Page:United States Statutes at Large Volume 106 Part 3.djvu/586

 106 STAT. 2380 PUBLIC LAW 102-484—OCT. 23, 1992 "(1) the purposes for which nonappropriated funds of a nonappropriated fund instrumentality of the United States within the Department of Defense may be expended; and "(2) the financial management of such funds to prevent waste, loss, or unauthorized use. "(b) PENALTIES FOR VIOLATIONS. —(1) A civilian employee of the Department of Defense who is paid from nonappropriated funds and who commits a substantial violation of the regulations prescribed under subsection (a) shall be subject to the same penalties as are provided by law for misuse of appropriations by a civilian employee of the Department of Defense paid from appropriated funds. The Secretary of Defense shall prescribe regulations to carry out this paragraph. "(2) The Secretary shall provide in regulations that a violation of the regulations prescribed under subsection (a) by a person subiect to chapter 47 of title 10, United States Code (the Uniform Code of Military Justice), is punishable as a violation of section 892 of such title (article 92 of the Uniform Code of Military Justice). "(c) NOTIFICATION OF VIOLATIONS.— (1) A civilian employee of the Department of Defense (whether paid from nonappropriated funds or from appropriated funds), and a member of the Armed Forces, whose duties include the obligation of nonappropriated funds, shall notify the Secretary of Defense of information which the person reasonably believes evidences— "(A) a violation by another person of any law, rule, or regulation regarding the management of such funds; or "(B) other mismanagement or gross waste of such funds. "(2) The Secretary of Defense shall designate civilian employees of the Department of Defense or members of the armed forces to receive a notification described in paragraph (1) and ensure the prompt investigation of the validity of information provided in the notification. "(3) The Secretary shall prescribe regulations to protect the confidentiality of a person making a notification under paragraph (1).". (b) CLERICAL AMENDMENT. — The table of sections at the beginning of such chapter is amended by adding at the end the following new item: "24908. Nonappropriated fund instrumentalities: financial management and use of nonappropriated funds.". 10 USE 2482 SEC. 363. DEMONSTRATION PROGRAM FOR THE OPERATION OF CER- NOTE. TAIN COMMISSARY STORES BY NONAPPROPRIATED FUND INSTRUMENTALITIES. (a) ESTABLISHMENT OF DEMONSTRATION PROGRAM.— (1) The Secretary of Defense shall establish a demonstration program to determine the feasibility of having nonappropriated fund instrumentalities operate commissary stores at military installations. (2) Under the program referred to in paragraph (1), the Secretary of Defense shalT select nonappropriated fund instrumentalities to operate commissary stores located at military installations selected by the Secretary under subsection (b). (b) SELECTION OF MILITARY INSTALLATIONS. —For participation in such program, the Secretary shall select not less than one nor more than three military installations in the United States, including at least one installation where National Guard personnel, other reserve component personnel, and their dependents comprise the

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