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10 USC CHAPTER 161 - PROPERTY RECORDS AND REPORT OF THEFT

OR LOSS OF CERTAIN PROPERTY 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 161 - PROPERTY RECORDS AND REPORT OF THEFT OR LOSS OF

CERTAIN PROPERTY

.

-HEAD-

CHAPTER 161 - PROPERTY RECORDS AND REPORT OF THEFT OR LOSS OF

CERTAIN PROPERTY

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Sec.

2721. Property records: maintenance on quantitative and monetary

basis.

2722. Theft or loss of ammunition, destructive devices, and

explosives: report to Secretary of the Treasury.

2723. Notice to congressional committees of certain security and

counterintelligence failures within defense programs.

AMENDMENTS

1999 - Pub. L. 106-65, div. A, title X, Sec. 1042(b), Oct. 5,

1999, 113 Stat. 760, added item 2723.

1991 - Pub. L. 102-190, div. A, title X, Sec. 1061(a)(17)(B),

Dec. 5, 1991, 105 Stat. 1473, substituted ''Property records:

maintenance on quantitative and monetary basis'' for ''Basis'' in

item 2721.

1990 - Pub. L. 101-510, div. A, title XIII, Sec. 1331(7), Nov.

5, 1990, 104 Stat. 1673, substituted ''Basis'' for ''Basis:

reports'' in item 2721.

1988 - Pub. L. 100-456, div. A, title III, Sec. 344(b)(1), Sept.

29, 1988, 102 Stat. 1962, inserted ''AND REPORT OF THEFT OR LOSS OF

CERTAIN PROPERTY'' in chapter heading and added item 2722.

1986 - Pub. L. 99-499, title II, Sec. 211(a)(3), Oct. 17, 1986,

100 Stat. 1725, redesignated item 2701 as item 2721.

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10 USC Sec. 2721 01/06/03

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TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 161 - PROPERTY RECORDS AND REPORT OF THEFT OR LOSS OF

CERTAIN PROPERTY

-HEAD-

Sec. 2721. Property records: maintenance on quantitative and

monetary basis

-STATUTE-

(a) Under regulations prescribed by him, the Secretary of Defense

shall have the records of the fixed property, installations, major

equipment items, and stored supplies of the military departments

maintained on both a quantitative and a monetary basis, so far as

practicable.

(b) The regulations prescribed pursuant to subsection (a) shall

include a requirement that the records maintained under such

subsection -

(1) to the extent practicable, provide up-to-date information

on all items in the inventory of the Department of Defense;

(2) indicate whether the inventory of each item is sufficient

or excessive in relation to the needs of the Department for that

item; and

(3) permit the Secretary of Defense to include in the budget

submitted to Congress under section 1105 of title 31 for each

fiscal year, information relating to -

(A) the amounts proposed for each appropriation account in

such budget for inventory purchases of the Department of

Defense; and

(B) the amounts obligated for such inventory purchases out of

the corresponding appropriations account for the preceding

fiscal year.

-SOURCE-

(Aug. 10, 1956, ch. 1041, 70A Stat. 152, Sec. 2701; renumbered Sec.

2721, Pub. L. 99-499, title II, Sec. 211(a)(1)(A), Oct. 17, 1986,

100 Stat. 1719; amended Pub. L. 101-510, div. A, title XIII, Sec.

1322(a)(12), Nov. 5, 1990, 104 Stat. 1671; Pub. L. 102-190, div.

A, title III, Sec. 347(b), title X, Sec. 1061(a)(17)(A), Dec. 5,

1991, 105 Stat. 1347, 1473.)

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Historical and Revision Notes

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

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

Large)

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

2701(a) 2701(b) 5:172i (less last July 26, 1947, ch.

sentence). 5:172i 343, Sec. 410;

(last sentence). added Aug. 10,

1949, ch. 412, Sec.

11(410), 63 Stat.

590.

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

In subsection (a), the words ''equipment'' and ''materials'' are

omitted, since the word ''supplies'', as defined in section 101(26)

of this title, includes equipment and materials. The word

''stored'' is substituted for the words ''held in store by the

armed services''.

In subsection (b), the words ''on property records maintained

under this section'' are substituted for the word ''thereon''.

AMENDMENTS

1991 - Pub. L. 102-190, Sec. 1061(a)(17)(A), substituted section

catchline for one which read ''Basis: reports''.

Pub. L. 102-190, Sec. 347(b), designated existing provisions as

subsec. (a) and added subsec. (b).

1990 - Pub. L. 101-510 struck out ''(a)'' before ''Under

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

''The Secretary shall report once a year to Congress and the

President on property records maintained under this section.''

IMPLEMENTATION OF 1991 AMENDMENT

Section 347(c) of Pub. L. 102-190 provided that: ''The Secretary

of Defense shall establish the uniform system of valuation

described in section 2458(a)(3) of title 10, United States Code (as

added by subsection (a)), and prescribe the regulations required by

section 2721(b) of such title (as added by subsection (b)), not

later than 180 days after the date of the enactment of this Act

(Dec. 5, 1991).''

INVENTORY INVESTIGATIONS

Section 343 of Pub. L. 100-456 provided that:

''(a) Undercover Investigations. - (1) Congress finds that the

use of undercover investigative techniques by the Department of

Defense enhances the ability of the Department of Defense to detect

and investigate theft of Government property (including munitions)

from the Department of Defense supply system.

''(2) The Secretary of Defense is urged to continue to conduct

undercover investigations to detect and investigate thefts referred

to in paragraph (1).

''(b) Inventory Security Incident Repository. - The Secretary of

Defense shall establish and maintain a centralized computer system

for recording and organizing information on theft, fraud, and

breach of security and incidents involving the loss of Department

of Defense supplies (including munitions).''

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10 USC Sec. 2722 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 161 - PROPERTY RECORDS AND REPORT OF THEFT OR LOSS OF

CERTAIN PROPERTY

-HEAD-

Sec. 2722. Theft or loss of ammunition, destructive devices, and

explosives: report to Secretary of the Treasury

-STATUTE-

(a) In General. - The Secretary of Defense shall report the theft

or other loss of any ammunition, destructive device, or explosive

material from the stocks of the Department of Defense to the

Secretary of the Treasury within 72 hours, if possible, after the

discovery of such theft or loss.

(b) Exclusion for Certain Items. - The Secretary of Defense may

exclude from the reporting requirement under subsection (a) any

item referred to in that subsection if -

(1) the Secretary determines that the item represents a low

risk of danger to the public and would be of minimal utility to

any person who may illegally receive such item; and

(2) the exclusion of such item is specified as being excluded

from the reporting requirement in a memorandum of agreement

between the Secretary of Defense and the Secretary of the

Treasury.

(c) Definitions. - In this section:

(1) The term ''explosive material'' means explosives, blasting

agents, and detonators.

(2) The terms ''destructive device'' and ''ammunition'' have

the meanings given those terms by paragraphs (4) and (17),

respectively, of section 921 of title 18.

-SOURCE-

(Added Pub. L. 100-456, div. A, title III, Sec. 344(a), Sept. 29,

1988, 102 Stat. 1961.)

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EFFECTIVE DATE

Section 344(c) of Pub. L. 100-456 provided that: ''The amendment

made by subsection (a) (enacting this section) shall take effect

with respect to thefts and losses discovered more than 180 days

after the date of the enactment of this Act (Sept. 29, 1988).''

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10 USC Sec. 2723 01/06/03

-EXPCITE-

TITLE 10 - ARMED FORCES

Subtitle A - General Military Law

PART IV - SERVICE, SUPPLY, AND PROCUREMENT

CHAPTER 161 - PROPERTY RECORDS AND REPORT OF THEFT OR LOSS OF

CERTAIN PROPERTY

-HEAD-

Sec. 2723. Notice to congressional committees of certain security

and counterintelligence failures within defense programs

-STATUTE-

(a) Required Notification. - The Secretary of Defense shall

submit to the Committees on Armed Services of the Senate and House

of Representatives a notification of each security or

counterintelligence failure or compromise of classified information

relating to any defense operation, system, or technology of the

United States that the Secretary considers likely to cause

significant harm or damage to the national security interests of

the United States. The Secretary shall consult with the Director of

Central Intelligence and the Director of the Federal Bureau of

Investigation, as appropriate, before submitting any such

notification.

(b) Manner of Notification. - Notification of a failure or

compromise of classified information under subsection (a) shall be

provided, in accordance with the procedures established pursuant to

subsection (c), not later than 30 days after the date on which the

Department of Defense determines that the failure or compromise has

taken place.

(c) Procedures. - The Secretary of Defense and the Committees on

Armed Services of the Senate and House of Representatives shall

each establish such procedures as may be necessary to protect from

unauthorized disclosure classified information, information

relating to intelligence sources and methods, and sensitive law

enforcement information that is submitted to those committees

pursuant to this section and that are otherwise necessary to carry

out the provisions of this section.

(d) Statutory Construction. - (1) Nothing in this section shall

be construed as authority to withhold any information from the

Committees on Armed Services of the Senate and House of

Representatives on the grounds that providing the information to

those committees would constitute the unauthorized disclosure of

classified information, information relating to intelligence

sources and methods, or sensitive law enforcement information.

(2) Nothing in this section shall be construed to modify or

supersede any other requirement to report information on

intelligence activities to the Congress, including the requirement

under section 501 of the National Security Act of 1947 (50 U.S.C.

413).

-SOURCE-

(Added Pub. L. 106-65, div. A, title X, Sec. 1042(a), Oct. 5,

1999, 113 Stat. 759.)

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