text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/683

 PUBLIC LAW 99-145—NOV. 8, 1985 account that change in law. Any such recalculation shall be made using the actuarial methods and assumptions described in subsection (b). (2) In making determinations under section 1466(a) of title 10, United States Code, for months during fiscal years 1985 and 1986 beginning on or after the effective date of any such change in law, the accrual percentage as recalculated under paragraph (1) shall be used in lieu of the accrual percentage that would otherwise be applicable. (d) DEFINITION OF ACCRUAL PERCENTAGE.—For purposes of this section, the term "accrual percentage" means the single level percentage of basic pay determined under section 1465(c)(l) of title 10, United States Code, for the purposes of computations under sections 1465(b) and 1466(a) of that title.

99 STAT. 661

98 Stat. 2623.

PART F—EDUCATIONAL ASSISTANCE PROGRAMS

SEC. 671. DEPARTMENT OF DEFENSE EDUCATIONAL LOAN REPAYMENT PROGRAMS (a) CODIFICATION OF SECTION 902 PROGRAM.—(1) Part III of subtitle A of title 10, United States Code, is amended by adding at the end lo use prec. thereof the following new chapter: 2001. "CHAPTER 109—EDUCATIONAL LOAN REPAYMENT PROGRAMS "Sec. "2171. General educational loan repayment program. "2172. Education loans for certain health professionals who serve in the Selected Reserve.

"§ 2171. General educational loan repayment program "(a)(1) Subject to the provisions of this section, the Secretary of Defense may repay— "(A) any loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.); or "(B) or any loan made under part E of such title (20 U.S.C. 1087aa et seq.). Repayment of any such loan shall be made on the basis of each complete year of service performed by the borrower. "(2) The Secretary may repay loans described in paragraph (1) in the case of any person for— "(A) service performed— "(i) as an enlisted member of the Selected Reserve of the Ready Reserve of an armed force; and "(ii) in a reserve component and military specialty specified by the Secretary of Defense; or "(B) service performed on active duty as an enlisted member in a military specialty specified by the Secretary. In the case of service described in clause (A) of the first sentence of this paragraph, the Secretary may repay a loan described in paragraph (1) only if the person to whom the loan was made performed such service after the loan was made. "(b) The portion or amount of a loan that may be repaid under subsection (a) is—

lo use 2171.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/684

 99 STAT. 662

Regulation.

10 USC 2172.

PUBLIC LAW 99-145—NOV. 8, 1985 "(1) 15 percent or $500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(A); or "(2) 33V3 percent or $1,500, whichever is greater, for each year of service, in the case of service described in subsection (a)(2)(B). "(c) If a portion of a loan is repaid under this section for any year, interest on the remainder of such loan shall accrue and be paid in the same manner as is otherwise required. "(d) Nothing in this section shall be construed to authorize refunding any repayment of a loan. "(e) Any individual who transfers from service described in clause (A) or (B) of subsection (a)(2) to service described in the other clause of such subsection during a year shall be eligible to have repaid a portion of such loan determined by giving appropriate fractional credit for each portion of the year so served, in accordance with regulations of the Secretary concerned. "(f) The Secretary of Defense shall, by regulation, prescribe a schedule for the allocation of funds made available to carry out the provisions of this section during any year for which funds are not sufficient to pay the sum of the amounts eligible for repayment under subsection (a). "§ 2172. Education loans for certain health professionals who serve in the Selected Reserve "(a) Under regulations prescribed by the Secretary of Defense and subject to the other provisions of this section, the Secretary concerned may repay— "(1) a portion of a loan made, insured, or guaranteed under part B of title IV of the Higher Education Act of 1965 (20 U.S.C. 1071 et seq.); "(2) a loan made under part E of such title (20 U.S.C. 1087aa et seq.) after October 1, 1975; and "(3) a health education assistance loan made or insured under part C of title VII of the Public Health Service Act (42 U.S.C. 294 et seq.). "(b) The Secretary concerned may repay loans described in subsection (a) only in the case of a person who— "(1) performs satisfactory service as an officer in the Selected Reserve of an armed force; and "(2) possesses professional qualifications in a health profession that the Secretary of Defense has determined to be needed critically in order to meet identified wartime combat medical skill shortages. "(c)(1) The amount of any repayment of a loan made under this section on behalf of any person shall be determined on the basis of each complete year of service that is described in subsection (b)(D and performed by the person after the date on which the loan was made. "(2) Subject to paragraph (3), the portion of a loan that may be repaid under this section on behalf of any person may not exceed $3,000 for each year of service described in paragraph (1). "(3) The total amount that may be repaid on behalf of any person under this section may not exceed $20,000. "(d) The authority provided in this section shall apply only in the case of a person first appointed as a commissioned officer before October 1, 1988.".

�

license: Creative Commons - Attribution Share-Alike - https://creativecommons.org/licenses/by-sa/4.0/


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/685

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 663

(2) The tables of chapters at the beginning of subtitle A of such title and at the beginning of part III of such subtitle are amended by inserting after the item relating to chapter 108 the following new item: "109. Educational Loan Repayment Programs

2171".

(3) Section 902 of the Department of Defense Authorization Act, 1981 (10 U.S.C. 2141 note), is repealed.

98 Stat. 2572.

(b) PERSONS TO WHOM APPLICABLE.—(1) The authority provided

lO u s e 2171

under section 2171 of title 10, United States Code, as added by subsection (a), shall apply only— (A) in the case of persons who enlist or reenlist in the Selected Reserve of the Ready Reserve of an Armed Force or enlist or reenlist for service on active duty after September 30, 1980; (B) with respect to service performed after that date; and (C) with respect to loans made after October 1, 1975. (2) The authority provided under section 2172 of title 10, United States Code, as added by subsection (a), shall apply only— (A) in the case of a person who is first appointed as a commissioned officer of an Armed Force after September 30, 1985; and (B) with respect to service performed after that date.

note. ^"^^' P- ^^1-

10 USC 2172 "o*^' ^'

SEC. 672. SPECIALIZED TRAINING ASSISTANCE IN THE HEALTH PROFESSION FOR MEMBERS OF RESERVE COMPONENTS

(a) AUTHORIZATION OF PROGRAM.—The Secretary of each military department, under regulations presciibed by the Secretary of Defense, may establish and maintain a program to provide financial assistance to persons engaged in specialized training in the health professions. (b) ELIGIBILITY REQUIREMENTS.—TO be eligible for financial assist-

ance under this section, a person must be— (1) a commissioned officer in the Selected Reserve of a reserve component of the Armed Forces; and (2) engaged in a course of specialized training (approved by the Secretary of the military department concerned) in a health profession. (c) AMOUNT OF ASSISTANCE.—A person participating in the pro-

lo use 2121 note.

10 USC 2121

note.

10 USC 2121

gram provided for under this section shall be entitled to a monthly note, stipend at the rate paid, on October 1, 1985, to persons participating in the Armed Forces Health Professions Scholarship Program under chapter 105 of title 10, United States Code. That rate shall be 10 USC 2120 ef increased annually by the Secretary of Defense effective on July 1 of ««9each year by an amount (rounded to the next highest multiple of $1) equal to— (1) the amount of such stipend (as previously adjusted (if at all)), multiplied by (2) the overall precentage of the adjustment (if such adjustment is an increase) in the rates of basic pay for members of the uniformed services made effective for the fiscal year in which the school year ends. (d) QUALIFICATIONS.—To be eligible for participation in the pro- lo use 2121 gram provided for in this section, a person must be a citizen of the note. United States and must— (1) be qualified in a health profession as required in regulations prescribed by the Secretary of Defense; (2) sign an agreement that, unless sooner separated, the participant will—

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/686

 99 STAT. 664

10 USC 2121 note. 10 USC 2121 note.

10 USC 2121

note. 10 USC 2120 et seg. 10 USC 2121 note.

PUBLIC LAW 99-145—NOV. 8, 1985 (A) complete the specialized program of training approved by the Secretary of the military department concerned; and (B) meet such other requirements as the Secretary concerned may prescribe. (e) SELECTED RESERVE OBLIGATION.—A member who participates in a program provided for under this section incurs a Selected Reserve obligation of three years for each year or part thereof for which financial assistance is provided under this section. (f) FAILURE TO COMPLETE PROGRAM OF TRAINING.—(1) A member of the program who, under regulations prescribed by the Secretary of Defense, is dropped from the program for deficiency in training, or for other reasons, shall be required, at the discretion of the Secretary concerned— (A) to perform one year of active duty for each year (or part thereof) for which such person was provided financial assistance under this section; or (B) repay the United States an amount equal to the total amount paid to such person under the program. (2) The Secretary of a military department, under regulations prescribed by the Secretary of Defense, may relieve a member participating in the program who is dropped from the program from any requirement that may be imposed under paragraph (1), but such relief shall not relieve him from any military obligation imposed by any other law. (g) LIMITATIONS ON NUMBER OF PARTICIPANTS.—The number of

persons who may be provided financial assistance under this section at any one time, when added to the total number of persons who are participating in the scholarship program provided for under chapter 105 of title 10, United States Code, at any time, may not exceed 6,000. (h) DEFINITION.—For the purposes of this section, the term "specialized course of training' means a course of advanced training— (1) in a health profession; and (2) designated by the Secretary of the military department concerned to be training in a health profession skill critically needed by the military department concerned. (i) CHANGE IN NUMBER OF PERSONS AUTHORIZED TO RECEIVE FINANCIAL ASSISTANCE.—Section 2124 of title 10, United States

10 USC 2124 note.

Code, is amended by striking out "5,000" and inserting in lieu thereof "6,000". (j) EFFECTIVE DATE.—This section shall take effect on October 1, 1985. SEC. 673. RIGHT OF MEMBERS OF NAVAL SERVICE TO TRANSFER CERTAIN EDUCATIONAL ENTITLEMENT TO SPOUSE OR DEPENDENT CHILDREN

10 USC 2142.

Section 2147(a)(l) of title 10, United States Code, is amended— (1) by inserting "(A)" after "(a)(D"; (2) by striking out the second sentence; and (3) by adding at the end thereof the following: "(B) The Secretary of the Navy may authorize a member of the Navy or Marine Corps who is entitled to educational assistance under section 2142 of this title and whose enlistment that established such entitlement was the member's second reenlistment as a member of the armed forces to transfer all or part of such entitle-

�


text:
Page:Bobbsey Twins at the Seashore.djvu/167

Rh persons in trouble with the suggestion of helping them out of it.

"No, we have not time," insisted Aunt Emily; really quite alarmed now that there was no trace of the little twins.

"Let me look through your tent?" asked Dorothy, bravely.

"What for?" demanded the old woman.

"To make sure the children are not hiding," and without waiting for a word from the old woman, Dorothy walked straight into that gypsy tent!

Even Aunt Emily was frightened.

Suppose somebody inside should keep Dorothy?

"Come out of my house!" muttered the woman, starting after Dorothy.

"Come out, Dorothy," called her mother, but the girl was making her way through the old beds and things inside, to make sure there was no Freddie or Flossie to be found in the tent.

It was a small place, of course, and it did not take Dorothy very long to search it.

Presently she appeared again, much to the


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/687

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 665

ment to the spouse or dependent child of such member after the completion of four years of active service of that second reenlistment if that reenlistment was for a period of at least six years. "(C) A transfer under this paragraph may be revoked at any time by the person making the transfer.". SEC. 674. CHANGES IN ELIGIBILITY REQUIREMENTS FOR THE ALL-VOLUNTEER FORCE EDUCATIONAL ASSISTANCE PROGRAM Chapter 30 of title 38, United States Code, is amended— (1) in section 1411(a)(l)(B), by striking out "and without a break in service on active duty since December 31, 1976,"; and (2) in section 1412(a)(l)(B), by striking out "and without a break in service on active duty since December 31, 1976,"

98 Stat. 2554. ^^ USC 1411. 98 Stat. 2555. 38 USC 1412.

PART G—MISCELLANEOUS

SEC. 681. LEGAL REPRESENTATION OF CIVILIANS OVERSEAS (a) IN GENERAL.—Section 1037(a) of title 10, United States Code, is amended by striking out the period at the end of the first sentence and inserting in lieu thereof "and of persons not subject to the Uniform Code of Military Justice who are employed by or accompanying the armed forces in an area outside the United States and the territories and possessions of the United States, the Northern Mariana Islands, and the Commonwealth of Puerto Rico.". (b) EFFECTIVE DATE.—The amendment made by subsection (a) 10 USC 1037 shall apply with respect to costs incurred after September 30, 1985. note. SEC. 682. ACCRUED LEAVE Section 501 of title 37, United States Code, is amended by striking out "September 1, 1976" in subsections (b)(3) and (f) and inserting in lieu thereof "February 9, 1976" SEC. 683. PAY ALLOTMENTS FOR NAVY AND MARINE CORPS (a) STANDARDIZATION OF NAVAL SERVICE PAY ALLOTMENTS WITH

ARMY AND AIR FORCE.—(1) Section 701 of title 37, United States Code, is amended— (A) by striking out "of the Army or the Air Force" in subsections (a), (c), and (d)(1) and inserting in lieu thereof "of the Army, Navy, Air Force, or Marine Corps"; (B) by striking out "of the Army or the Air Force" in subsections (b) and (d)(2) and inserting in lieu thereof "of the Army, Navy, or Air Force"; and (C) by striking out "Secretary of the Army or the Secretary of the Air Force, as the case may be" in subsections (a) and (d) and inserting in lieu thereof "Secretary of the military department concerned". (2) The heading of such section is amended to read as follows: "§ 701. Members of the Army, Navy, Air Force, and Marine Corps; contract surgeons". (3) The item relating to such section in the table of sections in the beginning of chapter 13 of such title is amended to read as follows: "701. Members of the Army, Navy, Air Force, and Marine Corps; contract surgeons.". (b) CONFORMING AMENDMENTS.—(1) Sections 702, 705, and 805 of

Repeal.

such title are repealed.

37 USC 702, 705, 805.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/688

 99 STAT. 666

PUBLIC LAW 99-145—NOV. 8, 1985

(2) The table of sections at the beginning of chapter 13 of such title is amended by striking out the items relating to sections 702 and 705. (3) The table of sections at the beginning of chapter 15 of such title is amended by striking out the item relating to section 805. SEC. 684. EXTENSION TO PHS AND NOAA OF AUTHORITY TO COLLECT DEBTS FROM PAY OF MEMBERS 98 Stat. 2613. Section 1007(c) of title 37, United States Code, is amended by striking out "armed forces" and inserting in lieu thereof "uniformed services". SEC. 685. SURCHARGE FOR SALES AT ANIMAL DISEASE PREVENTION AND CONTROL CENTERS (a) REQUIRED SURCHARGE.—The Secretary of Defense shall require 10 USC 133 note. that each time a sale is recorded at a military animal disease prevention and control center the person to whom the sale is made shall be charged a surcharge of $2. (b) DEPOSIT OF RECEIPTS IN TREASURY.—Amounts received from surcharges under this section shall be deposited in the Treasury in accordance with section 3302 of title 31. 10 USC 133 note. (c) CONFORMING AMENDMENT.—Section 1033 of the Department of Defense Authorization Act, 1984 (Public Law 98-94; 97 Stat. 672), is repealed. 10 USC 133 note. (d) EFFECTIVE DATE.—This section shall take effect on October 1, 1985. Survivor Benefit Plan Amendments of 1985. 10 USC 1447 note.

TITLE VII—SURVIVOR BENEFIT PLAN IMPROVEMENTS SEC. 701. SHORT TITLE

This title may be cited as the 'Survivor Benefit Plan Amendments of 1985". PART A—GENERAL PROGRAM CHANGES SEC. 711. ESTABLISHMENT OF TWO-TIER BENEFIT SYSTEM AND ELIMINATION OF SOCIAL SECURITY OFFSET

(a) REVISION IN S B P ANNUITY (DOMPUTATION.—Section 1451 of title 10, United States C!ode, is amended to read as follows:

10 USC 1450.

10 USC 1401a.

"§ 1451. Amount of annuity "(a)(1) In the case of a standard annuity provided to a beneficiary under section 1450(a) of this title (other than under section 1450(a)(4)), the monthly annuity payable to the beneficiary shall be determined as follows: "(A) If the beneficiary is under 62 years of age when becoming entitled to the annuity, the monthly annuity shall be the amount equal to 55 percent of the base amount (as the base amount is adjusted from time to time under subsection 1401a of this title). "(B) If the beneficiary is 62 years of age or older when becoming entitled to the annuity, the monthly annuity shall be the amount equal to 35 percent of the base amount (as the base amount is adjusted from time to time under section 1401a of this title). However, if the beneficiary is eligible to have the

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/689

 PUBLIC LAW 99-145—NOV. 8, 1985 annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary, the annuity shall be computed under that subsection. "(2) In the case of a reserve-component annuity provided to a beneficiary under section 1450(a) of this title (other than under section 1450(a)(4)), the mcmthly annuity payable to the beneficiary shall be determined as follows: "(A) If the beneficiary is under 62 years of age when becoming entitled to the annuity, the monthly annuity shall be the amount equal to a percentage of the base amount (as the base amount is adjusted from time to time under section 1401a of this title) that— "(i) is less than 55 percent; and "(ii) is determined under subsection (f). "(B) If the beneficiary is 62 years of age or older when becoming entitled to the annuity, the monthly annuity shall be the amount equal to a percentage of the base amount (as the base amount is adjusted from time to time under section 1401a of this title) that— "(i) is less than 35 percent; and "(ii) is determined under subsection (f). However, if the beneficiary is eligible to have the annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary, the annuity shall be computed under that subsection. "(b)(1) In the case of a standard annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to the beneficiary shall be the amount equal to 55 percent of the retired pay of the person who elected to provide the annuity after the reduction in that pay in accordance with section 1452(c) of this title.

"(2) In the case of a reserve-component annuity provided to a beneficiary under section 1450(a)(4) of this title, the monthly annuity payable to the beneficiary shall be the amount equal to a percentage of the retired pay of the person who elected to provide the annuity after the reduction in such pay in accordance with section 1452(c) of this title that— "(A) is less than 55 percent; and "(B) is determined under subsection (f). "(3) For the purposes of paragraph (2), a person— "(A) who provides an annuity that is determined in accordance with that paragraph; "(B) who dies before becoming 60 years of age; and "(C) who at the time of death is otherwise entitled to retired pay, shall be considered to have been entitled to retired pay at the time of death. The retired pay of such person for the purposes of such paragraph shall be computed on the basis of the rates of basic pay in effect on the date on which the annuity provided by such person is to become effective in accordance with the designation of such person under section 1448(e) of this title. "(c)(1) In the case of an annuity provided under section 1448(d) or 1448(f) of this title, the amount of the annuity shall be determined as follows:

99 STAT. 667

10 USC 1450.

10 USC I40ia.

10 USC 1452.

lo use 1448. Post, pp. 670, 671.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/690

 99 STAT. 668

PUBLIC LAW 99-145—NOV. 8, 1985

"(A) If the person receiving the annuity is under 62 years of age when the member or former member dies, the monthly annuity shall be the amount equal to 55 percent of the retired pay to which the member or former member would have been entitled if the member or former member had been entitled to that pay based upon his years of active service when he died. "(B) If the person receiving the annuity is 62 years of age or older when the member or former member dies, the monthly annuity shall be the amount equal to 35 percent of the retired pay to which the member or former member would have been entitled if the member or former member had been entitled to that pay based upon his years of active service when he died. However, if the beneficiary is eligible to have the annuity computed under subsection (e) and if, at the time the beneficiary becomes entitled to the annuity, computation of the annuity under that subsection is more favorable to the beneficiary, the annuity shall be computed under that subsection. "(2) An annuity computed under paragraph (1) that is paid to a surviving spouse shall be reduced by the amount of dependency and indemnity compensation to which the surviving spouse is entitled 98 Stat. 38, 2736. under section 411(a) of title 38. Any such reduction shall be effective on the date of the commencement of the period of payment of such compensation under title 38. "(3) In the case of an annuity provided by a member described in Post, p. 670. section 1448(d)(l)(C) of this title, the retired pay to which the member would have been entitled when he died shall be determined based upon the rate of basic pay in effect at the time of death for the highest grade other than a commissioned officer grade in which the member served on active duty satisfactorily, as determined by the Secretary concerned. "(4) In the case of an annuity paid under section 1448(f) of this Post, p. 671. title, the retired pay of the person providing the annuity shall for the purposes of paragraph (1) be computed on the basis of the rates of basic pay in effect on the effective date of the annuity. "(d)(1) The annuity of a person whose annuity is computed under clause (A) of subsection (a)(D, (a)(2), or (c)(1) shall be reduced on the first day of the month after the month in which the person becomes 62 years of age. "(2)(A) Except as provided in subparagraph (B), the reduced amount of the annuity shall be the amount of the annuity that the person would be receiving on that date if the annuity had initially been computed under clause (B) of that subsection. "(B) In the case of a person eligible to have the annuity computed under subsection (e) and for whom, at the time the person becomes 62 years of age, an annuity computed with a reduction under subsection (e)(3) is more favorable than an annuity with a reduction described in subparagraph (A), the reduction in the annuity shall be computed in the same manner as a reduction under subsection (e)(3). "(e)(1) The following beneficiaries under the plan are eligible to have an annuity under the Plan computed under this subsection: "(A) A beneficiary receiving an annuity under the Plan on October 1, 1985, as the widow or widower of the person providing the annuity. (B) A spouse beneficiary of a person who on October 1, 1985— "(i) is a participant in the Plan;

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/691

 PUBLIC LAW 99-145—NOV. 8, 1985 "(ii) is entitled to retired pay or is qualified for that pay except that he has not applied for and been granted that pay; or "(iii) would be eligible for retired pay under chapter 67 of this title but for the fact that he is under 60 years of age. "(2) Subject to paragraph (3), an annuity computed under this subsection shall be determined as follows: "(A) In the case of a beneficiary of a standard annuity under section 1450(a) of this title, the annuity shall be the amount equal to 55 percent of the base amount (as the base amount is adjusted from time to time under section 1401a of this title). "(B) In the case of a beneficiary of a reserve-component annuity under section 1450(a) of this title, the annuity shall be the percentage of the base amount (as the base amount is adjusted from time to time under section 1401a of this title) that'll) is less than 55 percent; and "(ii) is determined under subsection (f), "(C) In the case of a beneficiary of an annuity under section 1448(d) or 1448(f) of this title, the annuity shall be the amount equal to 55 percent of the retired pay of the person providing the annuity (as that pay is determined under subsection (c)). "(3) An annuity computed under this subsection shall be reduced by the lesser of— "(A) the amount of the survivor benefit, if any, to which the widow or widower would be entitled under title II of the Social Security Act (42 U.S.C. 401 et seq.) based solely upon service by the person concerned as described in section 210(1)(1) of such Act (42 U.S.C. 410(1)(1)) and calculated assuming that the person concerned lives to age 65; or "(B) 40 percent of the amount of the monthly annuity as determined under paragraph (2). "(4)(A) For the purpose of paragraph (3), a widow or widower shall not be considered as entitled to a benefit under title II of the Social Security Act (42 U.S.C. 401 et seq.) to the extent that such benefit has been offset by deductions under section 203 of such Act (42 U.S.C. 403) on account of work. "(B) In the computation of any reduction made under paragraph (3), there shall be excluded any period of service described in section 210(1)(1) of the Social Security Act (42 U.S.C. 410(1)(1))— "(i) which was performed after December 1, 1980; and "(ii) which involved periods of service of less than 30 continuous days for which the person concerned is entitled to receive a refund under section 6413(c) of the Internal Revenue Code of 1954 of the social security tax which the person had paid. "(f) The percentage to be applied in determining the amount of an annuity computed under subsection (a)(2), (b)(2), or (e)(2)(B) shall be determined under regulations prescribed by the Secretary of Defense. Such regiliations shall be prescribed taking into consideration— "(1) the age of the person electing to provide the annuity at the time of such election; "(2) the difference in age between such person and the beneficiary of the annuity; "(3) whether such person provided for the annuity to become effective (in the event he died before becoming 60 years 'of age)

99 STAT. 669

10 USC 1331 et 10 USC I40ia.
 * ^910 USC 1450.

Post, pp. 670,671.

26 USC 6413.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/692

 99 STAT. 670

10 USC 1401a.

10 USC 1450.

Repeal. 10 USC 1451 and note. 10 USC 1448 note.

10 USC 1447 et seq.

PUBLIC LAW 99-145—NOV. 8, 1985 on the day after his death or on the 60th anniversary of his birth; "(4) appropriate group annuity tables; and "(5) such other factors as the Secretary considers relevant. "(g)(1) Whenever retired pay is increased under section 1401a of this title (or any other provision of law), each annuity that is payable under the Plan shall be increased at the same time by the same total percent. The amount of the increase shall be based on the monthly annuity payable before any reduction under section 1450(c) of this title or under subsection (c)(2). "(2) The monthly amount of an annuity payable under this subchapter, if not a multiple of $1, shall be rounded to the next lower multiple of $1.". (b) CONFORMING AMENDMENT.—Section 641 of the Department of Defense Authorization Act, 1985 (Public Law 98-525; 98 Stat. 2545), is repealed, effective as of September 1, 1985. (c) OPTION FOR CERTAIN PARTICIPANTS TO WITHDRAW.—A person who during the period beginning on October 19, 1984, and ending on the date of the enactment of this Act became a participant in the Survivor Benefit Plan under subchapter II of chapter 73 of title 10, United States Code, may elect to withdraw from the Plan before the end of the one-year period beginning on the date of the enactment of this Act. Any person who makes a withdrawal shall be paid the amount of the contributions by such person under the Plan, plus interest on such amount as determined by the Secretary of Defense. SEC. 712. SBP COVERAGE FOR MEMBERS WHO DIE AFTER 20 YEARS OF SERVICE

98 Stat. 2548.

(a) IN GENERAL.—Section 1448(d) of title 10, United States Code, is amended to read as follows: "(d)(1) The Secretary concerned shall pay an annuity under this subchapter to the surviving spouse of a member who dies on active duty after— "(A) becoming eligible to receive retired pay; "(B) qualifying for retired pay except that he has not applied for or been granted that pay; or "(C) completing 20 years of active service but before he is eligible to retire as a commissioned officer because he has not completed 10 years of active commissioned service. "(2) The Secretary concerned shall pay an annuity under this subchapter to the dependent child of a member described in paragraph (1) if the member and the member's spouse die as a result of a common accident. "(3) If a member described in paragraph (1) is required under a court order or spousal agreement to provide an annuity to a former spouse upon becoming eligible to be a participant in the Plan or has made an election under subsection (b) to provide an annuity to a former spouse, the Secretary— "(A) may not pay an annuity under paragraph (1) or (2); but "(B) shall pay an annuity to that former spouse as if the member had been a participant in the Plan and had made an election under subsection (b) to provide an annuity to the former spouse, or in accordance with that election, as the case may be, if the Secretary receives a written request from the former spouse concerned that the election be deemed to have been made in the same manner as provided in section 1450(0(3) of this title.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/693

 PUBLIC LAW 99-145—NOV. 8, 1985 "(4) An annuity that may be provided under this subsection shall be provided in preference to an annuity that may be provided under any other provision of this subchapter on account of service of the same member. "(5) The amount of an annuity under this subsection is computed under section 1451(c) of this title.". (b) PERSONS COVERED.—(1) Section 1448(d) of title 10, United States Code, as amended by subsection (a), applies to the surviving spouse and dependent children of a person who dies on active duty after September 20, 1972, and the former spouse of a person who dies after September 7, 1982. (2) In the case of the surviving spouse and children of a person who dies during the period beginning on September 21, 1972, and ending on October 1, 1985, the Secretary concerned shall take appropriate steps to locate persons eligible for an annuity under section 1448(d) of title 10, United States Code, as amended by subsection (a). Any such person must submit an application to the Secretary for such an annuity before October 1, 1988, to be eligible to receive such annuity. Any such annuity shall be effective only for months after the month in which the Secretary receives such application.

99 STAT. 671

Ante, p. 666. 10 USC 1448 ^°^-

SEC. 713. ANNUITY FOR SURVIVORS OF CERTAIN RETIREMENT-ELIGIBLE RESERVISTS

(a) EuGiBiLiTY.—Section 1448 of title 10, United States Code, is amended by adding at the end thereof the following new subsection: "(fKl) The Secretary concerned shall pay an annuity under this subchapter to the surviving spouse of a person who is eligible to provide a reserve-component annuity and who dies— "(A) before being notified under section 1331(d) of this title 10 USC 1331. that he has completed the years of service required for eligibility for retired pay under chapter 67 of this title; or 10 USC 1331 et "(B) during the 90-day period beginning on the date he s«9receives notification under section 1331(d) of this title that he has completed the years of service required for eligibility for retired pay under chapter 67 of this title if he had not made an election under subsection (a)(2)(B) to participate in the Plan. "(2) The Secretary concerned shall pay an annuity under this subchapter to the dependent child of a person described in paragraph (1) if the person and the person's spouse die as a result of a common accident. "(3) If a person described in paragraph (1) is required under a court order or spousal agreement to provide an annuity to a former spouse upon becoming eligible to be a participant in the Plan or has made an election under subsection (b) to provide an annuity to a former spouse, the Secretary— "(A) may not pay an annuity under paragraph (1) or (2); but "(B) shall pay an annuity to that former spouse as if the person had been a participant in the Plan and had made an election under subsection (b) to provide an annuity to the former spouse, or in accordance with that election, as the case may be, if the Secretary receives a written request from the former spouse concerned that the election be deemed to have been made in the same manner as provided in section 1450(fK3) of t h i s title.

"(4) The amount of an annuity under this subsection is computed under section 1451(c) of this title.".

98 Stat. 2548.

Ante, p. 666.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/694

 99 STAT. 672 10 USC 1450. Ante, p. 671. 10 USC 1448 ^°^-

PUBLIC LAW 99-145—NOV. 8, 1985 (b) EFFECTIVE DATE OF ANNUITY.—Section 1450(j) of such title is amended by adding at the end thereof the following new sentence: "An annuity payable under section 1448(f) of this title shall be effective on the day after the date of the death of the person upon whose service the right to the annuity is based.". (c) PERSONS COVERED.—(1) Section 1448(f) of title 10, United States Code, as added by subsection (a), shall apply to the surviving spouse and dependent children of any person who dies after September 30, 1978, and the former spouse of a person who dies after September 7, 1982. (2) In the case of the surviving spouse and dependents of a person who dies during the period beginning on September 30, 1978, and ending on October 1, 1985, the Secretary concerned shall take appropriate steps to locate persons eligible for an annuity under section 1448(f) of title 10, United States Code, as added by subsection (a). Any such person must submit an application to the Secretary for such an annuity before October 1, 1988, to be eligible to receive such annuity. Any such annuity shall be effective only for months after the month in which the Secretary receives such application. SEC. 714. INDEXING OF THRESHOLD AMOUNT FOR CALCULATION OF REDUCTION OF RETIRED PAY (a) IN GENERAL.—Section 1452(a) of title 10, United States Code, is amended— (1) by inserting "(1)" after "(a)"; (2) in the first sentence— (A) by redesignating clauses (1) and (2) as clauses (A) and (B), respectively; (B) in clause (A) (as so redesignated)— (i) by inserting "(as adjusted from time to time under paragraph (4))" after "$300"; and (ii) by striking out "an annuity by virtue of eligibility under section 1448(a)(1)(A) of this title" and inserting in lieu thereof "a standard annuity"; and (C) in clause (B) (as so redesignated), by striking out "an annuity by virtue of eligibility under section 1448(a)(1)(B)" and inserting in lieu thereof "a reserve-component annuity"; (3) by designating the second sentence as paragraph (2) and striking out "As long as" and all that follows through "that amount" and inserting in lieu thereof "If there is a dependent child as well as a spouse or former spouse, the amount prescribed under paragraph (1)"; (4) by designating the third sentence as paragraph (3) and in such sentence— (A) by striking out "the first sentence of this subsection" and inserting in lieu thereof "paragraph (1)"; and (B) by inserting "or former spouse" after "eligible spouse"; and (5) by adding at the end thereof the following new paragraph: "(4)(A) Whenever there is an increase in the rates of basic pay of members of the uniformed services effective on or after October 1, 1985, the amount under paragraph (1)(A) with respect to which the percentage factor of 2V2 is applied shall be increased by the overall percentage of such increase in the rates of basic pay. The increase under the preceding sentence shall apply only with respect to persons whose retired pay is computed based on the rates of basic

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/695

 PUBLIC LAW 99-145—NOV. 8, 1985 pay in effect on or after the date of such increase in rates of basic pay. "(B) In addition to the increase under paragraph (4)(A), the amount under paragraph (I)(A) with respect to which the percentage factor of 2y2 is applied shall be further increased at the same time and by the same percentage as an increase in retired pay under section 1401a of this title effective on or after October 1, 1985. Such increase under the preceding sentence shall apply only with respect to persons who initially participate in the Plan on a date which is after both the effective date of such increeise under section 1401a and the effective date of the rates of basic pay upon which their retired pay is computed.". (b) EFFECTIVE DATE.—The amendments made by clause (5) of subsection (a) shall apply only with respect to persons who first participate in the Plan on or after the effective date of this title. SEC. 715. SBP COVERAGE UPON REMARRIAGE

99 STAT. 673

Effective date.

lo use I40ia.

10 USC 1452 note.

(a) OPTION NOT TO RESUME COVERAGE UPON REMARRIAGE.—Sec-

tion 1448(a) of title 10, United States Code, is amended by adding at the end thereof the following new paragraph: "(6)(A) A person— "(i) who is a participant in the Plan and is providing coverage for a spouse or a spouse and child; "(ii) who does not have an eligible spouse beneficiary under the Plan; and "(iii) who remarries, may elect not to provide coverage under the Plan for the person's spouse. "(B) If such an election is made, no reduction in the retired pay of such person under section 1452 of this title may be made. An election under this paragraph— "(i) is irrevocable; "(ii) shall be made within one year after the person's remarriage; and "(iii) shall be made in such form and manner as may be prescribed in regulations under section 1455 of this title. "(C) If a person makes an election undei this paragraph— "(i) not to participate in the Plan; "(ii) to provide an annuity for the person's spouse at less than the maximum level; or "(iii) to provide an annuity for a dependent child but not for the person s spouse, the person's spouse shall be notified of that election. "(D) This paragraph does not affect any right or obligation to elect to provide an annuity to a former spouse under subsection (b).". (b) OPTION TO PROVIDE HIGHER COVERAGE UPON PAYMENT OF AMOUNT NOT PREVIOUSLY WITHHELD.—Section 1448 of such title is

amended by adding after subsection (f), as added by the amendment made by section 713(a), the following new subsection: "(g)(1) A person— "(A) who is a participant in the Plan and is providing coverage under subsection (a) for a spouse or a spouse and child, but at less than the maximum level; and "(B) who remarries, may elect, within one year of such remarriage, to incresise the level of coverage provided under the Plan to a level not in excess of the current retired pay of that person.

10 USC 1452.

10 USC 1455.

Ante, p. 671.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/696

 99 STAT. 674

10 USC 1452.

PUBLIC LAW 99-145—NOV. 8, 1985 "(2) Such an election shall be contingent on the person paying to the United States the amount determined under paragraph (3) plus interest on such amount at a rate determined under regulations prescribed by the Secretary of Defense. "(3) The amount referred to in paragraph (2) is the amount equal to the difference between— "(A) the amount that would have been withheld from such person's retired pay under section 1452 of this title if the higher level of coverage had been in effect from the time the person became a participant in the Plan; and "(B) the amount of such person's retired pay actually withheld. "(4) An election under paragraph (1) shall be made in such manner as the Secretary shall prescribe and shall become effective upon receipt of the payment required by paragraph (2). "(5) A payment received under this subsection by the Secretary of Defense shall be deposited into the Department of Defense Military Retirement Fund. Any other payment received under this subsection shall be deposited in the Treasury as miscellaneous receipts.". SEC. 716. OPTION TO COVER BOTH A FORMER SPOUSE AND DEPENDENT CHILDREN OF A MEMBER

(a) OPTION TO PROVIDE COVERAGE.—Section 1448(b) of title 10, United States Code, is amended— (1) by inserting "(other than a child who is a beneficiary under an election under paragraph (4))" in the second sentence of paragraph (2) after "that spouse or child"; (2) by redesignating paragraph (4) as paragraph (5); and (3) by inserting after paragraph {'6) the following new paragraph (4): "(4) A person who elects to provide an annuity for a former spouse under paragraph (2) or (3) may, at the time of the election, elect to provide coverage under that annuity for both the former spouse and a dependent child, if the child resulted from the person's marriage to that former spouse.". 10 USC 1448

note.

(b) REVISION FOR FORMER SPOUSE COVERAGE ALREADY IN EFFECT.—

A person who before the date of the enactment of this Act made an election under section 1448(b) of title 10, United States Code, to provide an annuity for a former spouse may elect, within the oneyear period beginning on that date of enactment, to change that election so as to provide an annuity for the former spouse and the dependent children of the person, as authorized by paragraph (4) of that section added by subsection (a). Such an election may be made even though the former spouse for whom the annuity was provided has died. SEC. 717. AUTHORITY TO REPAY REFUNDED SBP DEDUCTIONS IN INSTALLMENTS

Section 1450(k) of title 10, United States Code, is amended— (1) by inserting "(1)" after "(k)"; (2) by striking out "had never been made," and all that follows and inserting in lieu thereof "had never been made."; and (3) by adding at the end thereof the following new paragraph: "(2) A widow or widower whose annuity is readjusted under paragraph (1) shall repay any amount refunded under subsection (e) by reason of the adjustment under subsection (c). If the repayment is

�


text:
Page:Bobbsey Twins at the Seashore.djvu/168

156 relief of her mother, Nan, and Nellie, who waited breathlessly outside.

"They are not around here," said Dorothy. "Now, mother, give the old woman some change to make up for my trespassing."

Aunt Emily took a coin from her chatelaine.

"Thank the lady! Good lady," exclaimed the old gypsy. "Lady find her babies; babies play—see!" (And she pretended to look into the future with some dirty cards.) "Babies play in woods. Natalie sees babies picking flowers."

Now, how could anybody ever guess that the old gypsy had just come down from picking dandelions by the lake, where she really had seen Freddie and Flossie on the island?

And how could anybody know that she was too wicked to tell Aunt Emily this, but was waiting until night, to bring the children back home herself, and get a reward for doing so?

She had seen the boat drift away and she knew the little ones were helpless to return home unless someone found them.

Mrs. Bobbsey and the boys were now coming up from the beach.


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/697

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 675

not made in a lump sum, the widow or widower shall pay interest on the amount to be repaid commencing on the date on which the first such payment is due and applied over the period during which any part of the repayment remains to be paid. The manner in which such repayment shall be made, and the rate of any such interest, shall be prescribed in regulations under section 1455 of this title. An amount repaid under this paragraph (including any such interest) received by the Secretary of Defense shall be deposited into the Department of Defense Military Retirement Fund. Any other amount repaid under this paragraph shall be deposited into the Treasury as miscellaneous receipts.".

10 USC 1455.

SEC. 718. EFFECTIVE DATE OF DIC OFFSET

Section 1450(c) of title 10, United States Code, is amended by adding at the end thereof the following new sentence: "A reduction in an annuity under this section required by the preceding sentence shall be effective on the date of the commencement of the period of payment of such compensation under title 38.". SEC. 719. TECHNICAL AMENDMENTS TO SBP STATUTE Subchapter II of chapter 73 of title 10, United States Code, is amended as follows: (1) Section 1447 is amended by adding at the end thereof the lo USC 1447. following new paragraphs: "(11) 'Retired pay' includes retainer pay. "(12) 'Standard annuity' means an annuity provided by virtue of eligibility under section 1448(a)(1)(A) of this title. lo USC 1448. "(13) 'Reserve-component annuity' means an annuity provided by virtue of eligibility under section 1448(a)(l)(B) of this title.". (2) Section 1447(2)(C) is amended— 10 USC 1447. (A) by striking out "an annuity by virtue of eligibility under section 1448(a)(1)(A) of this title" in subclause (i) and inserting in lieu thereof "a standard annuity"; and (B) by striking out "an annuity by virtue of eligibility under section 1448(a)(1)(B) of this title" in subclause (ii) and inserting in lieu thereof "a reserve-component annuity". (3) Paragraphs (1) and (2) of section 1448(b) are each amended Ante, p. 674. by striking out "an annuity under this paragraph by virtue of eligibility under subsection (a)(1)(B)" and inserting in lieu thereof "a reserve-component annuity". (4) Section 1450(b) is amended by striking out "under this lo USC 1450. section" and inserting in lieu thereof "under the Plan". (5) Section 1450(j) is amended by striking out "any person Ante, p. 672. providing an annuity by virtue of eligibility under section 1448(a)(1)(B) of this title" and inserting in lieu thereof "a person providing a reserve-component annuity". (6) Section 1450(1) is amended— 98 Stat. 2546. (A) by striking out "the plan" both places it appears in the first sentence of paragraph (1) and inserting in lieu thereof "the Plan"; and (B) by striking out "the provision o f in paragraph (2). (7) Section 1452(c) is amended— 10 USC 1452. (A) by striking out "the annuity by virtue of eligibility under section 1448(aKlKA) of this title" and inserting in lieu thereof "a standard annuity";

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/698

 99 STAT. 676

PUBLIC LAW 99-145—NOV. 8, 1985 (B) by striking out "the annuity by virtue of eligibility under section 1448(a)(1)(B) of this title" and inserting in lieu thereof "a reserve-component annuity"; and (C) by striking out "this section" in the third sentence and inserting in lieu thereof "this subsection". (8)(A) The following sections are each amended by striking out "or retainer" each place it appears: 1448(a)(1)(A), 1448(a)(2)(A), 1448(b)(3)(B), 1450(d), 1450(e), 1450(1)(1), 1450(l)(3)(A)(i), 1452. (B) The heading for section 1452, and the item relating to that section in the table of sections at the beginning of such subchapter, are each amended by striking out the penultimate and antepenultimate words. PART B—PROVISIONS RELATING TO RIGHTS FOR SPOUSES AND FORMER SPOUSES SEC. 721. SPOUSAL CONCURRENCE FOR ELECTIONS

(a) CONCURRENCE FOR S B P COVERAGE.—Section 1448(a) of title 10, United States Code, is amended— (1) by inserting "(with his spouse's concurrence, if required under paragraph (3))" in paragraph (2)(A) after "unless he elects"; and (2) by striking out paragraph (3) and inserting in lieu thereof the following: "(3)(A) A married person who is eligible to provide a standard annuity may not without the concurrence of the person's spouse elect— "(i) not to participate in the Plan; "(ii) to provide an annuity for the person's spouse at less than the maximum level; or "(iii) to provide an annuity for a dependent child but not for the person's spouse. "(B) A married person who elects to provide a reserve-component annuity may not without the concurrence of the person's spouse elect— "(i) to provide an annuity for the person's spouse at less than the maximum level; or "(ii) to provide an annuity for a dependent child but not for the person's spouse. "(C) A person may make an election described in subparagraph (A) or (B) without the concurrence of the person's spouse if the person establishes to the satisfaction of the Secretary concerned— "(i) that the spouse's whereabouts cannot be determined; or "(ii) that, due to exceptional circumstances, requiring the person to seek the spouse's consent would otherwise be inappropriate. "(D) This paragraph does not affect any right or obligation to elect to provide an annuity for a former spouse (or for a former spouse and dependent child) under subsection (b)(2). "(E) If a married person who is eligible to provide a standard annuity elects to provide an annuity for a former spouse (or for a former spouse and dependent child) under subsection (b)(2), that person's spouse shall be notified of that election.". (b) CONCURRENCE FOR ELECTION OF COVERAGE AT LESS THAN MAXI-

10 USC 1447.

MUM AMOUNT.—Section 1447(2)(C) of such title is amended by insert-

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/699

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 677

ing "(with the concurrence of the person's spouse, if required under section 1448(a)(3) of this title)" after "designated by the person".

Ante, p. 676.

SEC. 722. CLARIFICATION OF STATUS OF SPOUSAL AGREEMENTS

Section 1450(f)(3) of title 10, United States Code, is amended— (1) in subparagraph (A)— (A) by inserting "or has been filed with the court of appropriate jurisdiction in accordance with applicable State law" after "by a court order"; and (B) by inserting "or receives a statement from the clerk of the court (or other appropriate official) that such agreement has been filed with the court in accordance with applicable State law" before the period; and (2) in subparagraphs (B) and (C), by inserting "or filing" after "court order".

98 Stat. 2548.

SEC. 723. FORMER SPOUSE COVERAGE TO BE PROVIDED IN SPOUSE CATEGORY RATHER THAN INSURABLE INTEREST CATEGORY

(a) SPECIFICATION OF BENEFICIARIES.—Section 1450(a) of title 10, United States Code, is amended— (1) by inserting "or the eligible former spouse" in clauses (1) and (2) after "widow or widower"; (2) in clause (3)— (A) by inserting "(with the concurrence of the person's spouse, if required under section 1448(a)(3) of this title)" after "title applies"; and (B) by inserting "or former spouse" after "the spouse"; and (3) by striking out "former spouse or other" both places it appears in clause (4). (b) CONFORMING AMENDMENTS.—(1) Section 1450 of such title is amended by striking out "widow or widower" each place it appears and inserting in lieu thereof "widow, widower, or former spouse". (2) Section 1452 of such title is amended— (1) by inserting "or former spouse" after "spouse" the first two places it appears in subsection (a); and (2) by inserting "or former spouse" after "spouse" both places it appears in subsection (b). (c) ONE-YEAR OPEN PERIOD TO SWITCH COMPUTATION OF S B P

Ante, p. 676.

Ante, p. 674. Ante, p. 672.

lo u s e 1448

ANNUITY.—A person who, before the effective date of this title, note. participated in the Survivor Benefit Plan under subchapter II of chapter 73 of title 10, United States Code, and had elected to provide 10 USC 1447 et an annuity to a former spouse may, with the concurrence of such s«9former spouse, elect to terminate such annuity and provide an annuity to such former spouse under section 1450(a)(1) of such title. 10 USC 1450. Any such election shall be made before the end of the 12-month period beginning on the date of the enactment of this Act. (d) ONE-YEAR OPEN PERIOD FOR N E W FORMER SPOUSE COVERAGE.—

A person who before the effective date of this part was a participant in the Survivor Benefit Plan and did not elect to provide an annuity to a former spouse may elect to provide an annuity to a former spouse under the Plan. Any such election shall be made before the end of the 12-month period beginning on the date of the enactment of this Act.

lo u s e 1448

"ote.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/700

 99 STAT. 678

PUBLIC LAW 99-145—NOV. 8, 1985 SEC. 724. NOTICE OF ELECTIONS AVAILABLE

Ante, pp. 673, 676. Ante, p. 676.

Ante, pp. 673, 674; 10 USC 1452. 10 USC 1447 note.

Section 1455 of title 10, United States Code, is amended by striking out paragraphs (1) and (2) and inserting in lieu thereof the following: "(1) provide that before the date the member becomes entitled to retired pay— "(A) if the member is married, the member and the member's spouse shall be informed of the elections available under section 1448(a) of this title and the effects of such elections; and "(B) if the notification referred to in section 1448(a)(3)(E) of this title is required, any former spouse of the member shall be informed of the elections available and the effects of such elections; and "(2) establish procedures for depositing the amounts referred to in sections 1448(g), 1450(k)(2), and 1452(d) of this title.". PART C—EFFECTIVE DATE AND REPORT SEC. 731. EFFECTIVE DATE

(a) EFFECTIVE DATE.—Except as otherwise provided in this title, the amendments made by this title shall take effect on the first day of the first month beginning more than 90 days after the date of the enactment of this Act. (b) PROSPECTIVE BENEFITS ONLY.—No benefit shall accrue to any person by reason of the enactment of this title for any period before the effective date under subsection (a). SEC. 732. REPORT ON ESTABLISHING NEEDS-BASED SURVIVOR BENEFIT ANNUITY PROGRAM FOR SURVIVING SPOUSES OF CERTAIN RETIRED RESERVISTS

10 USC 1331 et seq.

86 Stat. 706.

Military Family Act of 1985. 10 USC 133 note.

(a) REQUIREMENT FOR REPORT.—The Secretary of Defense shall submit to Congress a report containing a plan for establishing a needs-based survivor annuity program for surviving spouses of members of the uniformed services who— (1) died before September 30, 1978; and (2) at the time of death would have been eligible for retired pay under chapter 67 of title 10, United States Code, but for the fact they were under 60 years of age. (b) SCOPE OF PLAN.—The plan shall take into consideration the surviving spouse's income for purposes of determining eligibility under the plan. In developing the plan, the Secretary of Defense should analyze a variety of options, including a plan similar to the Minimum Income Widows Program established pursuant to Public Law 92-425, and shall provide an accounting of the number of potential beneficiaries and the projected cost under each such option. (c) DEADLINE FOR REPORT.—The report required by this section shall be submitted by December 31, 1985. TITLE VIII—MILITARY FAMILY POLICY AND PROGRAMS SEC. 801. SHORT TITLE

This title may be cited as the "Military Family Act of 1985".

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/701

 PUBLIC LAW 99-145—NOV. 8, 1985 SEC. 802. OFFICE OF FAMILY POLICY

99 STAT. 679 10 USC 133 note.

(a) ESTABLISHMENT.—There is hereby established in the Office of the Secretary of Defense an Office of Family Policy (hereinafter in this section referred to as the "Office"). The Office shall be under the Assistant Secretary of Defense for Force Management and Personnel. (b) DUTIES.—The Office-

ID shall coordinate programs and activities of the military departments to the extent that they relate to military families; and (2) shall make recommendations to the Secretaries of the military departments with respect to programs and policies regarding military families. (c) STAFF.—The Office shall have not less than five professional staff members. (d) REPORT.—The Secretary of Defense shall submit a report to Congress concerning the Office no later than September 30, 1986, The report shall include— (1) a description of the activities of the Office and the composition of its staff; and (2) the recommendations of the Office for legislative and administrative action to enhance the well-being of military families. SEC. 803. TRANSFER OF MILITARY FAMILY RESOURCE CENTER

10 USC 133 note.

The Military Family Resource Center of the Department of Defense is hereby transferred from the Office of the Assistant Secretary of Defense for Health Affairs to the Office of the Assistant Secretary for Force Management and Personnel. SEC. 804. SURVEYS OF MILITARY FAMILIES

10 USC 133 note.

The Secretary of Defense may conduct surveys of members of the Armed Forces serving on active duty, members of the families of such members, and retired members of the Armed Forces to determine the effectiveness of existing Federal programs relating to military families and the need for new programs. Responses to surveys conducted under this section shall be voluntary. With respect to such surveys, family members of members of the Armed Forces and retired members of the Armed Forces shall be considered to be employees of the United States for purposes of section 3502(4)(A) of title 44, United States Code. SEC. 805. FAMILY MEMBERS SERVING ON ADVISORY COMMITTEES

10 USC 133 note.

A committee within the Department of Defense which advises or assists the Department in the performance of any function which affects members of military families and which includes members of military families in its membership shall not be considered an advisory committee under section 3(2) of the Federal Advisory Committee Act (5 U.S.C. App.) solely because of such membership. SEC. 806. EMPLOYMENT OPPORTUNITIES FOR MILITARY SPOUSES

(a) AUTHORITY.—The President shall order such measures as the President considers necessary to increase employment opportunities for spouses of members of the Armed Forces. Such measures may include— (1) excepting, pursuant to section 3302 of title 5, United States Code, from the competitive service positions in the Department

10 USC 133 note.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/702

 99 STAT. 680

PUBLIC LAW 99-145—NOV. 8, 1985 of Defense located outside of the United States to provide employment opportunities for qualified spouses of members of the Armed Forces in the same geographical area as the permanent duty station of the members; and (2) providing preference in hiring for positions in nonappropriated fund activities to qualified spouses of members of the Armed Forces stationed in the same geographical area as the nonappropriated fund activity for positions in wage grade UA-8 and below and equivalent positions and for positions paid at hourly rates. (b) REGULATIONS.—The Secretary of Defense shall prescribe regulations— (1) to implement such measures as the President orders under subsection (a); (2) to provide preference hiring to qualified spouses of members of the Armed Forces in hiring for any position in the Department of Defense above grade GS-7 (or its equivalent) if the spouse is among persons determined to be best qualified for the position and if the position is located in the same geographical area as the permanent duty station of the member; (3) to ensure that notice of any vacant position in the Department of Defense is provided in a manner reasonably designed to reach spouses of members of the Armed Forces whose permanent duty stations are in the same geographic area as the area in which the position is located; and (4) to ensure that the spouse of a member of the Armed Forces who applies for a vacant position in the Department of Defense shall, to the extent practicable, be considered for any such position located in the same geographic area as the permanent duty station of the member. (c) STATUS OF PREFERENCE ELIGIBLES.—Nothing in this section shall be construed to provide a spouse of a member of the Armed Forces with preference in hiring over an individual who is a preference eligible.

10 USC 133 note. SEC. 807. YOUTH SPONSORSHIP PROGRAM

The Secretary of Defense shall direct that there be established at each military installation a youth sponsorship program to facilitate the integration of dependent children of members of the Armed Forces into new surroundings when moving to that military installation as a result of a parent's permanent change of station. Such a program shall, to the extent feasible, provide for involvement of dependent children of members presently stationed at the military installation. 10 USC 133 note. SEC. 808. DEPENDENT STUDENT TRAVEL WITHIN THE UNITED STATES

Funds available to the Department of Defense for the travel and transportation of dependent students of members of the Armed Forces stationed overseas may be obligated for transportation allowances for travel within or between the contiguous States. 10 USC 133 note. SEC. 809. RELOCATION AND HOUSING (a) RELOCATION ASSISTANCE.—The Secretary of Defense shall Report. Contracts. submit to Congress a report on the desirability and feasibility of

providing relocation assistance to members of the uniformed services and their families through contracts entered into by the Depart-

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/703

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 681

ment of Defense with firms which provide such assistance to individuals. Such report shall be submitted not later than March 1, 1986. (b) AMORTIZATION PERIOD FOR PARKING FACILITIES FOR HOUSE TRAILERS AND MOBILE HOMES.—Section 403(k) of title 37, United

States Code, is amended by striking out "15-year period" and inserting in lieu thereof "25-year period". (c) COST OF UNACCOMPANIED PERSONNEL HOUSING FOR MEMBERS OF UNIFORMED SERVICE.—Section 5911 of title 5, United States Code, is

amended by adding at the end thereof the following new subsection: "(h) A member of the uniformed service on a permanent change of duty station or temporary duty orders and occupying unaccompanied personnel housing— "(1) is exempt from the requirement of subsection (c) to pay a rental rate or charge based on the reasonable value of the quarters and facilities provided; and "(2) shall pay such lesser rate or charge as the Secretary of Defense establishes by regulation.". SEC. 810. FOOD PROGRAMS

10 USC 133 note.

(a) FOOD COSTS FOR CERTAIN ENUSTED MEMBERS.—Section 1011 of

title 37, United States Code, is amended by adding at the end thereof the following new subsection: "(c) Spouses and dependent children of enlisted members in pay grades E-1, E-2, E-3, and E-4 may not be charged for meals sold at messes in excess of a level sufficient to cover food costs.". (b) REPORT ON ISSUANCE OF FOOD STAMPS COUPONS TO OVERSEAS HOUSEHOLDS OF MEMBERS STATIONED OUTSIDE THE UNITED STATES.—

(1) The Secretary of Defense shall submit to Congress a report on the feasibility of having the Department issue food stamp coupons to overseas households of members stationed outside the United States. (2) The report shall include— (A) an estimate of the cost of providing the coupons; and (B) legislative and administrative recommendations for providing for the issuance of the coupons. (3) The report shall be submitted not later than December 31, 1985. SEC. 811. REPORTING OF CHILD ABUSE

10 USC 133 note.

(a) IN GENERAL.—The Secretary of Defense shall request each State to provide for the reporting to the Secretary of any report the State receives of known or suspected instances of child abuse and neglect in which the person having care of the child is a member of the Armed Forces (or the spouse of the member). (b) DEFINITION.—For purposes of this section the term "child abuse and neglect" shall have the same meaning as provided in section 3(1) of the Child Abuse Prevention and Treatment Act (42 U.S.C. 5102).

98 Stat. 1752.

SEC. 812. MISCELLANEOUS REPORTING REQUIREMENTS

10 USC 133 note.

(a) HOUSING AVAILABILITY.—(1) The Secretary of Defense shall submit to Congress a report on the availability and affordability of off-base housing for members of the Armed Forces and their families. (2) The report shall— (A) examine the availability of affordable housing for each pay grade and for all geographic areas within the United States and for appropriate overseas locations; and

Report.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/704

 99 STAT. 682

PUBLIC LAW 99-145—NOV. 8, 1985 (B) examine the relocation assistance provided by the Department of Defense incident to a permanent change of station by a member of the Armed Forces in locating housing at the member's new duty station and in disposing of housing at the member's old duty station. (3) The report shall be submitted within one year after the date of the enactment of this Act.

Report. Children and youth. Education.

10 USC 133 note.

(b) NEED FOR ASSISTANCE TO DEPENDENTS ENTERING N E W SECOND-

ARY SCHOOLS.—The Secretary of Defense shall submit to Congress a report recommending administrative and legislative action to assist families of members of the Armed Forces making a permanent change of station so that a dependent child who transfers between secondary schools with different graduation requirements is not subjected to unnecessary disruptions in education or inequitable, unduly burdensome, or duplicative education requirements. Such report shall be submitted within one year after the date of the enactment of this Act. SEC. 813. EFFECTIVE DATE

This title shall take effect on October 1, 1985. Defense Procurement Improvement Act of 1985. 10 USC 2301 note.

TITLE IX—PROCUREMENT POLICY REFORM AND OTHER PROCUREMENT MATTERS SEC. 901. SHORT TITLE

This title may be cited as the "Defense Procurement Improvement Act of 1985". PART A—PROGRAM MANAGEMENT MATTERS SEC. 911. REGULATIONS RELATING TO ALLOWABLE COSTS (a) REGULATION OF ALLOWABLE COSTS PAYABLE TO DEFENSE CON-

TRACTORS.—(1) Chapter 137 of title 10, United States Code, is amended by adding at the end thereof the following new section: 10 USC 2324.

Penalties.

Penalties.

"§ 2324. Allowable costs under defense contracts "(a)(1) The Secretary of Defense shall require that a covered contract provide that if the contractor submits to the Department of Defense a proposal for settlement of indirect costs incurred by the contractor for any period after such costs have been accrued and if that proposal includes the submission of a cost which is unallowable because the cost violates a cost principle in the Federal Acquisition Regulation or the Department of Defense Supplement to the Federal Acquisition Regulation, the cost shall be disallowed. "(2) If the Secretary determines by clear and convincing evidence that a cost submitted by a contractor in its proposal for settlement is unallowable under paragraph (1), the Secretary shall assess a penalty against the contractor in an amount equal to— "(A) the amount of the disallowed costs; plus "(B) interest (to be computed based on regulations issued by the Secretary) to compensate the United States for the use of any funds which a contractor has been paid in excess of the amount to which the contractor was entitled. "(b) If the Secretary determines that a proposal for settlement of indirect costs submitted by a contractor includes a cost determined to be unallowable in the case of such contractor before the submis-

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/705

 PUBLIC LAW 99-145—NOV. 8, 1985 sion of such proposal, the Secretary shall assess a penalty against the contractor, in addition to the penalty assessed under subsection (a), in an amount equal to two times the amount of such cost. "(c) An action of the Secretary under subsection (a) or (b)— "(1) shall be considered a final decision for the purposes of section 6 of the Contract Disputes Act of 1978 (41 U.S.C. 605); and "(2) is appealable in the manner provided in section 7 of such Act (41 U.S.C. 606). "(d) If any penalty is assessed under subsection (a) or (b) with respect to a proposal for settlement of indirect costs, the Secretary may assess an additional penalty of not more than $10,000 per proposal. "(e)(1) The following costs are not allowable under a covered contract: "(A) Costs of entertainment, including amusement, diversion, and social activities and any costs directly associated with such costs (such as tickets to shows or sports events, meals, lodging, rentals, transportation, and gratuities). "(B) Costs incurred to influence (directly or indirectly) legislative action on any matter pending before Congress or a State legislature. "(C) Costs incurred in defense of any civil or criminal fraud proceeding or similar proceeding (including filing of any false certification) brought by the United States where the contractor is found liable or has pleaded nolo contendere to a charge of fraud or similar proceeding (including filing of a false certification). "(D) Payments of fines and penalties resulting from violations of, or failure to comply with, Federal, State, local, or foreign laws and regulations, except when incurred as a result of compliance with specific terms and conditions of the contract or specific written instructions from the contracting officer authorizing in advance such payments in accordance with applicable regulations of the Secretary of Defense. "(E) Costs of membership in any social, dining, or country club or organization. "(F) Costs of alcoholic bever£^es. "(G) Contributions or donations, regardless of the recipient. "(H) Closts of advertising designed to promote the contractor or its products. "(I) Costs of promotional items and memorabilia, including models, gifts, and souvenirs. "(J) Costs for travel by commercial aircraft which exceed the amount of the standard commercial fare. "(2) The Secretary shall prescribe regulations to implement this section. Such regulations may establish appropriate definitions, exclusions, limitations, and qualifications. "(f)(1) The Secretary shall prescribe proposed regulations to amend those provisions of the Department of Defense Supplement to the Federal Acquisition Regulation dealing with the allowability of contractor costs. The amendments shall define in detail and in specific terms those costs which are unallowable, in whole or in part, under covered contracts. These regulations shall, at a minimum, clarify the cost principles applicable to contractor costs of the following: "(A) Air shows.

99 STAT. 683

Penalties.

Regulations. Regulations.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/706

 99 STAT. 684

PUBLIC LAW 99-145—NOV. 8, 1985 "(B) Membership in civic, community, and professional organizations. "(C) Recruitment. "(D) Employee morale and welfare. "(E) Actions to influence (directly or indirectly) executive branch action on regulatory and contract matters (other than costs incurred in regard to contract proposals pursuant to solicited or unsolicited bids). "(F) Community relations. "(G) Dining facilities. "(H) Professional and consulting services, including legal services. "(I) Compensation. "(J) Selling and marketing. "(K) Travel. "(L) Public relations. "(M) Hotel and meal expenses. "(N) Expense of corporate aircraft. "(O) Company-furnished automobiles. "(P) Advertising. "(2) The regulations shall require that a contracting officer not resolve any questioned costs until he has obtained— "(A) adequate documentation with respect to such costs; and "(B) the opinion of the defense contract auditor on the allowability of such costs. "(3) The regulations shall provide that, to the maximum extent practicable, the defense contract auditor be present at any negotiation or meeting with the contractor regarding a determination of the allowability of indirect costs of the contractor. "(4) The regulations shall require that all categories of costs designated in the report of the defense contract auditor as questioned with respect to a proposal for settlement be resolved in such a manner that the amount of the individual questioned costs that are paid will be reflected in the settlement. "(g) The regulations of the Secretary required to be prescribed under subsections (e) and (f)(1) shall require, to the maximum extent practicable, that such regulations apply to all subcontractors of a covered contract. "(h)(1) A proposal for settlement of indirect costs applicable to a covered contract shall include a certification by an official of the contractor that, to the best of the certifying official's knowledge and belief, all indirect costs included in the proposal are allowable. Any such certification shall be in a form prescribed by the Secretary. "(2) The Secretary of Defense or the Secretary of the military department concerned may waive the requirement for certification under paragraph (1) in the case of any contract if the Secretary— "(A) determines in such case that it would be in the interest of the United States to waive such certification; and "(B) states in writing the reasons for that determination and makes such determination available to the public. "(i) The submission to the Department of Defense of a proposal for settlement of costs for any period after such costs have been accrued that includes a cost that is expressly specified by statute or regulation as being unallowable, with the knowledge that such cost is unallowable, shall be subject to the provisions of section 287 of title 18 and section 3729 of title 31.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/707

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 685

"(j) In this section, 'covered contract' means a contract for an amount more than $100,000 entered into by the Department of Defense other than a fixed-price contract without cost incentives.". (2) The table of sections at the beginning of such chapter is amended by adding at the end thereof the following new item: "2324. Allowable costs under defense contracts.".

(b) REGULATIONS.—(1) Not later than 150 days after the date of the enactment of this Act, the Secretary of Defense shall prescribe the regulations required by subsections (e) and (f) of section 2324 of title 10, United States Code, as added by subsection (a). Such regulations shall be published in accordance with section 22 of the Office of Federal Procurement Policy Act (41 U.S.C. 418b). (2) The Secretary shall review such regulations at least once every five years. The results of each such review shall be made public. (c) EFFECTIVE DATE.—Section 2324 of title 10, United States Code, as added by subsection (a), shall apply only to contracts for which solicitations are issued on or after the date on which such regulations are prescribed. SEC.

10 USC 2324 note.

98 Stat. 3076. Public information. 10 USC 2324 note.

912. MULTIPLE SOURCES FOR MAJOR DEFENSE ACQUISITION PROGRAMS

(a) IN GENERAL.—(1) Chapter 137 of title 10, United States Code, is amended by inserting after section 2305 the following new section: "§ 2305a. Major programs: competitive alternative sources "(a)(1) The Secretary of Defense may not begin full-scale development under a major program until— "(A) the Secretary prepares an acquisition strategy for the program; and "(B) the Secretary submits to the Committees on Armed Services of the Senate and House of Representatives a report describing the acquisition strategy for that program. "(2) The report required by paragraph dXB) shall be submitted not later than the date of the submission of the President's budget to Congress for the fiscal year for which the initial request is made for appropriations for full-scale development of the program. "(3) If the Secretary proposes to revise an acquisition strategy prepared under paragraph (1) after the report on that strategy is submitted under that paragraph, the Secretary shall submit to the committees a report describing the proposed revision. Such a revision may not be implemented until 60 days after the date on which the report on the revision is received by those committees. "(4) The Secretary shall ensure that contracts for each major program are awarded in accordance with the acquisition strategy for such program. "(b)(1) The acquisition strategy prepared under subsection (a) for a major program shall provide that there will be competitive alternative sources available for the system (and each major subsystem) under the program throughout the period from the beginning of fullscale development through the end of production. "(2) In carrying out this subsection, the Secretary may provide that the requirement for competitive alternative sources for a system or subsystem is satisfied even though the sources for that system or subsystem do not develop or produce identical systems if the systems developed or produced serve similar functions and compete effectively with each other.

10 USC 2305a. Reports.

�


text:
Page:Bobbsey Twins at the Seashore.djvu/169

Rh What, at first, seemed only a mishap, now looked like a very serious matter.

"We must go to the woods," insisted Dorothy. "Maybe that old woman knew they were in the woods."

But as such things always happen, the searchers went to the end of the woods, far away from the island. Of course they all called loudly, and the boys gave the familiar yodel, but the noise of the ocean made it impossible for the call to reach Freddie and Flossie.

"Oh, I'm so afraid they are drowned!" exclaimed Mrs. Bobbsey, breaking down and crying.

"No, mamma," insisted Nan, "I am sure they are not. Flossie is so afraid of the water, and Freddie always minds Flossie. They must be playing somewhere. Maybe they are home by this time," and so it was agreed to go back to the house and if the little ones were not there—then

"But they must be there," insisted Nellie, starting on a run over the swampy grounds toward the Cliffs.


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/708

 99 STAT. 686

Defense and national security. Report.

10 USC 139a.

Research and development. 10 USC 139a.

PUBLIC LAW 99-145—NOV. 8, 1985 "(c)(1) In preparing an acquisition strategy for a major program, the Secretary may waive subsection (b) with respect to full-scale development of that program if the Secretary determines that the application of that subsection to full-scale development of that program— "(A) would not materially reduce the technological risks associated with the program; "(B) would not likely result in an improvement in design commensurate with the additional cost; "(C) would result in unacceptable delays in fulfilling the needs of the Department of Defense; or "(D) would be adverse to the national security interests of the United States. "(2) In preparing an acquisition strategy for a major program, the Secretary may waive the requirement of subsection (b) with respect to production under the program if the Secretary determines that the application of that subsection to production under the program— "(A) would increase the total cost for the program; "(B) would result in unacceptable delays in fulfilling the needs of the Department of Defense; or "(C) would be adverse to the national security interests of the United States. "(3) If the Secretary grants a waiver under paragraph (1) or (2), the report submitted under subsection (a) with respect to that program— "(A) shall include notice that the waiver has been made; and "(B) shall set forth the reasons for the waiver, together with supporting documentation of comparative cost and schedule estimates and other background material. "(4) The Secretary shall separately exercise the authority under paragraphs (1) and (2) for each major defense acquisition program. "(d) In this section: "(1) 'Major program' means a major defense acquisition program, as such term is defined in section 139a(a) of this title. "(2) 'Major subsystem', with respect to a major program, means a subsystem of the system developed under the program that is purchased directly by the United States and for which— "(A) the amount for research, development, test and evaluation is 10 percent or more of the amount specified in section 139a(a)(l)(B) of this title as the research, development, test and evaluation funding criterion for identification of a major defense acquisition program; or "(B) the amount for production is 10 percent or more of the amount specified in section 139a(a)(l)(B) of this title as the production funding criterion for identification of a major defense acquisition program.". (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 2305 the following new item: "2305a. Major programs: competitive alternative sources."

10 USC 2305a note.

(b) EFFECTIVE DATE.—Section 2305a of title 10, United States Code, as added by subsection (a), shall apply with respect to major defense acquisition programs for which funds for full-scale development are first requested for a fiscal year after fiscal year 1986.

�


text:
Author:Alexander Lange Kielland

Novels

 * Tales of Two Countries, translated by William Archer
 * Pharaoh (Balstemning)
 * The Parsonage
 * The Peat Moor (Torvmyr)
 * "Hope's clad in April Green" (Haabet er lysegrønt)
 * At the Fair (Folkefest)
 * Two Friends (To Venner)
 * A Good Conscience (En god Samvittighet)
 * Romance and Reality (Erotik og Idyl)
 * Withered Leaves (Visne Blade)
 * The Battle of Waterloo

 * Two Friends (To Venner) (1879) translated by Hjalmar Hjorth Boyesen
 * Garman and Worse (orig. 1880), translated by W. W. Kettlewell (1885)
 * Workpeople (Arbeidsfolk) (1881)
 * Elsa, a Christmas Story (1881)
 * Skipper Worse (1882)
 * Two Novelettes from Denmark (1882)
 * Poison (1883)
 * Fortuna (1884)
 * Snow (1886)
 * St.John's Day (1887)
 * Jakob (1891)

Short stories

 * The Point of View (translated by Edna W. Underwood, 1921)

Comedies

 * Three Pairs (1886)
 * Betty's Guardian (1887)
 * The Professor (1888)

title: Author:Alexander Lange Kielland


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/709

 PUBLIC LAW 99-145—NOV. 8, 1985 SEC. 913. MINIMUM PERCENTAGE OF COMPETITIVE PROCUREMENTS

(a) ANNUAL GOAL.—The Secretary of Defense shall establish for each fiscal year a goal for the percentage of defense procurements to be made during that year (expressed in total dollar value of contracts entered into) that are to be competitive procurements. (b) ANNUAL REPORT.—(1) The Secretary shall submit to Congress a report each year on the goal for the next fiscal year. Such report shall propose means for promoting and expanding competition in Department of Defense procurement and shall summarize the accomplishments in meeting the established goals for the prior fiscal year. (2) The report shall be submitted not later than April 1 of each year with respect to the next fiscal year. (c) DEFINITION.—For the purposes of this section, the term "competitive procurements" means procurements made by the Department of Defense through the use of competitive procedures, as defined in section 2304 of title 10, United States Code. SEC. 914. REGULATIONS TO CONTROL PRICES THAT MAY BE PAID FOR SPARE PARTS (a) IDENTIFICATION OF MANAGEMENT PROBLEMS.—The Congress

determines that in the acquisition of spare parts the Department of Defense has in some instances paid unreasonably high prices due to the following management problems: (1) Some parts have been built to overly detailed specifications. (2) Some parts have been designed and fabricated in such a manner that excessive engineering and manufacturing steps have been involved resulting in a price in excess of the intrinsic value of the part. (3) Some parts have been purchased in very small, and thus highly uneconomic, quantities. (4) Some parts have had inappropriate amounts of corporate overhead assigned to them, resulting in a price in excess of the intrinsic value of the part. (5) Some parts have not been purchased directly from the manufacturer, and thus the Government has unnecessarily paid an additional profit to the seller. (6) Some parts have not been purchased through a competitive process. (7) Some parts have been sold with unreasonably high profits included in the price. (b) REPORT.—(1) The Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report— (A) describing the specific actions taken by the Department of Defense to address the management problems identified in subsection (a); and (B) evaluating such actions to determine whether the actions have been successful in remedying those management problems. (2) The report shall be submitted not later than January 31, 1986. (c) PROPOSALS FOR ADDITIONAL ADMINISTRATIVE OR LEGISLATIVE

REMEDIES.—If the Secretary of Defense concludes that the management problems identified in subsection (a) have not been successfully remedied by actions of the Department of Defense, the Secretary—

99 STAT. 687 10 USC 2301

•

" ^'^' '

98 Stat. 1187.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/710

 99 STAT. 688

98 Stat. 2609.

10 USC 139 note.

PUBLIC LAW 99-145—NOV. 8, 1985 (1) shall issue proposed regulations to limit the prices that may be charged by defense contractors for spare parts; and (2) shall, if the Secretary determines that legislation is necessary to remedy any of such problems, submit to Congress proposed legislation to remedy those problems. (d) CONSTRUCTION OF SECTION.—This section does not supersede the requirements of section 1245 of the Department of Defense Authorization Act, 1985 (Public Law 98-525), the provisions of which the Secretary of Defense has failed to comply with as of July 25, 1985. SEC. 915. SHOULD-COST ANALYSES

(a) REPORT ON ANNUAL PLAN.—The Secretary of Defense shall submit to Congress an annual report setting forth the Secretary's plan for the performance during the next fiscal year of cost analyses for major defense acquisition programs for the purpose of determining how much the production of covered systems under such programs should cost. The report shall describe— (1) which covered systems the Secretary plans to apply such an analysis to; (2) which covered systems the Secretary does not plan to apply such an analysis to and, in each such case, the reasons for not applying such an analysis; and (3) which systems were determined not to be covered systems under a major defense acquisition program and the reasons for that determination. (b) COVERED SYSTEMS.—For the purposes of subsection (a), a system under a major defense acquisition program shall be considered to be a covered system if^ (1) a production contract for the system is to be awarded during the year following the next fiscal year using procedures other than full and open competition; (2) initial production of the system has already taken place; (3) the current plans for the Department of Defense include production of substantial quantities of identical or similar items in fiscal years beyond the next fiscal year; (4) the work to be performed under the contract is sufficiently defined to permit an effective analysis of what production of the system by the contractor should cost; and (5) major changes in the program are unlikely. (c) SUBMITTAL OF REPORT.—The report required by subsection (a) shall be submitted to the Committees on Armed Services of the Senate and the House of Representatives not later than the date on which the budget for the next fiscal year is submitted each year. (d) DEFINITION.—The term "major defense acquisition program" has the meaning given such term in section 139a(a)(l) of title 10, United States Code. (e) EFFECTIVE DATE.—This section shall apply to covered systems for which initial production funds are first appropriated for a fiscal year after fiscal year 1986. 10 USC 2307

SEC. 916. LIMITATIONS ON PROGRESS PAYMENTS

"°*®"

(a) IN GENERAL.—The Secretary of Defense shall ensure that any payment for work in progress (including materials, labor, and other items) under a defense contract that provides for such payments is commensurate with the work, which meets standards of quality established under the contract, that has been accomplished.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/711

 PUBLIC LAW 99-145—NOV. 8, 1985

99 STAT. 689

(b) REQUIREMENTS WITH RESPECT TO UNDEFINITIZED CONTRACTS.—

The Secretary shall ensure that progress payments referred to in subsection (a) are not made for more than 80 percent of the work accomplished under a defense contract so long as the Secretary has not made the contractual terms, specifications, and price definite. (c) WAIVER OF SMALL PURCHASES.—This section does not apply to contracts for amounts less than the threshold for small purchases applicable under section 2304(g)(2) of title 10, United States Code. (d) EFFECTIVE DATE.—This section shall apply only to contracts for which solicitations are issued on or after 150 days after the enactment of this Act.

98 Stat. 1187.

SEC. 917. COST AND PRICE MANAGEMENT IN DEFENSE PROCUREMENT

(a) IN GENERAL.—Chapter 141 of title 10, United States Code, is amended by adding at the end thereof the following new section: "§ 2406. Cost and price management 10 USC 2406. "(a) In this section: "(1) 'Covered contract' means a contract that is awarded by a defense agency using procedures as defined in chapter 137 of this title and that is subject to the provisions of section 2306(f) of 10 USC 2301 this title, including contracts for full-scale engineering, develop- ai%^;^, 98 Stat. 1192. ment, or production. "(2) 'Defense agency' means the Department of Defense, the Department of the Army, the Department of the Navy, the Department of the Air Force, and the Defense Logistics Agency. "(b)(1) A defense agency that is responsible for the acquisition of property (including major manufactured end items) or services under a covered contract shall cause to be* recorded the contractor's proposed and negotiated cost and pricing data acquired by the agency into appropriate categories. Such categories shall include labor costs, material costs, subcontract costs, overhead costs, general and administrative costs, fee or profit, recurring costs, and nonrecurring costs. "(2)(A) A defense agency that is responsible for the acquisition of major manufactured end items under a covered contract shall cause to be recorded the proposed and negotiated bills of labor for labor use by the prime contractor and each associate contractor in manufacturing the item and for labor used by each such contractor in performing routine testing relating to the item. The bill of labor relating to the labor used by any such contractor shall reflect such contractor's computation of the work required in manufacturing parts and subassemblies for the end item and in performing routine testing of such parts and subassemblies. "(B) Each contractor preparing a bill of labor referred to in subparagraph (A) shall specify in the bill of labor the current industrial engineering standard hours of work content (also known as 'should-take times') for the work included in a component of the bill of labor and for the total work included in the bill of labor. The contractor shall base the standard hours of work content specified in the bill of labor on the 'fair day's work' concept, as such term is understood in competitive commercial manufacturing industries in the United States. The contractor's standard hours of work content included in the bill of labor may not vary from time standards derived from commercially available predetermined time standard systems widely used in the United States, as determined by the defense agency, subject to verification by audit.

�


text:
Page:United States Statutes at Large Volume 99 Part 1.djvu/712

 99 STAT. 690

PUBLIC LAW 99-145—NOV. 8, 1985 "(C) The head of a defense agency acquiring a bill of labor referred to in subparagraph (A) shall provide for the maintenance of the information relating to standard hours of work content included under subparagraph (B) and shall review such information to determine changes in measured work content as work progresses under the contract to which the bill of labor relates. "(3) A defense agency that is responsible for the acquisition of major manufactured end items under a covered contract shall cause to be recorded the proposed and negotiated bills of material used by the prime contractor and each associate contractor under the contract in manufacturing the item and of material used by each such contractor in performing routine testing relating to the item. The bill of material used by any such contractor shall reflect such contractor's computation of the material required for manufacturing parts and subassemblies for the end item and for routine testing of such parts and subassemblies. The costs set out in the bill of material shall be expressed in current dollars and shall be maintained and received in a manner similar to the manner provided for bills of labor in paragraph (2)(C). "(4) A defense agency that is responsible for the acquisition of property (including major manufactured end items) or services under a covered contract shall cause to be recorded incurred costs under the contract in the same manner as the defense agency categorizes and records proposed and negotiated costs, including grouping the costs as provided under paragraph (1). "(c)(1) Nothing in this section shall prohibit a contractor from submitting a request for payment or reimbursement for any bill of labor or any bill of material developed pursuant to an approved system of cost principles and procedures. "(2) Nothing in this section shall require the submission of the information to be submitted under this section if the contractor does not maintain such information on the date of the enactment of this section.". (b) CLERICAL AMENDMENT.—The table of sections at the beginning of such chapter is amended by adding at the end thereof the following new item: "2406. Cost and price management.".

10 USC 2304

SEC. 918. CONTRACTED ADVISORY AND ASSISTANCE SERVICES (a) ACCOUNTING PROCEDURE.—(1) The Secretary of Defense

shall require that there be established within each military department an accounting procedure to aid in the identification and control of expenditures for services identified as contracted advisory and assistance services. (2) Not later than six months after the date of the enactment of this Act, the Secretary shall submit to Congress a report describing the accounting procedure established in accordance with paragraph (1) and the implementation of that procedure in each military department. (b) REGULATIONS TO IDENTIFY CONTRACTED ADVISORY AND ASSISTANCE SERVICES.—(1) The Secretary shall prescribe regulations which

specifically describe— (A) what services the Department of Defense considers to be contracted advisory and assistance services; and

�