Sec. 904. Statutory streamlining to enable Defense Commissary Agency to become partially self-sustaining
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/bill/114/s/1118/is/section-904·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 2481 of title 10, United States Code, is amended— in subsection (a), by striking , at reduced prices, ; in subsection (b)— by inserting each before intended ; and by inserting and provide access to products for after life of ; and by striking subsection (d). Subsection
(a)of section 2482 of such title is amended— by inserting
(1)after ; establishment.— by redesignating paragraphs
(1)and
(2)as subparagraphs
(A)and (B), respectively; in subparagraph (A), as so redesignated, by inserting outside the United States after commissary store ; and by adding at the end the following new paragraph: The feasibility of cost recovery shall be the primary consideration whenever the Secretary of Defense— assesses the need to establish a commissary store in the United States; and selects the actual location for the store. . Paragraph
(1)of subsection
(c)of such section is amended by striking Whenever assessing and all that follows and inserting Whenever the Secretary of Defense is assessing whether to close a commissary store, the following shall be primary considerations in such assessment: The extent by which the operation of the commissary store is able to recover costs. The effect of the closure on the quality of life of members of the armed forces on active duty and their dependents who use the store and on the welfare and security of the military community in which the commissary is located. . Section 2483 of such title is amended to read as follows: Except as otherwise provided in this title, working capital funds established under section 2208 of this title shall be used to fund the operations and merchandise resale inventories of the defense commissary system. Those working capital funds shall be credited with such amounts as are appropriated for such purposes and with receipts described in subsections
(d)and (e). Working capital funds established under section 2208 of this title shall be used to finance operating expenses of the defense commissary system and the acquisition of merchandise resale inventories. Operating expenses of the defense commissary system include the following: Salaries and wages of employees of the United States, host nations, and contractors supporting commissary store operations. Utilities. Communications. Operating services. Advertising. Any cost associated with above-store-level management or other indirect support of a commissary store or a central product processing facility, including equipment maintenance and information technology costs. Appropriated funds may be used to pay any costs associated with the transportation of commissary goods and supplies to overseas areas, but only to the extent that the working capital fund for commissary operations is reimbursed for the payment of such costs. The sales prices in commissary stores worldwide shall be adjusted in an equal percentage to the extent necessary to provide sufficient gross revenues from such sales to make such reimbursements. The defense commissary system shall be managed with the objectives of attaining— uniform system-wide pricing; and a proportional allocation of funding sources for operating expenses. The Secretary of Defense shall seek to achieve the objective of attaining a proportional allocation of funding sources for operating expenses for the defense commissary system as follows: The Secretary shall prepare an estimation of the portion of the total operating expenses for the defense commissary system that are allocable to operations overseas and at commissaries within the United States that are designated by the Secretary for appropriated fund support. The portion of operating expenses estimated under subparagraph
(A)shall be programmed to be financed through annual appropriations for defense working capital funds. The estimation of the remaining portion of operating expenses for the defense commissary system shall be financed as described in paragraph
(3)and shall be used to establish prices for commissary merchandise and services consistent with the objective of attaining uniform system-wide pricing. The portion of operating expenses for the defense commissary system that are not financed from appropriations for defense working capital funds shall be financed from receipts from the following (and from the exercise of authority provided by section 2208 of this title): The sale of products. The sale of services. Prices established for resale merchandise shall include amounts sufficient to finance replenishment of inventories. . The item relating to such section in the table of sections at the beginning of subchapter I of chapter 147 of such title is amended to read as follows: 2483. Commissary stores: use of defense working capital funds to cover operating expenses and to finance resale inventories. . Section 2484 of such title is amended— by striking subsection (g); by redesignating subsection
(h)as subsection (g); by amending subsections
(a)through
(c)to read as follows: Commissary stores are intended to be similar to commercial supermarkets and, except for distilled spirits, may as described in regulations issued by the Secretary of Defense, sell all merchandise and provide services similar to the merchandise sold and the services provided in commercial supermarkets. A product or service may be sold in, at, or by a commissary store only if the product or service is commissary store inventory or is authorized for sale by a third party under an agreement or contract with the Defense Commissary Agency. The Secretary of Defense may apply an additional user fee for services provided to commissary customers on orders of merchandise sold in commissary stores by electronic or mobile commerce methods commonly used in the retail supermarket sector. Notwithstanding any other fee or surcharge imposed by this chapter a ten cent charge shall be imposed on each single use carryout bag provided to a customer. A single use carryout bag means a paper or plastic bag provided to a customer at the point of sale and intended for a single use for carrying tangible personal property purchased. A single use carryout bag shall not include bags used by customers inside stores, including those— for loose bulk items such as produce, nuts, candy, meat, or fish; for unwrapped prepared foods such as bakery goods; for flowers, potted plants or other items where dampness may be a problem; or to prevent damage to a good or contamination of other goods placed together in the same bag. The provision of subsection
(d)does not apply to the charge for single use carryout bags. No charge shall be assessed on a customer's own reusable carryout bag brought into the store and used to carry purchased items from the store. The proceeds from the charge for single use carryout bags shall be deposited to the defense working capital fund and used as provided in section 2483(d)(3) of this title. ; by amending subsection
(e)to read as follows: The Secretary of Defense shall establish the sales price of merchandise sold in, at, or by commissary stores in amounts sufficient to finance operating expenses as prescribed in section 2483(b) of this title and the replenishment of inventories. ; and in subsection (g), as redesignated by paragraph (2)— by striking in the title and inserting and after and the purchase of operating supplies ; maintenance in paragraph (1)(A)— by striking and at the end of clause (i); by striking the period at the end of clause
(ii)and inserting ; and ; and by adding at the end the following new clause: to purchase operating supplies for commissary stores. ; and in paragraph (2)(A)— by inserting the Defense Commissary Agency or after authorize ; and by inserting before the period at the end the following: or authorize the Defense Commissary Agency to be reimbursed by a nonappropriated fund instrumentality for the portion of the cost of the contract that is attributable to construction of a nonappropriated fund facility . Section 2485 of such title is amended— by striking subsection (d); by redesignating subsections (e), (f), (g), and
(h)as subsections (d), (e), (f), and (g), respectively; by amending subsection
(a)to read as follows: When patron savings can be improved, or operating costs reduced, the Secretary of Defense may contract with private persons to operate selected commissary store functions. The following functions may not be contracted for operation by a private person under paragraph (1): Functions relating to the procurement of products to be sold in a commissary store, except for a full or substantially full product line acquired for resale from a wholesaler, distributor, or similar vendor. Functions relating to the overall management of a commissary system or the management of a commissary store. Functions specified in paragraph
(2)shall be carried out by personnel of the Department of Defense under regulations approved by the Secretary of Defense. The Secretary of Defense may conduct a demonstration project in accordance with this section, in no more than two regions in the United States selected by the Secretary, for purpose of testing the viability of the Defense Commissary Agency using a contractor to order, receive, service, and manage the produce departments in military commissaries as part of a contract for produce items. All products covered by this project would be provided and owned by the contractor until such time as the product is sold. As part of the demonstration project under paragraph (4), the Secretary of Defense may conduct a competition in which there is a provision in contract solicitations and request for proposal documents to— obtain a reliable, effective contractor provided workforce, in lieu of Government employees, to order, receive, service and manage a commissary produce department; and for a base period of not less than two years, with a further provision for not more than three one-year option periods. The Secretary shall evaluate the demonstration project for the following: The costs and benefits of including contractor provided labor in the cost of goods sold. The program's potential as a revenue generating activity to offset commissary operating costs, while maximizing patron savings. Improvement in the quality of produce provided. Customer satisfaction with the demonstration project. Not later than two years after implementation of the demonstration project begins, the Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a report on the demonstration project. The report shall contain— the evaluation required by paragraph (6); and recommendations on whether permanent authority should be provided to use contractor provided labor to operate military commissary produce departments. If the Secretary recommends in the report under paragraph
(7)that permanent authority should be provided, the Secretary may continue the demonstration project for up to three years after submitting the report. In paragraph (4), the term ‘region’ means the geographical area of the United States currently served by a Defense Commissary Agency produce supplier. ; and in subsection (b)— by striking
(1)before The Defense ; by inserting goods or after provide or obtain ; by striking service provided by the United States Transportation Command and inserting good or service provided by any entity of the United States in ; and by striking paragraph (2). Sections 2488 and 2685 of such title are repealed. The table of sections at the beginning of subchapter II of chapter 147 of such title is amended by striking the item relating to section 2488. The table of sections at the beginning of chapter 159 of such title is amended by striking the item relating to section 2685. Subsection (d)(1) of section 2495 of such title is amended by inserting before the period the following: and purchases of beer and wine by the Defense Commissary Agency with funds from the defense working capital resale stock fund . The heading of such section is amended to read as follows: . The item relating to such section in the table of sections at the beginning of subchapter III of chapter 147 of such title is amended to read as follows: 2495. Defense retail system: purchase of alcoholic beverages. . Section 2495a of such title is amended— by striking nonappropriated fund and inserting defense retail ; and by inserting , and each commissary store located outside the United States that sells wine, after outside the United States . The heading of such section is amended to read as follows: . The item relating to such section in the table of sections at the beginning of subchapter III of chapter 147 of such title is amended to read as follows: 2495a. Overseas package stores and commissaries: treatment of United States wines. . Section 2533a(g) of such title is amended by inserting before the period the following: , or for the operating supplies necessary to complete the resale of such items so purchased . Section 2643(b) of such title is amended by striking the first sentence and inserting Defense working capital funds may be used to cover the transportation costs of commissary supplies and products as provided in Section 2483(c) of this title. . Section 2682(a) of such title is amended by adding at the end the following new sentence: However, any maintenance and repair project for a commissary store or a commissary central product processing facility may be accomplished under the direction and supervision of the Director of the Defense Commissary Agency. . Section 2851(b) of such title is amended by adding at the end the following new sentence: However, a project for the construction of a commissary store, a commissary central product processing facility, or a shopping mall or similar facility for a commissary store and one or more nonappropriated fund instrumentality activities authorized under section 2484(g) of this title may be accomplished under the direction and supervision of the Director of the Defense Commissary Agency. . Section 6702(b) of title 41, United States Code, is amended by adding at the end the following new paragraph: A contract with an entity of the defense retail systems, the principal purpose of which is the sale of goods or services to authorized beneficiaries. The term defense retail systems means the defense commissary system and exchange stores system and other revenue-generating facilities operated by nonappropriated fund instrumentalities of the Department of Defense for the morale, welfare, and recreation of members of the armed forces. .