TITLE 10 - US CODE - SUBCHAPTER III - MORALE, WELFARE, AND RECREATION PROGRAMS AND NONAPPROPRIATED FUND INSTRUMENTALITIES

10 USC 2491 - Uniform funding and management of morale, welfare, and recreation programs

(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.

10 USC 2491a - Department of Defense golf courses: limitation on use of appropriated funds

(a) Limitation.— 
Except as provided in subsection (b), funds appropriated to the Department of Defense may not be used to equip, operate, or maintain a golf course at a facility or installation of the Department of Defense.
(b) Exceptions.— 

(1) Subsection (a) does not apply to a golf course at a facility or installation outside the United States or at a facility or installation inside the United States at a location designated by the Secretary of Defense as a remote and isolated location.
(2) The Secretary of Defense shall prescribe regulations governing the use of appropriated funds under this subsection.

10 USC 2491b - Use of appropriated funds for operation of Armed Forces Recreation Center, Europe: limitation

(a) Limitation.— 
Except as provided in subsection (b), funds appropriated to the Department of Defense may not be used to operate the Armed Forces Recreation Center, Europe.
(b) Exception.— 
Subsection (a) does not apply to the use of funds for the payment of utilities, the maintenance, repair, or renovation of real property, and the transportation of products made in the United States.

10 USC 2491c - Retention of morale, welfare, and recreation funds by military installations: limitation

Amounts may not be retained in a nonappropriated morale, welfare, and recreation account of a military installation of an armed force in excess of the amount necessary to meet cash requirements of that installation. Amounts in excess of that amount shall be transferred to a single nonappropriated morale, welfare, and recreation account for that armed force. This section does not apply to the Coast Guard.

10 USC 2492 - Nonappropriated fund instrumentalities: contracts with other agencies and instrumentalities to provide and obtain goods and services

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.

10 USC 2493 - Fisher Houses: administration as nonappropriated fund instrumentality

(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.

10 USC 2494 - Nonappropriated fund instrumentalities: furnishing utility services for morale, welfare, and recreation purposes

Appropriations for the Department of Defense may be used to provide utility services for
(1) buildings on military installations authorized by regulation to be used for morale, welfare, and recreation purposes; and
(2) other morale, welfare, and recreation activities for members of the armed forces.

10 USC 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 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.

10 USC 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 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.

10 USC 2495b - Sale or rental of sexually explicit material prohibited

(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) 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 property under the jurisdiction of the Department of Defense is barred from sale or rental by subsection (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 defense commissary system and the exchange system. The Secretary shall appoint one of the members to serve as the chairman of the board. At least one member appointed under this subparagraph shall be a person with experience managing or advocating for military family programs and who is also an eligible patron of the defense commissary system and the exchange system.
(B) The Secretary of each of the military departments 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 persons to serve as staff for the board. At a minimum, 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 publicize the availability of such recommendations by such means as the Secretary considers appropriate.
(5) Members of the board shall be allowed travel expense, including per diem in lieu of subsistence, at rates authorized for employees of agencies 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 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.