eeds of the service, the number of officers that may be Einuation on active duty. In the case of officers serving in this number shall not be less than 90 per centum of the ins in the continuation zone. In the case of officers servcommander this number shall not be less than 80 per umber of commanders in the continuation zone.

ned under this section shall consist of six or more officers ctive duty in any grade above the grade being considered

d is convened under this section, notice of the convening considered, and the number of officers to be continued on given the service at large. Any officer to be considered. send a communication through official channels to the later than the date the board convenes, inviting attenf record in the Coast Guard concerning himself. A comer this section may not criticize any officer or reflect upon , or motives.

of a board convened under this section shall swear or without prejudice or partiality, and having in view both officers and the efficiency of the Coast Guard, perform -on him.

ned under this section shall recommend for continuation officers in the zone whom the board considers best qualified

ned under this section shall submit its report to the SecI has acted contrary to law or regulation, the Secretary ort for proceedings in revision and resubmission to the s final review the Secretary shall submit the report of sident for his approval. Upon approval by the President, ers selected for continuation on active duty by the board sseminated to the service at large. Except as required I this section, the proceedings of the board shall not be -n not a member of the board.

y

shall prescribe regulations governing the detailed fficers in a designated zone will be selected for continua

ho is considered for continuation on active duty under O is not recommended for continuation in the approved shall not thereafter be eligible for promotion and, unless some other provision of law, shall be retired on June 30 which the report of the board is approved, or on the ch in which he completes twenty years of active service,

who is retired under this section shall be paid, in addition a lump-sum payment of $2,000, effective on the date of

ose retirement is required under this section shall be conses of subsection (m) of this section as being retired under

effective if such original election, change, or revocation is m onvening date of the board which considers him.

REPEALS

SEC. 4. (a) Sections 435, 436, 437, 439, and 440 of title 14, Uni re repealed.

(b) The Act of September 21, 1961 (75 Stat. 538), is repealed.

SAVING CLAUSES

SEC. 5. (a) Officers in each grade who have been recommen for temporary promotion under laws and regulations in effect the effective date of this Act but not promoted to the grade for recommended shall be placed on a list of selectees in order of t and they shall be promoted as if they had been selected for p approved report of a selection board convened under this Act.

(b) Officers who have been recommended for promotion to th admiral under laws and regulations in effect the day before the this Act but have not been promoted to that grade shall be pro had been so recommended in the approved report of a selection under this Act.

(c) The enactment of this Act does not terminate the app officer.

(d) An officer of the Regular Coast Guard who on the day bef date of this Act had been promoted to and was serving on a temporary grade higher than his permanent grade shall be con been promoted to that grade under section 271 of title 14, Uni (e) An officer of the Regular Coast Guard who was appo porary commissioned officer under any provision of law in eff effective date of this Act and who is serving on active duty sha to have been appointed under section 214 of title 14, United S subject to the provisions thereof.

(f) Each officer who would have been required to retire or under the provisions of section 288 of title 14, United States section been in effect on that date, shall be retired on the sixth month following the month in which this Act become under section 288 of title 14, United States Code, the retireme officer would be required after June 30, 1962, but less than lowing the effective date of this Act, his retirement shall be the last day of the twelfth month in which this Act becon June 30, 1964, whichever is earlier.

(g) The enactment of this Act does not increase or decre pay of any person retired on or prior to the effective date of (h) Notwithstanding section 1431 of title 10, United States C election, change, or revocation of an election, made under an officer who is retired under the provisions of section 282, 288 of title 14, United States Code, is effective if made pr day of the third month following the month in which this A

oller General to Chairman Magnuson; also there tions made by the Coast Guard for technical amendill be incorporated in the bill when and if it is

s follow.)

NSON,

THE SECRETARY OF THE TREASURY,
Washington, April 5, 1963.

ate,

NT: There is submitted herewith a draft of a proposed bill ions of title 14, United States Code, relating to the appointparation, and retirement of officers of the Coast Guard.

e proposed legislation is to establish a new officer promotion - Guard and to alleviate the present stagnation in promo

S.

cessity for the proposed legislation is caused by the present promotion to the grade of commander. Promotions to that been retarded to almost the 19th year of service. A similar ime of promotion is now starting in the grade of captain. o other grades.

use of this promotion stagnation is the wartime created the large group of officers who entered the service during e passage of this group into the grade of commander has use of the slowing of promotions. The basic cause, however, ent Coast Guard laws provide no effective means of forcing of this it has not been possible to take corrective action to the hump and speed up promotions. Without means of

e stagnation caused by the hump is expected shortly to morale problem, ineffective utilization of manpower, and iency of the service.

slation is necessary not only to prevent such results and e problem but also to prevent similar situations in the ncreasing complexity of Coast Guard duties and the exa science and technology, it is imperative that the service le and capable officer career management program. The ontained in this legislation will be the foundation for such 1 enable the Coast Guard to establish and maintain a attern which will attract and retain the officers of high rry out the service's varied duties. It will result in a more and a more efficient service.

sal provides for the adoption by the Coast Guard of a milar to the one presently in use by the Navy and Marine omparable to the uniform system being proposed for the

ise.

ild substitute selection and promotion of only the bestthe present modified seniority system under which all ‣ promoted. Officers who are not selected for promotion

enditure of funds in an amount of less than one-half of 1 per past Guard funding requirements.

It would be appreciated if you would lay the proposed enate. A similar bill has been transmitted to the Speaker o epresentatives.

The Department has been advised by the Bureau of the Budg o objection from the standpoint of the administration's progr ission of this proposed legislation to the Congress.

Sincerely yours,

Do

COMPTROLLER GENERAL OF THE UNITE

Washington

B-123777.

Hon. WARREN G. MAGNUSON,

Chairman, Committee on Commerce,
U.S. Senate.

DEAR MR. CHAIRMAN: Your letter of May 9, 1963, acknow requests our comments on S. 1460, to amend the provisions of States Code, relating to the appointment, promotion, separation, of officers of the Coast Guard, and for other purposes.

Questions relating to the selection, qualification and conditio officers of the uniformed services are appointed, promoted retired, involve matters of policy for determination by Congre ingly, our comments should be viewed in that light.

The bill generally would amend title 14 of the United States to establish a new 'system for the promotion, separation and the officers of the Coast Guard. The bill (sec. 2) contains a sp provision applicable to officers now out of line of promotion. of the bill, interim authority is provided to select a limited nu serving in the grades of captain and commanders for continu duty and those officers not recommended for continuation on ac be involuntarily retired on the basis there indicated. This in is somewhat similar to the so-called Navy hump law appro 1959 (73 Stat. 333), which also is of limited duration and w mandatory retirement of certain selected senior Regular office of captain or commander in the Navy and equivalent grades Corps, in order to permit a number of highly experienced office of lieutenant commander and equivalent Marine Corps office on active duty in a rank higher than their present grade. Senate Report 572 to accompany H.R. 4413 which became the a 1959. Section 4 repeals those provisions of title 14 relating t porary promotions and appointments, since such authority contained in the bill. Section 5 contains several savings provisi by the change from the seniority to the best qualified system.

The purpose and need for this proposal is stated in letter from of the Treasury dated April 5, 1963, and contained on page 7462 sional Record dated May 8, 1963. The Secretary states, amon that the purpose of the proposed legislation is to establish a ne

separating officers who are below standard or otherwise unfit. chat temporary authority is provided to selectively retire some ng in the grade of commander and captain in order to reduce ump and facilitate the transition to the proposed promotion 3 of section 1 of the bill generally parallel the statutory ovided for officers of the Navy and Marine Corps under titles er Personnel Act of 1947, 61 Stat. 795 (now codified in chs. 533, of title 10 U.S.C.). We note, however, that the new section (4) (as added by sec. 1 of the bill) relating to the eligibility nsideration for promotion, requires that a lieutenant and a lete 3 and 4 years' service, respectively, before he is eligible for next higher grade. This is in contrast to the present Navy a lieutenant and commander serve in grade 4 and 5 years, re they are eligible for promotion to the next higher grade. 1(b) (2) and (4).

section 271 (c) of title 14 of the United States Code (as prothe bill) relating to promotions, an ensign otherwise qualified d to the grade of lieutenant (junior grade) after he has com' active service in grade. Navy ensigns and second lieutenhe Corps, however, are not entitled to be promoted in the next il the third anniversary of their date of rank. See 10 U.S.C. o the statement in the Secretary of the Treasury's letter of tioned above, that the proposal "is also comparable to the unig proposed by the Department of Defense," and the statement sectional analysis of the bill (relating to clause 10 of sec. 1 The new system closely parallels that which is currently being military services of the Department of Defense as a result of tee studies," we understand that the proposed Department of n was transmitted to the Speaker of the House of Representaesident of the Senate on March 9, 1963. This legislative propparently has not as yet been introduced in either the House

is largely consistent with the similar statutory authority now Navy and Marine Corps in such matters. Aside from the d above, however, we have no special information as to the slation and, accordingly, we have no recommendation to make s enactment.

ours,

JOSEPH CAMPBELL, Comptroller General of the United States.

TLETT. You may proceed at your pleasure, Admiral.