
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document affected by Public Law 107-117 Section 8108]
[CITE: 10USC2488]

 
                         TITLE 10--ARMED FORCES
 
                    Subtitle A--General Military Law
 
                PART IV--SERVICE, SUPPLY, AND PROCUREMENT
 
 CHAPTER 147--COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND 
                          RECREATION ACTIVITIES
 
Sec. 2488. 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.

(Added Pub. L. 99-661, div. A, title III, Sec. 313(a), Nov. 14, 1986, 
100 Stat. 3853; amended Pub. L. 100-180, div. A, title III, Sec. 312(a), 
Dec. 4, 1987, 101 Stat. 1073; Pub. L. 104-106, div. A, title III, 
Sec. 333, Feb. 10, 1996, 110 Stat. 261; Pub. L. 106-398, Sec. 1 [[div. 
A], title III, Sec. 335], Oct. 30, 2000, 114 Stat. 1654, 1654A-61.)


                               Amendments

    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 distilled spirits to direct or indirect State taxation, a 
nonappropriated fund instrumentality shall be considered to be the most 
economical method of distribution regardless of the results of the 
determination under paragraph (1).''
    1996--Subsec. (a)(1). Pub. L. 104-106, Sec. 333(a), inserted ``and 
distributed in the most economical manner'' after ``most competitive 
source''.
    Subsecs. (c), (d). Pub. L. 104-106, Sec. 333(b), added subsec. (c) 
and redesignated former subsec. (c) as (d).
    1987--Subsec. (a)(2). Pub. L. 100-180 struck out ``purchased for 
resale on a military installation located in the contiguous States'' 
after ``malt beverages and wines''.


                    Effective Date of 1987 Amendment

    Section 312(b) of Pub. L. 100-180 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. 106-259, title VIII, Sec. 8108, Aug. 9, 2000, 114 Stat. 698, 
provided that: ``None of the funds appropriated by this Act [see Tables 
for classification] shall be used for the support of any nonappropriated 
funds activity of the Department of Defense that procures malt beverages 
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 are procured within 
that State, or in the case of the District of Columbia, within the 
District of Columbia, in which the military installation is located: 
Provided, That in a case in which the military installation is located 
in more than one State, purchases may be made in any State in which the 
installation is located: Provided further, That such local procurement 
requirements for malt beverages and wine shall apply to all alcoholic 
beverages only for military installations in States which are not 
contiguous with another State: Provided further, That alcoholic 
beverages other than wine and malt beverages, in contiguous States and 
the District of Columbia shall be procured from the most competitive 
source, price and other factors considered.''
    Similar provisions were contained in the following prior 
appropriation acts:
    Pub. L. 106-79, title VIII, Sec. 8132, Oct. 25, 1999, 113 Stat. 
1266.
    Pub. L. 104-61, title VIII, Sec. 8055, Dec. 1, 1995, 109 Stat. 662.
    Pub. L. 103-335, title VIII, Sec. 8058A, Sept. 30, 1994, 108 Stat. 
2632.
    Pub. L. 103-139, title VIII, Sec. 8099A, Nov. 11, 1993, 107 Stat. 
1462.
    Pub. L. 102-396, title IX, Sec. 9114, Oct. 6, 1992, 106 Stat. 1929.
    Pub. L. 102-172, title VIII, Sec. 8111A, Nov. 26, 1991, 105 Stat. 
1200.
    Pub. L. 101-511, title VIII, Sec. 8068, Nov. 5, 1990, 104 Stat. 
1889.
    Pub. L. 101-165, title IX, Sec. 9093, Nov. 21, 1989, 103 Stat. 1149.
    Pub. L. 100-463, title VIII, Sec. 8122, Oct. 1, 1988, 102 Stat. 
2270-40.
    Pub. L. 100-202, Sec. 101(b) [title VIII, Sec. 8081], Dec. 22, 1987, 
101 Stat. 1329-43, 1329-76.
    Pub. L. 99-500, Sec. 101(c) [title IX, Sec. 9090], Oct. 18, 1986, 
100 Stat. 1783-82, 1783-116, and Pub. L. 99-591, Sec. 101(c) [title IX, 
Sec. 9090], Oct. 30, 1986, 100 Stat. 3341-82, 3341-116.
    Pub. L. 99-190, Sec. 101(b) [title VIII, Sec. 8099], Dec. 19, 1985, 
99 Stat. 1185, 1219.
