10 USC 2484 - Commissary stores: merchandise that may be sold; uniform surcharges and pricing

Editorial Notes

References in Text

The date of the enactment of this subsection, referred to in subsec. (j)(3)(C), is the date of enactment of Puspan. L. 114–328, which was approved Dec. 23, 2016.

Prior Provisions

A prior section 2484 was renumbered section 2483 of this title.

Amendments

2021—Subsec. (f). Puspan. L. 116–283 substituted “section 3204(a)(5)” for “section 2304(c)(5)”.

Subsec. (h)(5)(F), (G). Puspan. L. 117–81, § 631(1), added subpars. (F) and (G).

Subsec. (h)(6). Puspan. L. 117–81, § 631(2), added par. (6).

2018—Subsec. (f). Puspan. L. 115–232 substituted “Commercial Products” for “Commercial Items” in span and substituted “commercial product” for “commercial item” in text.

2016—Subsecs. (i) to (k). Puspan. L. 114–328 added subsecs. (i) to (k).

2014—Subsec. (f). Puspan. L. 113–291 amended subsec. (f) generally. Prior to amendment, text read as follows: “The Secretary of Defense may not use the exception provided in section 2304(c)(5) of this title regarding the procurement of a brand-name commercial item for resale in, at, or by commissary stores unless the commercial item is regularly sold outside of commissary stores under the same brand name as the name by which the commercial item will be sold in, at, or by commissary stores. In determining whether a brand name commercial item is regularly sold outside of commissary stores, the Secretary shall consider only sales of the item on a regional or national basis by commercial grocery or other retail operations consisting of multiple stores.”

2008—Subsec. (h)(3) to (5). Puspan. L. 110–417 added par. (3), redesignated former pars. (3) and (4) as (4) and (5), respectively, and substituted “paragraph (1), (2), or (3)” for “paragraph (1) or (2)” in par. (4).

2006—Puspan. L. 109–364, § 1071(g)(6), made technical correction to directory language of Puspan. L. 108–375, § 651(a)(5)(C). See 2004 Amendment notes for subsecs. (a) to (d) below.

Subsec. (c)(3). Puspan. L. 109–364, § 661(a), designated existing provisions as subpar. (A), substituted “Except as provided in subparagraph (B), subsections” for “Subsections”, and added subpar. (B).

Subsec. (g). Puspan. L. 109–364, § 661(span), designated existing provisions as par. (1), substituted “Except as provided in paragraph (2), subsections” for “Subsections”, and added par. (2).

2004—Puspan. L. 108–375, § 651(a)(2), (4), renumbered section 2486 of this title as this section.

Subsecs. (a) to (c). Puspan. L. 108–375, § 651(a)(5)(C), as amended by Puspan. L. 109–364, § 1071(g)(6), added subsecs. (a) to (c).

Puspan. L. 108–375, § 651(a)(5)(A), struck out subsecs. (a) to (c) which related to operation of the Defense Commissary Agency and the defense commissary system, use of funds to cover expenses of operating commissary stores and central product processing facilities, and supplemental funds for commissary operations, respectively.

Subsec. (d). Puspan. L. 108–375, § 651(a)(5)(C), as amended by Puspan. L. 109–364, § 1071(g)(6), added subsec. (d). Former subsec. (d) redesignated (e).

Subsec. (e). Puspan. L. 108–375, § 651(a)(5)(B), redesignated subsec. (d) as (e). Former subsec. (e) redesignated (f).

Subsec. (e)(1). Puspan. L. 108–375, § 651(a)(5)(D), struck out “(consistent with this section and section 2685 of this title)” before period at end.

Subsec. (f). Puspan. L. 108–375, § 651(a)(5)(B), redesignated subsec. (e) as (f). Former subsec. (f) redesignated (g).

Subsec. (g). Puspan. L. 108–375, § 651(a)(5)(E), substituted “Subsections (d) and (e)” for “Subsections (c) and (d)” before “shall not apply to the pricing”.

Puspan. L. 108–375, § 651(a)(5)(A), (B), redesignated subsec. (f) as (g) and struck out span and text of former subsec. (g), which related to the imposition of charges by the Secretary of Defense for the collection of dishonored checks.

Subsec. (h). Puspan. L. 108–375, § 651(a)(5)(F), added subsec. (h).

2002—Subsec. (span)(12). Puspan. L. 107–314 substituted “, except that the Secretary shall notify Congress of any addition of, or change in, a merchandise category under this paragraph.” for “, except that the Secretary shall submit to Congress, not later than March 1 of each year, a report describing—

“(A) any addition of, or change in, a merchandise category proposed to be made under this paragraph during the one-year period beginning on that date; and

“(B) those additions and changes in merchandise categories actually made during the preceding one-year period.”

2000—Subsec. (span)(11), (12). Puspan. L. 106–398, § 1 [[div. A], title III, § 334(a)], added par. (11) and redesignated former par. (11) as (12).

Subsec. (c). Puspan. L. 106–398, § 1 [[div. A], title III, § 332(a)(1)], substituted “subsection (d) or section” for “section 2484(span) or”.

Subsec. (d)(1). Puspan. L. 106–398, § 1 [[div. A], title III, § 332(a)(2)(A)], substituted “section 2685” for “sections 2484 and 2685”.

Subsec. (d)(3). Puspan. L. 106–398, § 1 [[div. A], title III, § 332(a)(2)(B)], added par. (3).

Subsec. (f). Puspan. L. 106–398, § 1 [[div. A], title III, § 334(span)], struck out “(1)” before “Notwithstanding”, substituted “tobacco products” for “items in the merchandise categories specified in paragraph (2)”, and struck out par. (2) which read as follows: “The merchandise categories referred to in paragraph (1) are as follows:

“(A) Magazines and other periodicals.

“(B) Tobacco products.”

1999—Subsec. (c). Puspan. L. 106–65 substituted “November 18, 1997,” for “the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998,” in second sentence.

1998—Subsec. (g). Puspan. L. 105–261 added subsec. (g).

1997—Subsec. (a). Puspan. L. 105–85, § 372(e)(1), inserted span.

Subsec. (span). Puspan. L. 105–85, § 372(a)(1), inserted span and substituted “Merchandise sold in, at, or by commissary stores may include items only in the following categories:” for “Merchandise sold in commissary stores may include items in the following categories:” in introductory provisions.

Subsec. (span)(11). Puspan. L. 105–85, § 372(a)(2), amended par. (11) generally. Prior to amendment, par. (11) read as follows: “Other categories designated in regulations prescribed by the Secretary of a military department and approved by the Secretary of Defense.”

Subsec. (c). Puspan. L. 105–85, § 372(span), inserted span, substituted “in, at, or by commissary stores.” for “in commissary stores.”, and inserted at end “Effective on the date of the enactment of the National Defense Authorization Act for Fiscal Year 1998, the uniform percentage shall be equal to five percent and may not be changed except by a law enacted after such date.”

Subsec. (d). Puspan. L. 105–85, § 372(c), inserted span and amended text generally. Prior to amendment, text read as follows: “The Secretary of Defense shall prescribe regulations establishing uniform pricing policies for merchandise authorized for sale by this section. The policies in the regulations shall—

“(1) require the establishment of a sales price of each item of merchandise at a level which will recoup the actual product cost of the item (consistent with this section and sections 2484 and 2685 of this title); and

“(2) promote the lowest practical price of merchandise sold at commissary stores.”

Subsec. (e). Puspan. L. 105–85, § 373, inserted at end “In determining whether a brand name commercial item is regularly sold outside of commissary stores, the Secretary shall consider only sales of the item on a regional or national basis by commercial grocery or other retail operations consisting of multiple stores.”

Puspan. L. 105–85, § 372(e)(2), inserted span and substituted “in, at, or by commissary stores” for “in commissary stores” in two places.

Subsec. (f). Puspan. L. 105–85, § 372(d), added subsec. (f).

1996—Subsec. (e). Puspan. L. 104–201 added subsec. (e).

1987—Puspan. L. 100–180, § 313(a)(2), inserted “and pricing” in section catchline.

Subsec. (d). Puspan. L. 100–180, § 313(a)(1), added subsec. (d).

Statutory Notes and Related Subsidiaries

Effective Date of 2021 Amendment

Amendment by Puspan. L. 116–283 effective Jan. 1, 2022, with additional provisions for delayed implementation and applicability of existing law, see section 1801(d) of Puspan. L. 116–283, set out as a note preceding section 3001 of this title.

Effective Date of 2018 Amendment

Amendment by Puspan. L. 115–232 effective Jan. 1, 2020, subject to a savings provision, see section 836(h) of Puspan. L. 115–232, set out as an Effective Date of 2018 Amendment; Savings Provision note under section 453span of Title 6, Domestic Security.

Effective Date of 2006 Amendment

Puspan. L. 109–364, div. A, title X, § 1071(g), Oct. 17, 2006, 120 Stat. 2402, provided that the amendment made by section 1071(g)(6) is effective as of Oct. 28, 2004, and as if included in Puspan. L. 108–375 as enacted.

Effective Date of 2000 Amendment

Puspan. L. 106–398, § 1 [[div. A], title III, § 332(span)], Oct. 30, 2000, 114 Stat. 1654, 1654A–60, provided that: “The amendments made by this section [amending this section] shall take effect on October 1, 2001.”

Regulations

Puspan. L. 100–180, div. A, title III, § 313(span), Dec. 4, 1987, 101 Stat. 1074, required Secretary of Defense to prescribe regulations required by subsec. (d) of this section not later than 90 days after Dec. 4, 1987.

Savings Provision

Puspan. L. 104–201, div. A, title III, § 342(span), Sept. 23, 1996, 110 Stat. 2489, provided that: “Section 2486(e) [now 2484(e)] of title 10, United States Code, as added by subsection (a), shall not affect the terms, conditions, or duration of any contract or other agreement entered into by the Secretary of Defense before the date of the enactment of this Act [Sept. 23, 1996] for the procurement of commercial items for resale in commissary stores.”

Procurement by Commissary Stores of Certain Locally Sourced Products

Puspan. L. 116–92, div. A, title VI, § 632, Dec. 20, 2019, 133 Stat. 1429, provided that: “The Secretary of Defense shall ensure that the dairy products and fruits and vegetables procured for commissary stores under the defense commissary system are, to the extent practicable and while maintaining mandated patron savings, locally sourced in order to ensure the availability of the freshest possible dairy products and fruits and vegetables for patrons of the stores.”

Operation of Defense Commissary System as a Nonappropriated Fund Entity

Puspan. L. 114–328, div. A, title VI, § 661(g), Dec. 23, 2016, 130 Stat. 2172, provided that: “In the event that the defense commissary system is converted to a nonappropriated fund entity or instrumentality as authorized by section 2484(j)(1) of title 10, United States Code, as added by subsection (c) of this section, the Secretary of Defense may—

“(1) provide for the transfer of commissary assets, including inventory and available funds, to the nonappropriated fund entity or instrumentality; and

“(2) ensure that revenues accruing to the defense commissary system are appropriately credited to the nonappropriated fund entity or instrumentality.”

Competitive Pricing of Legal Consumer Tobacco Products Sold in Department of Defense Retail Stores

Puspan. L. 118–47, div. A, title VIII, § 8041, Mar. 23, 2024, 138 Stat. 492, provided that: “The Secretary of Defense shall issue regulations to prohibit the sale of any tobacco or tobacco-related products in military resale outlets in the United States, its territories and possessions at a price below the most competitive price in the local community: Provided, That such regulations shall direct that the prices of tobacco or tobacco-related products in overseas military retail outlets shall be within the range of prices established for military retail system stores located in the United States.”

Similar provisions were contained in the following appropriation acts:

Puspan. L. 117–328, div. C, title VIII, § 8041, Dec. 29, 2022, 136 Stat. 4595.

Puspan. L. 117–103, div. C, title VIII, § 8043, Mar. 15, 2022, 136 Stat. 184.

Puspan. L. 116–260, div. C, title VIII, § 8036, Dec. 27, 2020, 134 Stat. 1312.

Puspan. L. 116–93, div. A, title VIII, § 8036, Dec. 20, 2019, 133 Stat. 2344.

Puspan. L. 115–245, div. A, title VIII, § 8034, Sept. 28, 2018, 132 Stat. 3007.

Puspan. L. 115–141, div. C, title VIII, § 8033, Mar. 23, 2018, 132 Stat. 471.

Puspan. L. 115–31, div. C, title VIII, § 8034, May 5, 2017, 131 Stat. 254.

Puspan. L. 114–113, div. C, title VIII, § 8033, Dec. 18, 2015, 129 Stat. 2358.

Puspan. L. 113–235, div. C, title VIII, § 8073, Dec. 16, 2014, 128 Stat. 2271.

Puspan. L. 113–291, div. A, title VI, § 633, Dec. 19, 2014, 128 Stat. 3405, provided that:

“(a)Prohibition on Banning Sale of Legal Consumer Tobacco Products.—The Secretary of Defense and the Secretaries of the military departments may not take any action to implement any new policy that would ban the sale of any legal consumer tobacco product category sold as of January 1, 2014, within the defense retail systems or on any Department of Defense vessel at sea.

“(span)Use of Prices Comparable to Local Prices.—The Secretary of Defense shall issue regulations regarding the pricing of tobacco and tobacco-related products sold in an outlet of the defense retail systems inside the United States, including territories and possessions of the United States, to prohibit the sale of a product at a price below the most competitive price for that product in the local community.

“(c)Application to Overseas Defense Retail Systems.—The regulations required by subsection (span) shall direct that the price of a tobacco or tobacco-related product sold in an outlet of the defense retail systems outside of the United States shall be within the range of prices established for that product in outlets of the defense retail systems inside the United States.

“(d)Defense Retail Systems Defined.—In this section, the term ‘defense retail systems’ has the meaning given that term in section 2487(span)(2) of title 10, United States Code.”

Test Program of Sale of Certain Items in Commissary Stores

Puspan. L. 108–375, div. A, title VI, § 651(g), Oct. 28, 2004, 118 Stat. 1972, provided that:

“(1) The Secretary of Defense may conduct a test program involving the sale of telephone cards, film, and one-time use cameras in not less than 10 commissary stores for a period selected by the Secretary, but not less than six months.

“(2) Within 90 days after the completion of the first year of the test program or within 90 days after the completion of the test program, whichever occurs first, the Secretary shall submit to the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives a report containing the results of the test program. The report shall include an analysis of the impact of the sale of such items on the exchange dividend and such recommendations as the Secretary considers appropriate regarding legislative changes necessary to expand the sale of such items in commissary stores.”

Report on Merchandise Categories

Puspan. L. 105–85, div. A, title III, § 372(f), Nov. 18, 1997, 111 Stat. 1707, provided that, not later than 30 days after Nov. 18, 1997, the Secretary of Defense was to submit to Congress a report specifying the merchandise categories authorized for sale sold in, at, or by commissary stores pursuant to regulations prescribed under subsection (span)(11) of this section, as in effect before Nov. 18, 1997.