110 STAT. 2692 PUBLIC LAW 104-201—SEPT. 23, 1996 Naval Reserve, which is headed by a Chief of Naval Reserve. The Chief of Naval Reserve— "(1) is the principal adviser on Naval Reserve matters to the Chief of Naval Operations; and "(2) is the commander of the Naval Reserve Force. President. "(b) APPOINTMENT.— The President, by and with the advice and consent of the Senate, shall appoint the Chief of Naval Reserve from officers who— "(1) have had at least 10 years of commissioned service; "(2) are in a grade above captain; and "(3) have been recommended by the Secretary of the Navy. "(c) GRADE.— (1) The Chief of Naval Reserve holds office for a term determined by the Chief of Naval Operations, normally four years, but may be removed for cause at any time. He is eligible to succeed himself. "(2) The Chief of Naval Reserve, while so serving, has a grade above rear admiral (lower half), without vacating the officer's permanent grade. "(d) BUDGET.— The Chief of Naval Reserve is the official within the executive part of the Department of the Navy who, subject to the authority, direction, and control of the Secretary of the Navy and the Chief of Naval Operations, is responsible for preparation, justification, and execution of the personnel, operation and maintenance, and construction budgets for the Naval Reserve. As such, the Chief of Naval Reserve is the director and functional manager of appropriations made for the Naval Reserve in those areas. "(e) ANNUAL REPORT.—(1) The Chief of Naval Reserve shall submit to the Secretary of Defense, through the Secretary of the Navy, an annual report on the state of the Naval Reserve and the ability of the Naval Reserve to meet its missions. The report shall be prepared in conjunction with the Chief of Naval Operations and may be submitted in classified and unclassified versions. "(2) The Secretary of Defense shall transmit the annual report of the Chief of Naval Reserve under paragraph (1) to Congress, together with such comments on the report as the Secretary considers appropriate. The report shall be transmitted at the same time each year that the annual report of the Secretary under section 113 of this title is submitted to Congress.". (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 5142a the following new item: "5143. Office of Naval Reserve: appointment of Chief. ". (c) CHIEF OF MARINE FORCES RESERVE. —(1) Chapter 513 of such title is amended by inserting after section 5143 (as added by subsection (b)) the following new section: "§5144. Office of Marine Forces Reserve: appointment of Commander "(a) ESTABLISHMENT OF OFFICE; COMMANDER, MARINE FORCES RESERVE.— There is in the executive part of the Department of the Navy an Office of the Marine Forces Reserve, which is headed by the Commander, Marine Forces Reserve. The Commander, Marine Forces Reserve, is the principal adviser to the Commandant on Marine Forces Reserve matters.