10 U.S.C. § 2495 — 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- Page 1979 TITLE 10—ARMED FORCES § 2495b propriated by div. A of Pub. L. 109–148 were to be used for the support of any nonappropriated funds activity of the Department of Defense that procured malt bev- erages 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 were procured within that State, or in the case of the District of Co- lumbia, within the District of Columbia, in which the military installation was located, was from the Depart- ment of Defense Appropriations Act, 2006, and was re- peated in provisions of subsequent appropriations acts which are not set out in the Code. Similar provisions were contained in the following prior appropriations acts: Pub. L. 108–287, title VIII, § 8087, Aug. 5, 2004, 118 Stat. 991. Pub. L. 108–87, title VIII, § 8088, Sept. 30, 2003, 117 Stat. 1093. Pub. L. 107–248, title VIII, § 8092, Oct. 23, 2002, 116 Stat. 1558. Pub. L. 107–117, div. A, title VIII, § 8108, Jan. 10, 2002, 115 Stat. 2271. Pub. L. 106–259, title VIII, § 8108, Aug. 9, 2000, 114 Stat. 698. Pub. L. 106–79, title VIII, § 8132, Oct. 25, 1999, 113 Stat. 1266. Pub. L. 104–61, title VIII, § 8055, Dec. 1, 1995, 109 Stat. 662. Pub. L. 103–335, title VIII, § 8058A, Sept. 30, 1994, 108 Stat. 2632. Pub. L. 103–139, title VIII, § 8099A, Nov. 11, 1993, 107 Stat. 1462. Pub. L. 102–396, title IX, § 9114, Oct. 6, 1992, 106 Stat. 1929. Pub. L. 102–172, title VIII, § 8111A, Nov. 26, 1991, 105 Stat. 1200. Pub. L. 101–511, title VIII, § 8068, Nov. 5, 1990, 104 Stat. 1889. Pub. L. 101–165, title IX, § 9093, Nov. 21, 1989, 103 Stat. 1149. Pub. L. 100–463, title VIII, § 8122, Oct. 1, 1988, 102 Stat. 2270–40. Pub. L. 100–202, § 101(b) [title VIII, § 8081], Dec. 22, 1987, 101 Stat. 1329–43, 1329–76. Pub. L. 99–500, § 101(c) [title IX, § 9090], Oct. 18, 1986, 100 Stat. 1783–82, 1783–116, and Pub. L. 99–591, § 101(c) [title IX, § 9090], Oct. 30, 1986, 100 Stat. 3341–82, 3341–116. Pub. L. 99–190, § 101(b) [title VIII, § 8099], Dec. 19, 1985, 99 Stat. 1185, 1219. § 2495a. Overseas package stores: treatment of United States wines The Secretary of Defense shall ensure that each nonappropriated-fund activity engaged principally in selling alcoholic beverage prod- ucts in a packaged form (commonly referred to as a ‘‘package store’’) that is located at a mili- tary 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 equi- table distribution, selection, and price when compared with wines produced by the host na- tion. (Added Pub. L. 100–180, div. A, title III, § 311(a)(1), Dec. 4, 1987, 101 Stat. 1073, § 2489; re- numbered § 2495a, 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 2489 of this title as this section. Statutory Notes and Related Subsidiaries REGULATIONS DEADLINE Pub. L. 100–180, div. A, title III, § 311(b), Dec. 4, 1987, 101 Stat. 1073, directed Secretary of Defense to pre- scribe regulations to implement this section not later than 90 days after Dec. 4, 1987. § 2495b. Sale or rental of sexually explicit mate- rial prohibited (a) PROHIBITION OF SALE OR RENTAL.—The Sec- retary of Defense may not permit the sale or rental of sexually explicit material on property under the jurisdiction of the Department of De- fense. (b) PROHIBITION OF OFFICIALLY PROVIDED SEXU- ALLY 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, remunera- tion, or rental sexually explicit material to an- other person. (c) RESALE ACTIVITIES REVIEW BOARD.—(1) The Secretary of Defense shall establish a nine- member board to make recommendations to the Secretary regarding whether material sold or rented, or proposed for sale or rental, on prop- erty under the jurisdiction of the Department of Defense is barred from sale or rental by sub- section (a). (2)(A) The Secretary of Defense shall appoint six members of the board to broadly represent the interests of the patron base served by the de- fense commissary system and the exchange sys- tem. The Secretary shall appoint one of the members to serve as the chairman of the board. At least one member appointed under this sub- paragraph shall be a person with experience managing or advocating for military family pro- grams and who is also an eligible patron of the defense commissary system and the exchange system. (B) The Secretary of each of the military de- partments shall appoint one member of the board. (C) A vacancy on the board shall be filled in the same manner as the original appointment. (3) The Secretary of Defense may detail per- sons to serve as staff for the board. At a min- imum, the Secretary shall ensure that the board is assisted at meetings by military resale and legal advisors. (4) The recommendations made by the board under paragraph (1) shall be made available to the public. The Secretary of Defense shall pub- licize the availability of such recommendations by such means as the Secretary considers appro- priate. (5) Members of the board shall be allowed trav- el expense, including per diem in lieu of subsist- ence, at rates authorized for employees of agen- cies under subchapter I of chapter 57 of title 5 while away from their homes or regular places of business in the performance of services for the board. (d) REGULATIONS.—The Secretary of Defense shall prescribe regulations to implement this section. (e) DEFINITIONS.—In this section: (1) The term ‘‘sexually explicit material’’ means an audio recording, a film or video re-