A bill to amend title 32, United States Code, to modify the system of accountability and responsibility for property of the United States issued to the National Guard.

Directs the Secretary of the Army, with respect to the Army National Guard, and the Secretary of the Air Force, with respect to the Air National Guard, to prescribe regulations for the accounting of property issued to the Guard and the fixing of responsibility for that property.

Provides that individual members of the Guard may be held liable for lost, damaged, or destroyed property if under similar circumstances active service personnel would be so liable. Stipulates that such liability shall be taken out of pay unless cancelled by the respective Secretary.

Provides that a State, or territory (including the District of Columbia, Puerto Rico, and the Canal Zone) may be held liable for property lost, damaged, or destroyed incident to such jurisdictions' authorized use. Stipulates that such liability shall be paid from non-Federal funds.