U.S. Code » Title 10 » Subtitle Subtitle A— General Military Law › Part PART IV— SERVICE, SUPPLY, AND PROPERTY › Chapter CHAPTER 147— COMMISSARIES AND EXCHANGES AND OTHER MORALE, WELFARE, AND RECREATION ACTIVITIES › Subchapter SUBCHAPTER II— RELATIONSHIP, CONTINUATION, AND COMMON POLICIES OF DEFENSE COMMISSARY AND EXCHANGE SYSTEMS

10 U.S.C. § 2488

Combined exchange and commissary stores

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(a)Authority.—The Secretary of Defense may authorize a nonappropriated fund instrumentality to operate a military exchange and a commissary store as a combined exchange and commissary store on a military installation.(b)Limitations.—(1) Not more than ten combined exchange and commissary stores may be operated pursuant to this section.(2) The Secretary may select a military installation for the operation of a combined exchange and commissary store under this section only if—(A) the installation is to be closed, or has been or is to be realigned, under a base closure law; or(B) a military exchange and a commissary store are operated at the installation by separate entities at the time of, or immediately before, such selection and it is not economically feasible to continue that separate operation.(c)Operation at Carswell Field.—Combined exchange and commissary stores operated under this section shall include the combined exchange and commissary store that is operated at the Naval Air Station Fort Worth, Joint Reserve Center, Carswell Field, Texas, under the authority provided in section 375 of the National Defense Authorization Act for Fiscal Year 1995 (Public Law 103–337; 108 Stat. 2736).(d)Adjustments and Surcharges.—Adjustments to, and surcharges on, the sales price of a grocery food item sold in a combined exchange and commissary store under this section shall be provided for in accordance with the same laws that govern such adjustments and surcharges for items sold in a commissary store of the Defense Commissary Agency.(e)Use of Appropriated Funds.—(1) If a nonappropriated fund instrumentality incurs a loss in operating a combined exchange and commissary store at a military installation under this section as a result of the requirement set forth in subsection (d), the Secretary may authorize a transfer of funds available for the Defense Commissary Agency to the nonappropriated fund instrumentality to offset the loss.(2) The total amount of appropriated funds transferred during a fiscal year to support the operation of a combined exchange and commissary store at a military installation under this section may not exceed an amount that is equal to 25 percent of the amount of appropriated funds that was provided for the operation of the commissary store of the Defense Commissary Agency on that installation during the last full fiscal year of operation of that commissary store.(f)Nonappropriated Fund Instrumentality Defined.—In this section, the term “nonappropriated fund instrumentality” means the Army and Air Force Exchange Service, Navy Exchange Service Command, Marine Corps exchanges, or any other instrumentality of the United States under the jurisdiction of the armed forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of members of the armed forces.(Added Pub. L. 104–106, div. A, title III, § 336(a)(1), Feb. 10, 1996, 110 Stat. 263, § 2490a; amended Pub. L. 105–85, div. A, title X, § 1061(d), Nov. 18, 1997, 111 Stat. 1891; Pub. L. 108–136, div. A, title X, § 1043(c)(2), Nov. 24, 2003, 117 Stat. 1611; renumbered § 2488, Pub. L. 108–375, div. A, title VI, § 651(b)(3), Oct. 28, 2004, 118 Stat. 1971; Pub. L. 111–383, div. A, title X, § 1075(b)(37), Jan. 7, 2011, 124 Stat. 4371.)Editorial NotesReferences in Text

Section 375 of the National Defense Authorization Act for Fiscal Year 1995, referred to in subsec. (c), is section 375 of Pub. L. 103–337, div. A, title III, Oct. 5, 1994, 108 Stat. 2736, as amended, which is not classified to the Code.

Prior Provisions

A prior section 2488 was renumbered section 2495 of this title.

Amendments

2011—Subsec. (f). Pub. L. 111–383 substituted “armed forces” for “Armed Forces” in two places.

2004—Pub. L. 108–375 renumbered section 2490a of this title as this section.

2003—Subsec. (f). Pub. L. 108–136, § 1043(c)(2), substituted “Nonappropriated Fund Instrumentality Defined.—In this section, the term” for “Definitions.—In this section:

“(1) The term”

and struck out par. (2) which read as follows: “The term ‘base closure law’ has the meaning given such term by section 2667(h) of this title.”

1997—Subsec. (f)(2). Pub. L. 105–85 substituted “section 2667(h)” for “section 2667(g)”.

Notes of Decisions
Cited in 10 cases (1 in the last 5 years), 1987–2026 · leading case: North Dakota v. United States, 495 U.S. 423 (1990).
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North Dakota v. United States, 495 U.S. 423 (1990). · cites it 6× “3853 , 10 U. S. C. § 2488 (a). [1] In accordance with this statute, the DoD has developed a joint-military purchasing program to buy liquor in bulk directly from the Nation's primary distributors who offer the lowest possible prices.”
Slattery v. United States, 635 F.3d 1298 (Fed. Cir. 2011). · cites it 2× “" This term is defined as operations "for the comfort, pleasure, contentment, or physical or mental improvement of members of the Armed Forces," 10 U.S.C. § 2488 (f). See Paul J. Kovar, Legal Aspects of Nonappropriated Fund Activities, 1 Mil.”
United States v. State of North Dakota, Robert E. Hanson, State Treasurer of North Dakota, 856 F.2d 1107 (8th Cir. 1988). · cites it 3× “” 10 U.S.C. § 2488 (a)(1). 7 In enacting this legislation, Congress considered, but rejected, a requirement that the military procure all its liquor from sources within the state where the installation on which the liquor is to be sold is located.”
Ransom v. United States, 668 F. App'x 169 (7th Cir. 2016). “See 10 U.S.C. § 2488 (a), (f); DOD Instruction 1330.”
West River Elec. Ass'n v. Black Hills Power & Light Co., 918 F.2d 713 (8th Cir. 1990). “3853 , 10 U.S.C. § 2488 (a). This decision is distinguishable from the instant case in at least two respects: (1) Although the regulations indirectly affect the federal government’s liquor costs, they do not regulate the federal government directly, since they operate only…”
United States v. North Dakota, 675 F. Supp. 555 (D.N.D. 1987). “” 10 U.S.C. § 2488 (1987). The State has promulgated administrative regulations applicable to the sale and distribution of alcoholic beverages.”
Brownlee (N.D. Ill. 2026). · cites it 3× “See 10 U.S.C. § 2488 . As defined in the pertinent statute, NAFI means an “instrumentality of the United States under the jurisdiction of the armed forces which is conducted for the comfort, pleasure, contentment, or physical or mental improvement of members of the armed forces.”
United States v. State of ND, 675 F. Supp. 555 (D.N.D. 1987). “" 10 U.S.C. § 2488 (1987). The State has promulgated administrative regulations applicable to the sale and distribution of alcoholic beverages.”
Marcia Ransom v. United States (7th Cir. 2016). “See 10 U.S.C. § 2488 (a), (f); DOD Instruction 1330.”
Slattery v. United States (Fed. Cir. 2011). “” This term is defined as operations “for the comfort, pleasure, contentment, or physical or mental improvement of members of the Armed Forces,” 10 U.S.C. §2488 (f). See Paul J. Kovar, Legal Aspects of Nonappro- priated Fund Activities, 1 Mil.”
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