II

103D CONGRESS

2D SESSION S. 1809

To achieve greater cooperation from allies of the United States and international organizations for the payment of the costs involved in the

development and production of Theater Missile Defense systems; and

to amend title 10, United States Code, to establish a Theater Missile

Defense Cooperation Account.

IN THE SENATE OF THE UNITED STATES

JANUARY 28 (legislative day, JANUARY 25), 1994

Mr. SASSER introduced the following bill; which was read twice and referred

to the Committee on Armed Services

A BILL

To achieve greater cooperation from allies of the United

States and international organizations for the payment

of the costs involved in the development and production

of Theater Missile Defense systems; and to amend title

10, United States Code, to establish a Theater Missile

Defense Cooperation Account.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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•S 1809 IS

1 SECTION 1. REPORT ON ACTIONS TO ACHIEVE INTER2 NATIONAL COOPERATION IN DEVELOPMENT

3 OF THEATER MISSILE DEFENSES.

4 Not later than June 1, 1994, the Secretary of De5 fense shall submit to Congress a report on steps that can

6 be taken by the United States to achieve greater coopera7 tion from allies of the United States and international or8 ganizations for the payment of the costs involved in the

9 development and production of Theater Missile Defense

10 systems.

11 SEC. 2. FUNDING THEATER MISSILE DEFENSE PROGRAMS.

12 (a) REQUIREMENT FOR ANNUAL AUTHORIZATION OF

13 NEW OBLIGATIONAL AUTHORITY FOR TMD PRO14 GRAMS.—The Congress shall establish by law for each fis15 cal year (beginning with fiscal year 1995) the level of new

16 obligational authority (stated as a single dollar amount)

17 for research, development, test, and evaluation and for

18 procurement for Theater Missile Defense programs of the

19 Department of Defense for that fiscal year.

20 (b) LIMITATION ON UNITED STATES CONTRIBUTION

21 FOR TMD PROGRAMS.—(1) Not more than 80 percent of

22 the amount established pursuant to subsection (a) for any

23 fiscal year may be provided from amounts appropriated

24 to the Department of Defense from the general fund of

25 the Treasury, and no appropriation may be made to the

26 Department of Defense for any fiscal year which would
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•S 1809 IS

1 cause the total amount appropriated for that fiscal year

2 for research, development, test, and evaluation and for

3 procurement for Theater Missile Defense programs of the

4 Department of Defense to exceed 80 percent of such

5 amount.

6 (2) Any additional funds for research, development,

7 test, and evaluation and for procurement for Theater Mis8 sile Defense programs for any fiscal year for which an

9 amount has been established pursuant to subsection (a)

10 shall be derived from the Theater Missile Defense Co11 operation Account under section 2610 of title 10, United

12 States Code, as added by section 3.

13 (3) The President may waive the limitation in para14 graph (1) and the requirement in paragraph (2) to the

15 extent that the President determines appropriate in the

16 national security interest of the United States.

17 (c) POLICY REGARDING INCREMENTAL INCREASES

18 IN FOREIGN CONTRIBUTIONS FOR TMD PROGRAMS.—It

19 is the intent of Congress that, except as provided in sub20 section (d), the percentage of the cost of the development

21 and production of Theater Missile Defense systems that

22 is borne by the United States should decrease incremen23 tally, and the percentage that is borne by allied nations

24 and international organizations should increase incremen25 tally, over the fiscal years after fiscal year 1995 so that
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•S 1809 IS

1 the percentage actually borne by the United States in later

2 fiscal years is significantly less than the maximum of 80

3 percent provided for under subsection (b).

4 (d) EXEMPTION.—The financial contribution require5 ments established for allied nations in the administration

6 of this section shall not apply to any foreign nation that,

7 as of the date of the enactment of this Act, is paying at

8 least 20 percent of the total cost of the contracts in exist9 ence under a theater missile defense interceptor system

10 program being carried out on such date in cooperation be11 tween that foreign nation and the United States.

12 SEC. 3. THEATER MISSILE DEFENSE COOPERATION AC13 COUNT.

14 (a) ESTABLISHMENT.—(1) Chapter 155 of title 10,

15 United States Code, is amended by adding at the end the

16 following new section:

17 ‘‘§ 2610. Theater Missile Defense: acceptance of con18 tributions from allies; Theater Missile De19 fense Cooperation Account

20 ‘‘(a) ACCEPTANCE AUTHORITY.—The Secretary of

21 Defense may accept from any allied foreign government

22 or any international organization any contribution of

23 money made by such foreign government or international

24 organization for use by the Department of Defense for

25 Theater Missile Defense programs.
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1 ‘‘(b) ESTABLISHMENT OF THEATER MISSILE DE2 FENSE COOPERATION ACCOUNT.—(1) There is established

3 in the Treasury a special account to be known as the ‘The4 ater Missile Defense Cooperation Account’.

5 ‘‘(2) Contributions accepted by the Secretary of

6 Defense under subsection (a) shall be credited to the

7 Account.

8 ‘‘(c) USE OF THE ACCOUNT.—Funds in the Account

9 are hereby made available for obligation for research, de10 velopment, test, and evaluation, and for procurement, for

11 Theater Missile Defense programs of the Department of

12 Defense, subject to annual limitations provided by law in

13 total obligations for such purpose.

14 ‘‘(d) INVESTMENT OF MONEY.—(1) Upon request by

15 the Secretary of Defense, the Secretary of the Treasury

16 may invest money in the Account in securities of the

17 United States or in securities guaranteed as to principal

18 and interest by the United States.

19 ‘‘(2) Any interest or other income that accrues from

20 investment in securities referred to in paragraph (1) shall

21 be deposited to the credit of the Account.

22 ‘‘(e) NOTIFICATION OF CONDITIONS.—The Secretary

23 of Defense shall notify Congress of any condition imposed

24 by the donor on the use of any contribution accepted by

25 the Secretary under the authority of this section.
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1 ‘‘(f) REPORTING REQUIREMENT.—Not later than 30

2 days after the end of each quarter of each fiscal year, the

3 Secretary of Defense shall submit to Congress a report

4 on the contributions accepted by the Secretary under this

5 section during the preceding quarter.

6 ‘‘(g) ANNUAL AUDIT BY GAO.—The Comptroller

7 General of the United States shall conduct an annual

8 audit of money accepted by the Secretary of Defense

9 under this section and shall submit a copy of the results

10 of each such audit to Congress.

11 ‘‘(h) REGULATIONS.—The Secretary of Defense shall

12 prescribe regulations to carry out this section.’’.

13 (2) The table of sections at the beginning of such

14 chapter is amended by adding at the end the following

15 new item:

‘‘2610. Theater Missile Defense: acceptance of contributions from allies; Theater

Missile Defense Cooperation Account.’’.

16 (b) EFFECTIVE DATE.—Section 2610 of title 10,

17 United States Code, as added by subsection (a), shall take

18 effect on October 1, 1994.

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