§2685 — Title 10 Armed Forces | U.S. Code

Summary

The Secretary of Defense can add a small price increase or extra charge to items sold in commissary stores to raise money. That money can only be used to buy, lease, build, change, expand, repair, maintain, or equip commissary stores and central product processing centers, and to pay for environmental studies and construction-related costs like surveys, planning, design, administration, and overhead. Physical infrastructure means land and buildings, utilities, and equipment (including computers) needed for a working store or processing center. With approval from the Director of the Office of Management and Budget, the Secretary may promise expected future surcharge money for those uses even if it crosses fiscal year limits. The Secretary may let a nonappropriated fund organization hire a contractor to build a mall or similar complex that includes a commissary, and then reimburse that organization or pay the contractor for the commissary part. Money from selling recyclables, excess property, license fees, royalties, and fees companies pay for favorable product display may also be used the same way.

Title 10, §2685

Armed Forces — Source: USLM XML via OLRC

(a)Notwithstanding any other provision of law, the Secretary of Defense may, for the purposes of this section, provide for an adjustment of, or surcharge on, sales prices of goods and services sold in commissary store facilities.

(b)(1)The Secretary of Defense may use the proceeds from the adjustments or surcharges authorized by subsection (a) only—

(A)to acquire (including acquisition by lease), construct, convert, expand, improve, repair, maintain, and equip the physical infrastructure of commissary stores and central product processing facilities of the defense commissary system; and

(B)to cover environmental evaluation and construction costs related to activities described in paragraph (1), including costs for surveys, administration, overhead, planning, and design.

(2)In paragraph (1), the term “physical infrastructure” includes real property, utilities, and equipment (installed and free standing and including computer equipment), necessary to provide a complete and usable commissary store or central product processing facility.

(c)The Secretary of Defense, with the approval of the Director of the Office of Management and Budget, may obligate anticipated proceeds from the adjustments or surcharges authorized by subsection (a) for any use specified in subsection (b) or (d), without regard to fiscal year limitations, if the Secretary determines that such obligation is necessary to carry out any use of such adjustments or surcharges specified in subsection (b) or (d).

(d)(1)The Secretary of Defense may authorize a nonappropriated fund instrumentality of the United States to enter into a contract for construction of a shopping mall or similar facility for a commissary store and one or more nonappropriated fund instrumentality activities. The Secretary may use the proceeds of adjustments or surcharges authorized by subsection (a) to reimburse the nonappropriated fund instrumentality for the portion of the cost of the contract that is attributable to construction of the commissary store or to pay the contractor directly for that portion of such cost.

(2)In paragraph (1), the term “construction”, with respect to a facility, includes acquisition, conversion, expansion, installation, or other improvement of the facility.

(e)Revenues received by the Secretary of Defense from the following sources or activities of commissary store facilities shall be available for the purposes set forth in subsections (b), (c), and (d):

(1)Sale of recyclable materials.

(2)Sale of excess and surplus property.

(3)License fees.

(4)Royalties.

(5)Fees paid by sources of products in order to obtain favorable display of the products for resale, known as business related management fees.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2000—Subsec. (a). Pub. L. 106–398, § 1 [[div. A], title III, § 333(b)(1)], substituted “Secretary of Defense” for “Secretary of a military department, under

Regulations

established by him and approved by the Secretary of Defense,”. Subsec. (b). Pub. L. 106–398, § 1 [[div. A], title III, § 333(a)], amended heading and text of subsec. (b) generally. Prior to amendment, text read as follows: “The Secretary of a military department, under

Regulations

established by him and approved by the Secretary of Defense, may use the proceeds from the adjustments or surcharges authorized by subsection (a) to acquire, construct, convert, expand, install, or otherwise improve commissary store facilities at defense installations and for related environmental evaluation and

Construction

costs, including surveys, administration, overhead, planning, and design.” Subsec. (c). Pub. L. 106–398, § 1 [[div. A], title III, § 333(b)(2)], substituted “Secretary of Defense, with the approval of” for “Secretary of a military department, with the approval of the Secretary of Defense and” and “Secretary determines” for “Secretary of the military department determines”. Subsec. (d)(1). Pub. L. 106–398, § 1 [[div. A], title III, § 333(b)(3)], substituted “Secretary of Defense” for “Secretary of a military department”. 1997—Subsecs. (a) to (d). Pub. L. 105–85, § 374(b), inserted subsec. headings. Subsec. (e). Pub. L. 105–85, § 374(a), added subsec. (e). 1994—Subsec. (c). Pub. L. 103–337, § 2851(b), inserted “or (d)” after “subsection (b)” in two places. Subsec. (d). Pub. L. 103–337, § 2851(a), added subsec. (d). 1982—Subsec. (c). Pub. L. 97–321 added subsec. (c). 1977—Subsec. (b). Pub. L. 95–82 struck out “within the United States” after “defense installations”.

Statutory Notes and Related Subsidiaries

Effective Date

of 2000 Amendment Pub. L. 106–398, § 1 [[div. A], title III, § 333(c)], Oct. 30, 2000, 114 Stat. 1654, 1654A–60, provided that: “The amendment made by subsection (a) [amending this section] shall take effect on October 1, 2001.”

§2685 Adjustment of or Surcharge on Selling Prices in Commissary Stores to Provide Funds for Construction and Improvement of Commissary Store Facilities

Summary

Title 10, §2685

Notes & Related Subsidiaries

Editorial Notes

Amendments

Regulations

Regulations

Construction

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata