An Act to amend title 10, United States Code, to codify recent military laws, and to improve the Code
PL 87-651 (H.R.10433), enacted 09/07/1962

assets 
506 
PUBLIC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
SEC. 18. The corporation may acquire the assets of the National 
Woman's Relief Corps, Auxiliary to the Grand Army of the Republic, 
a corporation organized under the laws of the State of Illinois, upon 
discharging or satisfactorily providing for the payment and discharge 
of all the liability of such corporation and upon complying with all 
laws of the State of Illinois applicable thereto. 
Distribution of 
SEC. 19. Upou any dissolution or final liquidation of the corporation, 
its assets shall be applied and distributed as follows: 
(a) All liabilities and obligations of the corporation shall be paid, 
satisfied, and discharged, or adequate provision shall be made therefor; 
(b) Assets held by the corporation upon condition requiring return, 
transfer or conveyance, which condition occurs by reason of the disso-
lution, shall be returned, transferred or conveyed in accordance with 
such requirements; 
(c) Assets received and held by the corporation subject to limita-
tions permitting their use only for charitable, religious, eleemosynary, 
benevolent, educational, or similar purposes, but not held upon a con-
dition requiring return, transfer or conveyance by reason of the disso-
lution, shall be transferred or conveyed to one or more domestic or 
foreign corporations, societies, or organizations engaged in activities 
of a charitable, religious, eleemosynary, benevolent, educational, or 
similar purpose, pursuant to a plan of distribution adopted as pro-
vided in this Act; 
(d) Other assets, if any, shall be distributed in accordance with 
the provisions of the articles of incorporation or the bylaws to the 
extent that the articles of incorporation or bylaws determine the dis-
tributive rights of members, or any class or classes of members, or 
provide for distribution to others; 
(e) Any remaining assets may be distributed to such persons, socie-
ties, organizations or domestic or foreign corporations engaged in 
activities not for profit, as may be specified in a plan of distribution 
adopted hj the council of administration of the corporation in com-
pliance with the constitution and bylaws of the corporation and all 
Federal, State, and District of Columbia laws applicable thereto. 
SEC. 20. The right to alter, amend, or repeal this Act is expresslj' 
reserved. 
Approved September 7, 1962. 
'v 
Public Law 87-651 
September 7, 1962 
^ ^ " ^ 
[H. R. 10433] 
To amend title 10, United States Code, to codify recent military laws, and to 
improve the Code. 
Be it enacted hy the Seiiate and House of Representatives 
of the 
United States of America in Congress assembled, 
Aimed Forces. 
T i T L E I . AMENDMENTS TO T i T L E 1 0 , U N I T E D S T A T E S C O D E T O 
INCORPORATE RECENT LAWS 
SEC. 101. The second sentence of section 280 of title 10, United States 
70A Stat. 14. 
Code, is amended T
b
y ^striking out "513," and "742,". 
1
0 use 671-686. 
SEC. 102. (a) Chapter 39 of title 10, United States Code, is amended 
by adding after section 686: 
76 STAT.] 
PUBLIC LAW 87-651-SEPT. 7, 1962 
**§687. Non-Regulars: readjustment payment upon involuntary 
release from active duty 
"(a) Except for members covered by subsection (b), a member of 
a reserve component or a member of the Army or the Air Force with-
out component who is released from active duty involuntarily, or 
because he was not accepted for an additional tour of active duty for 
which he volunteered after he had completed a tour of active duty, and 
who has completed, immediately before his release, at least five years 
of continuous active duty as a commissioned officer, warrant officer, or 
enlisted member, is entitled to a readjustment payment computed by 
multiplying his years of active service, but not more than 18, by one-
half of one month's basic pay of the grade in which he is serving at the 
time of his release. 
For the purposes of this subsection— 
" (1) a period of active duty is continuous if it is not interrupted 
by a break in service of more than 30 days; 
"(2) a part of ,a year that is six months or more is counted as a 
whole year, and a part of a year that is less than six months is 
disregarded; and 
"(3) a period for which the member concerned has received 
severance pay under another provision of law may not be included. 
"(b) Subsection (a) does not apply to— 
"(1) a member who is released from active duty at his request; 
"(2) a member who is released from active duty for training; 
"(3) under regulations to be prescribed by the Secretary of 
Defense, or by the Secretary of the Treasury with respect to the 
Coast Guard when it is not operating as a service in the Navy, a 
member who is released from active duty because of moral or pro-
fessional dereliction; 
"(4) a member who, upon release from active duty, is immedi-
ately eligible for retired pay or retainer pay based entirely on his 
military service; 
"(5) a member who, upon release from active duty, is immedi-
ately eligible for severance pay based on his military service and 
who elects to receive that severance pay; or 
"(6) a member who, upon release from active duty, is immedi-
ately eligible for disability compensation under a law administered 
by the Veterans' Administration and who elects to receive that 
disability compensation. 
However, this subsection does not prevent a member who elects to re-
ceive a readjustment payment under this section from becoming en-
titled to disability compensation based on his service performed after 
he makes that election. 
"(c) A member to whom a readjustment payment is made under 
this section is not entitled to mustering-out pay under the Mustering-
Out Payment Act of 1944 (58 Stat. 8), the Veterans' Readjustment 
Assistance Act of 1952 (66 Stat. 663), or chapter 43 of title 38. If he 
72 stat. 1272, 
was paid mustering-out pay under one of those provisions before he ^^I^'u^^c^' 
became, entitled to a readjustment payment under this section, the 2105. 
amount of that mustering-out pay shall be deducted from the amount 
to which he is entitled under this section. 
"(d) Any readjustment payment to which a member becomes en-
titled under this se^ction shall be reduced by the amount of any 
previous payment made to him under this section that he has not 
repaid to the United States. 
If he has repaid that amount to the 
United States, the period covered by it shall be treated as a period for 
which a payment has not been made under this section. 
508 
PUBLIC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
"(e) A member's acceptance of a readjustment payment under this 
section does not affect his entitlement to retired pay, retainer pay, or 
other retirement benefits from the United States." 
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(b) Chapter 39 of title 10, United States Code, is further amended 
by adding at the end of the analysis: 
"687. Non-Regulars: readjustment payment upon involuntary release from active 
duty." 
1
0 use 711-717. 
SEC. 103. (a). Chapter 41 of title 10, United States Code, is amended 
by redesignating section 716, relating to the participation of members 
of the armed forces in international sports, as section "717". 
(b) Chapter 41 of title 10, United States Code, is further amended 
by redesignating item 716 of the analysis, relating to the participation 
of members of the armed forces in international sports, as item "717". 
SEC. 104. Clauses (11) and (12) of section 802 of title 10, United 
70A Stat. 37. 
States Code, are amended by inserting "Guam," after "Puerto Rico,". 
72 Stat. 1444. 
SEC. 105. Sectiou 1006 (e) of title 10, United States Code, is amended 
by striking out "section 1391 of title 50" and inserting in place thereof 
"section 787 of title 14". 
70A Stat. 89. 
SEC. 106. (a) Sectiou 1163 of title 10, United States Code, is 
amended by adding at the end: 
"(d) Under regulations to be prescribed by the Secretary concerned, 
which shall be as uniform as practicable, a member of a reserve com-
ponent who is on active duty and is within two years of becoming 
eligible for retired pay or retainer pay under a purely military retire-
ment system, may not be involuntarily released from that duty before 
he becomes eligible for that pf^y, unless his release is approved by the 
Secretary." 
10 use 1161- 
(b) Chapter 59 of title 10, United States Code, is amended by 
^^*^- 
adding after section 1167: 
^'§1168. Discharge or release from active duty: limitations 
" (a) A member of an armed force may not be discharged or released 
from active duty unt^l his discharge certificate or certificate of release 
from active duty, respectively, and his final pay or a substantial part of 
that pay, are ready for delivery to him or his next of kin or legal 
representative. 
"(b) This section does not prevent the immediate transfer of a 
member to a Veterans' Administration facility for necessary hospital 
care." 
(c) Chapter 59 of title 10, United States Code, is further amended 
by adding at the end of the analysis: 
"1168. Discharge or release from active duty : limitations." 
SEC. 107. (a) Sections 1201,1202, and 1203 of title 10, United States 
70A Stat. 91. 
Code, are amended by striking out "training) under section 270(b) 
of this title" and inserting in place thereof "training under section 
270(b) of this title)". 
7
0
A Stat. 98. 
(b) Sectiou 1211(d) of title 10, United States Code, is amended by 
striking out ", (2), or (3)" in clause (1) and inserting "or (2)" in 
place thereof and by striking out "(5)" in clause (2) and inserting 
(4)" in place thereof. 
71 Stat. 160. 
(c) Sections 1218 and 1219 of title 10, United States Code, are 
amended to read as follows: 
:.;' • - 'rf:.;.j 
'-^nqa'f -, 
76 STAT.] 
PUBLIC LAW 87-651-SEPT. 7, 1962 
509 
"§ 1218. Discharge or release from active duty: claims for com-
pensation, pension, or hospitalization 
" (a) A member of an armed force may not be discharged or released 
from active duty because of physical disability until he— 
"(1) has made a claim for compensation, pension, or hospitali-
zation, to be filed with the Veterans' Administration, or has re-
fused to make such a claim; or 
"(2) has signed a statement that his right to make such a claim 
has been explained to him, or has refused to sign such a state-
ment. 
"(b) A right that a member may assert after failing or refusing to 
sign a claim, as provided in subsection (a), is not affected by that 
failure or refusal. 
"(c) This section does not prevent the immediate transfer of a mem-
ber to a Veterans' Administration facility for necessary hospital care. 
*'§ 1219. Statement of origin of disease or injury: limitations 
"A member of an armed force may not be required to sign a state-
ment relating to the origin, incurrence, or aggravation of a disease or 
injury that he has. Any such statement against his interests, signed 
by a member, is invalid." 
(d) Section 1220 of title 10, United States Code, is repealed. 
(e) Chapter 61 of title 10, United States Code, is amended by strik- 
lo use 1201-
ing out of the analysis: 
^221. 
"1218. Explanation of rights before discharge. 
"1219. Statement against interest void. 
"1220. Location of accredited represeiitatives at military installations." 
and inserting in place thereof: 
"1218. Discharge or release from active duty: claims for compensation, pension, 
or hospitalization. 
"1219. Statement of origin of disease or injury : limitations." 
SEC. 108. Section 1334 (b) of title 10, United States Code, is amended 
70A stat. 104. 
to read as follows: 
"(b) Time spent after retirement (without pay) for failure to con-
form to standards and qualifications prescribed under section 1001 of 
this title may not be credited in a computation of years of service under 
this chapter." 
SEC. 109. Section 1405 of title 10, United States Code, is amended 
72 stat. 130. 
by striking out "6391(h), 6394(g) (2)" and inserting in place thereof 
"6394(h)". 
SEC. 110. (a) Sections 1553 and 1554 of title 10, United States Code, 
72 stat. 1267. 
are amended to read as follows: 
'*§ 1553. Review of discharge or dismissal 
"(a) The Secretary concerned shall, after consulting the Adminis-
trator of Veterans' Affairs, establish a board of review, consisting of 
five members, to review the discharge or dismissal (other than a dis-
charge or dismissal by sentence of a general court-martial) of any 
former member of an armed force under the jurisdiction of his de-
partment upon its own motion or upon the request of the former mem-
ber or, if he is dead, his surviving spouse, next of kin, or legal repre-
sentative. A motion or request for review must be made within 15 
years after the date of the discharge or dismissal. 
5K)' 
PUBLIC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
"(b) A board established under this section may, subject to review 
by the Secretary concerned, change a discharge or dismissal, or issue 
a new discharge, to reflect its findings. 
"(c) A review by a board established under this section shall be 
based on the records of the armed forces concerned and such other evi-
dence as may be presented to the board. A witness may present evi-
dence to the board in person or by affidavit. A person who requests 
a review under this section may appear before the board in person or 
by counsel or an accredited representative of an organization recog-
nized by the Administrator of Veterans' Affairs under chapter 59 of 
72 Stat. 1238. 
title 38. 
38 u s e 3401-
3405. 
"§ 1554. Review of retirement or separation without pay for phys-
ical disability 
"(a) The Secretary concerned shall from time to time establish 
boards of review, each consisting of five commissioned officers, two 
of whom shall be selected from officers of the Army Medical Corps, 
officers of the Navy Medical Corps, Air Force officers designated as 
medical officers, or officers of the Public Health Service, as the case 
may be, to review, upon the request of an officer retired or released 
from active duty without pay for physical disability, the findings and 
decisions of the retiring board, board of medical survey, or disposition 
board in his case. A request for review must be made witliin 15 years 
after the date of the retirement or separation. 
"(b) A board established under this section has the same powers 
as the board whose findings and decision are being reviewed. The 
findings of the board shall be sent to the Secretary concerned, who 
shall submit them to the President for approval. 
"(c) A review by a board established under this section shall be 
based upon the records of the armed forces concerned [ind such other 
evidence as may be presented to the board. A witness may present 
evidence to the board in person or by affidavit. 
A person who requests 
a review under this section may appear before the board in person or 
by counsel or an accredited representative of an organization recog-
nized by the Administrator of Veterans' Affairs under chapter 59 
of title 38." 
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(b) Chapter 79 -of title 10, United States Code, is amended by 
^55^- 
striking out of the analysis: 
"1553. Review of discharges and dismissals. 
"1554. Review of decisions of retiring boards and similar boards." 
and inserting in place thereof: 
"1553. Review of discharge or dismissal. 
"1554. Review of retirement or separation without pay for physical disability." 
71 Stat. 45. 
SEC. 111. (a) Section 2633 of title 10, United States Code, is 
amended to read as follows: 
"§ 2633. Stevedoring and terminal services: vessels carrying cargo 
or passengers sponsored by military department 
"(a) Notwithstanding section 628 of title 31, the Secretary of a 
military department may, under such regulations as he may prescribe, 
furnish stevedoring and terminal services and facilities to vessels 
carrying cargo, or passengers, or both, sponsored by his department. 
"(b) The furnishing of services and facilities under this section 
shall be at fair and reasonable rates. 
"(c) The proceeds from furnishing services and facilities under this 
section shall be paid to the credit of the appropriation or fund out of 
which the services or facilities were supplied." 
10 use 2631- 
(b) Chapter 157 of title 10, United States Code, is amended by 
2633. 
adding after section 2633: 
76 STAT.] 
PUBLIC LAW 87-651-SEPT. 7, 1962 
511 
10 u s e 2631-
2633. 
10 u s e 2661-
2678. 
**§2634. Motor vehicles: for members on permanent change of 
station 
"When a member of an armed force is ordered to make a permanent 
change of station, one motor vehicle owned by him and for his per-
sonal use may be transported to his new station at the expense of the 
United States— 
"(1^ on a vessel owned by the United States; or 
"(2) by privately owned American shipping services." 
(c) Chapter 157 of title 10, United States Code, is further amended 
by striking out of the analysis: 
"2633. Terminal Services, furnish to commercial steamship companies." 
and inserting in place thereof: 
"2633. Stevedoring and terminal services: vessels carrying cargo or passengers 
sponsored by military department. 
"2634. Motor vehicles: for members on permanent change of station." 
SEC. 112. (a) Section 2672 of title 10, United States Code, is 
72 stat. 1459. 
amended— 
(1) by striking out "$5,000" in the catchline and wherever it 
appears in the text and inserting in place thereof "$25,000"; and 
(^) by striking out "determines is urgently" in clause (1) and 
inserting in p^ace thereof "or his designee determines is". 
(b) Section 2674(a) of title 10, United States Code, is amended by 
adding at the end: "However, a determination that a project is 
urgently needed is not required for a project costing not more than 
$5,000." 
(c) Chapter 159 of title 10 of United States Code, is amended by 
adding at the end after section 2678: 
*
*
§ 2679. Representatives of veterans' organizations: use of space 
and equipment 
"(a) Upon certification to the Secretary concerned by the Adminis-
trator of Veterans' Affairs, the Secretary shall allow accredited, paid, 
full-time representatives of the organizations named in section 3402 
of title 38, or of other organizations recognized by the Administrator, 
to function on military installations under the jurisdiction of that 
Secretary that are on land and from which persons are discharged or 
released from active duty. 
"(b) The commanding officer of each of those military installations 
shall allow the representatives described in subsection (a) to use 
available space and equipment at that installation. * 
"(c) The regulations prescribed to carry out this section that are in 
effect on January 1, 1958, remain in effect until changed by joint 
action of the Secretary concerned and the Administrator. 
"(d) This section does not authorize the violation of measures of 
military security. 
"§ 2680. Reimbursement of owners of property acquired for public 
works projects for moving expenses 
"(a) Under regulations approved by the Secretary of Defense and 
without regard to sections 1001 and 1003-1011 of title 5, the Secretary 
of a military department, or his designee, may, upon application by 
the owners and the tenants of land to be acquired for a public works 
project of his department, reimburse those owners and tenants for 
those expenses, losses, or damages that he determines to be fair and 
reasonable and that are incurred by them as a direct result of moving 
themselves and their families and possessions because of that acquisi-
tion. 
However, application for reimbursement must be made within 
one year after that acquisition or within one year after the property is 
vacated, whichever date is later, and be accompanied by an itemized 
statement of the expenses, losses, and damages incurred. 
72 Stat. 1238. 
60 Stat. 237. 
512 
PUBUC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
" (b) The total payments under this section with respect to a parcel 
of land may not be more than 25 percent of the fair value of that 
land, as determined by the Secretary of the military department con-
cerned. 
They are in addition to, but may not duplicate, any other 
payments that may be made under law as a result of acquisition of 
that land. 
"(c) Any funds appropriated for civil or military public works 
may be used to make payments under this section." 
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(d) Chapter 159 of title 10, United States Code, is further amended 
^*''*- 
by striking out of the analysis: 
"2672. Acquisition: interests in land wlien cost is not more tlian $5,000." 
and inserting in place thereof: 
"2672. Acquisition: interests in land when cost is not more than $25,000." 
and by adding the following at the end of the analysis: 
"2679. Representatives of veterans' organizations: use of space and equipment. 
"2680. Reimbursement of owners of property acquired for public works projects 
for moving expenses." 
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SEC. 113. (a) Chapter 163 of title 10, United States Code, is amended 
2736- 
by inserting after section 2734: 
"§2734a. Property loss; personal injury or death: incident to 
noncombat activities of armed forces; foreign coun-
countries; international agreements 
"(a) Under an international agreement to which the United States 
is a party that provides that claims against the United States arising 
out of the acts or omissions in the performance of official duty in a 
foreign country of a civilian employee, or a member, of an armed force 
may be adjudicated by that country under its laws and regulations, the 
Secretary of Defense may— 
"(1) reimburse that country for the agreed pro rata share of 
such amounts as are spent by that couptry to pay those claims, in-
cluding the costs of settlement or arbitration; or 
"(2) pay that country the agreed pro rata share of claims^ris-
ing out of damage to the property of that country, including the 
costs of settlement or arbitration. 
"(b) A claim arising out of an act of an enemy of the United States 
or arising, directly or indirectly, from an act of the armed forces, or 
a member thereof, while engaged in combat may not be considered or 
paid under this section. 
"(c) A reimbursement or payment under this section shall be made 
by the Secretary of Defense out of appropriations for that purpose. 
Those appropriations may be used to buy foreign currencies needed 
for the reimbursement. 
* 
"§2734b. Property loss; personal injury or death: incident to 
activities of armed forces of foreign countries in 
United States; international agreements 
"(a) Where an international agreement to which the United States 
is a party provides that claims against a foreign country arising out 
of the acts or omissions in the performance of official duty in the 
United States, or a Territory, Commonwealth, or possession, of a 
civilian employee, or member, of the armed forces of that country, be 
adjudicated by the United States under its laws and regulations 
subject to an agreed pro rata reimbursement, those claims may be 
prosecuted against the United States, or settled by the United States, 
under then existing laws and regulations as if the acts or omissions 
upon which they are based were the acts or omissions in the perform-
ance of official duty of a civilian employee, or a member, of an armed 
force. 
76 STAT.] 
PUBLIC LAW 87-^51-SEPT. 7, 1962 
513 
"(b) When a dispute arises in the settlement or adjudication of a 
claim under this section whether an act or omission was in the per-
formance of official duty, or whether the use of a vehicle of the armed 
forces was authorized, the dispute shall be decided under the interna-
tional agreement with the foreign country^concerned. 
Such a decision 
is final and conclusive. 
The Secretary of Defense may pay that part 
of the cost of obtaining such a decision that is chargeable to the United 
States under that agreement. 
" (c) A claim arising out of an act of an enemy of the United States 
may not be considered or paid under this section. 
"(d) A payment under this section shall be made by the Secretary 
of Defense out of appropriations for that purpose." 
(b) Chapter 163 of title 10, United States Code, is amended by 
iousc273i-
inserting in the analysis: 
2^^^-
"2734a. Property loss ; personal injury or death : incident to noncombat activities 
of armed forces: foreign countries; international agreements. 
"2734b. Proi)erty loss; personal injury or death: incident to activities of armed 
forces of foreign countries in United States; international agreements." 
SEC. 114. Sections 3034(d)(4), 5081(c), 5201(d), and 8034(d)(4) 
of title 10, United States Code, are amended by striking out "pursuant 
72 stat. sie. 
to section 202(j) of the National Security Act of 1947, as amended'' 
and inserting in place thereof "under section 124 of this title''. 
SEC. 115. Section 3853 (1) of title 10, United States Code, is amended 
72 stat. use. 
by striking out "23" and inserting in place thereof "22". 
SEC. 116. Chapter 373 of title 10, United States Code, is amended— 
1
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1) by repealing section 4023; and 
^°^O'A stat 233 
|2) by striking out of the analysis: 
"4023. Service club and library services." 
SEC. 117. The last two sentences of sections 4337 and 9337 of title 
10, United States Code, are amended to read as follows: "The chaplain 
is entitled to the same allowances for public quarters as are allowed to a 
captain, and to fuel and light for quarters in kind. 
The chaplain 
may be reappointed." 
SEC. 118. Sections 4621 (a) and (b) and 9621 (a) and (b) of title 
10, United States Code, are amended by striking out "sections 172-172] 
of title 5" and inserting in place thereof "section 2208 of this title". 
SEC. 119. Chapter 447 of title 10, United States Code, is amended-— 
1
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(1) by repealing section 4748; and 
'*^'*\ st 
(2) by striking out of the analysis: 
''° 
°*' ^^^' 
"4748. Motor vehicles : for members on permanent change of station." 
SEC. 120. Section 5081 of title 10, United States Code, is amended 
by striking out subsection (e). 
SEC. 121. Section 5082 of title 10, United States Code, is amended— 
(1) by inserting the designation " ( a ) " before the words "In 
order that"; 
(2) by striking out of clauses (1) (A) and (2) (A) "as defined 
in section 5081 of this title"; and 
(3) by adding at the end: 
"(b) As used-in this section, 'operating forces' means the several 
fleets, sea-going forces, sea-frontier forces, district forces, and such of 
the shore establishment of the Navy and other forces and activities as 
may be assigned thereto by the President or the Secretary of the 
Navy." 
SEC. 122. Section 6033(a) of title 10, United States Code, is amended 
by striking out "Except for the purposes of sections 231-319 of title 
37" and inserting in place thereof "Except as otherwise specifically 
provided". 
/ 78135 0-63—36 
6161. 
514 
PUBUC LAW 87:651-SEPT. 7, 1962 
[76 STAT. 
72 Stat. 1507. 
SEC. 123. (a) Sectioii 6148(e)(2) of title 10, United States Code, 
is amended to read as follows: 
"(2) section 331 of title 38;". 
70A Stat. 387. 
(b) Section 6157 of title 10, United States Code, is repealed. 
1
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(c) Chapter 561 of title* 10, United States Code, is amended by 
striking out of the analysis: 
"6157. Motor vehicles; transportation on permanent change of station." 
70A Stat. 429. 
SEC. 124. Section 6954(a)(8) of title 10, United States Code, is 
amended by striking out "Railroad" and inserting in place thereof 
"Canal". 
71 Stat. 44. 
SEC. 125. Section 7230 of title 10, United States Code, is amended to 
read as follows: 
'*§ 7230. Sale of degaussing equipment 
"(a) To promote the installation, repair, and maintenance of 
degaussing equipment on vessels registered under the laws of the 
United States, the Secretary of the Navy may, under such regulations 
as he may prescribe, sell degaussing equipment that is available from 
Navy stocks, but that is not readily available commercially, to owners 
or operators of privately owned merchant ships of United States 
registry. 
"(b) Sales under this section shall be at prices representing the 
current or estimated replacement cost to the Navy. 
"(c) The proceeds of sales under this section shall be paid to the 
credit of the current appropriation or fund concerned." 
70A Stat. 520. 
SEC. 126. Sectiou 8352 (a) of title 10, United States Code, is amended 
by striking out the second sentence. 
72 Stat. 129. 
SEC. 127. The table in section 8991 of title 10, United States Code, is 
amended by striking out "8962 (c)" in footnote 1 and inserting in place 
thereof "8962(b)". 
i
o
_ use 9022- 
SEC. 128. Chapter 873 of title 10, United States Code, is amended— 
(1) by repealing section 9023; and 
(2) by striking out of the analysis: 
"9023. Service club and library services." 
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SEC. 129. Chapter 947 of title 10, United States Code, is amended— 
(1) by repealing section 9748; and 
(2) by striking out of the analysis: 
"9748. Motor vehicles: for members on permanent change of station." 
SEC. 130. Section 674(a) of title 10, United States Code, is amended 
to read as follows: 
"(a) Units and members in the Standby Reserve may be ordered 
to active duty (other than for training) only as provided in section 
672 of this title." 
SEC. 131. Section 2276 (b) of title 10, United States Code, is amended 
to read as follows: 
^ 
"(b) Any committee of Congress may inspect audits and reports of 
inspection made under subsection (a)." 
TITLE II. TRANSFER TO TITLE 10 or PROVISIONS IN TITLE 5 RELATING 
TO ORGANIZATION OF DEPARTMENT OF DEFENSE 
1
0 use 121-123. 
SEC. 201. (a) Chapter 3 of title 10, United States Code, is amended 
by inserting after section 123: 
*
*
§ 124. Combatant commands: establishment; composition; func-
tions ; administration and support 
"(a) With the advice and assistance of the Joint Chiefs of Staff, 
the President, through the Secretary of Defense, shall— 
"(1) establish unified combatant commands or specified com-
batant commands to perform military missions; and 
9025 
70A Stat. 558 
9748 
76 STAT.] 
P U B U C LAW 87-651-SEPT. 7,1962 
515 
"(2) shall prescribe the force structure of those commands. 
"(b) The military departments shall assign forces to combatant 
commands established under this section to perform the missions of 
those commands. A force so assigned is under the full operational 
command of the commander of the command to which it is assigned. 
It may be transferred from the command to which it is assigned only 
by authority of the Secretary and under procedures prescribed by 
the Secretary with the approval of the President. 
A force not so 
assigned remains, for all purposes, in the military department 
concerned. 
"(c) Combatant commands established under this section are re-
sponsible to the President and to the Secretary for such military mis-
sions as may be assigned to them by the Secretary with the approval 
of the President. 
"(d) Subject to the authority, direction, and control of the Secre-
tary, each military department is responsible for the administration of 
forces assigned by that department to combatant commands established 
under this section. The Secretary shall assign the responsibility for 
the support of forces assigned to those commands to one or more of 
the military departments. 
"§125. Functions, powers, and duties: transfer, reassignment, 
consolidation, or abolition 
"(a) Subject to section 401 of title 50, the Secretary of Defense shall 
^^ stat. 5i4, 
take appropriate action (including the transfer, reassignment, con-
solidation, or abolition of any function, power, or duty) to provide 
more effective, efficient, and economical administration and operation, 
and to eliminate duplication, in the Department of Defense. However, 
except as provided by subsections (b) and (c), a function, power, or 
duty vested in the Department of Defense, or an officer, official, or 
agency thereof, by law may not be substantially transferred, reas-
signed, consolidated, or abolished unless ihe Secretary reports the 
details of the proposed transfer, reassignmeii,tj consolidation, or aboli-
tion to the Committees on Armed Services df the Senate and House 
of Representatives. 
The transfer, reassignment, consolidation, or 
abolition concerned takes effect on the first day after the expiration 
of the first 30 days that Congress is in continuous session after the 
Secretary so reports, unless either of those Committees, within that 
period, reports a resolution recommending that the 'proposed transfer, 
reassignment, consolidation, or abolition oe rejected by the Senate or 
the House of Representatives, as the case may be, because it— 
"(1) proposes to transfer, reassign, consolidate, or abolish a 
major combatant function, power, or duty assigned to the Army, 
Navy, Air Force, or Marine Corps by section 3062(b), 5012, 5013, 
or 8062(c) of this title; and 
7OA stat. lee, 
"(2) would, in its judgment, tend to impair the defense of the 2^^' ^^^• 
United States. 
If either of those Committees, within that period, reports such a reso-
lution and it is not adopted by the Senate or the House of Representa-
tives, as the case may be, within the first 40 days that Congress is in 
continuous session after that resolution is so reported, the transfer, 
reassignment, consolidation, or abolition concerned takes effect on the 
first day after the expiration of that forty-day period. 
For the pur-
poses of this subsection, a session may be considered as not continuous 
only if broken by an adjournment of Congress sine die. 
However, 
in computing the period that Congress is in continuous session, days 
that the Senate or the House of Representatives is not in session 
because of an adjournment of more than three days to a day certain 
are not counted. 
516 
PUBUC LAW 87-651-SEPT. 7,1962 
[76 STAT. 
"(b) Notwithstanding subsection (a), if the President determines it 
to be necessary because of hostilities or an imminent threat of hostil-
ities, any function, power, or duty, including one assigned to the 
Army, Navy, Air Force, or Marine Corps by section 3062(b), 5012, 
70Astat. 166, 
5013, or 8062(c) of this title, may be transferred, reassigned, or con-
277, 493. 
solidated. 
The transfer, reassignment, or consolidation remains in 
effect until the President determines that hostilities have terminated 
or that there is no longer an imminent threat of hostilities, as the case 
may be. 
"(c) Notwithstanding subsection (a), the Secretary of Defense may 
assign or reassign the development and operational use of new weapons 
or weapons systems to one or more of the military departments or one 
or more of the armed forces. 
"(d) In subsection (a)(1), 'major combatant function, pOwer, or 
duty' does not include a supply or service activity common to more 
than one military department. The Secretary of Defense shall, when-
ever he determines it will be more effective, economical, or efficient, 
provide for the performance of such an activity by one agency or such 
other organizations as he considers appropriate. 
"§ 126. Transfer of funds and employees 
" (a) When a function, power, or duty or an activity of a department 
or agency of the Department of Defense is transferred or assigned to 
another department or agency of that department, balances of appro-
priations that the Secretary of Defense determines are available and 
needed to finance or discharge that function, power, duty, or activity, 
as the case may be, may, with the approval of the President, be trans-
ferred to the department or agency to which that function, power, 
duty, or activity, as the case may be, is transferred, and used for any 
purpose for which those appropriations were originally available. 
Balances of appropriations so transferred shall— 
" (1) be credited to any applicable appropriation account of the 
receiving department or agency; or 
"(2) be credited to a new account that may be established on 
the books of the Department of the Treasury; 
and be merged with the funds already credited to that account and 
accounted for as one fund. 
Balances of appropriations credited to 
an account under clause (1) are subject only to such limitations as 
are specifically applicable to that account. 
Balances of appropria-
tions credited to an account under clause (2) are subject only to such 
limitations as are applicable to the appropriations frbm which they 
are transferred. 
"(b) When a function, power, or duty or an activity of a depart-
ment or agency of the Department of Defense is transferred to another 
department or agency of that department, those civilian employees of 
the department or agency from which the transfer is made that the 
Secretary of Defense determines are needed to perform that function, 
power, or duty, or for that activity, as the case may be, may, with 
the approval of the Director of the Bureau of the Budget, be trans-
ferred to the department or agency to which that function, power, 
duty, or activity, as the case may be, is transferred. 
The authorized 
strmgth in civilian employees of a department or agency from which 
employees are transferred under this section is reduced by the number 
of employees so transferred. 
The authorized strength in civilian 
employees of a department or agency to which employees are trans-
ferred under this section is increased by the number of employees so 
transferred." 
76 STAT.] 
PUBLIC LAW 87-651-SEPT. 7,1962 
517 
(b) Chapter 3 of title 10, United States Code, is further amended 
lo use 121-123. 
by adding at the end of the analysis: 
"124. Combatant commands: establishment; composition; functions; adminis-
tration and support. 
"125. Functions, powers, and duties: transfer, reassignment, consolidation, or 
abolition. 
"126, Transfer of funds and employees." 
SEC. 202. Subtitle A of title 10, United States Code, is amended by 
10 use 101 et 
adding after Chapter 3 : 
**'9-
"CHAPTER 
4.—DEPARTMENT 
OF 
DEFENSE 
"Sec. 
"131. Executive department. 
"132. Seal. 
"133. Secretary of Defense: appointment; powers and duties; delegation by. 
"134. Deputy Secretary of Defense: appointment; powers and duties; precedence. 
"135. Director of Defense Research and Engineering: appointment; powers and 
duties; precedence. 
"136. Assistant Secretaries of Defense: appointment; powers and duties; prece-
dence. 
"137. General Counsel: appointpient; powers and duties. 
"§ 131. Executive department 
"The Department of Defense is an executive department of the 
United States. 
"§ 132. Seal 
"The Secretary of Defense shall have a seal for the Department of 
Defense. The design of the seal is subject to approval by the President. 
Judicial notice shall be taken of the seal. 
"§133. Secretary of Defense: appointment; powers and duties; 
delegation by 
" (a) There is a Secretary of Defense, who is the head of the Depart-
ment of Defense, appointed from civilian life by the President, by 
and with the advice and consent of the Senate. A person may not be 
appointed as Secretary of Defense within 10 years after relief from 
active duty as a commissioned officer of a regular component of an 
armed force. 
"(b) The Secretary is the principal assistant to the President in all 
matters relating to the Department of Defense. Subject to the direc-
tion of the President and to this title and section 401 of title 50, he 
has authority, direction, and control over the Department of Defense. 
"(c) The Secretary shall report annually in writing to the President 
and the Congress on the expenditures, work, and accomplishments of 
the Department of Defense during the period covered by the report, 
together with— 
"(1) a report from each military department on the expendi-
tures, work, and accomplishments of that department; 
"(2) itemized statements showing the savings of public funds, 
and the eliminations of unnecessary duplications, made under sec-
tion 125 of this title; 
Ante, p.sis. 
"(3) a report from the Reserve Forces Policy Board on the 
reserve programs of the Department of Defense, including a 
review of the effectiveness of chapters 51, 337, 361, 363, 549, 573, 
837, 861, and 863 of this title, as far as they apply to reserve 
officers; and 
" (4) such recommendations as he considers appropriate. 
" (d) Unless specifically prohibited by law, the Secretary may, with-
out being relieved of his responsibility, perform any of his functions 
or duties, or exercise any of his powers through, or with the aid of, 
such persons in, or organizations of, the Department of Defense as he 
may designate. 
Sia 
PUBUC LAW 87-651-SEPT. 7,1962 
[76 STAT. 
"§ 134. Deputy Secretary of Defense: appointment; powers and 
duties; precedence 
"(a) There is a Deputy Secretary of Defense, appointed from 
civilian life by the President, by and with the advice and consent of 
the Senate. A person may not be appointed as Deputy Secretary of 
Defense within 10 years after relief from active duty as a commis-
sioned officer of a regular component of an armed force. 
"(b) The Deputy Secretary shall perform such duties and exercise 
such powers as the Secretary of Defense may prescribe. 
The Deputy 
Secretary shall act for, and exercise the powers of, the Secretary when 
the Secretary is absent or disabled. 
"(c) The Deputy Secretary takes precedence in the Department of 
Defense immediately after the Secretary. 
*'§ 135. Director of Defense Research and Engineering: appoint-
ment; powers and duties; precedence 
"(a) There is a Director of Defense Research and Engineering, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate. 
"(b) The Director performs such duties relating to research and 
engineering as the Secretary of Defense may prescribe, including— 
f "(1) being the pripcipal adviser to the Secretary on scientific 
and technical matters; 
"(2) supervising all research and engineering activities in the 
Department of Defense; and 
"(3) directing, controlling, assigning, and reassigning research 
and engineering activities that the Secretary considers need 
centralized management. 
"(c) The Director takes precedence in the Department of Defense 
after the Secretary of Defense, the Deputy Secretary of Defense, and 
the Secretaries of the military departments. 
''§'136. Assistant Secretaries of Defense: appointment; powers 
and duties; precedence 
"(a) There are seven Assistant Secretaries of Defense, appointed 
from civilian life by the President, by and with the advice and consent 
of the Senate. 
"(b) The Assistant Secretaries shall perform such duties and exer-
cise such powers as the Secretary of Defense may prescribe. 
In 
addition, one of the Assistant Secretaries shall be the Comptroller 
of the Department of Defense and shall, subject to the authqrity, 
direction, and control of the Secretary— 
"(1) advise and assist the Secretary in performing such budg-
etary and fiscal functions and duties, and in exercising such 
budgetary and fiscal powers, as are needed to carry out the 
powers of the Secretary; 
"(2) supervise and direct the preparation of budget estimates 
of the Department of Defense; 
"(3) establish and supervise the execution of principles, poli-
cies, and procedures to be followed in connection with organiza-
tional aiid administrative matters relating to— 
"(A) the preparation and execution of budgets; 
v iv 
filii 
"(B) fiscal, cost, operating, and capital property account-
5
f
i
*
>
f
e
<
i
*
r oing; 
"(C) progress and statistical reporting; and 
,, 
"(D) internal audit; 
ibhi 
"(^r) establish and supervise the execution of policies and 
="" procedures relating to the expenditure and collection of funds 
administered by the Department of Defense; and 
76 STAT.] 
PUBLIC LAW 87-651--SEPT. 7, 1%2 
519 
"(5) establish uniform terminologies, classifications, and pro-
cedures concerning matters covered by clauses (l)-(4). 
"(c) Except as otherwise specifically provided by law, an Assistant 
Secretary may not issue an order to a military department unless— 
"(1) the Secretary of Defence has specifically delegated that 
authority to him in writing; and 
"(2) the order is issued through the Secretary of the military 
department concerned, or his designee. 
"(d) In carrying out subsection (c) and sections 3010, 3012(b) 
(last two sentences), 5011 (first two sentences), 5031(a) (last two 
sentences), 8010, and 8012(b) (last two sentences) of this title, the 
Post, p. 524. 
Secretary of each military department, his civilian assistants, and 
members of the armed forces under the jurisdiction of his department 
shall cooperate fully with personnel of the Office of the Secretary of 
Defense to achieve efficient administration of the Department of De-
fense and to carry out effectively the authority, direction, and control 
of the Secretary of Defense. 
"(e) The Assistant Secretaries take precedence in the Department 
of Defense after the Secretary, the Deputy Secretary of Defense, the 
Secretaries of the military departments and the Director of Defense 
Research and Engineering. 
"§ 137. General Counsel: appointment; powers and duties 
"(a) There is a General Counsel of the Department of Defense, 
appointed from civilian life by the President, by and with the advice 
and consent of the Senate. 
"(b) The General Counsel is the chief legal officer of the Depart-
ment of Defense. 
He shall perform such functions as the Secretary 
of Defense may prescribe. 
"(c) The General Counsel shall receive compensation at the rate 
prescribed by law for assistant secretaries of executive departments." 
SEC. 203. The chapter analysis of subtitle A and the chapter analysis 
of part I of subtitle A of title 10, United States (^ode, are amended 
1
0 use 101 et 
by inserting the following new item: 
*** 
"4. Department of Defense 
131" 
SEC. 204. Section 141 of title 10, United States Code, is amended by 
7OA stat. 6. 
adding at the end: 
"(e) After first informing the Secretary of Defense, a member of 
the Joint Chiefs of Staff may make such recommendations to Congress 
relating to the Department of Defense as he may consider appropriate." 
SEC. 205. (a) Chapter 41 of title 10, United States Code, is amended 
lo use 711-717. 
by adding after section 717: 
*'§ 718. Secretary of Defense: detail of officers to assist 
"Officers of the armed forces may be detailed for duty as assistants 
or personal aides to the Secretary of Defense. However, the Secretary 
may not establish a military staff other than that established by section 
141(a) of this title." 
.(b) Chapter 41 of title 10, United States Code, is further amended 
by adding at the end of the analysis: 
"718. Secretary of Defense: detail of officers to assist." 
SEC. 206. (a) Chapter 81 of title 10, United States Code, is amended 
1
0 use issi-
by inserting before section 1581: 
^5^^-
"§ 1580. Appointment generally 
"Subject to civil service laws, the Secretary of Defense may appoint, 
and fix the compensation of, such civilian employees as may be neces-
sary to perform the functions and duties, and exercise the powers, of 
the Department of Defense, other than those of the military depart-
ments." 
520 
PUBLIC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
1
0 use 1581- 
(b) Chapter 81 of title 10, United States Code, is further amended 
^^*^' 
by inserting at the beginning of the analysis: 
"1580. Appointment generally." 
1
0 use 2202. 
SEC. 207. (a) Chapter 131 of title 10, United States Code, is amended 
by adding after section 2202: 
"§ 2203. Budget estimates 
"To account for, and report, the cost of performance of readily 
identifiable functional programs and activities, with segregation of 
operatirtg and capital programs, budget estimates of the Department 
of Defense shall be prepared, presented, and justified, where prac-
ticable, and authorized programs shall be administered, in such form 
and manner ks the Secretary of Defense, subject to the authority and 
direction of the President, may prescribe. 
As far as practicable, 
budget estimates and authorized programs of the military departments 
shall be uniform and in readily comparable form. 
*'§ 2204. Obligation of appropriations 
"To prevent overdrafts and deficiencies in the fiscal year for which 
appropriations are made, appropriations made to the Department of 
Defense or to a military department, and reimbursements thereto, are 
available for obligation and expenditure only under scheduled rates of 
obligation, or changes thereto, that have been approved by the Secre-
tary of Defense. This section does not prohibit the Department of 
Defense from incurring a deficiency that it has been authorized by law 
to incur. 
"§2205. Availability of reimbursements 
"Reimbursements made to appropriations of the Department of 
Defense or a department or agency thereof under section 686 of title 
47 Stat. 417. 
31, or Other amounts paid by or on behalf of a department or agency 
of the Department of Defense to another department or agency of the 
Department of Defense, or by or on behalf of personnel of any depart-
ment or organization, for services rendered or supplies furnished, may 
be credited to authorized accounts. 
Funds so credited are available 
for obligation for the same period as the funds in the account so 
credited. 
Such an account shall be accounted for as one fund on the 
books of the Department of the Treasury. 
"§2206. Disbursement of funds of military department to cover 
obligation of another agency of Department of Defense 
"As far as authorized by the Secretary of Defense, a disbursing 
officer of a military department may, out of available advances, make 
disbursements to cover obligations in connection* with any function, 
power, or duty of another department or agency of the Department of 
Defense and charge those disbursements on vouchers, to the appro-
priate appropriation of that department or agency. 
Disbursements 
so made shall be adjusted in settling the accounts of the disbursing 
officer. 
"§ 2207. Expenditure of appropriations: limitation 
"Money appropriated to the Department of Defense may not be 
spent under a contract other than a contract for personal services 
unless that contract provides that— 
" (1) the United States may, by written notice to the contractor, 
terminate the right of the contractor to proceed under the contract 
if the Secretary concerned or his designee finds, after notice and 
hearing, that the contractor, or his agent or other representative, 
offered or gave any gratuity, such as entertainment or a gift, to 
an officer, official, or employee of the United States to obtain a 
contract or favorable treatment in the awarding, amending, or 
76 STAT.] 
PUBLIC LAW 87-651^EPT. 7, 1962 
521 
making of determinations concernmg the performance, of a con-
tract; and 
"(2) if a contract is terminated under clause (1), the United 
States has the same remedies against the contractor that it would 
have had if the contractor had breached the contract and, in 
addition to other damages, is entitled to exemplary damages in 
an amount at least three, but not more than 10, as determined by 
the Secretary or his designee, times the cost incurred by the 
contractor in giving gratuities to the officer, official, or employee 
concerned. 
The existence of facts upon which the Secretary makes findings under 
clause (1) may be reviewed by any competent court. 
"§ 2208. Working-capital funds 
"(a) To control and account more effectively for the cost of pro-
grams and work performed in the Department of Defense, the Secre-
tary of Defense may require the establishment of working-capital 
funds in the Department of Defense to— 
"(1) finance inventories of such supplies as he may designate; 
and 
"(2) 
proivide working capital for such 
industrial-type 
activities, and such commercial-type activities that provide com-
mon services within or among departments and agencies of the 
Department of Defense, as he may designate. 
"(b) Upon the request of the Secretary of Defense, the Secretary 
of the Treasury shall establish working-capital funds established 
under this section on the books of the Department of the Treasury. 
"(c) Working-capital funds shall be charged, when appropriate, 
with the cost of— 
"(1) supplies that are procured or otherwise acquired, manu-
factured, repaired, issued, or used; and 
" (2) services or work performed; 
including applicable administrative expenses, and be reimbursed from 
available appropriations or otherwise credited for those costs, includ-
ing applicable administrative expenses and costs of using equipment. 
"(d) The Secretary of Defense may provide capital for working-
capital funds by capitalizing inventories. 
If this method does not, 
in the determination of the Secretary of Defense, provide adequate 
amounts of working capital, such amounts as may be necessary may 
be appropriarted for that purpose. 
"(e) Subject to the authority and direction of the Secretary of 
Defense, the Secretary of each military department shall allocate 
responsibility for its functions, powers, and duties to accomplish the 
most economical and efficient organization and operation of the 
activities, and the most economical and efficient use of the inventories, 
for which working-capital funds are authorized by this section. 
"(f) The requisitioning agency may not incur a cost for supplies 
drawn from inventories, or services or work performed by industrial-
type or commercial-type activities for which working-capital funds 
may be established under this section, that is more than the amount 
of appropriations or other funds available for those purposes. 
"(g) The appraised value of supplies returned to working-capital 
funds by a department, activity, or agency may be charged to that 
fund. 
The proceeds thereof shall be credited to current applicable 
appropriations and are available for expenditure for the same pur-
poses that those appropriations are so available. 
Credits may not 
be made to appropriations under this subsection as the result of 
capitalization of inventories under subsection (d). 
"(h) The Secretary of Defense shall prescribe regulations govern-
ing the operation of activities and use of inventories authorized by 
522 
PUBLIC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
this section. 
The regulations may, if the needs of the Department of 
Defense require it and it is otherwise authorized by law, authorize 
supplies to be sold to, or services to be rendered or work performed 
for, persons outside the Department of Defense. 
Working-capital 
funds shall be reimbursed for supplies so sold, services so rendered, 
or work so performed by charges to applicable appropriations or 
payments received in cash. 
"(i) Reports annually shall be made to the President and to Con-
gress on the condition and operation of working-capital funds estab-
lished under this section. 
''§ 2209. Management funds 
"(a) To conduct economically and efficiently the operations of the 
Department of Defense that are financed by at least two appropria-
tions but whose costs cannot be immediately distributed and charged 
to those appropriations, there is the Army Management Fund, the 
Navy Management Fund, and the Air Force Management Fund, each 
within its respective department and under the direction of the Secre-
tary of that department. 
Each such fund shall consist of a corpus of 
$1,000,000 and such amounts as may be appropriated thereto from 
time to time. An account for an operation that is to be financed by 
such a fund may be established only with the approval of the Secre-
tary of Defense. 
"(b) Under such regulations as the Secretary of Defense may 
prescribe, expenditures may be made from a management fund for 
material (other than for stock), personal services, and services under 
contract. 
However, obligation may not be incurred against that 
fund if it is not chargeable to funds available under an appropriation 
of the department concerned or funds of another department or 
agency of the Department of Defense. 
The fund shall De promptly 
reimbursed from those funds for expenditures made from it. 
"(c) Notwithstanding any other provision of law, advances, by 
check or warrant, or reimbursements, may be made from available 
appropriations to a management fund on the basis of the estimated 
cost of a project. 
As adequate data becomes available, the estimated 
cost shall be revised and necessary adjustments made. 
Final adjust-
ment shall be made with the appropriate funds for the fiscal year in 
which the advances or reimbursements are made. 
Except as other-
wise provided by law, amounts advanced to management funds are 
available for obligation only during the fiscal year in which they are 
advanced. 
'^§2210. Proceeds of sales of supplies: credit to appropriations 
"(a) Current applicable appropriations of the Department of 
Defense may be credited with proceeds of the disposals of supplies 
that are not financed by stock funds established under section 2208 of 
this title. 
"(b) Obligations may, without regard to fiscal year limitations, be 
incurred against anticipated reimbursements to stock funds in such 
amounts and for such period as the Secretary of Defense, with the 
approval of the Director of the Bureau of the Budget, may determine 
to be necessary to maintain stock levels consistently with planned 
operations for the next fiscal year. 
"§ 2211. Reimbursement for equipment, material, or services fur-
nished members of the United Nations 
"Amounts paid by members of the United Nations for equipment 
or materials furnished, or services performed, in joint military oper-
ations shall be credited to appropriate appropriations of the Depart-
ment of Defense in the manner authorized by section 2392(d) of title 
75 Stat. 453. 
22." 
2357, 
76 STAT. ] 
PUBLIC LAW 87-651-SEPT. 7,1962 
523 
(b) Chapter 131 of title 10, United States Code, is further amended 
by adding at the end of the analysis: 
"2203. Budget estimates. 
" '':'^^ - ' ';^ "
V ' : 
'*" 
"2204. Obligation of appropriations. 
" 
"2205. Availability of reimbursements. 
"2206. Disbursement of funds of military' department to cover obligation of 
another agency of Department of Defense. 
' 
-J. 
"2207. Expenditure of appropriations: limitation. 
fi r" 
ru 
s :-L 
"2208. Working-capital funds. 
"2209. Management funds. 
"2210. Proceeds of sales of supplies: credit to appropriations. 
"2211. Reimbursement for equipment, material, or services furnished members 
of the United Nations." 
SEC. 208. (a) Chapter 139 of title 10, United States Code, is 
lo use 2352-
amended by adding after section 2357: 
"§ 2358. Research projects 
"Subject to approval by the President, the Secretary of Defense or 
his designee may engage in basic and api)lied research projects that are 
necessary to the responsibilities of the Department of Defense in the 
field of basic and applied research and development and that relate to 
weapons systems and other military needs. 
Subject to approval by 
the President, the Secretary or his designee may perform assigned re-
search and development projects— 
"(1) by contract.with educational or research institutions, pri-
vate businesses, or other agencies of the United States; 
" (2) through one or more of the military departments; or 
"(3) by usmg employees and consultants of the Department 
of Defense." 
(b) Chapter 139 of title 10, United States Code, is further amended 
by adding at the end of the analysis: 
"2358. Research projects." 
SEC. 209. (a) Chapter 159 of title 10, United States Code, is amended 
by adding after section 2680: 
*'§ 2681. Construction or acquisition of family housing and com-
munity facilities in foreign countries 
"(a) In addition to family housing and to community facilities that 
otherwise may be constructed or acquired by the Department of De-
fense, the Secretary of Defense may, with the approval of the Director 
of the Bureau of the Budget, construct, or acquire by lease or other-
wise, family housing to be occupied as public quartei-s, and community 
facilities, in foreign countries by using foreign curiencies that have a 
value of not more than $250,000,000 and that were acquired under sec-
lions 1691-1724 of title 7 or through other commodity transactions of 
68 stat. 454. 
the Commodity Credit Corporation. 
"(b) The Department of Defense shall pay the Commodity Credit 
(Corporation, from appropriations otherwise available for payment of 
quarters allowances for members of the armed forces and from appro-
priate allotments or rental charges for civilian employees, amounts 
equal to quarter's allowances or allotments otherwise payable to, or 
rental charges collected from, persons occupying housing constructed 
or acquired under this section, less amounts equal to the costs of main-
tenance and operation of that housing. However, the total payments 
so made may not be more than the dollar value of the foreign curren-
cies used for housing constructed or acquired under this section. 
"(c) The Secretary of Defense shall report to the Committees on 
Armed Services of the Senate and House of Representatives on the 
fifteenth day of January, April, July, and October of each year— 
" (1) the cost, number, and location of housing units constructed 
or acquired under this section during the three-month period 
covered by the report; and 
Ante, p. 511. 
524 
PUBUC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
10 u s e 2661-
2680. 
10 u s e 3011-
3018. 
70A Stat. 157, 
278, 488. 
70A Stat. 277. 
10 u s e 8011-
8018. 
"(2) the cost, number, and location of housing units that are 
intended to be constructed or acquired under this section during 
the following three-month period." 
(b) Chapter 159 of title 10, United States Code, is further amended 
by adding at the end of the analysis: 
"2681. Construction or acquisition of family housing and community facilities 
in foreign countries." 
SEC. 210. (a) Chapter 303 of title 10, United States Code, is 
amended by inserting before section 3011: 
''§3010. Organization 
"The Department of the Army is separately organized under the 
Secretary of the Army. 
It operates under the authority, direction, 
and control of the Secretary of Defense." 
(b) Chapter 303 of title 10, United States Code, is further amended 
by inserting at the beginning of the analysis: 
'vSOlO. Organization." 
SEC. 211. Sections 3012(b), 5031 (a),^nd 8012(b) of title 10, United 
States Code, are amended by adding the following at the end thereof: 
"The Secretary is responsible to the Secretary of Defense for the 
operation and efficiency of the Department. 
After first informing 
the Secretary of Defense, the Secretary may make such recommenda-
tions to Congress relating to the Department of Defense as he may 
consider appropriate." 
SEC. 212. The first sentence of section 5011 of title 10, United States 
Code, is amended to read as follows: "The Department of -the Navy 
is separately organized under the Secretary of the Navy. 
It operates 
under the authority, direction, and control of the Secretary of Defense. 
It is composed of the executive part of the Department of the Navy; 
the Headquarters, United States Marine Corps; the entire operating 
forces, including naval aviation, of the United States Navy and of 
the United States Marine Corps, and the reserve components of those 
operating forces; and all field activities, headquarters, forces, bases, 
installations, activities, and functions under the control or super-
vision of the Secretary of the Navy." 
SEC. 213. (a) Chapter 803 of title 10, United States Code, is 
amended by inserting before section 8011: 
''§8010. Organization 
"The Department of the Air Force is separately organized under 
the Secretary of the Air Force. It operates under the authority, 
direction, and control of the Secretary of Defense." 
(b) Chapter 803 of title 10, United States Code, is further amended 
by inserting at the beginning of the analysis: 
"8010. Organization." 
TITLE III—TECHNICAL PROVISIONS 
AMENDMENT 
TO 
UNIVERSAL 
MILITARY 
TRAINING 
AND 
SEItVICE 
ACT 
SEC. 301. Section 4(d) (3) of the Universal Military Training and 
70A Stat.630. 
Scrvice Act, as amended (50 App. U.S.C. 454(d) (3)), is amended to 
read as follows: 
"(3) Each person who, subsequent to June 19, 1951, and on or 
before August 9, 1955, is inducted, enlisted, or appointed, under 
any provision of law, in the Armed Forces, including the reserve 
components thereof, or in the National Security Training Corps, 
prior to attaining the twenty-sixth anniversary of his birth, shall 
be required to serve on active training and service in the Armed 
Forces or in training in the National Security Training Corps, 
76 STAT.] 
PUBLIC LAW 87-651-SEPT. 7,1962 
525 
and in a reserve component, for a total period of eight years, 
unless sooner discharged oh the grounds of personal hardship, in 
accordance with regulations and standards prescribed by the Sec-
retary of Defense (or the Secretary of the Treasury with respect 
to the United States Coast Guard). Each such person, on release 
from active training and service in the Armed Forces or from 
training in the National Security Training Corps, if physically 
and mentally qualified, shall be transferred to a reserve com-
ponent of the Armed Forces, and shall serve therein for the re-
mainder of the period which he is required to "serve under this 
paragraph and shall be deemed to be a member of the reserve 
component during that period. If the Secretary of the Army, 
the Secretary of the Navy, or the Secretary of the Air Force, or 
the Secretary of the Treasury with respect to the United States 
Coast Guard, determines that enlistment, enrollment, or appoint-
ment in, or assignment to, an organized unit of a reserve com-
ponent or an officers' training program of the armed force in 
which he served is available to, and can, without undue personal 
hardship, be filled by such a person, that person shall enlist, enroll, 
or accept appointment in, or accept assignment to, the organized 
unit or officers' training program, and serve satisfactorily therein." 
SEPARATION PAY OR READJUSTMENT PAT FOR RESERVES ON ACTIVE DUTY 
ON J U L Y 9, 1 9 5 6 
SEC. 302. A member of a reserve component who was serving on 
active duty on July 9, 1956, under an agreement entered into under 
section 235 of the Armed Forces Reserve Act of 1952 (66 Stat. 491), 
if he is involuntarily released from active duty before the expiration 
of that agreement, may elect to receive either— 
(1) the separation pay provided by that section; or 
(2) any readjustment payment to which he is entitled under 
section 687 of title 10, United States Code. 
70A Stat. 682. 
50 u s e 963. 
Ante, p. 507. 
RESOLUTIONS RELATING TO TRANSFERS, RE 
ASSIGNMENTS, CONSOLIDATIONS, 
OR ABOLITIONS OF COMBATANT FUNCTIONS UNDER SECTION 125 OF TITLE 
1 0 , UNITED STATES CODE 
SEC. 303. (a) For the purposes of this section, any resolution re-
ported to the Senate or the House of Representatives pursuant to the 
provisions of section 125 of title 10, United States Code, shall be 
treated for the purpose of consider^ion by either House, in the same 
manner as a resolution with respect to a reorganization plan reported 
by a committee within the meaning of the Reorganization Act of 1949 
as in effect on July 1, 1958 (5 U.S.C. 133z and the following), and 
shall be governed by the provisions applicable to the consideration of 
any such resolution by either House of the Congress as provided by 
sections 205 and 206 of that Act. 
(b) The provisions of this section are enacted by the Congress— 
(1) as an exercise of the rule-making power of the Senate and 
the House of Representatives, respectively, and as such they shall 
be considered as part of the rules of each House, respectively, and 
supersede other rules only to the extent that they are inconsistent 
therewith; and 
(2) with full recognition of the constitutional right of either 
House to change the rules (as far as relating to the procedure 
in that House) at anv time, in the same manner and to the same 
extent as in the case of any other rule of that House. 
Ante, p. 515. 
63 Stat. 203. 
526 
PUBUC LAW 87-651-SEPT. 7, 1962 
[76 STAT. 
COMPENSATION OF ASSISTANT SECRETARIES OF NAVY 
SEC. 304. The compensation of each of the Assistant Secretaries of 
the Navy is $20,000 a year. 
t 
EFFECTIVE DATES 
Anto, p. 509. 
SEC. 305. Section 108 of this Act is effective as of August 10, 1956, 
for all purposes. Section 304 of this Act is effective as of February 6, 
1959. 
SAVING AND SEVERABILITY CLAUSES 
SEC. 306. (a) Laws becoming effective after January 9, 1962, that 
are inconsistent with this Act shall be considered as superseding it to 
the extent of the inconsistency. 
(b) References made by other laws, regulations and orders to the 
laws shall be considered to be made to the corresponding provisions 
of this Act. 
(c) Actions taken under the replaced law shall be considered to 
have been taken under the corresponding provisions of this Act. 
(d) The enactment of this Act, except section 108, does not increase 
or decrease the pay or allowances, including retired and retainer pay, 
of any person. 
; 
REPEALS 
SEC. 307. The following laws are repealed except with respect to 
rights and duties that matured, penalties that were incurred, and pro-
ceedings that were begun, before the effective date of this Act: 
SCHEDULE OF LAWS REPEALED 
A. S T A T U T E S AT LARGE 
Date 
Chapter 
Section 
Volume 
Page 
1942—July 3 -
1947—July 26. 
1949—Aug. 10 
1951—Jan. 6.-
1952—July 9 -
July 14. 
1953—Aug. 1. 
1954—June 30. 
July 27. 
Aug. 31 
Sept. 1. 
Sept. 3. 
1955—July 15. 
1956—July 9.. 
Aug. 1. 
Aug. 3. 
Aug. 10 
484 
343 
412 
1213 
608 
726 
305 
432 
579 
1162 
1210 
1267 
368 
534 
862 
939 
1041 
201-204,302, 308(a) (less applicability to iS 2, 
101^103, 303). 
4 (1st 2 pars.), 5, 6,10(b), 11 (less § 411) 
703 
257(e). — 
401(b) 
645 (provisos) 
719-
509(b) 
407""II"-IIII^I^IIIII'"I""^II"IIIIIII" 
702(c).. 
507, 513(b)... 
, 
23l-l!!I^III^IIlIIIIII""'"III^I]I^I^IIIII] 
411(a) 
21 (less 1st sentence of § 302) 
70 
70 
70 
70A 
645. 
499,600,607,509. 
579-581, 586-590. 
1235. 
497. 
624. 
357. 
363. 
562. 
1006. 
1126. 
1189. 
360, 362. 
517. 
911. 
1017. 
629. 
Date 
Public 
Law 
Section 
Volume 
Page 
1967—Aug. 30. 
1958—Aug. 6-
Aug. 20. 
1959—Sept. 21 
Sept. 21 
86-241 
85-599 
86-685 
86-317 
86-324 
405 
3 (a), (b), 5(b), 9(a) (less last sentence of 
1203(b)(1)). 
610,611 
1 
- 
J 
— 
1 
•-
666. 
514-516, 518, 
621. 
662. 
589. 
596. 
Section 471a 
Year 
1953 
^.-
B. SECTION OF TITLE l4, UNITED STATES CODE 
C. BEpROANIZATION PLAN 
,. 
Plan No. 
6 
Section 
4, 6. 
1 
Volume 
67 
Page 
639. 
76 STAT.] 
PUBLIC LAW 87H552-^EPT. 10, 1962 
527 
' SEC. 308. The analysis of chapter 13 of title 14, United States Code, 
H use 461-511. 
is amended by striking out the following item: 
"471a. Motor vehicles; transportation on permanent change of station." 
Approved September 7, 1962. 
. 
, 
Public Law 87-652 
A N A C T 
September 10, 1962 
To authorize the Secretary of the Interior to convey certain lands in the State of 
[H. R. 7782] 
Maryland to the Prince Georges County Hospital, and for other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, That the Secretary 
Maryland, 
of the Interior is authorized to convey to the Prince Georges County c<!I:!]!t"^H^*°iua* 
Hosi^ital, upon payment of 50 per centum of the fair market value 
il^d con'^ey-
as determined by the Secretary plus the cost of making the con- «»ce. 
veyance, all right, title, and interest of the United States of America 
in and to the following described parcel of land which comprises a 
jjortion of the Baltimore-Washington Parkway, being situated in 
Prince Georges County, Maryland: 
Beginning at a stone at the end of the second line of tract numbered 
121, a conveyance from Einar Mortenson and Vera Mortenson to the 
United States of America recorded in liber 794, folio 197, among the 
land records of Prince Georges County, Maryland; 
thence with the third line of said conveyance, south 18 degrees 
18 minutes 50 seconds west 439.37 feet to a stone, a corner common 
to the United States of America and Prince Georges County 
Hospital properties and formerly a corner common to the prop-
erties of Prince Georges County Hospital, Einar and Vera 
Mortenson and Elbertie Foudray ; 
thence with the second line of tract numbered 120-B, a con-
veyance from Elbertie Foudray to the United States of America 
recorded in liber 794, folio 197, among the land records of Prince 
Georges County, Maryland, south 21 degrees 31 minutes 10 
seconds west 230.54 feet to an iron pipe a corner common to the 
United States of America, Prince Georges County Hospital and 
now or formerly Louis and William Smallwood properties and 
formerly a corner common to the properties of Prince Georges 
County Hospital, Louis and William Smallwood and Elbertie 
Foudray ; 
thence with the third line of tract numbered 120-B, north 88 
degrees 04 minutes 30 seconds west 431.10 feet to an iron pipe, a 
corner common to the United States of America and now or 
formerly Louis and William Smallwood properties and formerly 
a corner common to the properties of Louis and William Small-
wood and Elbertie Foudray ; 
thence through the lands of the United States of America, 
formerly the lands of Elbertie Foudray and Einar Mortenson 
and Vera Mortenson, north 46 degrees 38 minutes 27 seconds east 
898.82 feet to the point of beginning, and containing 3.225620 
acres, more or less and as shown on the plat bearing drawing 
numbered NCP 123-395, dated May 22, 1961, and filed among 
the land records of IS^ational Capital Parks. 
Approved September 10, 1962.