Page:United States Statutes at Large Volume 120.djvu/2294

 PUBLIC LAW 109–364—OCT. 17, 2006

120 STAT. 2263

SEC. 662. LIMITATIONS ON LEASE OF NON-EXCESS DEPARTMENT OF DEFENSE PROPERTY FOR PROTECTION OF MORALE, WELFARE, AND RECREATION ACTIVITIES AND REVENUE.

(a) ADDITIONAL CONDITION ON USE OF LEASE AUTHORITY.— Subsection (b) section 2667 of title 10, United States Code, is amended— (1) in paragraph (4), by striking ‘‘and’’ at the end; (2) in paragraph (5), by striking the period and inserting ‘‘; and’’; and (3) by adding at the end the following new paragraph: ‘‘(6) except as otherwise provided in subsection (d), shall require the lessee to provide the covered entities specified in paragraph (1) of that subsection the right to establish and operate a community support facility or provide community support services, or seek equitable compensation for morale, welfare, and recreation programs of the Department of Defense in lieu of the operation of such a facility or the provision of such services, if the Secretary determines that the lessee will provide merchandise or services in direct competition with covered entities through the lease.’’. (b) APPLICATION OF CONDITION; WAIVER.—Such section is further amended— (1) by redesignating subsections (d) through (i) as subsections (e) through (j), respectively; and (2) by inserting after subsection (c) the following new subsection (d): ‘‘(d) COMMUNITY SUPPORT FACILITIES AND COMMUNITY SUPPORT SERVICES UNDER LEASE; WAIVER.—(1) In this subsection and subsection (b)(6), the term ‘covered entity’ means each of the following: ‘‘(A) The Army and Air Force Exchange Service. ‘‘(B) The Navy Exchange Service Command. ‘‘(C) The Marine Corps exchanges. ‘‘(D) The Defense Commissary Agency. ‘‘(E) The revenue-generating nonappropriated fund activities of the Department of Defense conducted for the morale, welfare, and recreation of members of the armed forces. ‘‘(2) The Secretary of a military department may waive the requirement in subsection (b)(6) with respect to a lease if— ‘‘(A) the lease is entered into under subsection (g); or ‘‘(B) the Secretary determines that the waiver is in the best interests of the Government. ‘‘(3) The Secretary of the military department concerned shall provide to the congressional defense committees written notice of each waiver under paragraph (2), including the reasons for the waiver. ‘‘(4) The covered entities shall exercise the right provided in subsection (b)(6) with respect to a lease, if at all, not later than 90 days after receiving notice from the Secretary of the military department concerned regarding the opportunity to exercise such right with respect to the lease. The Secretary may, at the discretion of the Secretary, extend the period under this paragraph for the exercise of the right with respect to a lease for such additional period as the Secretary considers appropriate. ‘‘(5) The Secretary of Defense shall prescribe in regulations uniform procedures and criteria for the evaluation of proposals

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