-CITE-

10 USC CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER

MORALE, WELFARE, AND RECREATION ACTIVITIES 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

.

-HEAD-

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-MISC1-

Sec.

(2481. Renumbered.)

2482. Commissary stores: operation.

2482a. Nonappropriated fund instrumentalities: contracts with other

agencies and instrumentalities to provide and obtain goods and

services.

2483. Commissary stores: reimbursement for use of commissary

facilities by military departments.

2484. Commissary stores: use of appropriated funds to cover

operating expenses.

2485. Donation of unusable food: commissary stores and other

activities.

2486. Commissary stores: merchandise that may be sold; uniform

surcharges and pricing.

2487. Commissary stores: release of certain commercially valuable

information to the public.

2488. Nonappropriated fund instrumentalities: purchase of alcoholic

beverages.

2489. Overseas package stores: treatment of United States wines.

2489a. Sale or rental of sexually explicit material prohibited.

(2490. Renumbered.)

2490a. Combined exchange and commissary stores.

(2491. Renumbered.)

2492. Overseas commissary and exchange stores: access and purchase

restrictions.

2493. Fisher Houses: administration as nonappropriated fund

instrumentality.

2494. Uniform funding and management of morale, welfare, and

recreation programs.

AMENDMENTS

2002 - Pub. L. 107-314, div. A, title III, Sec. 323(b), Dec. 2,

2002, 116 Stat. 2511, added item 2494.

2001 - Pub. L. 107-107, div. A, title III, Sec. 332(b), 333(b),

Dec. 28, 2001, 115 Stat. 1058, 1059, added item 2483 and

substituted ''Commissary stores: release of certain commercially

valuable information to the public'' for ''Commissary stores:

limitations on release of sales information'' in item 2487.

2000 - Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec.

331(a)(2)), Oct. 30, 2000, 114 Stat. 1654, 1654A-59, added item

2484 and struck out former item 2484 ''Commissary stores:

expenses''.

1998 - Pub. L. 105-261, div. A, title III, Sec. 365(b), title

IX, Sec. 906(a)(2), Oct. 17, 1998, 112 Stat. 1987, 2095, added

items 2492 and 2493.

1997 - Pub. L. 105-85, div. A, title III, Sec. 371(a)(1),

(c)(1), Nov. 18, 1997, 111 Stat. 1705, substituted ''COMMISSARIES

AND EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION

ACTIVITIES'' for ''UTILITIES AND SERVICES'' as chapter heading and

struck out items 2481 ''Utilities and services: sale; expansion and

extension of systems and facilities'', 2483 ''Sale of electricity

from alternate energy and cogeneration production facilities'', and

2490 ''Utility services: furnishing for certain buildings''.

1996 - Pub. L. 104-201, div. A, title III, Sec. 341(a)(2),

343(a)(2), Sept. 23, 1996, 110 Stat. 2489, 2490, added items 2482a

and 2489a.

Pub. L. 104-106, div. A, title III, Sec. 331(b), 336(a)(2), Feb.

10, 1996, 110 Stat. 260, 264, substituted ''Commissary stores:

operation'' for ''Commissary stores: private operation'' in item

2482 and added item 2490a.

1993 - Pub. L. 103-160, div. A, title XI, Sec. 1182(a)(8)(B),

Nov. 30, 1993, 107 Stat. 1771, struck out item 2490a

''Nonappropriated fund instrumentalities: financial management and

use of nonappropriated funds''.

1992 - Pub. L. 102-484, div. A, title III, Sec. 362(b),

364(b)(1), Oct. 23, 1992, 106 Stat. 2380, 2382, substituted

''limitations'' for ''limitation'' in item 2487 and added item

2490a.

1990 - Pub. L. 101-510, div. A, title III, Sec. 324(b)(2), Nov.

5, 1990, 104 Stat. 1531, amended item 2485 generally, substituting

''Donation of unusable food: commissary stores and other

activities'' for ''Commissary stores: donation of unmarketable

food''.

1988 - Pub. L. 100-370, Sec. 1(j)(2), July 19, 1988, 102 Stat.

848, added item 2490.

1987 - Pub. L. 100-180, div. A, title III, Sec. 311(a)(2),

313(a)(3), Dec. 4, 1987, 101 Stat. 1073, 1074, inserted ''and

pricing'' in item 2486 and added item 2489.

1986 - Pub. L. 99-661, div. A, title III, Sec. 313(c), Nov. 14,

1986, 100 Stat. 3853, added items 2486, 2487, and 2488.

1985 - Pub. L. 99-145, title XIV, Sec. 1460(b), Nov. 8, 1985, 99

Stat. 765, added item 2485.

1984 - Pub. L. 98-525, title XIV, Sec. 1401(i)(2), Oct. 19, 1984,

98 Stat. 2620, added item 2484.

Pub. L. 98-407, title VIII, Sec. 810(b), Aug. 28, 1984, 98 Stat.

1523, added item 2483.

-CITE-

10 USC Sec. 2481 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

(Sec. 2481. Renumbered Sec. 2686)

-CITE-

10 USC Sec. 2482 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2482. Commissary stores: operation

-STATUTE-

(a) Private Operation. - Private persons may operate commissary

stores under such regulations as the Secretary of Defense may

approve. A contract with a private person for the operation of any

commissary store may not require or permit the contractor to carry

out functions for the procurement of products to be sold in the

store or to engage in functions relating to the overall management

of a commissary system or the management of any such store. Such

functions shall be carried out by personnel of the Department of

Defense under regulations approved by the Secretary of Defense.

(b) Contracts With Other Agencies and Instrumentalities. - (1)

The Defense Commissary Agency, and any other agency of the

Department of Defense that supports the operation of the commissary

system, may enter into a contract or other agreement with another

element of the Department of Defense or with another Federal

department, agency, or instrumentality to provide or obtain

services beneficial to the efficient management and operation of

the commissary system. However, the Defense Commissary Agency may

not pay for any such service provided by the United States

Transportation Command any amount that exceeds the price at which

the service could be procured through full and open competition, as

such term is defined in section 4(6) of the Office of Federal

Procurement Policy Act (41 U.S.C. 403(6)).

(2) A commissary store operated by a nonappropriated fund

instrumentality of the Department of Defense shall be operated in

accordance with section 2484 of this title. Subject to such

section, the Secretary of Defense may authorize a transfer of

goods, supplies, and facilities of, and funds appropriated for, the

Defense Commissary Agency or any other agency of the Department of

Defense that supports the operation of the commissary system to a

nonappropriated fund instrumentality for the operation of a

commissary store.

(c) Governing Board. - (1) Notwithstanding section 192(d) of this

title, the Secretary of Defense shall establish a governing board

for the commissary system to provide advice to the Secretary

regarding the prudent operation of the commissary system and to

assist in the overall supervision of the Defense Commissary Agency.

The Secretary may authorize the board to have such supervisory

authority as the Secretary considers appropriate to permit the

board to carry out its responsibilities.

(2) The Secretary of Defense shall determine the membership of

the governing board, which shall include, at a minimum, appropriate

representatives from each military department.

(3) The governing board shall be accountable only to the

Secretary of Defense and to the civilian officer of the Department

of Defense who is assigned the responsibility for the overall

supervision of the Defense Commissary Agency pursuant to section

192(a) of this title. The Director of the Defense Commissary

Agency shall be accountable to and report to the board.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 141; Pub. L. 100-456, div. A,

title III, Sec. 321, Sept. 29, 1988, 102 Stat. 1952; Pub. L.

104-106, div. A, title III, Sec. 331(a), Feb. 10, 1996, 110 Stat.

260; Pub. L. 104-201, div. A, title III, Sec. 341(b), Sept. 23,

1996, 110 Stat. 2489; Pub. L. 105-261, div. A, title III, Sec.

361(b), 363(a), Oct. 17, 1998, 112 Stat. 1984, 1985.)

-MISC1-

Historical and Revision Notes

---------------------------------------------------------------------

Revised section Source (U.S. Code) Source (Statutes at

Large)

---------------------------------------------------------------------

2482 (Uncodified). Aug. 1, 1953, ch.

305, Sec. 624 (last

proviso), 67 Stat.

353.

-------------------------------

This section is codified as permanent law on the basis of an

opinion of the Assistant General Counsel (Fiscal Matters),

Department of Defense, dated September 28, 1954. The words ''and

privately owned organizations'' are omitted as surplusage since

under 1 U.S.C. 1 ''person'' includes such an organization.

AMENDMENTS

1998 - Subsec. (b)(1). Pub. L. 105-261, Sec. 363(a), inserted at

end ''However, the Defense Commissary Agency may not pay for any

such service provided by the United States Transportation Command

any amount that exceeds the price at which the service could be

procured through full and open competition, as such term is defined

in section 4(6) of the Office of Federal Procurement Policy Act (41

U.S.C. 403(6)).''

Subsec. (c). Pub. L. 105-261, Sec. 361(b), added subsec. (c).

1996 - Pub. L. 104-106 struck out ''private'' after ''stores:''

in section catchline, designated existing text as subsec. (a),

inserted heading, and added subsec. (b).

Subsec. (b)(1). Pub. L. 104-201 substituted ''another element of

the Department of Defense or with another Federal department,

agency, or instrumentality to provide or obtain services'' for

''another department, agency, or instrumentality of the Department

of Defense or another Federal agency to provide services''.

1988 - Pub. L. 100-456 inserted at end ''A contract with a

private person for the operation of any commissary store may not

require or permit the contractor to carry out functions for the

procurement of products to be sold in the store or to engage in

functions relating to the overall management of a commissary system

or the management of any such store. Such functions shall be

carried out by personnel of the Department of Defense under

regulations approved by the Secretary of Defense.''

EFFECTIVE DATE OF 1998 AMENDMENT

Pub. L. 105-261, div. A, title III, Sec. 363(b), Oct. 17, 1998,

112 Stat. 1986, provided that: ''The amendment made by subsection

(a) (amending this section) shall apply with respect to services

provided or obtained on or after the date of the enactment of this

Act (Oct. 17, 1998).''

PROHIBITION ON CONSOLIDATION OR OTHER ORGANIZATIONAL CHANGES OF

DEPARTMENT OF DEFENSE RETAIL SYSTEMS

Pub. L. 105-261, div. A, title III, Sec. 367, Oct. 17, 1998, 112

Stat. 1987, provided that:

''(a) Defense Retail Systems Defined. - For purposes of this

section, the term 'defense retail systems' means the defense

commissary system and exchange stores and other revenue-generating

facilities operated by nonappropriated fund activities of the

Department of Defense for the morale, welfare, and recreation of

members of the Armed Forces.

''(b) Prohibition. - The operation and administration of the

defense retail systems may not be consolidated or otherwise merged

unless the consolidation or merger is specifically authorized by a

law enacted after the date of the enactment of this Act (Oct. 17,

1998).

''(c) Effect on Existing Study. - Nothing in this section shall

be construed to prohibit the study of defense retail systems, known

as the 'Joint Exchange Due Diligence Study', which is underway on

the date of the enactment of this Act pursuant to a contract

awarded by the Department of the Navy on April 21, 1998, except

that any recommendation contained in the completed study regarding

the operation or administration of the defense retail systems may

not be implemented unless implementation of the recommendation is

specifically authorized by a law enacted after the date of the

enactment of this Act.''

DEMONSTRATION PROGRAM FOR OPERATION OF CERTAIN COMMISSARY STORES BY

NONAPPROPRIATED FUND INSTRUMENTALITIES

Pub. L. 102-484, div. A, title III, Sec. 363, Oct. 23, 1992, 106

Stat. 2380, provided that:

''(a) Establishment of Demonstration Program. - (1) The Secretary

of Defense shall establish a demonstration program to determine the

feasibility of having nonappropriated fund instrumentalities

operate commissary stores at military installations.

''(2) Under the program referred to in paragraph (1), the

Secretary of Defense shall select nonappropriated fund

instrumentalities to operate commissary stores located at military

installations selected by the Secretary under subsection (b).

''(b) Selection of Military Installations. - For participation in

such program, the Secretary shall select not less than one nor more

than three military installations in the United States, including

at least one installation where National Guard personnel, other

reserve component personnel, and their dependents comprise the

predominant number of the users of the facilities and services of

the installation.

''(c) Program Requirement and Limitation. - (1) Except as

provided in paragraph (3), commissary stores operated under such

program shall be operated in accordance with section 2484 of title

10, United States Code, relating to the payment of costs by the

Department of Defense in connection with the operation of

commissary stores.

''(2) Except as provided in paragraph (3), the Secretary of

Defense may, subject to such section, authorize a transfer of

goods, supplies, and facilities of, and funds appropriated for, the

Defense Commissary Agency to the nonappropriated fund

instrumentalities selected under subsection (a)(2) for the purpose

of operating combined exchange and commissary stores under such

program.

''(3) Appropriated funds may not be used pursuant to such section

to pay costs associated with the direct support and operation of

combined exchange and commissary stores under such program.

''(d) Period of Demonstration Program. - A nonappropriated fund

instrumentality selected under subsection (a)(2) shall operate

commissary store facilities under such program for the period

beginning on the date of the selection of the nonappropriated fund

instrumentality and ending on the date of the expiration of the

period referred to in subsection (e).

''(e) Report. - Not later than the expiration of the one-year

period beginning on the date of the enactment of this Act (Oct. 23,

1992), the Secretary of Defense shall submit to the Congress a

report on the implementation of such program. The report shall

include the findings, conclusions, and recommendations of the

Secretary, including a recommendation with respect to whether

similar programs should be carried out at other military

installations.

''(f) Definition. - In this section, the term 'nonappropriated

fund instrumentality' means an instrumentality of the United States

under the jurisdiction of the Department of the Army or the

Department of the Air Force (including the Army and Air Force

Exchange Service) which is conducted for the comfort, pleasure,

contentment, or physical or mental improvement of members of the

Armed Forces.''

-CITE-

10 USC Sec. 2482a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2482a. Nonappropriated fund instrumentalities: contracts with

other agencies and instrumentalities to provide and obtain

goods and services

-STATUTE-

An agency or instrumentality of the Department of Defense that

supports the operation of the exchange system, or the operation of

a morale, welfare, and recreation system, of the Department of

Defense may enter into a contract or other agreement with another

element of the Department of Defense or with another Federal

department, agency, or instrumentality to provide or obtain goods

and services beneficial to the efficient management and operation

of the exchange system or that morale, welfare, and recreation

system.

-SOURCE-

(Added Pub. L. 104-201, div. A, title III, Sec. 341(a)(1), Sept.

23, 1996, 110 Stat. 2488.)

-CITE-

10 USC Sec. 2483 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2483. Commissary stores: reimbursement for use of commissary

facilities by military departments

-STATUTE-

(a) Payment Required. - The Secretary of a military department

shall pay the Defense Commissary Agency the amount determined under

subsection (b) for any use of a commissary facility by the military

department for a purpose other than commissary sales or operations

in support of commissary sales.

(b) Amount. - The amount payable under subsection (a) for use of

a commissary facility by a military department shall be equal to

the share of depreciation of the facility that is attributable to

that use, as determined under regulations prescribed by the

Secretary of Defense.

(c) Covered Facilities. - This section applies with respect to a

commissary facility that is acquired, constructed, converted,

expanded, installed, or otherwise improved (in whole or in part)

with the proceeds of an adjustment or surcharge applied under

section 2486(c) of this title.

(d) Crediting of Payments. - The Director of the Defense

Commissary Agency shall credit amounts paid under this section for

use of a facility to an appropriate account to which proceeds of an

adjustment or surcharge referred to in subsection (c) are credited.

-SOURCE-

(Added Pub. L. 107-107, div. A, title III, Sec. 332(a), Dec. 28,

2001, 115 Stat. 1058.)

-MISC1-

PRIOR PROVISIONS

A prior section 2483 was renumbered section 2867 of this title.

-CITE-

10 USC Sec. 2484 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2484. Commissary stores: use of appropriated funds to cover

operating expenses

-STATUTE-

(a) Operation of Agency and System. - Except as otherwise

provided in this title, the operation of the Defense Commissary

Agency and the defense commissary system may be funded using such

amounts as are appropriated for such purpose.

(b) Operating Expenses of Commissary Stores. - Appropriated funds

may be used to cover the expenses of operating commissary stores

and central product processing facilities of the defense commissary

system. For purposes of this subsection, operating expenses

include the following:

(1) Salaries and wages of employees of the United States, host

nations, and contractors supporting commissary store operations.

(2) Utilities.

(3) Communications.

(4) Operating supplies and services.

(5) Second destination transportation costs within or outside

the United States.

(6) Any cost associated with above-store-level management or

other indirect support of a commissary store or a central product

processing facility, including equipment maintenance and

information technology costs.

-SOURCE-

(Added Pub. L. 98-525, title XIV, Sec. 1401(i)(1), Oct. 19, 1984,

98 Stat. 2619; amended Pub. L. 106-398, Sec. 1 ((div. A), title

III, Sec. 331(a)(1)), Oct. 30, 2000, 114 Stat. 1654, 1654A-59.)

-MISC1-

PRIOR PROVISIONS

Provisions similar to those in this section were contained in the

following appropriation acts:

Oct. 12, 1984, Pub. L. 98-473, title I, Sec. 101(h) (title VIII,

Sec. 8010), 98 Stat. 1904, 1924.

Dec. 8, 1983, Pub. L. 98-212, title VII, Sec. 713, 97 Stat. 1440.

Dec. 21, 1982, Pub. L. 97-377, title I, Sec. 101(c) (title VII,

Sec. 714), 96 Stat. 1833, 1852.

Dec. 29, 1981, Pub. L. 97-114, title VII, Sec. 714, 95 Stat.

1580.

Dec. 15, 1980, Pub. L. 96-527, title VII, Sec. 715, 94 Stat.

3083.

Dec. 21, 1979, Pub. L. 96-154, title VII, Sec. 715, 93 Stat.

1155.

Oct. 13, 1978, Pub. L. 95-457, title VIII, Sec. 815, 92 Stat.

1246.

Sept. 21, 1977, Pub. L. 95-111, title VIII, Sec. 814, 91 Stat.

902.

Sept. 22, 1976, Pub. L. 94-419, title VII, Sec. 714, 90 Stat.

1293.

Feb. 9, 1976, Pub. L. 94-212, title VII, Sec. 714, 90 Stat. 171.

Oct. 8, 1974, Pub. L. 93-437, title VIII, Sec. 814, 88 Stat.

1227.

Jan. 2, 1974, Pub. L. 93-238, title VII, Sec. 714, 87 Stat. 1040.

Oct. 26, 1972, Pub. L. 92-570, title VII, Sec. 714, 86 Stat.

1198.

Dec. 18, 1971, Pub. L. 92-204, title VII, Sec. 714, 85 Stat. 729.

Jan. 11, 1971, Pub. L. 91-668, title VIII, Sec. 814, 84 Stat.

2032.

Dec. 29, 1969, Pub. L. 91-171, title VI, Sec. 614, 83 Stat. 482.

Oct. 17, 1968, Pub. L. 90-580, title V, Sec. 513, 82 Stat. 1132.

Sept. 29, 1967, Pub. L. 90-96, title VI, Sec. 613, 81 Stat. 244.

Oct. 15, 1966, Pub. L. 89-687, title VI, Sec. 613, 80 Stat. 993.

Sept. 29, 1965, Pub. L. 89-213, title VI, Sec. 613, 79 Stat. 875.

Aug. 19, 1964, Pub. L. 88-446, title V, Sec. 513, 78 Stat. 477.

Oct. 17, 1963, Pub. L. 88-149, title V, Sec. 513, 77 Stat. 266.

Aug. 9, 1962, Pub. L. 87-577, title V, Sec. 513, 76 Stat. 330.

Aug. 17, 1961, Pub. L. 87-144, title VI, Sec. 613, 75 Stat. 377.

July 7, 1960, Pub. L. 86-601, title V, Sec. 513, 74 Stat. 351.

Aug. 18, 1959, Pub. L. 86-166, title V, Sec. 613, 73 Stat. 380.

Aug. 22, 1958, Pub. L. 85-724, title VI, Sec. 613, 72 Stat. 725.

Aug. 2, 1957, Pub. L. 85-117, title VI, Sec. 614, 71 Stat. 325.

July 2, 1956, ch. 488, title VI, Sec. 614, 70 Stat. 469.

July 13, 1955, ch. 358, title VI, Sec. 617, 69 Stat. 317.

June 30, 1954, ch. 432, title VII, Sec. 717, 68 Stat. 353.

Aug. 1, 1953, ch. 305, title VI, Sec. 624, 67 Stat. 353.

July 10, 1952, ch. 630, title VI, Sec. 627, 66 Stat. 535.

Oct. 18, 1951, ch. 512, title VI, Sec. 628, 65 Stat. 449.

AMENDMENTS

2000 - Pub. L. 106-398 amended section catchline and text

generally. Prior to amendment, text consisted of subsecs. (a) to

(d) providing that funds available to the Department of Defense

could be used to pay for certain costs in connection with the

operation of commissary stores only on a reimbursable basis and

allowed transportation and utilities to be furnished for the

operation of those stores outside of the United States or in Alaska

and Hawaii.

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec. 331(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-59, provided that: ''The amendments

made by this section (amending this section) shall take effect on

October 1, 2001.''

EFFECTIVE DATE

Section effective Oct. 1, 1985, see section 1404 of Pub. L.

98-525, set out as a note under section 520b of this title.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 2482 of this title.

-CITE-

10 USC Sec. 2485 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2485. Donation of unusable food: commissary stores and other

activities

-STATUTE-

(a) The Secretary of Defense may donate food described in

subsection (b) to entities specified under subsection (d).

(b) Food that may be donated under this section is commissary

store food, mess food, meals ready-to-eat (MREs), rations known as

humanitarian daily rations (HDRs), and other food available to the

Secretary of Defense that -

(1) is certified as edible by appropriate food inspection

technicians;

(2) would otherwise be destroyed as unusable; and

(3) in the case of commissary store food, is unmarketable and

unsaleable.

(c) In the case of commissary store food, a donation under this

section shall take place at the site of the commissary that is

donating the food.

(d) A donation under this section may only be made to an entity

that is one of the following:

(1) A charitable nonprofit food bank that is designated by the

Secretary of Defense or the Secretary of Health and Human

Services as authorized to receive such donations.

(2) A State or local agency that is designated by the Secretary

of Defense or the Secretary of Health and Human Services as

authorized to receive such donations.

(3) A chapter or other local unit of a recognized national

veterans organization that provides services to persons without

adequate shelter and is designated by the Secretary of Veterans

Affairs as authorized to receive such donations.

(4) A not-for-profit organization that provides care for

homeless veterans and is designated by the Secretary of Veterans

Affairs as authorized to receive such donations.

(e) This section does not authorize any service (including

transportation) to be provided in connection with a donation under

this section.

-SOURCE-

(Added Pub. L. 99-145, title XIV, Sec. 1460(a), Nov. 8, 1985, 99

Stat. 764; amended Pub. L. 101-510, div. A, title III, Sec.

324(a), (b)(1), Nov. 5, 1990, 104 Stat. 1530; Pub. L. 104-201,

div. A, title III, Sec. 365, Sept. 23, 1996, 110 Stat. 2494.)

-MISC1-

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-201, Sec. 365(a), (b)(1),

substituted ''Secretary of Defense'' for ''Secretary of a military

department'' and ''entities specified under subsection (d)'' for

''authorized charitable nonprofit food banks''.

Subsec. (b). Pub. L. 104-201, Sec. 365(a), (c), inserted

''rations known as humanitarian daily rations (HDRs),'' after

''(MREs),'' and substituted ''Secretary of Defense'' for

''Secretary of a military department''.

Subsec. (d). Pub. L. 104-201, Sec. 365(b)(2), substituted ''may

only be made to an entity that is one of the following:'' for ''may

only be made to an entity that is authorized by the Secretary of

Defense or the Secretary of Health and Human Services to receive

donations under this section.'' and added pars. (1) to (4).

1990 - Pub. L. 101-510, Sec. 324(b)(1), substituted ''Donation of

unusable food: commissary stores and other activities'' for

''Commissary stores: donation of unmarketable food'' in section

catchline.

Subsec. (a). Pub. L. 101-510, Sec. 324(a)(1), struck out

''commissary store'' after ''donate''.

Subsec. (b). Pub. L. 101-510, Sec. 324(a)(2), added subsec. (b)

and struck out former subsec. (b) which read as follows: ''Food

that may be donated under this section is food of a commissary

store -

''(1) that is -

''(A) unmarketable;

''(B) unsaleable; and

''(C) certified as edible by appropriate food inspection

technicians; and

''(2) that would otherwise be destroyed as unusable.''

Subsec. (c). Pub. L. 101-510, Sec. 324(a)(3), substituted ''In

the case of commissary store food, a donation'' for ''A donation''.

-CITE-

10 USC Sec. 2486 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2486. Commissary stores: merchandise that may be sold; uniform

surcharges and pricing

-STATUTE-

(a) In General. - Commissary stores are similar to commercial

grocery stores and may sell merchandise similar to that sold in

commercial grocery stores.

(b) Authorized Commissary Merchandise Categories. - Merchandise

sold in, at, or by commissary stores may include items only in the

following categories:

(1) Health and beauty aids.

(2) Meat and poultry.

(3) Fish and seafood.

(4) Produce.

(5) Food and non-food grocery items.

(6) Bakery goods.

(7) Dairy products.

(8) Tobacco products.

(9) Delicatessen items.

(10) Frozen foods.

(11) Magazines and other periodicals.

(12) Such other merchandise categories as the Secretary of

Defense may prescribe, except that the Secretary shall notify

Congress of any addition of, or change in, a merchandise category

under this paragraph.

(c) Uniform Sales Price Surcharge or Adjustment. - An adjustment

of or surcharge on sales prices in commissary stores under

subsection (d) or section 2685(a) of this title or for any other

purpose shall be applied as a uniform percentage of the sales price

of all merchandise sold in, at, or by commissary stores. Effective

on November 18, 1997, the uniform percentage shall be equal to five

percent and may not be changed except by a law enacted after such

date.

(d) Sales Price Establishment. - (1) The Secretary of Defense

shall establish the sales price of each item of merchandise sold

in, at, or by commissary stores at the level that will recoup the

actual product cost of the item (consistent with this section and

section 2685 of this title).

(2) Any change in the pricing policies for merchandise sold in,

at, or by commissary stores shall not take effect until the

Secretary of Defense submits written notice of the proposed change

to Congress and a period of 90 days of continuous session of

Congress expires following the date on which notice was received.

For purposes of this paragraph, the continuity of a session of

Congress is broken only by an adjournment of the Congress sine die,

and the days on which either House is not in session because of an

adjournment or recess of more than three days to a day certain are

excluded in a computation of such 90-day period.

(3) The sales price of merchandise and services sold in, at, or

by commissary stores shall be adjusted to cover the following:

(A) The cost of first destination commercial transportation of

the merchandise in the United States to the place of sale.

(B) The actual or estimated cost of shrinkage, spoilage, and

pilferage of merchandise under the control of commissary stores.

(e) Special Rule for Brand-Name Commercial Items. - The Secretary

of Defense may not use the exception provided in section 2304(c)(5)

of this title regarding the procurement of a brand-name commercial

item for resale in, at, or by commissary stores unless the

commercial item is regularly sold outside of commissary stores

under the same brand name as the name by which the commercial item

will be sold in, at, or by commissary stores. In determining

whether a brand name commercial item is regularly sold outside of

commissary stores, the Secretary shall consider only sales of the

item on a regional or national basis by commercial grocery or other

retail operations consisting of multiple stores.

(f) Special Rules for Certain Merchandise. - Notwithstanding the

general requirement that merchandise sold in, at, or by commissary

stores be commissary store inventory, the Secretary of Defense may

authorize the sale of tobacco products as noncommissary store

inventory. Subsections (c) and (d) shall not apply to the pricing

of such merchandise items.

(g) Collection of Dishonored Checks. - (1) The Secretary of

Defense may impose a charge for the collection of a check accepted

at a commissary store that is not honored by the financial

institution on which the check is drawn. The imposition and

amounts of charges shall be consistent with practices of commercial

grocery stores regarding dishonored checks.

(2)(A) The following persons are liable to the United States for

the amount of a check referred to in paragraph (1) that is returned

unpaid to the United States, together with any charge imposed under

that paragraph:

(i) The person who presented the check.

(ii) Any person whose status and relationship to the person who

presented the check provide the basis for that person's

eligibility to make purchases at a commissary store.

(B) Any amount for which a person is liable under subparagraph

(A) may be collected by deducting and withholding such amount from

any amounts payable to that person by the United States.

(3) Amounts collected as charges imposed under paragraph (1)

shall be credited to the commissary trust revolving fund.

(4) Appropriated funds may be used to pay any costs incurred in

the collection of checks and charges referred to in paragraph (1).

An appropriation account charged a cost under the preceding

sentence shall be reimbursed the amount of that cost out of funds

in the commissary trust revolving fund.

(5) In this subsection, the term ''commissary trust revolving

fund'' means the trust revolving fund maintained by the Department

of Defense for surcharge collections and proceeds of sales of

commissary stores.

-SOURCE-

(Added Pub. L. 99-661, div. A, title III, Sec. 313(a), Nov. 14,

1986, 100 Stat. 3852; amended Pub. L. 100-180, div. A, title III,

Sec. 313(a)(1), (2), Dec. 4, 1987, 101 Stat. 1073, 1074; Pub. L.

104-201, div. A, title III, Sec. 342(a), Sept. 23, 1996, 110 Stat.

2489; Pub. L. 105-85, div. A, title III, Sec. 372(a)-(e), 373,

Nov. 18, 1997, 111 Stat. 1706, 1707; Pub. L. 105-261, div. A,

title III, Sec. 364, Oct. 17, 1998, 112 Stat. 1986; Pub. L. 106-65,

div. A, title X, Sec. 1066(a)(21), Oct. 5, 1999, 113 Stat. 771;

Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec. 332(a), 334),

Oct. 30, 2000, 114 Stat. 1654, 1654A-59, 1654A-60; Pub. L. 107-314,

div. A, title X, Sec. 1041(a)(14), Dec. 2, 2002, 116 Stat. 2645.)

-MISC1-

AMENDMENTS

2002 - Subsec. (b)(12). Pub. L. 107-314 substituted '', except

that the Secretary shall notify Congress of any addition of, or

change in, a merchandise category under this paragraph.'' for '',

except that the Secretary shall submit to Congress, not later than

March 1 of each year, a report describing -

''(A) any addition of, or change in, a merchandise category

proposed to be made under this paragraph during the one-year

period beginning on that date; and

''(B) those additions and changes in merchandise categories

actually made during the preceding one-year period.''

2000 - Subsec. (b)(11), (12). Pub. L. 106-398, Sec. 1 ((div. A),

title III, Sec. 334(a)), added par. (11) and redesignated former

par. (11) as (12).

Subsec. (c). Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec.

332(a)(1)), substituted ''subsection (d) or section'' for ''section

2484(b) or''.

Subsec. (d)(1). Pub. L. 106-398, Sec. 1 ((div. A), title III,

Sec. 332(a)(2)(A)), substituted ''section 2685'' for ''sections

2484 and 2685''.

Subsec. (d)(3). Pub. L. 106-398, Sec. 1 ((div. A), title III,

Sec. 332(a)(2)(B)), added par. (3).

Subsec. (f). Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec.

334(b)), struck out ''(1)'' before ''Notwithstanding'', substituted

''tobacco products'' for ''items in the merchandise categories

specified in paragraph (2)'', and struck out par. (2) which read as

follows: ''The merchandise categories referred to in paragraph (1)

are as follows:

''(A) Magazines and other periodicals.

''(B) Tobacco products.''

1999 - Subsec. (c). Pub. L. 106-65 substituted ''November 18,

1997,'' for ''the date of the enactment of the National Defense

Authorization Act for Fiscal Year 1998,'' in second sentence.

1998 - Subsec. (g). Pub. L. 105-261 added subsec. (g).

1997 - Subsec. (a). Pub. L. 105-85, Sec. 372(e)(1), inserted

heading.

Subsec. (b). Pub. L. 105-85, Sec. 372(a)(1), inserted heading and

substituted ''Merchandise sold in, at, or by commissary stores may

include items only in the following categories:'' for ''Merchandise

sold in commissary stores may include items in the following

categories:'' in introductory provisions.

Subsec. (b)(11). Pub. L. 105-85, Sec. 372(a)(2), amended par.

(11) generally. Prior to amendment, par. (11) read as follows:

''Other categories designated in regulations prescribed by the

Secretary of a military department and approved by the Secretary of

Defense.''

Subsec. (c). Pub. L. 105-85, Sec. 372(b), inserted heading,

substituted ''in, at, or by commissary stores.'' for ''in

commissary stores.'', and inserted at end ''Effective on the date

of the enactment of the National Defense Authorization Act for

Fiscal Year 1998, the uniform percentage shall be equal to five

percent and may not be changed except by a law enacted after such

date.''

Subsec. (d). Pub. L. 105-85, Sec. 372(c), inserted heading and

amended text generally. Prior to amendment, text read as follows:

''The Secretary of Defense shall prescribe regulations establishing

uniform pricing policies for merchandise authorized for sale by

this section. The policies in the regulations shall -

''(1) require the establishment of a sales price of each item

of merchandise at a level which will recoup the actual product

cost of the item (consistent with this section and sections 2484

and 2685 of this title); and

''(2) promote the lowest practical price of merchandise sold at

commissary stores.''

Subsec. (e). Pub. L. 105-85, Sec. 373, inserted at end ''In

determining whether a brand name commercial item is regularly sold

outside of commissary stores, the Secretary shall consider only

sales of the item on a regional or national basis by commercial

grocery or other retail operations consisting of multiple stores.''

Pub. L. 105-85, Sec. 372(e)(2), inserted heading and substituted

''in, at, or by commissary stores'' for ''in commissary stores'' in

two places.

Subsec. (f). Pub. L. 105-85, Sec. 372(d), added subsec. (f).

1996 - Subsec. (e). Pub. L. 104-201 added subsec. (e).

1987 - Pub. L. 100-180, Sec. 313(a)(2), inserted ''and pricing''

in section catchline.

Subsec. (d). Pub. L. 100-180, Sec. 313(a)(1), added subsec. (d).

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-398, Sec. 1 ((div. A), title III, Sec. 332(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-60, provided that: ''The amendments

made by this section (amending this section) shall take effect on

October 1, 2001.''

REGULATIONS

Section 313(b) of Pub. L. 100-180 required Secretary of Defense

to prescribe regulations required by subsec. (d) of this section

not later than 90 days after Dec. 4, 1987.

SAVINGS PROVISION

Section 342(b) of Pub. L. 104-201 provided that: ''Section

2486(e) of title 10, United States Code, as added by subsection

(a), shall not affect the terms, conditions, or duration of any

contract or other agreement entered into by the Secretary of

Defense before the date of the enactment of this Act (Sept. 23,

1996) for the procurement of commercial items for resale in

commissary stores.''

REPORT ON MERCHANDISE CATEGORIES

Section 372(f) of Pub. L. 105-85 provided that: ''Not later than

30 days after the date of the enactment of this Act (Nov. 18,

1997), the Secretary of Defense shall submit to Congress a report

specifying the merchandise categories authorized for sale sold in,

at, or by commissary stores pursuant to regulations prescribed

under subsection (b)(11) of section 2486 of title 10, United States

Code, as in effect before such date.''

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in sections 2483, 2487 of this title.

-CITE-

10 USC Sec. 2487 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2487. Commissary stores: release of certain commercially

valuable information to the public

-STATUTE-

(a) Authority To Limit Release. - (1) The Secretary of Defense

may limit the release to the public of any information described in

paragraph (2) if the Secretary determines that it is in the best

interest of the Department of Defense to limit the release of such

information. If the Secretary determines to limit the release of

any such information, the Secretary may provide for limited release

of such information in accordance with subsection (b).

(2) Paragraph (1) applies to the following:

(A) Information contained in the computerized business systems

of commissary stores or the Defense Commissary Agency that is

collected through or in connection with the use of electronic

scanners in commissary stores, including the following

information:

(i) Data relating to sales of goods or services.

(ii) Demographic information on customers.

(iii) Any other information pertaining to commissary

transactions and operations.

(B) Business programs, systems, and applications (including

software) relating to commissary operations that were developed

with funding derived from commissary surcharges.

(b) Release Authority. - (1) The Secretary of Defense may, using

competitive procedures, enter into a contract to sell information

described in subsection (a)(2).

(2) The Secretary of Defense may release, without charge,

information on an item sold in commissary stores to the

manufacturer or producer of that item or an agent of the

manufacturer or producer.

(3) The Secretary of Defense may, by contract entered into with a

business, grant to the business a license to use business programs

referred to in subsection (a)(2)(B), including software used in or

comprising any such program. The fee charged for the license shall

be based on the costs of similar programs developed and marketed by

businesses in the private sector, determined by means of surveys.

(4) Each contract entered into under this subsection shall

specify the amount to be paid for information released or a license

granted under the contract, as the case may be.

(c) Form of Release. - Information described in subsection (a)(2)

may not be released, under subsection (b) or otherwise, in a form

that identifies any customer or that provides information making it

possible to identify any customer.

(d) Receipts. - Amounts received by the Secretary under this

section shall be credited to funds derived from commissary

surcharges, shall be merged with those funds, and shall be

available for the same purposes as the funds with which merged.

(e) Definition. - In this section, the term ''commissary

surcharge'' means any adjustment or surcharge applied under section

2486(c) of this title.

-SOURCE-

(Added Pub. L. 99-661, div. A, title III, Sec. 313(a), Nov. 14,

1986, 100 Stat. 3852; amended Pub. L. 102-484, div. A, title III,

Sec. 364(a), (b)(2), Oct. 23, 1992, 106 Stat. 2381, 2382; Pub. L.

104-106, div. A, title III, Sec. 332, Feb. 10, 1996, 110 Stat.

260; Pub. L. 107-107, div. A, title III, Sec. 333(a), Dec. 28,

2001, 115 Stat. 1058.)

-MISC1-

AMENDMENTS

2001 - Pub. L. 107-107 amended section catchline and text

generally, substituting provisions relating to release to the

public of certain commercially valuable information generated by

commissaries for provisions relating to limitations on release of

sales information generated by commissaries.

1996 - Subsec. (b). Pub. L. 104-106 inserted ''unless the

agreement is between the Defense Commissary Agency and a

manufacturer, distributor, or other vendor doing business with the

Agency and is restricted to information directly related to

merchandise provided by that manufacturer, distributor, or vendor''

before period at end of second sentence.

1992 - Subsecs. (a) and (b). Pub. L. 102-484, Sec. 364(a), added

subsecs. (a) and (b) and struck out former subsecs. (a) and (b)

which read as follows:

''(a) In order to protect commercially valuable information, the

Secretary of a military department, except as provided in

subsection (b), may not release to the public those portions of

computer data generated by electronic scanners used in military

commissaries, and those portions of reports generated by such

scanners, that contain the following information:

''(1) The unit prices of items sold.

''(2) The number of units of items sold.

''(b) Information subject to subsection (a) may be released under

a written agreement. Any such agreement shall require payment for

such information and shall specify the amount of such payment.''

Subsec. (c). Pub. L. 102-484, Sec. 364(b)(2), inserted heading.

-CITE-

10 USC Sec. 2488 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2488. Nonappropriated fund instrumentalities: purchase of

alcoholic beverages

-STATUTE-

(a) The Secretary of Defense shall provide that -

(1) covered alcoholic beverage purchases made for resale on a

military installation located in the United States shall be made

from the most competitive source and distributed in the most

economical manner, price and other factors considered, except

that

(2) in the case of malt beverages and wine, such purchases

shall be made from, and delivery shall be accepted from, a source

within the State in which the military installation concerned is

located.

(b) If a military installation located in the contiguous States

is located in more than one State, a source of supply in any State

in which the installation is located shall be considered for the

purposes of subsection (a)(2) to be a source within the State in

which the installation is located.

(c)(1) In the case of covered alcoholic beverage purchases of

distilled spirits, to determine whether a nonappropriated fund

instrumentality of the Department of Defense provides the most

economical method of distribution to package stores, the Secretary

of Defense shall consider all components of the distribution costs

incurred by the nonappropriated fund instrumentality, such as

overhead costs (including costs associated with management,

logistics, administration, depreciation, and utilities), the costs

of carrying inventory, and handling and distribution costs.

(2) The Secretary shall use the agencies performing audit

functions on behalf of the armed forces and the Inspector General

of the Department of Defense to make determinations under this

subsection.

(d) In this section:

(1) The term ''covered alcoholic beverage purchases'' means

purchases of alcoholic beverages by a nonappropriated fund

instrumentality of the Department of Defense with nonappropriated

funds.

(2) The term ''State'' includes the District of Columbia.

-SOURCE-

(Added Pub. L. 99-661, div. A, title III, Sec. 313(a), Nov. 14,

1986, 100 Stat. 3853; amended Pub. L. 100-180, div. A, title III,

Sec. 312(a), Dec. 4, 1987, 101 Stat. 1073; Pub. L. 104-106, div.

A, title III, Sec. 333, Feb. 10, 1996, 110 Stat. 261; Pub. L.

106-398, Sec. 1 ((div. A), title III, Sec. 335), Oct. 30, 2000, 114

Stat. 1654, 1654A-61.)

-MISC1-

AMENDMENTS

2000 - Subsec. (c)(2), (3). Pub. L. 106-398 redesignated par. (3)

as (2) and struck out former par. (2) which read as follows: ''If

the use of a private distributor would subject covered alcoholic

beverage purchases of distilled spirits to direct or indirect State

taxation, a nonappropriated fund instrumentality shall be

considered to be the most economical method of distribution

regardless of the results of the determination under paragraph

(1).''

1996 - Subsec. (a)(1). Pub. L. 104-106, Sec. 333(a), inserted

''and distributed in the most economical manner'' after ''most

competitive source''.

Subsecs. (c), (d). Pub. L. 104-106, Sec. 333(b), added subsec.

(c) and redesignated former subsec. (c) as (d).

1987 - Subsec. (a)(2). Pub. L. 100-180 struck out ''purchased for

resale on a military installation located in the contiguous

States'' after ''malt beverages and wines''.

EFFECTIVE DATE OF 1987 AMENDMENT

Section 312(b) of Pub. L. 100-180 provided that: ''The amendment

made by subsection (a) (amending this section) shall apply with

respect to purchases of malt beverages and wine after the end of

the 60-day period beginning on the date of the enactment of this

Act (Dec. 4, 1987).''

PROCUREMENT OF MALT BEVERAGES AND WINE BY NONAPPROPRIATED FUND

ACTIVITY

Pub. L. 107-248, title VIII, Sec. 8092, Oct. 23, 2002, 116 Stat.

1558, provided that: ''None of the funds appropriated by this Act

(see Tables for classification) shall be used for the support of

any nonappropriated funds activity of the Department of Defense

that procures malt beverages and wine with nonappropriated funds

for resale (including such alcoholic beverages sold by the drink)

on a military installation located in the United States unless such

malt beverages and wine are procured within that State, or in the

case of the District of Columbia, within the District of Columbia,

in which the military installation is located: Provided, That in a

case in which the military installation is located in more than one

State, purchases may be made in any State in which the installation

is located: Provided further, That such local procurement

requirements for malt beverages and wine shall apply to all

alcoholic beverages only for military installations in States which

are not contiguous with another State: Provided further, That

alcoholic beverages other than wine and malt beverages, in

contiguous States and the District of Columbia shall be procured

from the most competitive source, price and other factors

considered.''

Similar provisions were contained in the following prior

appropriation acts:

Pub. L. 107-117, div. A, title VIII, Sec. 8108, Jan. 10, 2002,

115 Stat. 2271.

Pub. L. 106-259, title VIII, Sec. 8108, Aug. 9, 2000, 114 Stat.

698.

Pub. L. 106-79, title VIII, Sec. 8132, Oct. 25, 1999, 113 Stat.

1266.

Pub. L. 104-61, title VIII, Sec. 8055, Dec. 1, 1995, 109 Stat.

662.

Pub. L. 103-335, title VIII, Sec. 8058A, Sept. 30, 1994, 108

Stat. 2632.

Pub. L. 103-139, title VIII, Sec. 8099A, Nov. 11, 1993, 107 Stat.

1462.

Pub. L. 102-396, title IX, Sec. 9114, Oct. 6, 1992, 106 Stat.

1929.

Pub. L. 102-172, title VIII, Sec. 8111A, Nov. 26, 1991, 105 Stat.

1200.

Pub. L. 101-511, title VIII, Sec. 8068, Nov. 5, 1990, 104 Stat.

1889.

Pub. L. 101-165, title IX, Sec. 9093, Nov. 21, 1989, 103 Stat.

1149.

Pub. L. 100-463, title VIII, Sec. 8122, Oct. 1, 1988, 102 Stat.

2270-40.

Pub. L. 100-202, Sec. 101(b) (title VIII, Sec. 8081), Dec. 22,

1987, 101 Stat. 1329-43, 1329-76.

Pub. L. 99-500, Sec. 101(c) (title IX, Sec. 9090), Oct. 18, 1986,

100 Stat. 1783-82, 1783-116, and Pub. L. 99-591, Sec. 101(c) (title

IX, Sec. 9090), Oct. 30, 1986, 100 Stat. 3341-82, 3341-116.

Pub. L. 99-190, Sec. 101(b) (title VIII, Sec. 8099), Dec. 19,

1985, 99 Stat. 1185, 1219.

-CITE-

10 USC Sec. 2489 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2489. Overseas package stores: treatment of United States

wines

-STATUTE-

The Secretary of Defense shall ensure that each

nonappropriated-fund activity engaged principally in selling

alcoholic beverage products in a packaged form (commonly referred

to as a ''package store'') that is located at a military

installation outside the United States shall give appropriate

treatment with respect to wines produced in the United States to

ensure that such wines are given, in general, an equitable

distribution, selection, and price when compared with wines

produced by the host nation.

-SOURCE-

(Added Pub. L. 100-180, div. A, title III, Sec. 311(a)(1), Dec. 4,

1987, 101 Stat. 1073.)

-MISC1-

REGULATIONS DEADLINE

Section 311(b) of Pub. L. 100-180 directed Secretary of Defense

to prescribe regulations to implement this section not later than

90 days after Dec. 4, 1987.

-CITE-

10 USC Sec. 2489a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2489a. Sale or rental of sexually explicit material prohibited

-STATUTE-

(a) Prohibition of Sale or Rental. - The Secretary of Defense may

not permit the sale or rental of sexually explicit material on

property under the jurisdiction of the Department of Defense.

(b) Prohibition of Officially Provided Sexually Explicit

Material. - A member of the armed forces or a civilian officer or

employee of the Department of Defense acting in an official

capacity may not provide for sale, remuneration, or rental sexually

explicit material to another person.

(c) Regulations. - The Secretary of Defense shall prescribe

regulations to implement this section.

(d) Definitions. - In this section:

(1) The term ''sexually explicit material'' means an audio

recording, a film or video recording, or a periodical with visual

depictions, produced in any medium, the dominant theme of which

depicts or describes nudity, including sexual or excretory

activities or organs, in a lascivious way.

(2) The term ''property under the jurisdiction of the

Department of Defense'' includes commissaries, all facilities

operated by the Army and Air Force Exchange Service, the Navy

Exchange Service Command, the Navy Resale and Services Support

Office, Marine Corps exchanges, and ships' stores.

-SOURCE-

(Added Pub. L. 104-201, div. A, title III, Sec. 343(a)(1), Sept.

23, 1996, 110 Stat. 2489.)

-MISC1-

EFFECTIVE DATE

Section 343(b) of Pub. L. 104-201 provided that: ''Subsection (a)

of section 2489a of title 10, United States Code, as added by

subsection (a) of this section, shall take effect 90 days after the

date of the enactment of this Act (Sept. 23, 1996).''

-CITE-

10 USC Sec. 2490 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

(Sec. 2490. Renumbered Sec. 2868)

-CITE-

10 USC Sec. 2490a 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2490a. Combined exchange and commissary stores

-STATUTE-

(a) Authority. - The Secretary of Defense may authorize a

nonappropriated fund instrumentality to operate a military exchange

and a commissary store as a combined exchange and commissary store

on a military installation.

(b) Limitations. - (1) Not more than ten combined exchange and

commissary stores may be operated pursuant to this section.

(2) The Secretary may select a military installation for the

operation of a combined exchange and commissary store under this

section only if -

(A) the installation is to be closed, or has been or is to be

realigned, under a base closure law; or

(B) a military exchange and a commissary store are operated at

the installation by separate entities at the time of, or

immediately before, such selection and it is not economically

feasible to continue that separate operation.

(c) Operation at Carswell Field. - Combined exchange and

commissary stores operated under this section shall include the

combined exchange and commissary store that is operated at the

Naval Air Station Fort Worth, Joint Reserve Center, Carswell Field,

Texas, under the authority provided in section 375 of the National

Defense Authorization Act for Fiscal Year 1995 (Public Law 103-337;

108 Stat. 2736).

(d) Adjustments and Surcharges. - Adjustments to, and surcharges

on, the sales price of a grocery food item sold in a combined

exchange and commissary store under this section shall be provided

for in accordance with the same laws that govern such adjustments

and surcharges for items sold in a commissary store of the Defense

Commissary Agency.

(e) Use of Appropriated Funds. - (1) If a nonappropriated fund

instrumentality incurs a loss in operating a combined exchange and

commissary store at a military installation under this section as a

result of the requirement set forth in subsection (d), the

Secretary may authorize a transfer of funds available for the

Defense Commissary Agency to the nonappropriated fund

instrumentality to offset the loss.

(2) The total amount of appropriated funds transferred during a

fiscal year to support the operation of a combined exchange and

commissary store at a military installation under this section may

not exceed an amount that is equal to 25 percent of the amount of

appropriated funds that was provided for the operation of the

commissary store of the Defense Commissary Agency on that

installation during the last full fiscal year of operation of that

commissary store.

(f) Definitions. - In this section:

(1) The term ''nonappropriated fund instrumentality'' means the

Army and Air Force Exchange Service, Navy Exchange Service

Command, Marine Corps exchanges, or any other instrumentality of

the United States under the jurisdiction of the Armed Forces

which is conducted for the comfort, pleasure, contentment, or

physical or mental improvement of members of the Armed Forces.

(2) The term ''base closure law'' has the meaning given such

term by section 2667(h) of this title.

-SOURCE-

(Added Pub. L. 104-106, div. A, title III, Sec. 336(a)(1), Feb.

10, 1996, 110 Stat. 263; amended Pub. L. 105-85, div. A, title X,

Sec. 1061(d), Nov. 18, 1997, 111 Stat. 1891.)

-REFTEXT-

REFERENCES IN TEXT

Section 375 of the National Defense Authorization Act for Fiscal

Year 1995, referred to in subsec. (c), is section 375 of Pub. L.

103-337, div. A, title III, Oct. 5, 1994, 108 Stat. 2736, as

amended, which is not classified to the Code.

-MISC2-

AMENDMENTS

1997 - Subsec. (f)(2). Pub. L. 105-85 substituted ''section

2667(h)'' for ''section 2667(g)''.

PRIOR PROVISIONS

A prior section 2490a was renumbered section 2783 of this title.

-CITE-

10 USC Sec. 2491 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

(Sec. 2491. Renumbered Sec. 2500)

-CITE-

10 USC Sec. 2492 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2492. Overseas commissary and exchange stores: access and

purchase restrictions

-STATUTE-

(a) General Authority. - (1) The Secretary of Defense may

establish restrictions on the ability of eligible patrons of

commissary and exchange stores located outside of the United States

to purchase certain merchandise items (or the quantity of certain

merchandise items) otherwise included within an authorized

merchandise category if the Secretary determines that such

restrictions are necessary to prevent the resale of such

merchandise in violation of treaty obligations of the United States

or host nation laws (to the extent such laws are not inconsistent

with United States laws).

(2) In establishing a quantity or other restriction, the

Secretary -

(A) may not discriminate among the various categories of

eligible patrons of the commissary and exchange system; and

(B) shall ensure that the restriction is consistent with the

purpose of the overseas commissary and exchange system to provide

reasonable access for eligible patrons to purchase merchandise

items made in the United States.

(b) Controlled Item Lists. - For each location outside the United

States that is served by the commissary system or the exchange

system, the Secretary of Defense may maintain a list of controlled

merchandise items, except that, after October 17, 1998, the

Secretary may not change the list to add a merchandise item unless,

before making the change, the Secretary submits to Congress a

notice of the proposed addition and the reasons for the addition of

the item.

(c) Notification of Conditions Necessitating Restrictions. - The

Secretary of Defense shall notify Congress of any change proposed

or made to any of the host nation laws or any of the treaty

obligations of the United States, and any changed conditions within

host nations, if the change would necessitate the use of quantity

or other restrictions on purchases in commissary and exchange

stores located outside the United States.

-SOURCE-

(Added Pub. L. 105-261, div. A, title III, Sec. 365(a), Oct. 17,

1998, 112 Stat. 1986; amended Pub. L. 106-65, div. A, title X,

Sec. 1066(a)(22), Oct. 5, 1999, 113 Stat. 771; Pub. L. 107-314,

div. A, title X, Sec. 1041(a)(15), Dec. 2, 2002, 116 Stat. 2645.)

-MISC1-

AMENDMENTS

2002 - Subsec. (c). Pub. L. 107-314 added subsec. (c) and struck

out heading and text of former subsec. (c). Text read as follows:

''The Secretary of Defense shall notify Congress of any change

proposed or made to any of the host nation laws or any of the

treaty obligations of the United States, and any changed conditions

within host nations, if the change would necessitate the use of

quantity or other restrictions on purchases in commissary and

exchange stores located outside the United States.''

1999 - Subsec. (b). Pub. L. 106-65 substituted ''October 17,

1998'' for ''the date of the enactment of this section''.

-CITE-

10 USC Sec. 2493 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2493. Fisher Houses: administration as nonappropriated fund

instrumentality

-STATUTE-

(a) Fisher Houses and Suites Defined. - In this section:

(1) The term ''Fisher House'' means a housing facility that -

(A) is located in proximity to a health care facility of the

Army, the Air Force, or the Navy;

(B) is available for residential use on a temporary basis by

patients of that health care facility, members of the families

of such patients, and others providing the equivalent of

familial support for such patients; and

(C) is constructed and donated by -

(i) the Zachary and Elizabeth M. Fisher Armed Services

Foundation; or

(ii) another source, if the Secretary of the military

department concerned designates the housing facility as a

Fisher House.

(2) The term ''Fisher Suite'' means one or more rooms that -

(A) meet the requirements of subparagraphs (A) and (B) of

paragraph (1);

(B) are constructed, altered, or repaired and donated by a

source described in subparagraph (C) of that paragraph; and

(C) are designated by the Secretary of the military

department concerned as a Fisher Suite.

(b) Nonappropriated Fund Instrumentality. - The Secretary of each

military department shall administer all Fisher Houses and Fisher

Suites associated with health care facilities of that military

department as a nonappropriated fund instrumentality of the United

States.

(c) Governance. - The Secretary of each military department shall

establish a system for the governance of the nonappropriated fund

instrumentality required by subsection (b) for that military

department.

(d) Central Fund. - The Secretary of each military department

shall establish a single fund as the source of funding for the

operation, maintenance, and improvement of all Fisher Houses and

Fisher Suites of the nonappropriated fund instrumentality required

by subsection (b) for that military department.

(e) Acceptance of Contributions; Imposition of Fees. - (1) The

Secretary of a military department may -

(A) accept money, property, and services donated for the

support of a Fisher House or Fisher Suite associated with health

care facilities of that military department; and

(B) may impose fees relating to the use of such Fisher Houses

and Fisher Suites.

(2) All monetary donations, and the proceeds of the disposal of

any other donated property, accepted by the Secretary of a military

department under this subsection shall be credited to the fund

established under subsection (d) for the Fisher Houses and Fisher

Suites associated with health care facilities of that military

department and shall be available to that Secretary to support all

such Fisher Houses and Fisher Suites.

(f) Base Operating Support. - The Secretary of a military

department may provide base operating support for Fisher Houses

associated with health care facilities of that military department.

(g) Annual Report. - Not later than January 15 of each year, the

Secretary of each military department shall submit to Congress a

report describing the operation of Fisher Houses and Fisher Suites

associated with health care facilities of that military

department. The report shall include, at a minimum, the following:

(1) The amount in the fund established by that Secretary under

subsection (d) as of October 1 of the previous year.

(2) The operation of the fund during the preceding fiscal year,

including -

(A) all gifts, fees, and interest credited to the fund; and

(B) all disbursements from the fund.

(3) The budget for the operation of the Fisher Houses and

Fisher Suites for the fiscal year in which the report is

submitted.

-SOURCE-

(Added Pub. L. 105-261, div. A, title IX, Sec. 906(a)(1), Oct. 17,

1998, 112 Stat. 2093; amended Pub. L. 106-398, Sec. 1 ((div. A),

title IX, Sec. 914(a)), Oct. 30, 2000, 114 Stat. 1654, 1654A-230;

Pub. L. 107-314, div. A, title III, Sec. 321, Dec. 2, 2002, 116

Stat. 2510.)

-MISC1-

AMENDMENTS

2002 - Subsec. (f). Pub. L. 107-314 amended heading and text of

subsec. (f) generally. Prior to amendment text read as follows:

''The Secretary of the Navy shall provide base operating support

for Fisher Houses associated with health care facilities of the

Navy. The level of the support shall be equivalent to the base

operating support that the Secretary provides for morale, welfare,

and recreation category B community activities (as defined in

regulations, prescribed by the Secretary, that govern morale,

welfare, and recreation activities associated with Navy

installations).''

2000 - Subsecs. (f), (g). Pub. L. 106-398 added subsec. (f) and

redesignated former subsec. (f) as (g).

EFFECTIVE DATE OF 2000 AMENDMENT

Pub. L. 106-398, Sec. 1 ((div. A), title IX, Sec. 914(c)(1)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-230, provided that: ''The

amendments made by subsection (a) (amending this section) shall be

effective as of October 17, 1998, as if included in section 2493 of

title 10, United States Code, as enacted by section 906(a) of

Public Law 105-261.''

SAVINGS PROVISIONS FOR CERTAIN NAVY EMPLOYEES

Pub. L. 106-398, Sec. 1 ((div. A), title IX, Sec. 914(b)), Oct.

30, 2000, 114 Stat. 1654, 1654A-230, provided that:

''(1) The Secretary of the Navy may continue to employ, and pay

out of appropriated funds, any employee of the Navy in the

competitive service who, as of October 17, 1998, was employed by

the Navy in a position at a Fisher House administered by the Navy,

but only for so long as the employee is continuously employed in

that position.

''(2) After a person vacates a position in which the person was

continued to be employed under the authority of paragraph (1), a

person employed in that position shall be employed as an employee

of a nonappropriated fund instrumentality of the United States and

may not be paid for services in that position out of appropriated

funds.

''(3) In this subsection:

''(A) The term 'Fisher House' has the meaning given the term in

section 2493(a)(1) of title 10, United States Code.

''(B) The term 'competitive service' has the meaning given the

term in section 2102 of title 5, United States Code.''

(Pub. L. 106-398, Sec. 1 ((div. A), title IX, Sec. 914(c)(2)),

Oct. 30, 2000, 114 Stat. 1654, 1654A-230, provided that:

''Subsection (b) (set out above) applies with respect to the pay

period that includes October 17, 1998, and subsequent pay

periods.'')

ESTABLISHMENT OF FUNDS AND FUNDING TRANSITION

Pub. L. 105-261, div. A, title IX, Sec. 906(b)-(e), Oct. 17,

1998, 112 Stat. 2095, provided that:

''(b) Establishment of Funds. - Not later than 90 days after the

date of the enactment of this Act (Oct. 17, 1998), the Secretary of

each military department shall -

''(1) establish the fund required under section 2493(d) of

title 10, United States Code (as added by subsection (a)); and

''(2) close the Fisher House Trust Fund established for that

department under section 2221 of such title and transfer the

amounts in the closed fund to the newly established fund.

''(c) Funding Transition. - (1) Of the amount authorized to be

appropriated pursuant to section 301(2) (112 Stat. 1960) for

operation and maintenance for the Navy, the Secretary of the Navy

shall transfer to the fund established by that Secretary under

section 2493(d) of title 10, United States Code (as added by

subsection (a)), such amount as that Secretary considers

appropriate for establishing in the fund a corpus sufficient for

operating Fisher Houses and Fisher Suites associated with health

care facilities of the Department of the Navy.

''(2) Of the amount authorized to be appropriated pursuant to

section 301(4) for operation and maintenance for the Air Force, the

Secretary of the Air Force shall transfer to the fund established

by that Secretary under section 2493(d) of title 10, United States

Code (as added by subsection (a)), such amount as that Secretary

considers appropriate for establishing in the fund a corpus

sufficient for operating Fisher Houses and Fisher Suites associated

with health care facilities of the Department of the Air Force.

''(d) Reporting Requirements. - The Secretary of each military

department, upon completing the actions required of the Secretary

under subsections (b) and (c), shall submit to Congress a report

containing -

''(1) the certification of that Secretary that those actions

have been completed; and

''(2) a statement of the amount deposited in the fund

established by that Secretary under section 2493(d) of title 10,

United States Code (as added by subsection (a)).

''(e) Availability of Transferred Amounts. - Amounts transferred

under subsection (b) or (c) to a fund established under section

2493(d) of title 10, United States Code (as added by subsection

(a)), shall be available without fiscal year limitation for the

purposes for which the fund is established and shall be

administered as nonappropriated funds.''

-CITE-

10 USC Sec. 2494 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 147 - COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE,

AND RECREATION ACTIVITIES

-HEAD-

Sec. 2494. Uniform funding and management of morale, welfare, and

recreation programs

-STATUTE-

(a) Authority for Uniform Funding and Management. - Under

regulations prescribed by the Secretary of Defense, funds

appropriated to the Department of Defense and available for morale,

welfare, and recreation programs may be treated as nonappropriated

funds and expended in accordance with laws applicable to the

expenditures of nonappropriated funds. When made available for

morale, welfare, and recreation programs under such regulations,

appropriated funds shall be considered to be nonappropriated funds

for all purposes and shall remain available until expended.

(b) Conditions on Availability. - Funds appropriated to the

Department of Defense may be made available to support a morale,

welfare, or recreation program only if the program is authorized to

receive appropriated fund support and only in the amounts the

program is authorized to receive.

(c) Conversion of Employment Positions. - (1) The Secretary of

Defense may identify positions of employees in morale, welfare, and

recreation programs within the Department of Defense who are paid

with appropriated funds whose status may be converted from the

status of an employee paid with appropriated funds to the status of

an employee of a nonappropriated fund instrumentality.

(2) The status of an employee in a position identified by the

Secretary under paragraph (1) may, with the consent of the

employee, be converted to the status of an employee of a

nonappropriated fund instrumentality. An employee who does not

consent to the conversion may not be removed from the position

because of the failure to provide such consent.

(3) The conversion of an employee from the status of an employee

paid by appropriated funds to the status of an employee of a

nonappropriated fund instrumentality shall be without a break in

service for the concerned employee. The conversion shall not

entitle an employee to severance pay, back pay or separation pay

under subchapter IX of chapter 55 of title 5, or be considered an

involuntary separation or other adverse personnel action entitling

an employee to any right or benefit under such title or any other

provision of law or regulation.

(4) In this subsection, the term ''an employee of a

nonappropriated fund instrumentality'' means an employee described

in section 2105(c) of title 5.

-SOURCE-

(Added Pub. L. 107-314, div. A, title III, Sec. 323(a), Dec. 2,

2002, 116 Stat. 2510.)

-CITE-