S. 2274Senate108th Congress (2003-2005)In Committee

21st Century Citizen Soldier Benefits Act

Introduced April 1, 2004

Legislative Activity

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SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

April 1, 2004

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SenateIntro Referral

Introduced in Senate

April 1, 2004

SenateIntro Referral

Sponsor introductory remarks on measure. (CR S3575-3579)

April 1, 2004

SenateIntro Referral

Read twice and referred to the Committee on Finance.

April 1, 2004

Floor Debate

19 members

What members said about S. 2274 on the floor

9 Republicans10 Democrats
Richard J. Durbin
Sen. Richard J. DurbinD-IL · Apr 1, 2004

Mr. President, last week I took the floor of the Senate to note the decision which has been made by National Public Radio concerning the host of Morning Edition with Bob Edwards. It was announced in…

Byron L. Dorgan
Sen. Byron L. DorganD-ND · Apr 1, 2004

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, in the last couple of hours since we had our vote today, I have been asked by a couple of press…

Ernest F. Hollings
Sen. Ernest F. HollingsD-SC · Apr 1, 2004

Mr. President, less than 1 year ago, we wrapped up work on the port security bill that was signed into law as the Maritime Security Act of 2002, MTSA. That act mandated and outlined changes that are…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Apr 1, 2004

Mr. President, I rise to introduce and send to the desk the 21st Century Citizen Soldier Benefits Act which I introduce on behalf of myself. I thought I would take a moment this afternoon to outline…

Lamar Alexander
Sen. Lamar AlexanderR-TN · Apr 1, 2004

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, the Presiding Officer and I are new Members of the Senate, but we learn our lessons pretty…

Show 8 more
Larry E. Craig
Sen. Larry E. CraigR-ID · Apr 1, 2004

Madam President, I ask unanimous consent that the order for the quorum call be rescinded. I ask unanimous consent to speak for not more than 15 minutes as in morning business. Madam President, I have…

Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Apr 1, 2004

Madam President, I rise with my colleague from Tennessee, to recognize the introduction of legislation in the House of Representatives today by Congressmen Don Young of Alaska and George Miller of…

Thomas A. Daschle
Sen. Thomas A. DaschleD-SD · Apr 1, 2004

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, in the last 3 years, America has lost nearly 3 million private-sector jobs, including nearly 2.9…

Herb Kohl
Sen. Herb KohlD-WI · Apr 1, 2004

Mr. President, in recent weeks, consumers all across the Nation have watched gas prices rise, seemingly without any end in sight. On March 24, U.S. gasoline prices reached a record high average of $…

Norm Coleman
Sen. Norm ColemanR-MN · Apr 1, 2004

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. I ask unanimous consent to speak as in morning business for up to 10 minutes. Mr. President, in these…

Mike DeWine
Sen. Mike DeWineR-OH · Apr 1, 2004

Mr. President, I wish to talk this afternoon about a bill that my colleagues, Senator Kohl, Senator Grassley, Senator Feingold, Senator Specter, Senator Schumer, Senator Leahy, Senator Coleman, and I…

Christopher S. Bond
Sen. Christopher S. BondR-MO · Apr 1, 2004

Mr. President, I am delighted to join with my friend and colleague Senator Mikulski to introduce today the Environmental Enforcement and Security Act (EESA) of 2004. This bill will increase…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Apr 1, 2004

Mr. President, today I am introducing the Clean Cruise Ship Act of 2004. I am proud to be joined by Senators Lautenberg, Corzine, Feinstein, Kennedy and Boxer in offering this legislation. I also am…

Show 10 more
Barbara A. Mikulski
Sen. Barbara A. MikulskiD-MD · Apr 1, 2004

Mr. President, today I rise on behalf of myself and Senators Specter, Murray, Clinton, Landrieu, Dayton, Schumer, Daschle and Lieberman, to introduce the High-Risk Non-Profit Security and Safety…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Apr 1, 2004

Mr. President, in conjunction with Senator Smith, I am introducing the ``Children's Vaccine Access Act of 2004.'' This legislation makes three changes to the Vaccines for Children program with the…

John McCain
Sen. John McCainR-AZ · Apr 1, 2004

Mr. President, I am joined by Senator Hollings and other members of the Senate Commerce Committee in introducing the Rail Security Act of 2004. The recent attacks on Madrid's commuter rail system…

Arlen Specter
Sen. Arlen SpecterR-PA · Apr 1, 2004

Mr. President, I seek recognition today to introduce the High-Risk Non-Profit Security Enhancement Act of 2004 together with my colleague Senator Mikulski. Since 9/11, al-Qaida has attacked a series…

Frank R. Lautenberg
Sen. Frank R. LautenbergD-NJ · Apr 1, 2004

Mr. President, I would like to take a minute to express my outrage and the outrage of Americans across this country in seeing the mutilation and the horrible attack on the Americans who were serving,…

George Allen
Sen. George AllenR-VA · Apr 1, 2004

Mr. President, I rise today in support of the Senator Wyden's amendment to the PRIDE Act that provides States the option to extend current TANF waivers and create additional waiver authority.…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Apr 1, 2004

Mr. President, I rise today in support of the extension of the temporary extended unemployment compensation program, which expires today. I support this effort because, in my view, we still face an…

Elizabeth Dole
Sen. Elizabeth DoleR-NC · Apr 1, 2004

I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I watched with horror yesterday as the media displayed the images of crowded streets, in Fallujah--and burning…

Barbara Boxer
Sen. Barbara BoxerD-CA · Apr 1, 2004

Mr. President, two and a half years ago, the United States was caught unprepared when it came to aviation security. The results were devastating. Since then, we have greatly improved our aviation…

Arlen Specter
Sen. Arlen SpecterR-PA · Apr 1, 2004

I thank the Chair. (The remarks of Mr. Specter pertaining to the submission of S. Res. 327 are located in today's Record under ``Submission of Concurrent and Senate Resolutions.'') Recent Violence in…

Bill Text

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Introduced in SenateIssued April 1, 2004
        [Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2274 Introduced in Senate (IS)]

108th CONGRESS
2d Session
S. 2274

To expand and improve retired pay, burial, education, and other
mobilization benefits for members of the National Guard and Reserves
who are called or ordered to active duty, and for other purposes.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

April 1, 2004

Ms. Landrieu introduced the following bill; which was read twice and
referred to the Committee on Finance

_______________________________________________________________________

A BILL

To expand and improve retired pay, burial, education, and other
mobilization benefits for members of the National Guard and Reserves
who are called or ordered to active duty, and for other purposes.

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 ``21st Century Citizen Soldier
Benefits Act''.

SEC. 2. ELIGIBILITY FOR RETIRED PAY FOR NON-REGULAR SERVICE.

(a) Age and Service Requirements.--Subsection (a) of section 12731
of title 10, United States Code, is amended to read as follows:
``(a)(1) Except as provided in subsection (c), a person is
entitled, upon application, to retired pay computed under section 12739
of this title, if the person--
``(A) satisfies one of the combinations of requirements for
minimum age and minimum number of years of service (computed
under section 12732 of this title) that are specified in the
table in paragraph (2);
``(B) performed the last six years of qualifying service
while a member of any category named in section 12732(a)(1) of
this title, but not while a member of a regular component, the
Fleet Reserve, or the Fleet Marine Corps Reserve, except that
in the case of a person who completed 20 years of service
computed under section 12732 of this title before October 5,
1994, the number of years of qualifying service under this
subparagraph shall be eight; and
``(C) is not entitled, under any other provision of law, to
retired pay from an armed force or retainer pay as a member of
the Fleet Reserve or the Fleet Marine Corps Reserve.
``(2) The combinations of minimum age and minimum years of service
required of a person under subparagraph (A) of paragraph (1) for
entitlement to retired pay as provided in such paragraph are as
follows:

``Age, in years, is                  The minimum years of service
at least:                                   required for that age is:
55......................................................        30
56......................................................        28
57......................................................        26
58......................................................        24
59......................................................        22
60......................................................     20.''.
(b) 20-Year Letter.--Subsection (d) of such section is amended by
striking ``the years of service required for eligibility for retired
pay under this chapter'' in the first sentence and inserting ``20 years
of service computed under section 12732 of this title.''.
(c) Effective Date.--This section and the amendments made by this
subsection (a) shall take effect on the first day of the first month
beginning on or after the date of the enactment of this Act and shall
apply with respect to retired pay payable for that month and subsequent
months.

SEC. 3. CERTAIN BURIAL BENEFITS FOR RESERVES WHO SERVED IN CAMPAIGN OR
EXPEDITION FOR WHICH A CAMPAIGN MEDAL WAS AUTHORIZED.

(a) Eligibility for Headstone or Grave Marker.--Section 2306(a) of
title 38, United States Code, is amended by adding at the end the
following new paragraph:
``(6) Any individual who, while a member of a reserve
component, served on active duty in a campaign or expedition
for which a campaign medal was authorized and who was
discharged or released from service in the Armed Forces under
other than dishonorable conditions.''.
(b) Eligibility for Interment in National Cemeteries.--Section 2402
of such title is amended by adding at the end the following new
paragraph:
``(9) Any individual who, while a member of a reserve
component, served on active duty in a campaign or expedition
for which a campaign medal was authorized and who was
discharged or released from service in the Armed Forces under
other than dishonorable conditions.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to deaths occurring on or after the date of the
enactment of this Act.

SEC. 4. EDUCATIONAL ASSISTANCE UNDER MONTGOMERY GI BILL FOR MEMBERS OF
THE SELECTED RESERVE WHO AGGREGATE MORE THAN 2 YEARS OF
ACTIVE DUTY SERVICE DURING ANY 5-YEAR PERIOD.

(a) Entitlement.--Section 3012(a)(1) of title 38, United States
Code, is amended--
(1) in subparagraph (B), by striking ``or'' at the end;
(2) in subparagraph (C), by adding ``or'' at the end; and
(3) by inserting after subparagraph (C) the following new
subparagraph (D):
``(D) during any five-year period beginning on or
after September 11, 2001, while in the Selected
Reserve, serves on active duty in the Armed Forces for
one or more periods aggregating not less than two years
of service on active duty during such period;''.
(b) Contributions for Basic Assistance.--Section 3012(c) of such
title is amended--
(1) by inserting ``(1)'' after ``(c)'';
(2) by designating the second sentence as paragraph (3) and
indenting such paragraph, as so designated, two ems from the
left margin; and
(3) by inserting after paragraph (1), as so designated, the
following new paragraph:
``(2)(A) Except as provided in subparagraph (B), in the case of an
individual described in subsection (a)(1)(D) who does not make an
election under subsection (d)(4), the basic pay of such individual
shall be reduced by $100 for each of any of the first 12 months that
such individual is entitled to such pay commencing with the first month
after the date on which such individual becomes entitled to educational
assistance under this chapter by reason of subsection (a)(1)(D).
``(B) An individual described in subparagraph (A) may pay the
Secretary $1,200 in a lump sum payment in lieu of the reduction in
basic pay otherwise required by subparagraph (A). Such payment shall be
made before the commencement of the receipt by the individual of
amounts of basic educational assistance under this chapter.
``(C) If the total amount of basic pay of an individual reduced
under subparagraph (A) is less than $1,200 as of the completion of all
service of such individual on active duty, the individual shall pay the
Secretary in a lump sum payment an amount equal to the difference
between $1,200 and the amount so reduced. The payment shall be made
before the commencement of the receipt by such individual of amounts of
basic educational assistance under this chapter.
``(D) The Secretary shall deposit any amounts received as payments
under subparagraph (B) or (C) into the Treasury as miscellaneous
receipts.''.
(c) Election Not To Receive Assistance.--Section 3012(d) of such
title is amended by adding at the end the following new paragraph:
``(4) An individual described in subsection (a)(1)(D) may make an
election not to receive educational assistance under this chapter. Any
such election shall be made not later than 30 days after the date on
which the individual otherwise becomes entitled to such assistance
under subsection (a)(1)(D). Any individual who makes such an election
is not entitled to educational assistance under this chapter.''.
(d) Contributions for Additional Assistance.--Section 3012(f) of
such title is amended--
(1) in paragraph (1), by inserting ``or (d)(4)'' after
``subsection (d)(1)''; and
(2) in the second sentence, by inserting ``, or any
payments by such individual,'' after ``pay of such
individual''.
(e) Duration of Assistance.--Section 3013(b) of such title is
amended by striking ``is entitled to'' and all that follows and
inserting the following: ``is entitled to--
``(1) one month of educational assistance benefits under
this chapter--
``(A) in the case of an individual described in
section 3012(a)(1)(A) of this title, for each month of
continuous active duty served by such individual after
June 30, 1985, as part of the obligated period of
active duty on which such entitlement is based;
``(B) in the case of an individual described in
section 3012(a)(1)(B) of this title, for each month of
continuous active duty served by such individual after
June 30, 1985; or
``(C) in the case of an individual described in
section 3012(a)(1)(D) of this title, for each month of
active duty served by such individual after September
11, 2001, as part of the aggregate period of active
duty on which such entitlement is based; and
``(2) one month of educational assistance benefits under
this chapter for each four months served by such individual in
the Selected Reserve after the applicable date specified in
paragraph (1) (other than any month in which the individual
served on active duty).''.
(f) Amount of Assistance.--Section 3015 of such title is amended--
(1) in subsections (a)(1)(D) and (b)(1)(D), by striking
``subsection (h)'' and inserting ``subsection (i)'';
(2) by redesignating subsection (h) as subsection (i); and
(3) by inserting after subsection (g) the following new
subsection (h):
``(h) In the case of an individual entitled to an educational
assistance allowance under section 3012(a)(1)(D) of this title, the
amount of the basic educational assistance allowance payable under this
chapter is the amount determined under subsection (b).''.
(g) Death Benefit.--Section 3017(b)(1) of such title is amended--
(1) in subparagraph (C), by striking ``and'' at the end;
(2) in subparagraph (D), by striking ``, less'' and
inserting ``; and''; and
(3) by adding at the end the following new subparagraph:
``(E) the amount of any payments made by the
individual under section 3012(c)(2) of this title,
less''.
(h) Entitlement Date for Certain Members.--In the case of any
member or former member of the Selected Reserve who, under section
3012(a)(1)(D) of title 38, United States Code (as amended by subsection
(a)), is entitled to educational assistance under chapter 30 of title
38, United States Code, as of the date of the enactment of this Act by
reason of active duty served by such member during the period beginning
on September 11, 2001, and ending on the date of the enactment of this
Act, the date on which such individual becomes entitled to such
educational assistance by reason of that section shall be deemed to be
the date of the enactment of this Act.
(i) Outreach.--(1) The Secretaries concerned shall take actions to
inform members of the Selected Reserve who are or may become entitled
to basic educational assistance benefits under chapter 30 of title 38,
United States Code, as a result of section 3012(a)(1)(D) of such title
(as amended by subsection (a) of this section) of the minimum service
requirements for entitlement to such benefits under that chapter and of
the scope and nature of such benefits.
(2) In this subsection:
(A) The term ``Secretary concerned'' has the meaning given
such term in section 101(25) of title 38, United States Code.
(B) The term ``Selected Reserve'' has the meaning given
such term in section 3002(4) of title 38, United States Code.

SEC. 5. MODIFICATION OF MAXIMUM RATE OF INTEREST PAYABLE BY
SERVICEMEMBERS ON OBLIGATIONS INCURRED BEFORE MILITARY
SERVICE.

(a) Modification.--Section 207 of the Servicemembers Civil Relief
Act (50 U.S.C. App. 527) is amended--
(1) in subsection (a), by striking ``6 percent'' each place
it appears in the text of paragraphs (1) and (2) and inserting
``the interest rate limitation percentage'';
(2) in subsection (c), by striking ``6 percent'' and
inserting ``the interest rate limitation percentage''; and
(3) by striking subsection (d) and inserting the following
new subsection (d):
``(d) Definitions.--In this section:
``(1) Interest.--The term `interest' includes service
charges, renewal charges, fees, or any other charges (except
bona fide insurance) with respect to an obligation or
liability.
``(2) Interest rate limitation percentage.--The term
`interest rate limitation percentage' means the lesser of--
``(A) 6 percent; or
``(B) the prime lending rate, as identified by the
Administration and published in the Federal Register on
a quarterly basis, plus 1 percent.''.
(b) Effect of Adjustment of Interest Rate Limitation Percentage
During Military Service.--Subsection (a) of such section is further
amended by adding at the end the following new paragraph:
``(4) Effect of adjustment of interest rate limitation
percentage during service.--If during the military service of a
servicemember the interest rate limitation percentage is
adjusted as a result of a quarterly identification of the prime
lending rate by the Administration, the interest rate
limitation under this subsection on obligations and liabilities
incurred before such service shall be so adjusted.''.
(c) Conforming Amendments.--Subsection (a) of such section is
further amended--
(1) in the paragraph caption of paragraph (1), by striking
``Limitation to 6 percent'' and inserting ``Limitation''; and
(2) in the paragraph caption of paragraph (2), by striking
``Forgiveness of interest in excess of 6 percent'' and
inserting ``Forgiveness of interest in excess of interest rate
limitation percentage''.

SEC. 6. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS PERFORMING ACTIVE
SERVICE IN THE UNIFORMED SERVICES.

(a) In General.--Subchapter IV of chapter 55 of title 5, United
States Code, is amended by adding at the end the following:
``Sec. 5538. Nonreduction in pay while serving in the uniformed
services
``(a) An employee who is absent from a position of employment with
the Federal Government in order to perform service in the uniformed
services shall be entitled to receive, for each pay period described in
subsection (b), an amount equal to the amount by which--
``(1) the amount of basic pay which would otherwise have
been payable to such employee for such pay period if such
employee's civilian employment with the Government had not been
interrupted by that service, exceeds (if at all)
``(2) the amount of pay and allowances which (as determined
under subsection (d))--
``(A) is payable to such employee for that service;
and
``(B) is allocable to such pay period.
``(b)(1) Amounts under this section shall be payable with respect
to each pay period (which would otherwise apply if the employee's
civilian employment had not been interrupted)--
``(A) during which such employee is entitled to
reemployment rights under chapter 43 of title 38 with respect
to the position from which such employee is absent (as referred
to in subsection (a)); and
``(B) for which such employee does not otherwise receive
basic pay (including by taking any annual, military, or other
paid leave) to which such employee is entitled by virtue of
such employee's civilian employment with the Government.
``(2) For purposes of this section, the period during which an
employee is entitled to reemployment rights under chapter 43 of title
38--
``(A) shall be determined disregarding the provisions of
section 4312(d) of title 38; and
``(B) shall include any period of time specified in section
4312(e) of title 38 within which an employee may report or
apply for employment or reemployment following completion of
service in the uniformed services.
``(c) Any amount payable under this section to an employee shall be
paid--
``(1) by such employee's employing agency;
``(2) from the appropriation or fund which would be used to
pay the employee if such employee were in a pay status; and
``(3) to the extent practicable, at the same time and in
the same manner as would basic pay if such employee's civilian
employment had not been interrupted.
``(d) The Office of Personnel Management shall, in consultation
with Secretary of Defense, prescribe any regulations necessary to carry
out the preceding provisions of this section.
``(e)(1) The head of each agency referred to in section
2302(a)(2)(C)(ii) shall, in consultation with the Office, prescribe
procedures to ensure that the rights under this section apply to the
employees of such agency.
``(2) The Administrator of the Federal Aviation Administration
shall, in consultation with the Office, prescribe procedures to ensure
that the rights under this section apply to the employees of that
agency.
``(f) For purposes of this section--
``(1) the terms `employee', `Federal Government', and
`uniformed services' have the same respective meanings as given
in section 4303 of title 38;
``(2) the term `service in the uniformed services' has the
meaning given that term in section 4303 of title 38 and
includes duty performed by a member of the National Guard under
section 502(f) of title 32 at the direction of the Secretary of
the Army or Secretary of the Air Force;
``(3) the term `employing agency', as used with respect to
an employee entitled to any payments under this section, means
the agency or other entity of the Government (including an
agency referred to in section 2302(a)(2)(C)(ii)) with respect
to which such employee has reemployment rights under chapter 43
of title 38; and
``(4) the term `basic pay' includes any amount payable
under section 5304.''.
(b) Clerical Amendment.--The table of sections for chapter 55 of
title 5, United States Code, is amended by inserting after the item
relating to section 5537 the following:

``5538. Nonreduction in pay while serving in the uniformed services or
National Guard.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to pay periods (as described in section 5538(b) of
title 5, United States Code, as added by this section) beginning on or
after September 11, 2001.

SEC. 7. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT ADDED TO GENERAL
BUSINESS CREDIT.

(a) Ready Reserve-National Guard Credit.--Subpart D of part IV of
subchapter A of chapter 1 of the Internal Revenue Code of 1986
(relating to business-related credits) is amended by adding at the end
the following:

``SEC. 45G. READY RESERVE-NATIONAL GUARD EMPLOYEE CREDIT.

``(a) General Rule.--For purposes of section 38, the Ready Reserve-
National Guard employee credit determined under this section for any
taxable year is an amount equal to 50 percent of the actual
compensation amount for such taxable year.
``(b) Definition of Actual Compensation Amount.--For purposes of
this section, the term `actual compensation amount' means the amount of
compensation paid or incurred by an employer with respect to a Ready
Reserve-National Guard employee on any day during a taxable year when
the employee was absent from employment for the purpose of performing
qualified active duty.
``(c) Limitations.--
``(1) Maximum period for credit per employee.--The maximum
period with respect to which the credit may be allowed with
respect to any Ready Reserve-National Guard employee shall not
exceed the 12-month period beginning on the first day such
credit is so allowed with respect to such employee.
``(2) Days other than work days.--No credit shall be
allowed with respect to a Ready Reserve-National Guard employee
who performs qualified active duty on any day on which the
employee was not scheduled to work (for reason other than to
participate in qualified active duty).
``(d) Definitions.--For purposes of this section--
``(1) Qualified active duty.--The term `qualified active
duty' means--
``(A) active duty, other than the training duty
specified in section 10147 of title 10, United States
Code (relating to training requirements for the Ready
Reserve), or section 502(a) of title 32, United States
Code (relating to required drills and field exercises
for the National Guard), in connection with which an
employee is entitled to reemployment rights and other
benefits or to a leave of absence from employment under
chapter 43 of title 38, United States Code, and
``(B) hospitalization incident to such duty.
``(2) Compensation.--The term `compensation' means any
remuneration for employment, whether in cash or in kind, which
is paid or incurred by a taxpayer and which is deductible from
the taxpayer's gross income under section 162(a)(1).
``(3) Ready reserve-national guard employee.--The term
`Ready Reserve-National Guard employee' means an employee who
is a member of the Ready Reserve or of the National Guard.
``(4) National guard.--The term `National Guard' has the
meaning given such term by section 101(c)(1) of title 10,
United States Code.
``(5) Ready reserve.--The term `Ready Reserve' has the
meaning given such term by section 10142 of title 10, United
States Code.''.
(b) Credit To Be Part of General Business Credit.--Subsection (b)
of section 38 of such Code (relating to general business credit) is
amended by striking ``plus'' at the end of paragraph (14), by striking
the period at the end of paragraph (15) and inserting ``, plus'', and
by adding at the end the following:
``(16) the Ready Reserve-National Guard employee credit
determined under section 45G(a).''.
(c) Conforming Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 45F the
following:

``Sec. 45G. Ready Reserve-National Guard
employee credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after the date of the enactment of
this Act.

SEC. 8. LEAVE OF ABSENCE FROM EDUCATIONAL INSTITUTIONS FOR MILITARY
SERVICE.

(a) Obligation as Part of Program Participation Requirements.--
Section 487(a)(22) of the Higher Education Act of 1965 (20 U.S.C.
1094(a)(22)) is amended by inserting ``and with the policy on leave of
absence for active duty military service established pursuant to
section 484C'' after ``section 484B''.
(b) Leave of Absence for Military Service.--Part G of title IV of
the Higher Education Act of 1965 is amended by inserting after section
484B (20 U.S.C. 1091b) the following new section:

``SEC. 484C. LEAVE OF ABSENCE FOR MILITARY SERVICE.

``(a) Leave of Absence Required.--Whenever a student who is a
member of the National Guard or other reserve component of the Armed
Forces of the United States, or a member of such Armed Forces in a
retired status, is called or ordered to active duty, the institution of
higher education in which the student is enrolled shall grant the
student a military leave of absence from the institution while such
student is serving on active duty, and for one year after the
conclusion of such service.
``(b) Consequences of Military Leave of Absence.--
``(1) Preservation of status and accounts.--A student on a
military leave of absence from an institution of higher
education shall be entitled, upon release from serving on
active duty, to be restored to the educational status such
student had attained prior to being ordered to such duty
without loss of academic credits earned, scholarships or grants
awarded, or, subject to paragraph (2), tuition and other fees
paid prior to the commencement of the active duty.
``(2) Refunds.--
``(A) Option of refund or credit.--An institution
of higher education shall refund tuition or fees paid
or credit the tuition and fees to the next period of
enrollment after the student returns from a military
leave of absence, at the option of the student.
Notwithstanding the 180-day limitation referred to in
section 484B(a)(2)(B), a student on a military leave of
absence under this section shall not be treated as
having withdrawn for purposes of section 484B unless
the student fails to return at the end of the military
leave of absence (as determined under subsection (a) of
this section).
``(B) Proportionate reduction of refund for time
completed.--If a student requests a refund during a
period of enrollment, the percentage of the tuition and
fees that shall be refunded shall be equal to 100
percent minus--
``(i) the percentage of the period of
enrollment (for which the tuition and fees were
paid) that was completed (as determined in
accordance with section 484B(d)) as of the day
the student withdrew, provided that such date
occurs on or before the completion of 60
percent of the period of enrollment; or
``(ii) 100 percent, if the day the student
withdrew occurs after the student has completed
60 percent of the period of enrollment.
``(c) Active Duty.--In this section, the term `active duty' has the
meaning given such term in section 101(d)(1) of title 10, United States
Code, except that such term--
``(1) does not include active duty for training or
attendance at a service school; but
``(2) includes, in the case of members of the National
Guard, active State duty.''.
<all>