10 USC 12641 - Standards and procedures: Secretary to prescribe

(a) The Secretary concerned shall, by regulation, prescribe
(1) standards and qualifications for the retention and promotion of members of the reserve components under his jurisdiction; and
(2) equitable procedures for the periodic determination of the compliance of each such Reserve with those standards and qualifications.
(b) If a Reserve fails to comply with the standards and qualifications prescribed under subsection (a), he shall

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(1) if qualified, be transferred to an inactive reserve status;
(2) if qualified, be retired without pay; or
(3) have his appointment or enlistment terminated.