"(2) in a reserve grade, not above lieutenant colonel under section 1211 (a), 8365 (a) and (c), 8366 (a) and (d), 8370 (a) or (c), 8372(b), 8374, 8375, 8376, 8380, or 8381 of this title, to fill prescribed mobilization or active duty requirements.

An authorized strength so increased is increased for no other purpose. While he holds that grade the officer whose appointment caused the increase is counted for the purpose of determining when appointments not authorized by clauses (1) and (2) may be made."

SEC. 104. Section 404 (a) of title 37, United States Code, is amended by striking out "and" at the end of clause (2), striking out the period at the end of clause (3) and inserting in place thereof "; and", and adding the following new clause:

"(4) when away from home to perform duty, including duty by a member of the Army National Guard of the United States or the Air National Guard of the United States, as the case may be, in his status as a member of the National Guard, for which he is entitled to, or has waived, pay under this

title."

SEC. 105. Title 32, United States Code, is amended as follows:

(1) Section 101(1) is amended by adding the following new sentence at the end: "However, for purposes of this title and other laws relating to the militia, the National Guard, the Army National Guard of the United States, and the Air National Guard of the United States, 'Territory' includes the Virgin Islands."

(2) Section 305 is amended

(A) by striking out "(a) Except as provided in subsection (b), only male persons" and inserting in place thereof "Persons";

(B) by striking out subsection (b).

(3) The last sentence of section 502(b) is amended to read as follows: "However, to have a series of formations credited as an assembly for drill and instruction, all parts of the unit must be included in the series within 30 consecutive days."

SEC. 106. Section 6(c) (2) (A) of the Universal Military Training and Service Act, as amended, is amended by inserting the words "or the equivalent training prescribed under section 511(d) of title 10, United States Code," after the words "four consecutive months" in the second sentence thereof.

SEC. 107. The provisions of title I of this Act shall become effective on the first day of the month following enactment with the exception of clauses 18, 20, and 25 of section 101, and clause 1 of section 102 which will become effective on July 1, 1967.

TITLE II-NATIONAL GUARD TECHNICIANS

SEC. 201. This title may be cited as the "National Guard Technicians Benefits Act".

SEC. 202. Title 32, United States Code, is amended as follows: (1) Section 709 is amended to read as follows:

"§ 709. Technicians: employment, use, status

"(a) Under regulations prescribed by the Secretary of the Army or the Secretary of the Air Force, as the case may be, persons may be employed in"(1) the administration and training of the National Guard;

"(2) The maintenance and repair of supplies issued to the National Guard or the armed forces; and

"(3) the performance of such other duties as the Secretary concerned may prescribe.

"(b) Except as prescribed by the Secretary concerned, a technician employed under subsection (a) shall, while so employed, be a member of the National Guard and hold the military grade specified by the Secretary concerned for that position.

"(c) The Secretary concerned shall designate the adjutants general referred to in section 314 of this title, or other appropriate persons, to employ the technicians authorized by this section.

"(d) A technician employed under subsection (a) is an employee of the Department of the Army or the Department of the Air Force, as the case may be. and an employee of the United States. However, a position authorized by this section is outside the competitive service if the technician employed therein is required under subsection (b) to be a member of the National Guard.

"(e) Notwithstanding sections 5544(a) and 6102 of title 5 or any other provision of law, the Secretary concerned may, in the case of technicians assigned to perform operational duties at air defense sites

"(1) prescribe the hours of duties;

"(2) fix the rates of basic compensation; and

"(3) fix the rates of additional compensation; to reflect unusual tours of duty, irregular additional duty, and work on days that are ordinarily nonworkdays. Additional compensation under this subsection may be fixed on an annual basis, but no rate of additional compensation on an annual basis may exceed 25 percent of the rate of basic compensation.

"(f) The limitation on the number of permanent employees prescribed by section 1310 of the Supplemental Appropriation Act, 1962, as amended (79 Stat. 448), is not applicable to technicians employed under this section."

(2) The analysis of chapter 7 is amended by striking out the following item: "709. Caretakers and clerks."

and inserting in place thereof the following item: "709. Technicians: employment, use, status."

(3) Section 715(a) is amended by striking out "caused by a person employed under section 709 of this title acting within the scope of his employment;".

SEC. 203. (a) A claim accrued under section 715 of title 32, United States Code, before the effective date of title II of this Act by reason of the act or omission of a person employed under section 709 of title 32, United States Code, may, if otherwise allowable, be settled and paid under section 715 of title 32, United States Code.

(b) Notwithstanding any law, rule, regulation, or decision to the contrary, the positions of persons employed under section 709 of title 32, United States Code, existing on the day before the effective date of title II of this Act, and the persons holding those positions on that day, shall, on and after that effective date, be considered to be positions in and employees of the Department of the Army or the Department of the Air Force, as the case may be, to the same extent as other positions in and employees of the Department of the Army or the Department of the Air Force. Such positions shall be outside the competitive service, if, as a condition of employment, the persons employed therein were, on the day before the effective date of title II of this Act, required to be members of the Army National Guard or the Air National Guard.

(c) All satisfactory service under section 709 of title 32, United States Code, or prior corresponding provision of law before the effective date of title II of this Act shall be included and credited in the determination of length of service for the purposes of leave, veteran's preference, group life and health insurance, seniority, tenure, training, status, and other rights and benefits of employees of the United States. The Secretary of the Army and the Secretary of the Air Force, as the case may be, or their designees, shall certify to the Government authority concerned the amount of satisfactory service to be included and credited for the purpose of employment rights and benefits. Such Government authority is authorized and directed to accept that certification.

(d) Annual leave and sick leave to which a technician was entitled on the day before the conversion of his position, as provided in section 204 of this Act, shall be credited to him in his new position.

SEC. 204. (a) Section 8332(b) of title 5, United States Code, is amended(1) by striking out "and" at the end of clause (4);

(2) by striking out the period at the end of clause (5) and inserting in place thereof "; and"; and

(3) by adding the following new clause:

"(6) employment under section 709 of title 32, or any prior corresponding provision of law."

(b) Notwithstanding section 709(d) of title 32, United States Code, a person who, on the date of enactment of title II of this Act, is employed under section 709 of title 32, United States Code, and is covered by an employee retirement system of, or plan sponsored by, a State or Puerto Rico, may elect, not later than the effective date of title II of this Act, not to be covered by subchapter III of chapter 3 of title 5, United States Code, and with the consent of the State concerned or Puerto Rico, to remain covered by the employee retirement system of, or plan sponsored by, that State or Puerto Rico. Unless such an election, together with a statement of approval by the State concerned or Puerto Rico, is filed with the United States Civil Service Commission on or before the effective date of title

II of this Act, the person concerned is covered by subchapter III of chapter 83 of title 5, United States Code, as of that date. In the case of any person who files a valid election under this subsection to remain covered by an employee retirement system of, or plan sponsored by, a State or Puerto Rico, the United States may pay the amount of the employer's contributions to that system or plan that become due for periods beginning on or after the effective date of title II of this Act. However, the payment by the United States, including any contribution that may be made by the United States toward the employer's tax imposed by section 3111(a) of the Internal Revenue Code of 1954, as amended (26 U.S.C. 3111(a)), may not exceed the payment which the United States would otherwise make on behalf of the person to the Civil Service Retirement and Disability Fund under section 8334(a) of title 5, United States Code. The service under section 709 of title 32, United States Code, or prior corresponding provision of law, of a person who has made an election to remain covered by the employee retirement system of, or plan sponsored by, a State or Puerto Rico, shall not be creditable toward eligibility for or amount of annuity under subchapter III of chapter 83 of title 5, United States Code.

SEC. 205. The fourth sentence of section 218(b) (5) of the Social Security Act, as amended (42 U.S.C. 418(b) (5)), is amended to read as follows: "Persons employed under section 709 of title 32, United States Code, who elected under section 204 (b) of the Act enacting this amended sentence to remain covered by an employee retirement system of, or plan sponsored by, a State, shall, for the purposes of this Act, be employees of the State and (notwithstanding the preceding provisions of this paragraph), shall be deemed to be a separate coverage group."

SEC. 206. (a) Except as provided in section 709(e) of title 32, United States Code, the Secretary concerned shall fix the rate of basic compensation of positions existing on the date of enactment of title II of this Act in accordance with the General Schedule set forth in section 5332, or under the appropriate prevailing rate schedule in accordance with section 5341 of title 5, United States Code, as applicable. In fixing such rate:

(1) If the technician is receiving a rate of basic compensation which is less than the minimum rate of the appropriate grade of the General Schedule, or which is less than the minimum arte of the appropriate grade or compensation level of the appropriate prevailing rate schedule, as applicable, in which his position is placed, his basic compensation shall be increased to that minimum rate.

(2) If the technician is receiving a rate of basic compensation which is equal to a rate of the appropriate grade of the General Schedule, or which is equal to a rate of the appropriate grade or compensation level under the appropriate prevailing rate schedule, as applicable, in which his position is placed, he shall receive basic compensation at that rate of the General Schedule, or at that rate under the prevailing rate schedule, if applicable. (3) If the technician is receiving a rate of basic compensation which is between two rates of the appropriate grade of the General Schedule, or which is between two rates of the appropriate grade or compensation level under the appropriate prevailing rate schedule, as applicable, in which his position is placed, he shall receive basic compensation at the higher of those two rates under the General Schedule or appropriate prevailing rate schedule, as applicable.

(4) If the technician is receiving a rate of basic compensation which is in excess of the maximum rate of the appropriate grade of the General Schedule, or which is in excess of the maximum rate of the appropriate grade or compensation level of the appropriate prevailing rate schedule, as applicable, in which his position is placed, he shall continue to receive basic compensation without change in rate until

(A) he leaves that position, or

(B) he is entitled to receive basic compensation at a higher rate, but, when any such position becomes vacant, the rate of basic compensation of any subsequent appointee thereto shall be fixed in the manner provided by applicable law and regulation.

(b) The conversion of positions and employees to appropriate grades of the General Schedule set forth in section 5332 of title 5, United States Code, and the initial adjustment of rates of basic compensation of those positions and technicians, provided for by title II of this Act, shall not be considered to be transfers or promotions within the meaning of section 5334(b) of title 5, United States Code, and the regulations issued thereunder.

(c) Each technician on the effective date of title II of this Act whose position is converted to the General Schedule set forth in section 5332 of title 5, United States Code, or to the appropriate prevailing rate schedule, as applicable, who prior to the initial adjustment of his rate of basic compensation under subsection (a) of this section, has earned, but has not been credited with, an increase in that rate, shall be granted credit for such increase before his rate of basic compensation is initially adjusted under that subsection.

(d) Each technician on the effective date of title II of this Act whose position is so converted to the General Schedule set forth in section 5332 of title 5, United States Code, shall be granted credit, for purposes of his first step increase under the General Schedule or prevailing rate schedule, for all satisfactory service performed by him since his last increase in compensation prior to the initial adjustment of his rate of basic compensation under subsection (a) of this section.

(e) An increase in rate of basic compensation by reason of the enactment of subsection (a) of this section shall not be considered to be an equivalent increase with respect to step increases for technicians whose positions are converted to the General Schedule set forth in section 5332 of title 5, United States Code, or the appropriate prevailing rate schedule under authority of this section.

SEC. 207. This title becomes effective July 1, 1967, except that no deductions or withholding from salary which result therefrom shall commence before the first day of the first pay period that begins on or after July 1, 1967. This title shall be administered under uniform regulations jointly prescribed by the Secretary of the Army and the Secretary of the Air Force and approved by the Secretary of Defense.

Passed the House of Representatives February 20, 1967.
Attest:

W. PAT JENNINGS,

Clerk.

Chairman RuSSELL. In the consideration of this bill today, the committee will also consider the proposed realinement of the Army Reserve and Army National Guard. The Chair will observe that there is no statutory requirement that this plan be submitted to the Congress for approval. And, as you will recall, in 1965, in spite of requests from this committee for delay, the Secretary of Defense proceeded to deactivate about 750 Army Reserve units. There is a great deal of interest, however, in the realinement plan, and this is about the only legislative forum where it can be discussed, and we have, therefore, scheduled it for consideration today.

This plan has generated very widespread controversy which touches many sensitive nerves, political and military. But this committee, I am sure, will be able to approach it with an open mind, because there cannot be any doubt in today's world of the vital significance of having a wholly Ready Reserve, and not one with empty spaces but which must be trained. The events of the last few weeks in the Middle East, I think, demonstrate the value of a totally trained and ready and equipped Reserve.

Of course, this bill does have one direct relevancy, to the realinement plan since it proposes a permanent mandatory floor of 260,000 for the Reserve as opposed to 240,000 in the plan submitted by the Department of Defense.

In order to separate the discussion this morning of the realinement plan from particular provisions of the bill, the Chair thinks it is wise for the committee to consider first the realinement matter before getting into the detailed line-by-line explanation of H.R. 2.

We have with us Secretary Resor of the Army who, I understand, represents the Department of Defense at this hearing, both on the Army realinement and portions of title 2 of the bill.

We also have with us the Chief of Staff of the Army, General Johnson; and General Rich, and I am sure that they will offer many valuable suggestions to the committee on the realinement matter. You propose to lead off, Mr. Secretary?

Very well, sir, you may proceed.

STATEMENT OF HON. STANLEY R. RESOR,
SECRETARY OF THE ARMY

Secretary RESOR. Yes, Mr. Chairman.

Mr. Chairman and members of the committee, I welcome the opportunity to appear before the committee to explain the plan recommended by the Department of the Army and approved by the Secretary of Defense for reorganizing the Reserve components. I will describe the general background and sequence of events that has led to this plan and General Johnson will discuss the military requirements for Army Reserve forces as determined by the Joint Chiefs of Staff. Thereafter, General Rich will describe the plan itself.

The Army's Reserve components are out of balance as between manpower, equipment, and the requirements of current contingency plans. This was true 2 years ago when we discussed a different reorganization plan with Congress. It remains true today. The JCS has recognized this problem. Specifically, the JCS last April recommended a new Reserve component structure of eight divisions, 18 separate brigades, and the required supporting units as compared with the present Reserve component structure of 23 divisions, and 11 separate brigades.

Because of its imbalance, our present Reserve component structure has serious readiness deficiencies. We have more than a thousand units in the current structure which we do not need, most of which are manned at only 50 percent of full wartime strength and for none of which is equipment being procured; at the same time, there are almost a thousand units which we need but we do not have.

We therefore have a situation in which that portion of the present Reserve component structure which we do need is not sufficiently combat ready because it lacks the necessary supporting forces. We want to correct that situation by forming the units which are required from the assets of the many units which are not required. We propose to support the resulting structure fully with equipment, technicians, spare parts, and all the other essentials to attain the necessary readi

ness status.

To accomplish these objectives, we proposed in 1965 and again in 1966 a reorganization of the Army's Reserve components under which all of the paid drill units would have been in the Army National Guard. The U.S. Army Reserve (USAR) would have continued as a pool of trained officers and enlisted men who, on mobilization, could be called to active duty to bring Active Army and Reserve component units to full strength. The force structure contemplated in that proposed reorganization consisted of eight divisions, 16 brigades, and a total paid drill strength of 550,000. The Congress did not look favorably upon this reorganization, however, and in the fiscal years 1966 and 1967 appropriations acts language was included to require that the Army National Guard and the USAR achieve certain specified minimum strengths; as a result, the then proposed reorganization could not be executed in either of those years.