—Section 312c of title 37, United States Code, is amended—

(1) in subsection (a)(1), by striking ''$10,000'' and inserting in lieu thereof ''12,000'';

(2) in subsection (b)(1), by striking ''$4,500'' and inserting in lieu thereof ''$5,500''; and

(3) in subsection (d), by striking ''October 1, 1998'' and inserting in lieu thereof ''October 1, 2002''.

SEC. 612. INCENTIVE FOR ENLISTED MEMBERS TO EXTEND TOURS OF DUTY OVERSEAS.

    (a) INCENTIVE.—Section 314 of title 37, United States Code, is amended—

(1) in subsection (a), by striking the remainder of the text after paragraph (4) and inserting in lieu thereof the following: ''is entitled, upon acceptance of the agreement providing for such extension by the Secretary concerned, to either special pay for duty performed during the period of the extension at a rate of not more than $80 per month, as prescribed by the Secretary concerned, or a bonus of up to $2,000 per year, as prescribed by the Secretary concerned, for specialty requirements at designated locations.'';
 Page 31       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

(2) by redesignating subsection (b) as subsection (d);

(3) in subsection (d), as so redesignated, by inserting ''or bonus'' after ''special pay''; and

(4) by inserting after subsection (a) the following new subsections (b) and (c):

    ''(b) PAYMENT OF SPECIAL PAY AND BONUS.—Upon acceptance of a written agreement under subsection (a) by the Secretary concerned, the payment rate for special pay and bonuses payable pursuant to the agreement becomes fixed. A bonus payable under subsection (a) may then be paid by the Secretary, either in a lump sum or installments.

    ''(c) REPAYMENT OF BONUS.—(1) If a member who has entered into a written agreement under subsection (a) and has received all or part of a bonus under this section fails to complete the total period of extension specified in the agreement, the Secretary concerned may require the member to repay the United States, on a pro rata basis and to the extent that the Secretary determines conditions and circumstances warrant, all sums paid under this section.

    ''(2) An obligation to repay the United States imposed under paragraph (1) is for all purposes a debt owed to the United States.

    ''(3) A discharge in bankruptcy under title 11 that is entered less than 5 years after the termination of a written agreement entered into under subsection (a) does not discharge the member signing the agreement from a debt arising under such agreement or under paragraph (1). This paragraph applies to any case commenced under title 11 on or after October 1, 1997.''.
 Page 32       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall take effect for agreements executed on or after October 1, 1997.

SEC. 613. AMENDMENTS TO SELECTED RESERVE REENLISTMENT BONUS.

    Section 308b of title 37, United States Code, is amended—

(1) by striking out paragraph (a)(1) and inserting in lieu thereof the following new paragraph:

''(1) has completed less than 14 years of total military service; and''.

(2) by amending subsection (b) to read as follows:

    ''(b) The bonus to be paid under subsection (a) shall be—

''(1) an initial amount not to exceed $2,500, in the case of a member who enlists for a period of three years, or

''(2) an initial amount not to exceed $5,000, in the case of a member who enlists for a period of six years; and

''(3) subsequent payments according to a payment schedule determined by the Secretary concerned; however, initial payments may not exceed one-half the total bonus amount.''; and

 Page 33       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
(3) by striking subsection (c) and inserting in lieu thereof the following new subsection (c):

    ''(c) A member may not be paid more than one six-year bonus or two three-year bonuses under this section. If the option for two three-year bonuses is chosen, the first three year bonus amount shall not exceed $2,000, paid as determined by the Secretary concerned, except that the initial payment may not exceed one-half of the total bonus amount. In order to qualify for the follow on three-year bonus, the member must reenlist immediately after the first three-year term and must meet, as determined by the Secretary concerned, all eligibility criteria at the time of that reenlistment. Failure to meet all eligibility criteria will result in forfeiture of continued eligibility for this bonus. The follow on three-year bonus, if elected and provided the member meets all eligibility requirements, shall be paid, in an amount not to exceed $2,500, as if the member had selected the three-year option alone.''.

SEC. 614. AMENDMENTS TO SELECTED RESERVE PRIOR SERVICE ENLISTMENT BONUS.

    Section 308i of title 37, United States Code, is amended—

(1) by striking subparagraphs (a)(2)(A) and inserting in lieu thereof the following new subparagraph (A):

''(A) has completed his military service obligation but has less than 14 years of total military service;''; and

(2) by amending subsections (b) and (c) to read as follows:

 Page 34       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
    ''(b) The bonus to be paid under subsection (a) shall be—

''(1) an initial payment not to exceed $2,500, in the case of a member who enlists for a period of three years; or

''(2) an initial payment not to exceed $5,000, in the case of a member who enlists for a period of six years; and

''(3) subsequent payments according to a schedule determined by the Secretary concerned; however, initial payments may not exceed one-half the total bonus amount.

    ''(c) A member may not be paid more than one six-year bonus or two three-year bonuses under this section. Furthermore, a member may not be paid a bonus under this section unless the speciality associated with the position the member is projected to occupy is a specialty in which the member successfully served while on active duty and in which the member attained a level of qualification commensurate with his grade and years of service. If the option for two three-year bonuses is chosen, the first three year bonus amount shall not exceed $2,000, paid as determined by the Secretary concerned, except that the initial payment may not exceed one-half of the total bonus amount. In order to qualify for the follow on three-year bonus, the member must reenlist immediately after the first three-year term and must meet, as determined by the Secretary concerned, all eligibility criteria at the time of that reenlistment. Failure to meet all eligibility criteria will result in forfeiture of continued eligibility for this bonus. The follow on three-year bonus, if elected and provided the member meets all eligibility requirements, shall be paid, in an amount not to exceed $2,500, as if the member had selected the three-year option alone.''.
 Page 35       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

Subtitle C—Allowances

SEC. 621. TRAVEL AND TRANSPORTATION ALLOWANCES FOR DEPENDENTS PRIOR TO APPROVAL OF A MEMBER'S COURT-MARTIAL SENTENCE.

    Section 406(h) of title 37, United States Code, is amended in paragraph (2)(C)(iii) by striking ''if the sentence is approved'' and inserting in lieu thereof ''prior to the sentence being approved''.

SEC. 622. VARIABLE HOUSING ALLOWANCE AT LOCATION OF RESIDENCE AFTER A CLOSE PROXIMITY MOVE.

    Section 403a(a) of title 37, United States Code, is amended by adding at the end the following new paragraph (5):

''(5) In the case of a member without dependents who is assigned to duty inside the United States, the location or the circumstances of which make it necessary that he be reassigned under the conditions of low cost or no cost permanent change of station or permanent change of assignment, the member may be paid a variable housing allowance as if he were not reassigned if the Secretary concerned determined (under regulations prescribed under subsection (e) of this section) that it would be inequitable to base the member's entitlement to, and amount of, variable housing allowance on the area to which the member is assigned.''.

Subtitle D—Other Matters

 Page 36       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
SEC. 631. AUTHORIZATION FOR REIMBURSEMENT OF TAX LIABILITIES INCURRED BY PARTICIPANTS IN THE F. EDWARD HÉBERT ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP PROGRAM.

    The Secretary of Defense is authorized to use amounts appropriated for fiscal year 1997 and subsequent fiscal years for payments to participants in the F. Edward Hébert Armed Forces Health Professions Scholarship Program as reimbursement for payments by such participants for Federal, State, or local income tax liabilities based on the value of tuition and related educational expenses provided under such Program prior to October 1, 1997. Individuals will be compensated in a manner consistent with the models set out in the Relocation Income Tax Allowance as authorized by section 5724b of title 5, United States Code. Participants who fail to fulfill their active duty obligation under circumstances that resulted in recoupment actions are not authorized to receive reimbursement under this section.

SEC. 632. AUTHORIZATION FOR INCREASED STIPEND PAYMENTS MADE UNDER THE F. EDWARD HÉBERT ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP PROGRAM.

    (a) SUPPLEMENTAL STIPEND.—Section 2121 of title 10, United States Code, is amended by adding at the end the following new subsection:

    ''(e)(1) If authorized by the Secretary of Defense pursuant to paragraph (2), during any month in which a participant in the program receives a stipend under subsection (d), the participant may also be paid a supplemental stipend of $400 per month. This amount shall be increased in the same manner as the stipend amount under subsection (d).

    ''(2) The supplemental stipend referred to in paragraph (1) may not be paid if the Secretary of Defense determines, after consultation with the Secretary of the Treasury, that payments made by the Secretary under section 2127(a) of this title on behalf of a participant in the program are excluded from taxable income under section 108 of the Internal Revenue Code of 1986 (26 U.S.C.).''.
 Page 37       PREV PAGE       TOP OF DOC    Segment 1 Of 3  

    (b) EFFECTIVE DATE.—The amendment made by subsection (a) shall become effective October 1, 1997.

TITLE VII—HEALTH CARE PROVISIONS

SEC. 701. REPEAL OF THE STATUTORY RESTRICTION ON USE OF FUNDS FOR ABORTIONS.

    (a) IN GENERAL.—Section 1093 of title 10, United States Code, is repealed.

    (b) CLERICAL AMENDMENT.—The table of sections at the beginning of Chapter 55, United States Code, is amended by striking out the item referring to section 1093.

    (c) EFFECTIVE DATE.—The amendment made by this section shall be effective October 1, 1997.

SEC. 702. EXPANDING THE LIMITS IMPOSED ON PROVIDING PROSTHETIC DEVICES TO MILITARY HEALTH CARE BENEFICIARIES.

    Section 1077 of title 10, United States Code, is amended—

(1) in subsection (a), by adding at the end the following new paragraph:

 Page 38       PREV PAGE       TOP OF DOC    Segment 1 Of 3  
''(14) Prosthetic devices, as determined by the Secretary of Defense to be necessary because of significant conditions resulting from trauma, congenital anomalies or disease.''; and

(2) in subsection (b), by amending paragraph (2) to read as follows:

''(2) hearing aids, orthopedic footwear, and spectacles except that outside of the United States and at stations inside the United States where adequate civilian facilities are unavailable, such items may be sold to dependents at cost to the United States.''.

* * * * * * *

Next Hearing Segment(2)