NAVY AND MARINE CORPS LIMITED DUTY OFFICERS TWICE HAVING FAILED OF SELECTION FOR PROMOTION.

SEC. 503. NAVY AND MARINE CORPS LIMITED DUTY OFFICERS TWICE HAVING FAILED OF SELECTION FOR PROMOTION. (a) Treatment of LDOs Twice Having Failed of Selection.— Section 6383 of title 10, United States Code, is amended— (1) by redesignating subsections (g), (h), (i), and (j) as subsections (i), (j), (k), and (1), respectively; and (2) by striking out subsection (f) and inserting in lieu thereof the following: “(f) 18-Year Retirement Sanctuary.— If an officer subject to discharge under subsection (b), (d), or (e) is (as of the date on which the officer is to be discharged) not eligible for retirement under any provision of law but is within two years of qualifying for retirement under section 6323 of this title, the officer shall be retained on active duty as an officer designated for limited duty until becoming qualified for retirement under that section and shall then be retired under that section, unless the officer is sooner retired or discharged under another provision of law or the officer reverts to a warrant officer grade pursuant to subsection (h). “(g) Reenlistment for LDOs Appointed From Enlisted Grades.— (1) An officer subject to discharge under subsection (b), (d), or (e) who is described in paragraph (2) may, upon the officer’s request and in the discretion of the Secretary of the Navy, be enlisted in a grade prescribed by the Secretary upon the officer’s discharge pursuant to such subsection. “(2) An officer described in this paragraph is an officer who— “(A) is not eligible for retirement under any provision of law; “(B) is not covered by subsection (f); and “(C) was in an enlisted grade when first appointed as an officer designated for limited duty. “(h) Reversion to Warrant Officer Grade for LDOs Appointed From Warrant Officer Grades.— An officer subject to discharge under subsection (b), (d), or (e) (including an officer otherwise subject to retention under subsection (f)) who is not eligible for retirement under any provision of law and who had the permanent status of a warrant officer when first appointed as an officer designated for limited duty may, at the officer’s option, revert to the warrant officer grade and status that the officer would hold if the officer had not been appointed as an officer designated for limited duty.”. (b) Clarification of Officers Subject to Selective Retention.— Subsection (k) of such section (as redesignated by subsection (a)(1)) is amended by striking out “or the discharge under subsection (d)” in the first sentence and inserting in lieu thereof “or the discharge under subsection (b) or (d)”. (c) Conforming Amendments.— Such section is further amended— (1) in subsection (a) by striking out “Except as provided in subsection (i),” each place it appears and inserting in lieu thereof “Except as provided in subsection (k),”; and 108 STAT. 2750 (2) in subsections (b) and (d), by striking out “Except as provided in subsection (i),” and inserting in lieu thereof “Except as provided in subsections (f) and (k),”. (d) Subsection Headings.— Such section is further amended as follows: (1) Subsection (a) is amended by striking out “(a)(1)” and inserting in lieu thereof “(a) Mandatory Retirement.—(1)”. (2) Subsection (b) is amended by inserting “Lieutenant Commanders and Majors Who Twice Fail of Selection for Promotion.—” after “(b)”. (3) Subsection (c) is amended by inserting “Retired Grade and Retired Pay.—” after “(c)”. (4) Subsection (d) is amended by inserting “Navy Lieutenants and Marine Corps Captains Who Twice Fail of Selection for Promotion.—” after “(d)”. (5) Subsection (e) is amended by striking out “(e)(1)” and inserting in lieu thereof “(e) Officers in Pay Grades 0–2 and 0–1 Who Twice Fail of Selection for Promotion or Are Found Not Qualified for Promotion.—(1)”. (6) Subsection (i) (as redesignated by subsection (a)(1)) is amended by inserting “Determination of Grade and Status of Officers Reverting to Prior Status.—” after “(i)”. (7) Subsection (j) (as redesignated by subsection (a)(1)) is amended by inserting “Separation Pay for Officers Discharged.—” after “(j)”. (8) Subsection (k) (as redesignated by subsection (a)(1)) is amended by inserting “Selective Retention Boards for LDOs.—” after “(k)”. (9) Subsection (1) (as redesignated by subsection (a)(1)) is amended by inserting “Applicability of Section Only to Permanent LDOs.—” after “(1)”.