Page:United States Statutes at Large Volume 99 Part 1.djvu/746

 99 STAT. 724

PUBLIC LAW 99-145—NOV. 8, 1985 ' SEC

1209. MORATORIUM ON FRANCHISE AGREEMENTS BY MILITARY EXCHANGE SERVICES

(a) IN GENERAL.—During the period beginning on the date of enactment of this Act and ending 30 days after the date Congress receives the report required by subsection (b), but no later than May 1, 1986, the Commanders of the Army and Air Force Exchange Service, the Navy Exchange Service, and the Marine Corps Exchange Service may not begin construction of any facility that— (1) is located on a military installation in the United States; (2) is to be used for the operation of a commercial franchise business; and (3) is not identified in a contract, supplemental agreement to a contract, a contract solicitation, or letter of intent agreed to before the date of the enactment of this Act. (b) REPORT REQUIREMENT.—(1) Not later than February 1, 1986, the Secretary of Defense shall transmit to Congress a report on current and proposed commercial franchise business operations on military installations. (2) The report required by paragraph (1) shall include the following: (A) A description of current and proposed plans of the exchange services referred to in subsection (a) to operate, or to authorize the operation of, commercial franchise businesses on military installations, specifying the franchises, installations, and types of services provided or to be provided under such plans. (B) An enumeration of any advantages to commencing or expanding commercial franchise business activities on military installations. (C) A description of the type and value of appropriated fund support (including Federal land and facilities) provided to activities of the exchange services referred to in subsection (a). (D) A description of review and approval procedures in effect for determining whether the exchange services will enter into new commercial business franchise activities or will expand existing commercial business franchise activities. (E) A description of the procedure for deciding whether services should be provided under contract or franchise or by using the resources of the exchange services. (F) A description of the process by which a military installation is selected for new or increased levels of activities of the exchange services. (G) A description of the consideration given to the impact that the addition of a new commercial business franchise activity or an expansion of an existing commercial business franchise activity of an exchange service at a military installation will have on private commercial business operations in the vicinity of the installation. (H) An estimate (after consultation with the Secretary of the Treasury) of— (i) the amount of tax revenues lost annually by State and local jurisdictions as the result of the operation of commercial franchise businesses on military installations in the United States; and (ii) the potential effect on State and local tax bases oi expansion of such businesses.

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