10 U.S.C. § 2494 — Nonappropriated fund instrumentalities:

Page 1978 TITLE 10—ARMED FORCES § 2494 priate for establishing in the fund a corpus sufficient for operating Fisher Houses and Fisher Suites associ- ated with health care facilities of the Department of the Navy. ‘‘(2) Of the amount authorized to be appropriated pur- suant 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 Sec- retary 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 avail- able without fiscal year limitation for the purposes for which the fund is established and shall be administered as nonappropriated funds.’’ § 2494. Nonappropriated fund instrumentalities: furnishing utility services for morale, wel- fare, and recreation purposes Appropriations for the Department of Defense may be used to provide utility services for— (1) buildings on military installations au- thorized by regulation to be used for morale, welfare, and recreation purposes; and (2) other morale, welfare, and recreation ac- tivities for members of the armed forces. (Added Pub. L. 108–375, div. A, title VI, § 651(c)(4), Oct. 28, 2004, 118 Stat. 1972.) Editorial Notes PRIOR PROVISIONS A prior section 2494 was renumbered section 2491 of this title. § 2495. Nonappropriated fund instrumentalities: purchase of alcoholic beverages (a) The Secretary of Defense shall provide that— (1) covered alcoholic beverage purchases made for resale on a military installation lo- cated 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 deliv- ery shall be accepted from, a source within the State in which the military installation con- cerned 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 installa- tion 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 in- curred by the nonappropriated fund instrumen- tality, such as overhead costs (including costs associated with management, logistics, adminis- tration, depreciation, and utilities), the costs of carrying inventory, and handling and distribu- tion costs. (2) The Secretary shall use the agencies per- forming audit functions on behalf of the armed forces and the Inspector General of the Depart- ment of Defense to make determinations under this subsection. (d) In this section: (1) The term ‘‘covered alcoholic beverage purchases’’ means purchases of alcoholic bev- erages by a nonappropriated fund instrumen- tality of the Department of Defense with non- appropriated funds. (2) The term ‘‘State’’ includes the District of Columbia. (Added Pub. L. 99–661, div. A, title III, § 313(a), Nov. 14, 1986, 100 Stat. 3853, § 2488; amended Pub. L. 100–180, div. A, title III, § 312(a), Dec. 4, 1987, 101 Stat. 1073; Pub. L. 104–106, div. A, title III, § 333, Feb. 10, 1996, 110 Stat. 261; Pub. L. 106–398, § 1 [[div. A], title III, § 335], Oct. 30, 2000, 114 Stat. 1654, 1654A–61; renumbered § 2495, Pub. L. 108–375, div. A, title VI, § 651(b)(2), (c)(5), Oct. 28, 2004, 118 Stat. 1971, 1972.) Editorial Notes AMENDMENTS 2004—Pub. L. 108–375 renumbered section 2488 of this title as this section. 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 dis- tilled spirits to direct or indirect State taxation, a non- appropriated fund instrumentality shall be considered to be the most economical method of distribution re- gardless of the results of the determination under para- graph (1).’’ 1996—Subsec. (a)(1). Pub. L. 104–106, § 333(a), inserted ‘‘and distributed in the most economical manner’’ after ‘‘most competitive source’’. Subsecs. (c), (d). Pub. L. 104–106, § 333(b), added subsec. (c) and redesignated former subsec. (c) as (d). 1987—Subsec. (a)(2). Pub. L. 100–180 struck out ‘‘pur- chased for resale on a military installation located in the contiguous States’’ after ‘‘malt beverages and wines’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1987 AMENDMENT Pub. L. 100–180, div. A, title III, § 312(b), Dec. 4, 1987, 101 Stat. 1073, 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. 109–148, div. A, title VIII, § 8080, Dec. 30, 2005, 119 Stat. 2717, which provided that none of the funds ap-