In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Nutrition Coordinators for Local 
Healthy Youth Act''.

SEC. 2. GRANT PROGRAM FOR NUTRITION COORDINATORS.

    Section 19 of the Child Nutrition Act of 1966 (42 U.S.C. 1788) is 
amended--
            (1) by redesignating subsection (l) as subsection (m); and
            (2) by inserting after subsection (k) the following new 
        subsection:
    ``(l) Grant Program for Nutrition Coordinators.--
            ``(1) Establishment of grant program.--The Secretary, in 
        consultation with the Secretary of Education, shall establish a 
        program to make grants to local educational agencies to appoint 
        nutrition coordinators to carry out the activities described in 
        paragraph (4).
            ``(2) Application.--To be selected to receive a grant under 
        paragraph (1), a local educational agency, in consultation with 
        the State agency that administers school lunch programs in the 
        geographic area served by such local educational agency, shall 
        submit an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(3) Use of funds.--A local educational agency that 
        receives a grant under this subsection shall use such funds to 
        appoint a nutrition coordinator to, with respect to the 
        geographic area served by such agency--
                    ``(A) ensure compliance with local school wellness 
                policies under section 9A of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1758b);
                    ``(B) coordinate nutrition education programs with 
                school food service directors for such local 
                educational agency;
                    ``(C) conduct trainings and facilitate information 
                sharing of best practices that--
                            ``(i) encourage students to participate in 
                        healthy eating and active living;
                            ``(ii) are consistent with the Dietary 
                        Guidelines for Americans published under 
                        section 301 of the National Nutrition 
                        Monitoring and Related Research Act of 1990 (7 
                        U.S.C. 5341); and
                            ``(iii) are consistent with the Physical 
                        Activity Guidelines for Americans published by 
                        the Office of Disease Prevention and Health 
                        Promotion of the Department of Health and Human 
                        Services;
                    ``(D) work with programs that promote and motivate 
                students to participate in school wellness activities;
                    ``(E) coordinate and collaborate with other 
                nutrition education programs, including--
                            ``(i) programs under the Supplemental 
                        Nutrition Assistance Program under the Food and 
                        Nutrition Act of 2008 (7 U.S.C. 2011 et seq.);
                            ``(ii) cooperative extension services (as 
                        such term is defined in section 1404 of the 
                        Food and Agriculture Act of 1977 (7 U.S.C. 
                        3103));
                            ``(iii) nutrition education programs 
                        carried out by community-based organizations; 
                        and
                            ``(iv) other team network nutrition 
                        programs;
                    ``(F) provide community outreach to promote 
                nutrient-rich foods and farm-to-school activities;
                    ``(G) promote regular physical activity in students 
                before, during, and after school;
                    ``(H) ensure students receive effective and 
                consistent messages regarding healthy eating and active 
                living; and
                    ``(I) to promote nutrition education and team 
                network nutrition programs in the State in which such 
                local educational agency is located, coordinate and 
                collaborate with--
                            ``(i) the team nutrition network 
                        coordinator for the State; and
                            ``(ii) community partners.
            ``(4) Nutrition coordinator requirements.--A nutrition 
        coordinator may not be appointed under this subsection unless 
        the Coordinator has a background in nutrition education, 
        dietetics, or nutrition program management.
            ``(5) Nutrition coordinator reports.--Not later than 1 year 
        after the date on which a nutrition coordinator is appointed 
        under this subsection, the nutrition coordinator shall submit 
        to the Secretary a report that includes--
                    ``(A) a plan to implement activities under this 
                section; and
                    ``(B) a review of, and plan for, coordination and 
                collaboration with nutrition education programs 
                described in paragraph (4)(E).
            ``(6) Evaluation of grant program.--Not later than January 
        1, 2019, the Secretary shall submit a report to Congress that 
        includes--
                    ``(A) the results of an evaluation of the grant 
                program established under this subsection;
                    ``(B) a review of the implementation of this 
                subsection;
                    ``(C) an assessment of local educational agencies 
                with respect to activities conducted to ensure students 
                receive nutrition education consistent with the Dietary 
                Guidelines for Americans published under section 301 of 
                the National Nutrition Monitoring and Related Research 
                Act of 1990 (7 U.S.C. 5341);
                    ``(D) best practices for encouraging students to 
                participate in healthy eating and active living;
                    ``(E) an assessment of local school wellness 
                policies under section 9A of the Richard B. Russell 
                National School Lunch Act (42 U.S.C. 1758b); and
                    ``(F) an assessment of school personnel and their 
                level of interaction and satisfaction with nutrition 
                coordinators.''.

Output: Nutrition Coordinators for Local Healthy Youth Act  This bill amends the Child Nutrition Act of 1966 to establish a Department of Agriculture program to award grants to local educational agencies to appoint nutrition coordinators with a background in nutrition education, dietetics, or nutrition program management.  The responsibilities of the coordinators include:    ensuring compliance with local school wellness policies under the Richard B. Russell National School Lunch Act,   coordinating nutrition education programs with school food service directors,   conducting training and facilitating information sharing of best practices,   working with programs that promote and motivate students to participate in school wellness activities,   coordinating and collaborating with other nutrition education programs,   providing community outreach to promote nutrient-rich foods and farm-to-school activities,   promoting regular physical activity in students,   ensuring students receive effective and consistent messages regarding healthy eating and active living, and   promoting nutrition education and team network nutrition programs in the state by coordinating and collaborating with the team nutrition network coordinator and community partners.  


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Flexibility for Individual 
Excellence in Education Act of 2007''.

SEC. 2. MODIFICATION TO AMENDMENTS MADE BY NO CHILD LEFT BEHIND ACT OF 
              2001.

    (a) Modifications to Highly Qualified Teacher Standard.--
            (1) Middle or secondary teachers new to profession may use 
        college minor.--Subclause (II) of section 9101(23)(B)(ii) of 
        the Elementary and Secondary School Act of 1965 (20 U.S.C. 
        7801(23)(B)(ii)) is amended by inserting ``or minor'' after 
        ``academic major''.
            (2) Extent time teaching is considered.--Subclause (V) of 
        section 9101(23)(C)(ii) of such Act (20 U.S.C. 7801(23)(C)(ii)) 
        is amended by striking ``not be based primarily on'' and 
        inserting ``not be based solely on''.
    (b) Extension Until 2011-12 School Year for Rural Schools To Meet 
All Highly Qualified Teacher Standards; Additional $50 Million 
Authorized To Help Rural Schools Meet Standards.--
            (1) Extension.--Subsection (a) of section 1119 of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 6319) 
        is amended by adding at the end the following new paragraph:
            ``(4) Rural school districts.--
                    ``(A) In general.--Notwithstanding the deadline 
                described in paragraphs (2) and (3), a plan developed 
                by a State educational agency or a local educational 
                agency under this subsection shall ensure that all 
                teachers who are described in such paragraphs, but are 
                teaching in a rural school district, are highly 
                qualified not later than the end of the 2011-2012 
                school year.
                    ``(B) Definition.--For purposes of this paragraph, 
                the term `rural school district' means a local 
                educational agency that--
                            ``(i) meets the eligibility criteria 
                        described in section 6211(b), including by 
                        obtaining a waiver under paragraph (2) of such 
                        section; and
                            ``(ii) employs a percentage of teachers who 
                        are not highly qualified that is higher than 
                        the corresponding percentage for the State 
                        involved.''.
            (2) Additional funding.--Section 6234 of the Elementary and 
        Secondary Education Act of 1965 (20 U.S.C. 7355c) is amended--
                    (A) by striking ``There are'' and inserting ``(a) 
                In General.--There are''; and
                    (B) by adding at the end the following new 
                subsection:
    ``(b) Additional Funding.--For the purpose of making grants under 
subpart 2 to be used for teacher recruitment, retention, and 
professional development activities described in section 6222(a) in 
rural school districts (as defined in section 1119(a)(4)), there are 
authorized to be appropriated $50,000,000 for fiscal year 2008 and such 
sums as may be necessary for each of the 4 following fiscal years. Such 
authorization shall be in addition to the authorization in subsection 
(a).''.
    (c) Highly Qualified Teacher Rules Limited to Teachers of Core 
Subjects.--
            (1) Title I of the Elementary and Secondary Education Act 
        of 1965 is amended by adding at the end the following new 
        section:

``SEC. 1005. HIGHLY QUALIFIED TEACHER CONCEPT LIMITED TO TEACHERS OF 
              CORE SUBJECTS.

    ``Notwithstanding any other provision of this Act, any reference in 
this Act to highly qualified teachers shall be deemed to refer only to 
teachers in core subjects.''.
            (2) The table of contents of such Act is amended by 
        inserting after the item relating to section 1004 the following 
        new item:

``Sec. 1005. Highly qualified teacher concept limited to teachers of 
                            core subjects.''.
    (d) Students With Disabilities Assessed at the Level of Instruction 
in Compliance With Their Individualized Education Plan.--Clause (ix) of 
section 1111(b)(3)(C) of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 6311(b)(3)(C)) is amended by striking ``and'' at the 
end of subclause (II), by adding ``and'' at the end of subclause (III), 
and by adding at the end the following new subclause:
                                    ``(IV) at the discretion of the 
                                State, the assessment of students with 
                                disabilities (as defined in section 
                                602(3) of the Individuals with 
                                Disabilities Education Act) whose 
                                instructional level in the core 
                                academic subjects is below the grade 
                                level in which the student is enrolled, 
                                by using the State assessment 
                                determined by the student's 
                                individualized education program team 
                                (as described in section 614(d)(1)(B) 
                                of such Act) to most closely correspond 
                                to the student's instructional 
                                level;''.
    (e) Use of Growth Models and Multiple Measures in Determining 
Adequate Yearly Progress.--
            (1) Growth models.--Clause (iii) of section 1111(b)(2)(C) 
        of the Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 6311(b)(2)(C)) is amended by striking ``for all 
        students'' and inserting ``for all students, as demonstrated by 
        measures of students' progress toward proficiency, including 
        longitudinal growth''.
            (2) Multiple measures.--Subparagraph (A) of section 
        1111(b)(2) of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 6311(b)(2)) is amended by striking ``and'' at 
        the end of clause (ii), by striking the period at the end of 
        clause (iii) and inserting ``; and'', and by adding at the end 
        the following new clause:
                            ``(iv) include multiple measures of student 
                        academic achievement, such as the proportion of 
                        State report card indicators met, a performance 
                        index score, student drop-out rate, and a 
                        measure based on individual student achievement 
                        gains over time, disaggregated by each of the 
                        groups of students described in subparagraph 
                        (C)(v).''.
    (f) Adequate Yearly Progress Determined by Group and Subject.--
            (1) Identification of schools in need of improvement.--
                    (A) Subparagraph (A) of section 1116(b)(1) of the 
                Elementary and Secondary Education Act of 1965 (20 
                U.S.C. 6316(b)(1)) is amended by striking ``that 
                fails'' and inserting ``if the same group of students 
                described in section 1111(b)(2)(C)(v) fails in the same 
                academic subject''.
                    (B) Subparagraph (C) of such section is amended by 
                striking ``almost every student in each group specified 
                in section 1111(b)(2)(C)(v) enrolled in such school is 
                meeting or exceeding the State's proficient level of 
                academic achievement'' and inserting ``almost every 
                student in each group enrolled in such school for which 
                there is such a failure in an academic subject is 
                meeting or exceeding the State's proficient level of 
                academic achievement in such subject''.
            (2) Failure to make adequate yearly progress during first 
        year after identification.--So much of the text of paragraph 
        (5) of section 1116(b) of such Act as precedes subparagraph (A) 
        is amended to read as follows: ``If, by the end of the first 
        full school year after identification under paragraph (1) of a 
        school served under this part, any group of students that met 
        the requirements for such identification in an academic subject 
        fails to make adequate yearly progress in such subject, as set 
        out in the State's plan under section 1111(b)(2), the local 
        educational agency serving such school--''.
            (3) Failure to make adequate yearly progress during second 
        year after identification.--So much of the text of subparagraph 
        (C) of section 1116(b)(7) of such Act as precedes clause (i) is 
        amended to read as follows: ``If, by the end of the second full 
        school year after identification under paragraph (1) of a 
        school served under this part, any group of students that met 
        the requirements for such identification in an academic subject 
        fails to make adequate yearly progress in such subject, as set 
        out in the State's plan under section 1111(b)(2), the local 
        educational agency shall--''.
            (4) Failure to make adequate yearly progress during first 
        year after corrective action.--So much of the text of 
        subparagraph (A) of section 1116(b)(8) of such Act as precedes 
        clause (i) is amended to read as follows: ``If, after 1 full 
        year of corrective action under paragraph (7), any group of 
        students (at the school subject to such corrective action) that 
        met the requirements for identification under paragraph (1) in 
        an academic subject continues to fail to make adequate yearly 
        progress in such subject, then the local educational agency 
        shall--''.
    (g) Needs Improvement Label To Be Group and Subject Specific.--
Subparagraph (A) of section 1116(b)(1) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6316(b)(1)) is amended by adding at 
the end the following new sentence: ``Such identification shall apply 
only to each group and subject with respect to which there is such a 
failure.''
    (h) Parental Notification of Needs Improvement To Be Group and 
Subject Specific.--Paragraph (6) of section 1116(b) of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6316(b)) is amended by 
striking ``of each student enrolled in an elementary school or a 
secondary school identified for school improvement under paragraph 
(1)'' and inserting ``of each student in each group of students that 
met the requirements for identification in an academic subject under 
paragraph (1)''.
    (i) Transfer Option and Supplemental Services Limited to Students 
From Failing Groups.--
            (1) Clause (i) of section 1116(b)(1)(E) of the Elementary 
        and Secondary Education Act of 1965 (20 U.S.C. 6316(b)(1)(E)) 
        is amended by inserting ``in each group described in section 
        1111(b)(2)(C)(v) that met the requirements for such 
        identification'' after ``all students''.
            (2) Paragraphs (5)(A), (7)(C)(i), and (8)(A)(i) of section 
        1116(b) of such Act are each amended by inserting ``in such 
        group'' after ``all students''.
    (j) Local Educational Agencies May Choose To Offer Supplemental 
Educational Services, and Not Public School Choice, on Initial Failure 
To Make Adequate Yearly Progress.--
            (1) In general.--Subparagraph (E) of section 1116(b)(1) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        6316(b)(1)) is amended to read as follows:
                    ``(E) Public school choice or supplemental 
                educational services.--In the case of a school 
                identified for school improvement under this paragraph, 
                the local educational agency shall, not later than the 
                first day of the school year following such 
                identification--
                            ``(i) provide all students in each group 
                        described in section 1111(b)(2)(C)(v) that met 
                        the requirements for such identification (and 
                        who are enrolled in the school) with the option 
                        to transfer to another public school served by 
                        the local educational agency, which may include 
                        a public charter school, that has not been 
                        identified for school improvement under this 
                        paragraph, unless such an option is prohibited 
                        by State law, or
                            ``(ii) make supplemental educational 
                        services available consistent with subsection 
                        (e)(1) to students in such group in the 
                        academic subject to which such identification 
                        relates.
                If more than 1 school served by such agency is 
                identified for school improvement under this paragraph 
                or more than 1 group of students meets the requirements 
                for such identification, such agency shall make the 
                same choice under clause (i) or (ii) for all such 
                schools and all such groups.''.
            (2) Conforming amendment.--Paragraph (5) of section 1116(b) 
        of such Act is amended to read as follows:
            ``(5) Failure to make adequate yearly progress after 
        identification.--If, by the end of the first full school year 
        after identification under paragraph (1) of a school served 
        under this part, any group of students that met the 
        requirements for such identification in an academic subject 
        fails to make adequate yearly progress in such subject, as set 
        out in the State's plan under section 1111(b)(2), the local 
        educational agency serving such school--
                    ``(A) shall continue to provide the transfer option 
                under clause (i) of paragraph (1)(E) or to make the 
                supplemental educational services available under 
                clause (ii) of such paragraph, whichever was chosen by 
                such agency,
                    ``(B) shall provide the transfer option under such 
                clause (i) or to make the supplemental educational 
                services available under such clause (ii), whichever 
                was not chosen by such agency under such paragraph; and
                    ``(C) shall continue to provide technical 
                assistance.''.

Output: Flexibility for Individual Excellence in Education Act of 2007 - Amends the Elementary and Secondary Education Act of 1965 to alter the requirement that teachers be highly qualified by: (1) applying it only to teachers of core subjects; (2) allowing new middle or secondary school teachers to teach subjects for which they earned a college minor; (3) allowing greater consideration to be given to the time experienced teachers have spent teaching a subject; and (4) extending the deadline for rural teachers to meet such requirements.

Provides additional funding for rural teacher recruitment, retention, and professional development activities.

Allows state determinations of students' adequate yearly progress (AYP) toward state academic performance standards to: (1) assess disabled students at the instructional level most closely corresponding to their individualized education plans; and (2) use growth models and multiple measures of student achievement.

Requires local educational agencies (LEAs) to identify schools as needing improvement, corrective action, or restructuring only if they fail to make AYP in the same subject for the same group of students over the requisite period of time. Provides school transfers and supplemental services to students in the failing group, rather than to all students in an affected school. Gives LEAs the option of providing such students with supplemental services rather than transfers for the year following a school's identification as needing improvement.


Input: Consider Input: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Equity for Reservists Pay Act of 
2003''.

SEC. 2. NONREDUCTION IN PAY WHILE FEDERAL EMPLOYEE IS SERVING ON ACTIVE 
              DUTY IN A RESERVE COMPONENT OF 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 new section:
``Sec. 5538. Nonreduction in pay while serving on active duty in a 
              reserve component
    ``(a) An employee who is also a member of a reserve component and 
is absent from a position of employment with the Federal Government 
under a call or order to serve on active duty for a period of more than 
30 days shall be entitled to receive, for each pay period described in 
subsection (b), an amount equal to the difference (if any) between--
            ``(1) the amount of civilian basic pay that would otherwise 
        have been payable to the employee for such pay period if the 
        employee's civilian employment with the Government had not been 
        interrupted by the service on active duty; and
            ``(2) the amount of military compensation that is payable 
        to the employee for the service on active duty and 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) that occurs--
            ``(A) while the employee serves on active duty for a period 
        of more than 30 days;
            ``(B) 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
            ``(C) during the 14-day period beginning at the end of such 
        active duty or the end of the period referred to in 
        subparagraph (B).
    ``(2) Paragraph (1) shall not apply with respect to a pay period 
for which the employee receives civilian basic pay (including by taking 
any annual, military, or other paid leave) to which the employee is 
entitled by virtue of the employee's civilian employment with the 
Government.
    ``(c) Any amount payable under this section to an employee shall be 
paid--
            ``(1) by employing agency of the employee;
            ``(2) from the appropriations or fund that would be used to 
        pay the employee if the employee were in a pay status; and
            ``(3) to the extent practicable, at the same time and in 
        the same manner as would civilian basic pay if the employee's 
        civilian employment had not been interrupted.
    ``(d) In consultation with Secretary of Defense, the Office of 
Personnel Management shall prescribe such regulations as may be 
necessary to carry out this section.
    ``(e)(1) In consultation with the Office, the head of each agency 
referred to in section 2302(a)(2)(C)(ii) of this title shall 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) In this section:
            ``(1) The terms `active duty for a period of more than 30 
        days', `member', and `reserve component' have the meanings 
        given such terms in section 101 of title 37.
            ``(2) The term `civilian basic pay' includes any amount 
        payable under section 5304 of this title.
            ``(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) of this title) 
        with respect to which the employee has reemployment rights 
        under chapter 43 of title 38.
            ``(4) The term `military compensation' has the meaning 
        given the term `pay' in section 101(21) of title 37.''.
    (b) Clerical Amendment.--The table of sections at the beginning of 
chapter 55 of title 5, United States Code, is amended by inserting 
after the item relating to section 5537 the following new item:

``5538. Nonreduction in pay while serving on active duty in a reserve 
                            component.''.
    (c) Application of Amendment.--Section 5538 of title 5, 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.

SEC. 3. 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.--(1) 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 50 percent 
of the civilian compensation paid by the State or local government for 
each pay period described in subsection (c), but not to exceed 50 
percent of the difference (if any) between--
            ``(A) 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
            ``(B) the amount of military pay that is payable to the 
        employee for the service on active duty and is allocable to 
        such pay period.
    ``(2) If the pay periods described in subsection (c) extend more 
than nine consecutive months after the first day of the first month 
during which the employee began to serve on active duty for a period of 
more than 30 days, the reimbursement rate shall become 100 percent for 
the subsequent payments. However, as is the case under paragraph (1), 
reimbursement shall be provided only for the difference (if any) 
between--
            ``(A) 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
            ``(B) 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 
        subparagraph (B).
    ``(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) 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.
    ``(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.

SEC. 4. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT ADDED TO GENERAL 
              BUSINESS CREDIT.

    (a) Addition of 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 new 
section:

``SEC. 45G. ACTIVE-DUTY RESERVE COMPONENT EMPLOYEE CREDIT.

    ``(a) General Rule.--For purposes of section 38, in the case of an 
employer, the active-duty reserve component employee credit determined 
under this section for the taxable year is an amount equal to 50 
percent of the compensation paid by the employer to an employee who is 
also a member of a reserve component during the taxable year when the 
employee was absent from employment for a reason described in 
subsection (b), but not to exceed 50 percent of the difference (if any) 
between--
            ``(1) the amount of compensation that would otherwise have 
        been payable to the employee during such absence if the 
        employee's employment with the employer had not been 
        interrupted by the employee's absence; and
            ``(2) the amount of military pay that is payable to the 
        employee during the absence.
    ``(b) Covered Pay Periods.--Subsection (a) shall apply with respect 
to an employee who is also a member of a reserve component--
            ``(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 
        subparagraph (B).
    ``(c) Limitation.--No credit shall be allowed under subsection (a) 
with respect to an employee on any day on which the employee was not 
scheduled to work (for a reason other than such service on active duty) 
and ordinarily would not have worked.
    ``(d) Definitions.--For purposes of this section--
            ``(1) The terms `active duty for a period of more than 30 
        days', `member', and `reserve component' have the meanings 
        given such terms in section 101 of title 37, United States 
        Code.
            ``(2) 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).''.
    (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 new paragraph:
            ``(16) the active-duty reserve component 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 new item:

                              ``Sec. 45G. Active-duty reserve component 
                                        employee credit.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2001.


Output: Equity for Reservists Pay Act of 2003 - Entitles a Federal employee who is also a member of the reserves and who is absent from his or her civilian employment position under a call or order for active duty service of more than 30 days, to receive an amount equal to the difference in pay between the military compensation received and the civilian compensation that otherwise would have been received during such period. Makes such amounts also payable during: (1) any period of hospitalization or convalescence required as a result of such service; and (2) the 14-day period following such service.Directs the Secretary of the military department concerned to reimburse a State or local government for 50 percent of the civilian compensation paid by such government for pay periods when a State or local government employee is performing active duty service of more than 30 days. Increases such rate to 100 percent if the employee's active duty service period extends beyond nine months. Requires such reimbursement during periods of hospitalization or convalescence and for 14 days after service.Amends the Internal Revenue Code to provide that, for purposes of the general business credit, the Active-Duty Reserve Component employee credit is 50 percent of the compensation paid by the employer to the employee during the period of active duty.