[Congressional Record Volume 164, Number 92 (Tuesday, June 5, 2018)]
[Senate]
[Pages S2994-S2997]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           TEXT OF AMENDMENTS

  SA 2271. Mr. BOOKER submitted an amendment intended to be proposed by 
him to the bill H.R. 5515, to authorize appropriations for fiscal year 
2019 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the end of subtitle I of title VIII, add the following:

     SEC. 896. SCALE-UP MANUFACTURING INVESTMENT PROGRAM.

       (a) Short Title.--This section may be cited as the ``Scale-
     up Manufacturing Investment Company Act of 2018''.
       (b) Findings.--Congress finds that--
       (1) the strength of the United States manufacturing sector 
     is critical to the economy and the global competitiveness of 
     the United States;
       (2) United States manufacturers support 17,600,000 jobs in 
     the United States and account for 12 percent of the gross 
     domestic product of the United States;
       (3) access to capital is essential to growth and innovation 
     in the manufacturing sector;
       (4) small, emerging manufacturers face unique challenges 
     scaling commercial production in the United States, driving 
     many young manufacturers to other countries;
       (5) structural barriers exist in the United States that 
     prevent key investments in first-commercial manufacturing 
     facilities;
       (6) a healthy manufacturing sector is essential to 
     innovation economy of the United States, providing three-
     quarters of all private sector research and development, 
     employing nearly two-thirds of all research and development 
     workers, and producing the majority of all patents issued;
       (7) technology-intensive manufacturing small businesses, 
     some of which may be start-ups, with the potential to anchor 
     the next generation of manufacturing production where they 
     locate, face special challenges in accessing the capital to 
     move from idea to prototype and into commercial production;
       (8) already more capital intensive than software or 
     services start-ups, manufacturing start-ups and small 
     businesses face a ``second and wider valley of death'' when 
     it comes to raising the capital to scale up for commercial 
     production because of their capital intensity and novel 
     technology;
       (9) a number of countries, including the People's Republic 
     of China, South Korea, Germany, and Japan, provide publicly 
     funded incentives to attract these firms, recognizing that 
     despite the risks, the long-term benefits of establishing 
     leadership in emerging technology areas are large;
       (10) a study of manufacturing technology-intensive start-
     ups licensed by the Massachusetts Institute of Technology 
     found that almost all that scaled up into commercial 
     production did so overseas largely because of this far more 
     attractive capital and investment environment for 
     manufacturing start-ups, which is a huge loss for the future 
     of manufacturing in the United States;
       (11) if the United States loses the first generation of 
     production for a new technology or manufacturing process, 
     history suggests that it is an uphill battle once lost to 
     reclaim that capability here given the unique learning and 
     know-how acquired during the building of that first factory; 
     and
       (12) to ensure that manufacturing technologies invented in 
     the United States are ultimately made in the United States 
     will require addressing the unique capital access challenges 
     faced by these technology-intensive manufacturing start-ups.
       (c) Scale-up Manufacturing Investment Program.--
       (1) In general.--Title III of the Small Business Investment 
     Act of 1958 (15 U.S.C. 681 et seq.) is amended by adding at 
     the end the following:

      ``PART D--SCALE-UP MANUFACTURING INVESTMENT COMPANY PROGRAM

     ``SEC. 399A. DEFINITIONS.

       ``In this part--
       ``(1) the term `Associate Administrator' means the 
     Associate Administrator described in section 201;
       ``(2) the term `Council' means the Scale-Up Manufacturing 
     Investment Company Credit Council that may be established 
     under section 399K;
       ``(3) the term `participating investment fund' means a 
     privately managed investment fund licensed under section 399C 
     to operate under the program;
       ``(4) the term `private capital' has the meaning given that 
     term in section 103(9);
       ``(5) the term `program' means the scale-up manufacturing 
     investment company program established under section 399B;
       ``(6) the term `qualifying manufacturing project' means an 
     investment in a small and emerging manufacturer for the 
     purposes of building first commercial production facilities, 
     novel manufacturing capabilities, or the introduction into 
     production of emerging manufacturing technologies;
       ``(7) the term `small and emerging manufacturer' means any 
     advanced manufacturer that does not exceed the size standard 
     established by the Administrator for the applicable North 
     American Industry Classification System code under section 3 
     of the Small Business Act (15 U.S.C. 632); and
       ``(8) the term `small business concern owned and controlled 
     by socially and economically disadvantaged individuals' has 
     the meaning given that term in section 8(d)(3)(C) of the 
     Small Business Act (15 U.S.C. 637(d)(3)(C)).

     ``SEC. 399B. ESTABLISHMENT.

       ``(a) In General.--The Administrator shall establish and 
     carry out a scale-up manufacturing investment company program 
     under which the Administrator shall provide leverage to 
     participating investment funds to support debt and equity 
     investments in qualifying manufacturing projects of small and 
     emerging manufacturers in the United States.
       ``(b) Administration of Program.--The program shall be 
     administered by the Administrator acting through the 
     Associate Administrator.

     ``SEC. 399C. SELECTION OF PARTICIPATING INVESTMENT FUNDS.

       ``(a) Application for License.--
       ``(1) Submission of application.--An investment fund 
     desiring to receive a license to operate under the program 
     shall submit an application to the Administrator at such time 
     and in such manner as the Administrator may require.

[[Page S2995]]

       ``(2) Requirement.--An application submitted under 
     paragraph (1) shall demonstrate that the investment fund--
       ``(A) has the requisite minimum private capital raised from 
     investors; and
       ``(B) committed to operate under the program as of the date 
     of submission of the application.
       ``(3) Status.--Not later than 90 days after the initial 
     receipt by the Administrator of an application submitted 
     under paragraph (1), the Administrator shall provide the 
     applicant with a written report detailing the status of the 
     application and any requirements remaining for completion of 
     the application.
       ``(b) Selection.--
       ``(1) In general.--Not later than 180 days after the date 
     on which the Administrator receives an application under 
     subsection (a), the Administrator shall approve or deny the 
     application for a license to operate under the program and 
     notify the applicant of the determination.
       ``(2) Criteria.--The Administrator shall establish 
     selection criteria to evaluate applications to operate under 
     the program, which shall include, at a minimum--
       ``(A) the proven investment experience of the investment 
     fund manager;
       ``(B) the proven, balanced, and positive-investment track 
     record of a previous investment fund or the principals and 
     fund performance analysis measured against benchmarks and 
     peer funds;
       ``(C) the experience of the investment fund with 
     investments relating to small manufacturers and emerging 
     technologies related to advanced manufacturing;
       ``(D) an evaluation of the use of leverage by the 
     investment fund managers in past deals;
       ``(E) evidence indicating a cohesive and effective team and 
     team dynamic;
       ``(F) principals with strong reputations;
       ``(G) record of positive realizations and exits from 
     previous investments in the investment track record;
       ``(H) clearly articulated focus, investment thesis, 
     investment themes, and investment instruments to be used to 
     capitalize companies; and
       ``(I) fund structure and economics that reflects standard 
     practices and industry norms, such as--
       ``(i) preferred returns to limited partners;
       ``(ii) general partner carried interest allocations, fees 
     and vesting schedules;
       ``(iii) adequate fund infrastructure and supporting back 
     office services; and
       ``(iv) evidence of fund raising traction and capability.
       ``(c) Fees.--
       ``(1) In general.--The Administration shall prescribe fees 
     to be paid by each applicant for a license to operate as a 
     participating investment fund under the program.
       ``(2) Use of amounts.--Fees collected under this 
     subsection--
       ``(A) shall be deposited in the account for salaries and 
     expenses of the Administration; and
       ``(B) are authorized to be appropriated solely to cover the 
     costs of licensing examinations.

     ``SEC. 399D. PROVISION OF LEVERAGE TO PARTICIPATING 
                   INVESTMENT FUNDS.

       ``(a) In General.--Not later than 60 days after the date on 
     which the Administrator approves and issues a license under 
     section 399C to operate as a participating investment fund 
     under the program, the Administrator may provide not more 
     than $1 of leverage for every $1 of private capital raised by 
     the participating investment fund.
       ``(b) Maximum Leverage.--The maximum amount of outstanding 
     leverage made available in any given fiscal year--
       ``(1) to any participating investment fund may not exceed 
     $500,000,000; and
       ``(2) to all participating investment funds in aggregate 
     may not exceed $1,000,000,000.
       ``(c) Private Capital Requirement.--
       ``(1) In general.--The private capital of a participating 
     investment fund shall be not less than $250,000,000.
       ``(2) Financial institution investments.--Any national 
     bank, or any member bank of the Federal Reserve System or 
     nonmember insured bank to the extent permitted under 
     applicable State law, may invest in any 1 or more 
     participating investment funds, or in any entity established 
     to invest solely in participating investment funds, except 
     that in no event shall the total amount of such investments 
     of any such bank exceed 5 percent of the capital and surplus 
     of the bank.
       ``(d) Leverage Fee.--The Administrator shall charge and 
     collect a leverage fee of not more than 5.5 percent and not 
     less than 3 percent of the face amount of the leverage 
     issued.

     ``SEC. 399E. BORROWING POWER.

       ``(a) In General.--Each participating investment fund shall 
     have the authority to borrow money and issue debentures and 
     preferred securities, subject to such limitations and 
     regulations as the Administration may prescribe.
       ``(b) Limitation.--Of the leverage provided by the 
     Administrator to a participating investment fund under 
     section 399D--
       ``(1) not less than 70 percent shall be issued as 
     debentures under subsection (a); and
       ``(2) not more than 30 percent may be issued as preferred 
     securities under subsection (a).
       ``(c) Federal Financing Bank.--The Federal Financing Bank 
     may acquire a debenture issued by a participating investment 
     fund company under subsection (a).
       ``(d) Purchase and Guarantee by SBA.--
       ``(1) In general.--The Administration may purchase or 
     guarantee the timely payment of all principal and interest as 
     scheduled on debentures or preferred securities issued by 
     participating investment funds under subsection (a), subject 
     to such limitations and regulations as the Administration may 
     prescribe.
       ``(2) Full faith and credit.--The full faith and credit of 
     the United States is pledged to the payment of all amounts 
     which may be required to be paid under any guarantee under 
     this subsection.
       ``(e) Third-Party Debt.--The Administrator--
       ``(1) shall not permit a participating investment fund 
     having outstanding leverage to incur third-party debt that 
     would create or contribute to an unreasonable risk of default 
     or loss to the Federal Government; and
       ``(2) shall permit such participating investment funds to 
     incur third-party debt only on such terms and subject to such 
     conditions as may be established by the Administrator, by 
     regulation or otherwise.
       ``(f) Calculation of Subsidy Rate.--All fees, interest, and 
     profits received and retained by the Administration under 
     this section and section 399D shall be included in the 
     calculations made by the Director of the Office of Management 
     and Budget to offset the cost (as that term is defined in 
     section 502 of the Federal Credit Reform Act of 1990 (2 
     U.S.C. 661a)) to the Administration of purchasing and 
     guaranteeing debentures and preferred securities under this 
     Act.

     ``SEC. 399F. INVESTMENTS IN SMALL BUSINESS CONCERNS.

       ``(a) In General.--A participating investment fund shall 
     use leverage received under section 399D to make debt and 
     equity investments in small and emerging manufacturers to 
     carry out qualifying manufacturing projects.
       ``(b) Limitation.--Not more than 50 percent of the amount 
     provided by a participating investment fund to a small and 
     emerging manufacturer under subsection (a) for a qualifying 
     manufacturing project shall consist of leverage provided to 
     the participating investment fund under the program.
       ``(c) Portfolio Management.--A single investment made by a 
     participating investment fund under subsection (a) may not 
     exceed 10 percent of the total capital of the participating 
     investment fund, which includes private capital and any 
     leverage projected to be provided to the participating 
     investment fund, if applicable.
       ``(d) Increased Outreach.--The Administration shall issue 
     policy directives to provide for enhanced outreach efforts to 
     increase investments by participating investment funds in--
       ``(1) a small business concern owned and controlled by 
     socially and economically disadvantaged individuals; and
       ``(2) small business concerns owned and controlled by--
       ``(A) women;
       ``(B) veterans; and
       ``(C) individuals with disabilities.

     ``SEC. 399G. EXAMINATIONS AND VALUATIONS.

       ``(a) Examinations.--
       ``(1) In general.--Each participating investment fund shall 
     be subject to examinations made at the direction of the 
     Investment Division of the Administration in accordance with 
     this subsection.
       ``(2) Assistance of private sector entities.--Examinations 
     under this subsection may be conducted with the assistance of 
     a private sector entity that has the qualifications and the 
     expertise necessary to conduct such examinations.
       ``(3) Costs.--
       ``(A) Assessment.--
       ``(i) In general.--The Administrator may assess the cost of 
     examinations under this subsection, including compensation of 
     the examiners, against the participating investment fund 
     examined.
       ``(ii) Payment.--Any participating investment fund against 
     which the Administrator assesses costs under subparagraph (A) 
     shall pay such costs.
       ``(B) Deposit of funds.--Funds collected under this 
     subsection--
       ``(i) shall be deposited in the account for salaries and 
     expenses of the Administration; and
       ``(ii) are authorized to be appropriated solely to cover 
     the costs of examinations and other program oversight 
     activities.
       ``(b) Valuations.--
       ``(1) Frequency of valuations.--
       ``(A) In general.--Each participating investment fund shall 
     submit to the Administrator a written valuation of the loans 
     and investments of the participating investment fund not less 
     often than semiannually or otherwise upon the request of the 
     Administrator, except that any participating investment fund 
     with no leverage outstanding shall submit such valuations 
     annually, unless the Administrator determines otherwise.
       ``(B) Material adverse changes.--Not later than 30 days 
     after the end of a fiscal quarter of a participating 
     investment fund during which a material adverse change in the 
     aggregate valuation of the loans and investments or 
     operations of the participating investment fund occurs, the 
     participating investment fund shall notify the Administrator 
     in writing of the nature and extent of that change.
       ``(C) Independent certification.--
       ``(i) In general.--Not less than once during each fiscal 
     year, each participating investment fund shall submit to the 
     Administrator the financial statements of the participating 
     investment fund, audited by an

[[Page S2996]]

     independent certified public accountant approved by the 
     Administrator.
       ``(ii) Audit requirements.--Each audit conducted under 
     clause (i) shall include--

       ``(I) a review of the procedures and documentation used by 
     the participating investment fund in preparing the valuations 
     required by this subsection; and
       ``(II) a statement by the independent certified public 
     accountant that such valuations were prepared in conformity 
     with the valuation criteria applicable to the participating 
     investment fund established in accordance with paragraph (2).

       ``(2) Valuation criteria.--Each valuation submitted under 
     this subsection shall be prepared by the participating 
     investment fund in accordance with valuation criteria, which 
     shall--
       ``(A) be established or approved by the Administrator; and
       ``(B) include appropriate safeguards to ensure that the 
     noncash assets of a participating investment fund are not 
     overvalued.

     ``SEC. 399H. MISCELLANEOUS.

       ``The Administrator may take such action as set forth in 
     sections 309, 311, 312, 314, 315, and 316 and an owner 
     (including a member, partner, or shareholder), officer, 
     director, employee, agent, or other participant in the 
     management or conduct of the affairs of a participating 
     investment fund shall be subject to the requirements of such 
     sections.

     ``SEC. 399I. VIOLATIONS; REMOVAL OR SUSPENSION OF MANAGEMENT 
                   OFFICIALS.

       ``(a) Violations.--If any participating investment fund 
     violates or fails to comply with any of the provisions of 
     this part or of regulations prescribed hereunder, all of its 
     rights, privileges, and franchises derived therefrom may 
     thereby be forfeited. Before any such participating 
     investment fund shall be declared dissolved, or its rights, 
     privileges, and franchises forfeited, any noncompliance with 
     or violation of this Act shall be determined and adjudged by 
     a court of the United States of competent jurisdiction in a 
     suit brought for that purpose in the district, territory, or 
     other place subject to the jurisdiction of the United States, 
     in which the principal office of such participating 
     investment fund is located. Any such suit shall be brought by 
     the United States at the instance of the Administration or 
     the Attorney General.
       ``(b) Suspension of Management Officials.--Using the 
     procedures for removing or suspending a director or an 
     officer of a licensee set forth in section 313, the 
     Administrator may remove or suspend any management official 
     of a participating investment fund.

     ``SEC. 399J. REPORTS.

       ``Each participating investment fund shall, on a semi-
     annual basis, provide to the Administrator such information 
     as the Administrator may require, including--
       ``(1) information related to the measurement criteria that 
     the participating investment fund proposed in the application 
     for the program;
       ``(2) information on the use of leverage by the 
     participating investment fund; and
       ``(3) in each case in which the participating investment 
     fund makes an investment in a small business concern that is 
     not a small business concern owned and controlled by socially 
     and economically disadvantaged individuals, a report on the 
     number and percentage of employees of the small business 
     concern who are socially and economically disadvantaged 
     individuals.

     ``SEC. 399K. SCALE-UP MANUFACTURING INVESTMENT COMPANY CREDIT 
                   COUNCIL.

       ``(a) Establishment.--The Administrator may establish a 
     Scale-Up Manufacturing Investment Company Credit Council, 
     which, if established, shall consist of 5 members from the 
     private sector with aggregate and collective experience in 
     technology development, manufacturing financing, and capital 
     investment.
       ``(b) Duties.--The Council, if established, shall advise 
     the Administrator on carrying out the program, which shall 
     include--
       ``(1) providing advice from time to time on advanced scale-
     up manufacturing industries; and
       ``(2) establishing and conducting an annual briefing 
     beginning not later than 18 months after the date of 
     enactment of this section.

     ``SEC. 399L. REGULATIONS.

       ``The Administrator may issue such regulations as the 
     Administrator determines necessary to carry out the 
     provisions of this part in accordance with its purposes.''.
       (2) Bank holding company act of 1956.--Section 13(d)(1)(E) 
     of the Bank Holding Company Act of 1956 (12 U.S.C. 
     1851(d)(1)(E)) is amended by inserting ``investments in 1 or 
     more participating investment funds, as defined in section 
     399A of the Small Business Investment Act of 1958,'' before 
     ``or investments''.
       (3) Ineligibility for bankruptcy.--Section 109(b)(2) of 
     title 11, United States Code, is amended by inserting ``a 
     participating investment fund as defined in section 399A of 
     the Small Business Investment Act of 1958,'' before ``credit 
     union''.
       (4) Eligibility for cra credit.--Section 804 of the 
     Community Reinvestment Act of 1977 (12 U.S.C. 2903) is 
     amended by adding at the end the following:
       ``(e) Investments in Participating Investment Funds.--In 
     assessing and taking into account, under subsection (a), the 
     record of a financial institution, the appropriate Federal 
     financial supervisory agency shall consider, as a factor, 
     investments made in 1 or more participating investment funds 
     under part D of the Small Business Investment Act of 1958.''.
                                 ______
                                 
  SA 2272. Mr. MORAN (for himself and Mr. Roberts) submitted an 
amendment intended to be proposed by him to the bill H.R. 5515, to 
authorize appropriations for fiscal year 2019 for military activities 
of the Department of Defense, for military construction, and for 
defense activities of the Department of Energy, to prescribe military 
personnel strengths for such fiscal year, and for other purposes; which 
was ordered to lie on the table; as follows:

       At the end of subtitle G of title X, add the following:

     SEC. 10___. MODIFICATION OF FIRST DIVISION MONUMENT.

       (a) Authorization.--The Society of the First Infantry 
     Division (which is an organization described in section 
     501(c)(3) of the Internal Revenue Code of 1986 and exempt 
     from taxation under section 501(a) of that Code), may make 
     modifications to the First Division Monument located on 
     Federal land in President's Park in Washington, DC, that was 
     set aside for memorial purposes of the First Infantry 
     Division.
       (b) Inclusions.--The modifications authorized under 
     subsection (a) may include the construction of additional 
     plaques, and the construction of additional stone plinths on 
     which to place the plaques, to honor the members of the First 
     Infantry Division who paid the ultimate sacrifice during 
     United States operations, including Operation Desert Storm, 
     Operation Iraqi Freedom and New Dawn, and Operation Enduring 
     Freedom.
       (c) Required Consultation.--The First Infantry Division at 
     the Department of the Army shall collaborate with the 
     Secretary of Defense to provide the list of the not more than 
     5,000 names of members of the First Infantry Division to be 
     added to the Monument.
       (d) Application of Commemorative Works Act.--Subsections 
     (b) and (c) of section 8903 of title 40, United States Code 
     (commonly known as the ``Commemorative Works Act''), shall 
     not apply to activities authorized under this section.
       (e) Funding.--Federal funds may not be used to pay any 
     costs of the activities authorized under this section.
                                 ______
                                 
  SA 2273. Mr. ROUNDS submitted an amendment intended to be proposed by 
him to the bill H.R. 5515, to authorize appropriations for fiscal year 
2019 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. ___. REPORT ON PARTICIPATION IN THE TRANSITION 
                   ASSISTANCE PROGRAM.

       (a) Report Required.--Not later than February 28, 2019, the 
     Secretary of Defense shall submit to the Committees on Armed 
     Services of the Senate and the House of Representatives a 
     report on participation in the Transition Assistance Program 
     under section 1144 of title 10, United States Code, by 
     members of the Armed Forces.
       (b) Elements.--The report required by subsection (a) shall 
     include the following:
       (1) Information on the participation of members of the 
     Armed Forces in the Transition Assistance Program during 
     2018, including the following:
       (A) The number of members who were eligible for 
     participation in the Program during 2018, in aggregate and by 
     component of the Armed Forces.
       (B) The number of members who participated in the Program 
     during 2018, in aggregate and by component of the Armed 
     Forces, for each service as follows:
       (i) Preseparation counseling provided by the Department of 
     Defense.
       (ii) Briefings provided by the Department of Veterans 
     Affairs.
       (iii) Employment workshops provided by the Department of 
     Labor.
       (C) The number of members who did not participate in the 
     Program during 2018 due to a waiver of the participation 
     requirement under section 114(c)(2) of title 10, United Stats 
     Code, for each service set forth in subparagraph (B).
       (2) Such recommendations for legislative or administrative 
     action as the Secretary of Defense, in consultation with the 
     Secretary of Labor, the Secretary of Veterans Affairs, and 
     the Secretary of Homeland Security, considers appropriate to 
     increase participation of members of the Armed Forces in each 
     service set forth in paragraph (1)(B).
       (3) Assessments of the Transition Assistance Program by 
     members of the Armed Forces who participated in the Program 
     during 2018, including the following:
       (A) A summary of the data obtained by the Department of 
     Defense through assessments of the Program by participants in 
     the Program during 2018, including data obtained through the 
     assessments as follows:
       (i) The Transition Goals Plans Success (GPS) Participant 
     Assessment.
       (ii) Status of Forces Surveys (SOFS).
       (B) A summary of the conclusions derived by the Secretary 
     of Defense from the data described in subparagraph (A).

[[Page S2997]]

       (4) Such recommendations for improvements to the Transition 
     Assistance Program as the Secretary of Defense considers 
     appropriate in light of the data described by paragraph 
     (3)(A) and the conclusions described by paragraph (3)(B), 
     including recommendations for such legislative or 
     administrative action as the Secretary considers appropriate 
     to carry out such improvements.
                                 ______
                                 
  SA 2274. Mr. ROUNDS submitted an amendment intended to be proposed by 
him to the bill H.R. 5515, to authorize appropriations for fiscal year 
2019 for military activities of the Department of Defense, for military 
construction, and for defense activities of the Department of Energy, 
to prescribe military personnel strengths for such fiscal year, and for 
other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place in title X, insert the following:

     SEC. __. PROTECTING MILITARY FAMILIES' 2ND AMENDMENT RIGHTS.

       (a) Receipt of Firearm or Ammunition by Spouse of Member of 
     the Armed Forces at a Duty Station of the Member Outside the 
     United States.--Section 925(a)(3) of title 18, United States 
     Code, is amended--
       (1) by inserting ``, or to the spouse of such a member,'' 
     before ``or to'';
       (2) by striking ``members,'' and inserting ``members and 
     spouses,'';
       (3) by striking ``members or'' and inserting ``members, 
     spouses, or''; and
       (4) by striking ``member or'' and inserting ``member, 
     spouse, or''.
       (b) Residency of Spouses of Members of the Armed Forces to 
     Be Determined on the Same Basis as the Residency of Such 
     Members for Purposes of Federal Firearms Laws.--Section 
     921(b) of title 18, United States Code, is amended to read as 
     follows:
       ``(b) For purposes of this chapter, a member of the Armed 
     Forces on active duty, or a spouse of such a member, is a 
     resident of--
       ``(1) the State in which the member or spouse maintains 
     legal residence;
       ``(2) the State in which the permanent duty station of the 
     member is located; and
       ``(3) the State in which the member maintains a place of 
     abode from which the member commutes each day to the 
     permanent duty station of the member.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to conduct engaged in after the 6-month period 
     that begins on the date of the enactment of this Act.

                          ____________________