[Congressional Record Volume 149, Number 163 (Tuesday, November 11, 2003)]
[Senate]
[Pages S14452-S14453]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 1845. A bill 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; to the Committee on Armed Services.
  Mrs. BOXER. Mr. President, today is Veterans Day--a day to honor the 
service of those brave men and women who have fought for and defended 
our country.
  This Veterans Day has special meaning as 130,000 Americans are 
serving in Iraq, and many in this country have lost loved ones in Iraq 
in the past year.
  Americans can be proud of the soldiers, sailors, airmen, and marines 
who are serving today. They are continuing to show the courage, 
dignity, and bravery with which our veterans, who we honor today, have 
served in the past.
  That rich tradition includes those Americans who serve in the Guard 
and Reserves. In the 12 years since the first war in Iraq, more than 
525,000 members of the Guard and Reserves have been mobilized--more 
than twice the number that were mobilized in the previous 36 years.

[[Page S14453]]

  When they are called up to active duty, they leave their civilian 
jobs--and their civilian salaries--behind. Most take a pay cut--and are 
glad to do so to serve our country. But when that active duty service 
becomes an extended tour of duty, the financial strain on the families 
left behind can be enormous.
  To close this pay gap, some State and local governments make up the 
different between military and civilian pay for their employees who 
have been activated. Unfortunately, with strains on State and local 
budgets across the country--as well as the increased demand for more 
police and firefighters to help fight terrorism and enhance our 
homeland security--such payments to our Guards and Reservists are a 
financially difficult option--or not an option at all--for most State 
and local governments.
  That is why I am today introducing the Service to the Country 
Reimbursement Act. Under my bill, the Federal Government would 
reimburse State and local governments for the costs of paying the 
different between the civilian salary and the military pay of a Guard 
or Reserves member who is activated for more than 30 days.
  This legislation will encourage State and local governments to make 
those payments in order to keep the families financially whole, 
ensuring that the families of those who serve our country in the Guards 
and Reserves will not be financially penalized because of the service 
being made to our country.
  I encourage my colleagues to join me in this effort. And I ask 
unanimous consent that the text of the bill be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1845

       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.
                                 ______