To amend title 37, United States Code, to provide financial assistance to State and local governments that continue to pay employees who serve on active duty in a reserve component of the uniformed services.

November 11, 2003

Mrs. BOXER introduced the following bill; which was read twice and referred to the Committee on Armed Services

To amend title 37, United States Code, to provide financial assistance to State and local governments that continue to pay employees who serve on active duty in a reserve component of the uniformed services.

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 `Service to Country Reimbursement Act of 2003'.

SEC. 2. ASSISTANCE FOR STATE AND LOCAL GOVERNMENTS THAT CONTINUE TO PAY EMPLOYEES WHO SERVE ON ACTIVE DUTY IN A RESERVE COMPONENT OF THE UNIFORMED SERVICES.

(a) IN GENERAL- Chapter 17 of title 37, United States Code, is amended by adding at the end the following new section:

`Sec. 910. Assistance for State and local governments that continue to pay employees who serve on active duty

`(a) CONTINUATION OF CIVILIAN BASIC PAY- It is the purpose of this section to encourage States and local governments to continue to pay a portion of the civilian compensation of those employees who are also members of a reserve component and are absent from a position of employment with the State or local government under a call or order to serve on active duty for a period of more than 30 days so that the employees receive compensation in an amount that, when taken together with their military pay, is at least equal to their civilian compensation.

`(b) REIMBURSEMENT OFFERED- At the request of a State or local government that continues to pay all or a portion of the civilian compensation of an employee described in subsection (a), the Secretary concerned shall reimburse the State or local government for the civilian compensation paid by the State or local government for each pay period described in subsection (c), but not to exceed the difference (if any) between--

`(1) the amount of civilian compensation that would otherwise have been payable to the employee for such pay period if the employee's civilian employment with the State or local government had not been interrupted by the service on active duty; and

`(2) the amount of military pay that is payable to the employee for the service on active duty and is allocable to such pay period.

`(c) PAY PERIODS- Reimbursement shall be provided under this section with respect to each pay period (which would otherwise apply if the employee's civilian employment had not been interrupted) that occurs--

`(1) while the employee serves on active duty for a period of more than 30 days;

`(2) while the employee is hospitalized for, or convalescing from, an illness or injury incurred in, or aggravated during, the performance of such active duty; or

`(3) during the 14-day period beginning at the end of such active duty or the end of the period referred to in paragraph (2).

`(d) EFFECT OF FAILURE TO RETURN TO EMPLOYMENT- (1) If an employee described in subsection (a), with respect to whom reimbursement is provided to a State or local government under this section, fails to report or apply for employment or reemployment with the State or local government by the end of the period referred to in subsection (c)(3), the employee shall refund to the Secretary concerned the total amount of the reimbursement provided with respect to the employee.

`(2) Subject to paragraph (3), an obligation to refund moneys to the United States imposed under paragraph (1) is for all purposes a debt owed to the United States.

`(3)(A) The Secretary concerned may waive, in whole or in part, a refund required under paragraph (1) if the Secretary concerned determines that recovery would be against equity and good conscience or would be contrary to the best interests of the United States.

`(B) The Secretary concerned shall waive a refund required under paragraph (1) if the Secretary concerned determines that the failure of the employee in question to report or apply for employment or reemployment was due to an injury or disability of the employee that is not the fault of the employee.

`(4) A discharge in bankruptcy under title 11 that is entered less than five years after the end of the period referred to in subsection (c)(3) does not discharge the employee from a debt arising under paragraph (1). This paragraph applies to any case commenced under title 11 after the date of the enactment of this section.

`(e) REGULATIONS- The Secretaries concerned shall prescribe regulations to carry out this section.

`(f) DEFINITIONS- In this section:

`(1) The term `civilian compensation' means the wages or salary that an employee of a State or local government normally receives from the employee's employment by the State or local government.

`(2) The term `local government' means an agency or political subdivision of a State.

`(3) The term `military pay' has the meaning given the term `pay' in section 101(21) of this title.

`(4) The term `State' means each of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, and other territories or possessions of the United States.'.

(b) CLERICAL AMENDMENT- The table of sections at the beginning of chapter 17 of title 37, United States Code, is amended by inserting after the item relating to section 909 the following new item:

`910. Assistance for State and local governments that continue to pay employees who serve on active duty.'.

(c) APPLICATION OF AMENDMENT- Section 910 of title 37, 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.

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